Investing | 3 fund portfolio | Vanguard fund questions
Lets say one wants to put 60K in this market. Inorder to keep the risk profile conservative, should one invest 20K in each - 1] Vanguard Total Stock Market Index Fund (VTSAX) 2] Vanguard Total International Stock Index Fund (VTIAX) 3] Vanguard Total Bond Market Fund (VBTLX) and follow the vanguard three fund portfolio? OR given the market going down, should one invest more in a fund and less in another? Thank you. #vanguard
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xOYo40 Mar 17, 2020I DCA everything. Especially with large investments. Just personally. So regardless of what you choose I wouldn't just dump.
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Just put it all in one target retirement fund. Otherwise you have to manually rebalance
So , just use VTSAX and VTI, and put money in little by little ?
Vtsax and Vti will have a high correlation. Something like Vffvx (2055 target) is what I park most of my net worth in. Let the algorithms do the heavy lifting of rebalancing each year. Dollar cost averaging is a good idea for psycological safety. Contribute every paycheck so you’re not in a position again where you’re sitting on so much undeployed capital and don’t know what to do with it. 6 months of living expenses in cash is enough.