Diversified/Tilted Portfolio using Vanguard index funds

[donkalicious]

You might be interested in the "Vanguard Diehards" (aka Bogleheads) website that contains a great deal of very thoughtful discussion of asset allocation using Vanguard and other index funds. Site is: http://www.diehards.org/forum/viewforum.php?f=1

[Mano]

[ QUOTE ]


20% US large cap (Vanguard Large-Cap Index Fund)
20% US large cap value (Vanguard Value Index Fund)
10% US small cap(Vanguard Small-Cap Index Fund)
10% US small cap value(Vanguard Small-Cap Value Index Fund)
10% US real estate stocks (Vanguard REIT Index Fund)
20% International stocks (Vanguard Total International Stock Index Fund)
10% Emerging markets stocks (Vanguard Emerging Markets Stock Index)


This will just be a general investment. This is not going to be in a Roth IRA. I am fully invested in Vanguard's Target retirement 2040 until I have enough to diversify. I also have a 403(b) through my employer.

Thanks in advance. Any thoughts will be appreciated.

Farzad

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I have a similar mix, and I am thinking of moving the REIT into an IRA account, and making the following exchanges:

Vanguard 500 Index ---> Vanguard Tax Managed Growth
Vanguard Small Cap Index ----> Vanguard Tax-Managed Small Cap Index
Vanguard Developed Markets Index ----> Vanguard Tax-Managed International

Would this be a wise move for tax efficiency?

[gull]

Your portfolio looks great. There are probably ways you can tweak it in order to improve it, but don't fall into the trap of inaction - the most important thing is to get the money invested. Optimizing for a 1% reduction in volatility should be a secondary priority.