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Not a matter of being retarded. Who is that Balanced Fund balanced to suit, a 20 year old, 40 year old or a retired person and all individuals have a different risk value. Vanguard does spend several hours discussing you individual situation, needs, risk tolerance and time horizons. It's all important and tailored for a specific person.
The real alternative are the Date Balanced Funds, but it still is a general category and not tailored to individual needs.
With their personal advisor service, they spent probably 8 hours with us over the course of a month or so, plus a bunch of time off-line reviewing my line item portfolio assets that currently are scattered around, and we filled out a dozen questionnaires designed to elicit our risk tolerance, time horizons, and our individual situation. They did this all on spec to try to get my business. They showed me the results of the initial portfolio, together with exactly which line items they would sell to fund the things they propose to buy.
Their analysis is thoughtful; I just didn't want to bite off incurring a big-ass cap gain. Although my wife & I are planning for another 30 years of life, the reality is our portfolio vastly exceeds our needs given our spending habits. Yeah, I know; I've got a real First World problem. So, most of my portfolio is in effect invested on behalf of our beneficiaries who will not be drawing upon it for a very long time. They will get the step-up in basis when we pass.
I'm not sure there is a need for your childish reaction, most investors won't review asset allocation and rebalance, thus the 30 bps may be more than worth it
Vbinx might not meet said investors investment objects and it cost 23 bps so don't get carried away with you comparision
You absolutely don't know what you're talking about. A 3rd grader can rebalance. Might seem difficult to you, but for the vast majority of us, rebalancing is an easy task. Elementary math for clear heads.
You absolutely don't know what you're talking about. A 3rd grader can rebalance. Might seem difficult to you, but for the vast majority of us, rebalancing is an easy task. Elementary math for clear heads.
Your claim that I don't know what I'm talking about is complelty unfounded and shows your lack of understanding. Most people won't rebalance no matter how easy you claim it is, they don't do it. I have seen and worked with thousands of clients and what you think happens does not. How many clients have you worked with? I can look at billions in assets and see performance numbers by individual , age group or other demographic and from there I can look at activity or lack there of, how much of this data do you have to look at real time? How often do you study things like this? That's right you don't have access to real time data and you don't study it but pretend to be an expert.
Big Bucks...I would have to go with Low on this one. The majority of individual investors do not rebalance their portfolio's no matter how simple. Clients of advisors leave it up to the advisor and mostly they are set up on semi annual basis or a percentage basis done semi annual although a lot of portfolio's are set up on an annual basis.
Vanguard in the past few years has been looking for ways to increase revenue stream and offer more services to investors to avoid any client run-off needing a little more hand holding. In all reality most investors could simple buy a balanced or target date fund and rebalancing is automatic anyway.
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So, most of my portfolio is in effect invested on behalf of our beneficiaries who will not be drawing upon it for a very long time. They will get the step-up in basis when we pass.
