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May 29, 2008


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IIRC, this sounds very similar to Vanguard's Total Retirement funds

Looks like the same idea as the 'lazy portfolios':

They have a 3 fund portfolio named 'Margaritaville Portfolio'. Its made of 33% each of Vanguard Inflation-Protected Securities, Vanguard Total International Stock Index VGTSX and Vanguard Total Stock Market Index.


If you sub the VG total international stock for the Vanguard FTSE index you also get exposure to Canada and can take advantage of the foreign tax credit.

Question - I am new to investing and plan to start slowly accumulating a next egg to put into index funds (this is our next level of savings now that we max out the 401ks). I just looked into Vanguard funds and it seems that all of their index funds require $3000 min. investment to get started. Meaning that I would need to have at least $9000 initially to buy into the 3 funds above, adn even more to get to that portfolio ratio. Am I correct on this? Is there a way to buy into index funds (preferabily vanguard) with small amounts, i.e. a few hundred $$?

those three only really hit 5 asset categories, and it is mostly large, not enough small.

You need more small for good asset diversification.


While I've read that T Rowe Price (and a few others) have lower minimums if you set up regular purchases, I would still go with Vanguard. I would suggest opening an account containing the Total Int'l Stock Index, then add the other funds when you are able to. If I could only have one mutual fund, this would be it, I started a few of my friends with this one fund and it has worked well for them.


I believe the Total Stock Market and Total International Stock funds contain a mix of small, medium and large companies.

Amy -


As I understand it, if you don't meet the minumums, you usually just pay a small annual fee ($10 per fund).


Another option is buying the ETF versions of these funds, which have no minimums.

VTI - Vanguard Total Stock Market
VEU - Vanguard FTSE All-World ex-US
BND - Vanguard Total Bond Market

There will be brokerage fees on these, as if you were trading a stock. So you would have to weigh that vs. fees for not meeting the minimum on the mutual funds.

Is this still the diversification ratio you maintain for your fund investments? Are these still the funds you are investing in?

Matt --

I'm in the process of rebalancing my funds, but this is pretty close to what I'm using. For even more details, check out this post:

be far better off just owning..
VWELX for Growth
VWINX for Conservative & Post Retirement

Main reason to Use Bal funds? They take the #1 worse enemy & dummy running the port out of the equation..
This is the #1 cause for Portfolio's to fail..

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