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Last post @Bobpa posted on MFO was back in June 2022. https://mutualfundobserver.com/discuss/discussion/comment/151173/#Comment_151173 In this post, he talked about his portfolio and holdings where VWINX is one of the larger allocation fund. Bobpa is in his retirement and he is looking for a replacement for some reason that he did not specify on this post. Since everyone’s situation is unique with respect to withdrawal needs., RMD, and investment horizon, the question is more on financial planning rather than a “drop-in” replacement with a different asset allocation fund.
Covering 11 years of total returns, there is not much different in the 3 you noted. Yes, they will travel slightly different paths during a 6 month or 1 year time frame, but this is the nature of management investment choices and market valuations during such periods. The largest spread over the entire time frame is 5.3% more return for WBALX vs VWINX. As noted previous; have you a serious reason to desire changing funds ?
VWINX , INPFX , and WBALX chart from May 18, 2012 to May 5, 2023.
Last post @Bobpa posted on MFO was back in June 2022. https://mutualfundobserver.com/discuss/discussion/comment/151173/#Comment_151173 In this post, he talked about his portfolio and holdings where VWINX is one of the larger allocation fund. Bobpa is in his retirement and he is looking for a replacement for some reason that he did not specify on this post. Since everyone’s situation is unique with respect to withdrawal needs., RMD, and investment horizon, the question is more on financial planning rather than a “drop-in” replacement with a different asset allocation fund.
Good info.
Might be best to leave things alone rather than start jumping around at that age.
To the prior chart, I added my would be alternative choices in Fido's "Moderately Conservative Allocation" category, FMSDX and TAIFX.
I had tried combining FMSDX with another less conventional pick, PVCMX. PVCMX has held a lot of cash during its short history, and that may not continue. The returns of this combo look pretty smooth. If the market crashes, PVCMX will finally be a buyer....can't get more conservative that that.
I probably wouldn’t replace it. All investments go through periods of overperformance and underperformance. The two alternatives you mention certainly have stellar records. INPFX gained over 38% during the 3 years from 2019 thru 2021. The likelihood of a repeat anytime soon would seem slim. That kind of outperformance leads me to suspect it is a riskier / more aggressive fund than VWINX.
If you are still spread equally across 5 different funds (per some of your earlier posts), you should be able to continue holding VWINX during a period of underperformance. Eventually, it may make up lost ground - either by outdistancing many peers during favorable markets or by declining less than them if the bear market resumes.
”Since everyone’s situation is unique with respect to withdrawal needs., RMD, and investment horizon, the question is more on financial planning rather than a “drop-in” replacement with a different asset allocation fund.”
It’s hard to come up with a better low-cost alternative than the highly regarded VWINX. Lots of good suggestions, In the end, it’s your decision. But changing horses mid-stream not always wise.
I have it in my Schwab account and there are times when I want to move distributions from other funds into VWINX, but the $75.00 fee discourages that if the amount is not significant. That is the reason to look for another fund that is no-load.
@Bobpa, moderate-allocation BALFX (60-40) is NTF at Schwab. You may use it in combination with m-mkt or ultra-ST/ST bond fund to adjust allocation to comparable 38-62 for VWINX.
@Bobpa I would recommend you contact your broker if you have a decent sized account with them and try to negotiate a lower transaction fee with them for mutual funds. The truth is, most brokers will negotiate on such fees if you're a decent sized client they don't want to lose. It is is a bit like calling your cable company. There is the published rate they charge and the rate they give customers they want to keep, and they are often not the same.
Ah, I see your dilemma with the TF @Bobpa. Isn't leaving what you have in VWINX and choosing a complementary like-fund for new additional money an option? One extra fund when I know you have been trying to simplify the number of funds you hold, but it is an option.
@LewisBraham….. I am a Schwab customer and have negotiated zero transaction fee for Vanguard Funds. If I recall it does not include Admiral class funds and the mechanics are awkward. You are charged the fee and then it is reimbursed. But it wasn’t a big ask.
I have it in my Schwab account and there are times when I want to move distributions from other funds into VWINX, but the $75.00 fee discourages that if the amount is not significant. That is the reason to look for another fund that is no-load.
+1 Thank you @Bobpa. It makes perfect sense put that way.
I don’t even own VWINX because Fido would hit me with a fee. From following the board many years I respect it for what it is. Has a good reputation. What I don’t do, generally, is sell a good, but underperforming fund, to buy another good, but outperforming, one. Generally, that will cost you longer term.
VWIAX is our largest holding in the tax-deferred space. I am also concerned about it, but I am not going to sell it. I believe it will come back and in the meantime I am reinvesting the dividends and cgs at a discount price. Letting the fund managers do their job.
Comments
https://mutualfundobserver.com/discuss/discussion/comment/151173/#Comment_151173
In this post, he talked about his portfolio and holdings where VWINX is one of the larger allocation fund. Bobpa is in his retirement and he is looking for a replacement for some reason that he did not specify on this post. Since everyone’s situation is unique with respect to withdrawal needs., RMD, and investment horizon, the question is more on financial planning rather than a “drop-in” replacement with a different asset allocation fund.
VWINX , INPFX , and WBALX chart from May 18, 2012 to May 5, 2023.
https://stockcharts.com/freecharts/perf.php?VWINX,INPFX,WBALX,TAIFX,FMSDX
Might be best to leave things alone rather than start jumping around at that age.
If you are still spread equally across 5 different funds (per some of your earlier posts), you should be able to continue holding VWINX during a period of underperformance. Eventually, it may make up lost ground - either by outdistancing many peers during favorable markets or by declining less than them if the bear market resumes.
@Sven summed it up pretty well … It’s hard to come up with a better low-cost alternative than the highly regarded VWINX. Lots of good suggestions, In the end, it’s your decision. But changing horses mid-stream not always wise.
I don’t even own VWINX because Fido would hit me with a fee. From following the board many years I respect it for what it is. Has a good reputation. What I don’t do, generally, is sell a good, but underperforming fund, to buy another good, but outperforming, one. Generally, that will cost you longer term.