No. of Recommendations: 0
The problems you have are nice ones. I have tried the Robot type portfolio management and a professional advisor. Both were OK for a short term (2 years and 4 years respectively). By OK they actually had higher returns than a very simple 1 mutual fund investment - Vanguard Wellington.

You can easily do worse than VWENX, but there are very simple ways to beat the vast majority of managed funds and fund advisors. Buy a good S&P500 index (VFIAX for example) and enough cash to cover major expenses and deal a situation where one of you looses income as the market tanks -- i.e. at a time you do not want to be selling stuff.

Such an approach is not without issues. The biggest one I see for you is the roughly 2.5% cash dividend from an S&P500 fund. That is taxable. It is easy to get greater returns than such a fund, but almost always that higher return comes with more income tax and/or more risk.

Since you have a high income, you probably should spend some time looking at the tax efficiency of any funds you get. (Hint - bonds are not tax efficient, but their purpose in my view is not for income - they are to CYA in times like September 2008 through April 2009.)

Morningstar is an excellent place to research options. This link shows one fund I mentioned and shows both pretax and post tax returns.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.