Model Portfolios for Vanguard Investors

And why bonds are looking more interesting. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=48803&elqTrackId=66a80e60b6154ae39b85f256cf7102af&elq=06aba78dff2845c1a24d44367326c09d&elqaid=48803&elqat=1&elqCampaignId=24224) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] [I remember sitting in a meeting with Vanguard founder Jack Bogle at Morningstar's offices years ago, not long after his heart transplant. "I wanted to visit sooner," he said in his booming baritone, "but][I had a change of heart!" He loved that joke and was feeling good. He didn't know it at the time, but that new ticker would help him have many more highly productive years.] I was a junior analyst, and his visit made an imprint. He asserted, as I heard him do many times subsequently, that because Vanguard's mutual ownership structure put fund shareholders at the top of the heap, it was superior to other asset managers that were trying to serve company shareholders and fund shareholders at the same time. That thesis made sense to me then and it makes sense to me now. And it clearly makes sense to a lot of investors: Vanguard has increased its market share in open-end mutual funds and exchange-traded funds by about 5% per year over the past decade. If it keeps up that pace, reports Morningstar's Alec Lucas in the firm's [Parent Rating report]( Vanguard will have a 50% share of the U.S. fund industry by 2035. This week, I decided to shine the spotlight on my [model portfolios consisting of Vanguard funds](. They're part of [a broader suite of model portfolios]( geared toward investors at different life stages and risk-tolerance levels, and they suit different account types, too (taxable and tax-sheltered). While [model portfolios are a burgeoning part of the asset-management space]( I created these model portfolios for educational purposes only, not to generate fees. You can adopt them wholesale or use them for a sanity check on your own portfolio's positioning. My portfolios geared toward retirees all own at least some bonds. A few years ago, I would have said the bonds were there mainly to serve as ballast for stocks, but rising yields have dramatically upped their return potential. [As Tom Lauricella recently discussed]( bond yields are the highest they've been since 2007 and could remain that way for a while. [John Rekenthaler asserts that higher fixed-income yields are a gift to retirees]( upping what's a safe spending rate by providing a reliable return source. And Amy Arnott contributed [another article]( in her useful series about how to put together a portfolio—this one about municipal bonds. I know that many investors are practically allergic to bonds, preferring dividend-paying stocks instead, and that's particularly true given bonds' recent run of lousy returns. But it may be time to revisit that viewpoint. With warm regards, Christine Benz [Model Portfolios for Vanguard Investors]( Straightforward investment mixes for retirees’ and savers’ tax-sheltered and taxable accounts. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Our Best Investment Portfolio Examples for Savers and Retirees]( This series of portfolios from Morningstar's director of personal finance Christine Benz can help investors reach their financial goals. [Read More]( [Demystifying Model Portfolios]( Breaking down the X's and O's of these increasing popular investment vehicles. [Read More]( [Will Bond Yields Top 5%?]( Even with a slowing economy next year, investors should expect higher rates. [Read More]( [Bonds’ Pain Is Retirees’ Gain]( Fatter bond yields permit higher portfolio-withdrawal rates. [Read More]( [How to Use Municipal-Bond Funds in a Portfolio]( Some investors can improve their aftertax returns with munis. [Read More]( [Dr. Anita Mukherjee: Exploring the Link Between Wealth, Longevity, and Quality of Life]( The University of Wisconsin professor on the challenges of decumulation, the connection between defaults and abandoned retirement accounts, and the ‘hassle costs’ that can weigh on workers. [Listen Now]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602