Hi Pralana Community
I'm intrigued with the idea of an one-fund-portfolio. There is an old/huge thread here https://www.bogleheads.org/forum/viewtopic.php?f=10&t=287967&newpost=8060526.
"The One-Fund Portfolio discussed in this thread consists of a single identical globally-diversified all-in-one index fund or ETF in all accounts. "
I'm already all in on the tax-advantaged side. I love the simplicity and not having to worry about it. I understand there is a cost by going with this approach. (less optimal asset location, slightly higher expense ratios, less flexibility, can't Tax loss harvest). I'm trying to estimate what the cost of doing this in a taxable account would be in my scenario.
For simplicity, we can assume I'm starting from cash (and do not need to model selling of stocks with capital gains)
Is it feasible to try to model this in pralana gold? Any tips/pointers on how to approach this would be appreciated.
At minimum, it seems like I would need to
- model difference expense ratios (this seems more straightforward)
- figure out the impact of asset-location/having to pay income tax on distributions in taxable accounts from the all-in-one fund.
Thanks in advance
@davegracelin
The expense ratios are entered on the Financial Assets - Asset Classes & Allocations tab. That won't make much overall difference.
Asset Allocation Mode 1 (same allocation in all accounts) would fit the all-in-one fund.
Asset Allocation Mode 2 (bonds preferentially in tax deferred) would be representative of what you can do by doing it yourself, following the typical Boglehead philosophy of tax efficient asset location.
There are worse things than having something super-simple, particularly if you don't have someone to take over and handle things as you age, but it will cost you something.
Thank you for your suggestions @Richard Eaton. I will try that out.
