|Expense Ratio (net)||0.23%|
|Category||Allocation--30% to 50% Equity|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Below Average|
|Beta (3Y Monthly)||0.57|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Jul 1, 1970|
It was mostly a footnote to my financial progress. At the time our net worth was around $500,000, so we had meaningful investments, but I was nowhere near financial independence or retirement. My net worth had recently crested $1 million and I was beginning to entertain thoughts of early retirement.
Note: This article is part of Morningstar's 2019 Portfolio Tuneup week. Off-the-shelf asset allocation guidance doesn't vary significantly for people who are still accumulating assets for retirement. Similarly, the worker with a pension should be investing more aggressively than the investor who will rely exclusively on her own savings, plus Social Security, in retirement.
Most core U.S. stocks and bond funds incurred single-digit losses for the year, but even small drops can be unnerving when you're retired. What made 2018 especially painful is that neither stocks nor bonds impressed. Bond yields rose, leading the Barclays Bloomberg Aggregate Index to post just a tiny gain for the year, but many bond funds endured losses.
If you've built a solid portfolio of funds, the last thing you want to do is tear it apart and build a new one simply because the stock market is doing one of its periodic swan dives. But that doesn't mean you shouldn't tinker around the edges in a market that acts like it wants to go down. You might cut, say, 5% of your stock allocation and put the proceeds into a low-risk bond fund. If you think your investments need more rearranging, you might take your most volatile fund and replace it with a lower-risk offering. Where to look for a replacement? Vanguard funds include a fistful of first-rate defensive offerings that, while they'll still likely lose money in a bear market, they should still hold up better than most other funds. Here are the six best Vanguard funds to own in a bear market. Note: Some of these funds are only available directly from the low-cost provider. At the same time, if you use a discount broker, you may be able to buy cheaper Admiral shares without meeting Vanguard's minimum, which typically ranges from $10,000 to $50,000 depending on the fund. ### SEE ALSO: The 25 Best Low-Fee Mutual Funds You Can Buy
Around this time each year, many of us resolve to take on a new good habit (or two) in the coming year. Maybe it's exercising more or eating less. Or reconnecting with family or disconnecting from electronics.