Why Vanguard’s Balanced Index Fund Could Be An Investor’s Panacea

waiter

You’re sitting at a fancy new restaurant.

The ambience is perfect.  “Your taste buds will tango,” says the celebrated chef. 

The back of the menu oozes with promise.

We have award-winning chefs.  We grow our own organic herbs.  

We butcher your meat and catch your fish the second you place an order.

At some point, you’ve eaten where they promise the world–and the meal fell flat. “If only I had a burrito at a roadside stand,” you later grumble. Such disappointments are probably rare.  But in the investment world, rice and beans put most gourmet offers to shame.

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Read about one of the best and most underrated funds





Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I’m happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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3 Responses

  1. Charles says:

    Hi Andrew,

    I’m from Nova Scotia, I’ve been following your blog and read your book over the years. I’m 45, building wealth for retirement. I’ve build my portfolio of ETF Index Fund based on your advise. 19% VCE, 21% VUS, 19%VTE AND 41% in Cash. Why so much cash? at first I did not understand what Bond was about, then I did not know what to buy and when to get in this Bond market, expecting a rise in interest rate. What would be your advise?
    Should I go with Short term bonds for the whole Bond portfolio or should I mixed?
    Should I keep the cash for now and wait after the rise in interest rate to buy them cheaper?
    Thank you Andrew for your time,
    Best Regards,
    Charles

    • Hi Charles,

      Go with a short term bond index: something like VSB. Try not to speculate, ever, when investing. Trying to time the market becomes a slippery slope. If you get lucky, you will try it again. And eventually, the casinos wins.

      Cheers,
      Andrew

  2. Charles says:

    Thank you so much Andrew for your answer. You’re doing a great job making it simple and putting things in perspective, even if index investing is not as easy as it looks like because of consistency.
    Cheers,
    Charles

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