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Comment by deanmoriarty | Hacker News Reader

A diversified portfolio of index funds. This year return so far is ~15% (which in absolute amounts is more than my after-tax salary, even after accounting for long term capital gains), and my annualized return since when I started investing (~a decade ago) is ~10%.

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Which index funds do you like? I've been going back and forth between considering one or more index funds or just getting a target date fund and leaving it alone altogether.

I basically replicate a target date fund manually, using the standard Vanguard funds like VTI, VXUS, BND, ...

That way, I can tune allocations if needed and I can take advantage of tax loss harvesting opportunities, so I get some extra benefits.

And target dates usually have a higher expense ratio than funds like VTI. So you keep more of your investment income by doing it manually.

Any thoughts on Michael Burry's index fund bubble?

I basically plan on not ever selling for decades, so the volatility/liquidity issues that Burry was talking about that would happen if everyone tries to selloff at the same time don’t worry me too much: as long as I don’t sell, I believe things will recover just fine after a few months/years. I have enough invested in fixed income to being able to weather a very significant storm, including me losing my job for several years.

If things don’t recover after that, then I think I will have much bigger problems than my investment portfolio.

This is the best answer to that question I've seen yet. Thanks!

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