Seeking to set-up long-term portfolio: 50% VOO, 20% VXUS, 20% VB, and 10% BND?

[sss12]

No, the idea is not to override them. On average, there is little long term value in trying to time things based on the macro outlook for an average person. Also, TDFs take the work out of rebalancing and other management process, which is good sometimes.

Have to disagree here. No way a 65 yr old with a 20-25 tr life expectancy should not have a market outlook approach when making investment decisions.

TDF's are a product that strives to give the illusion of managing assets. They are cheap and easy to create and distribute, protect 401k administrators from litigation and individual investors usually do not sue for under performance so the custodians are protected.

But are they in the best interest of the investor, no. IMHO.

 

[sle]

Have to disagree here. No way a 65 yr old with a 20-25 tr life expectancy should not have a market outlook approach when making investment decisions.

I would say an average 65 year old can only make a negative impact by adding any active input into his asset allocation decisions. Don't forget that these are the same people that can barely find the US on the map. Once we are talking about higher NW and skill, it's a different story.

 

[sss12]

I would say an average 65 year old can only make a negative impact by adding any active input into his asset allocation decisions. Don't forget that these are the same people that can barely find the US on the map. Once we are talking about higher NW and skill, it's a different story.

You are right if investor is not getting any advice.
I'm coming at it from a different (and somewhat biased) angle, I'm with a BD.
If I'm doing what I get paid to do, I think I can create a better solution. Even after my 1% vig.

 

[srinir]

(b) if it is a regular account, you might want to also engage in some sort of loss harvesting for tax purposes. So instead of a single ETF for each exposure, have a list of identical/related exposure ETFs (e.g. S&P 500 = [SPY, VOO]) so when one is down, you can sell it and buy a related one.

I think this is disallowed, if it follows the same index. SPY/VOO can be loss harvested with VTI or other total stock market ETF's