Retrofitting a star 60/40 balanced fund as PP

[ochotona]

Hi all, I'm brand new to PP concepts. I have a large amount of T. Rowe Price Capital Appreciation Fund, PRWCX, which is really stellar within it's peer group of balanced funds. I feel extremely comfortable with this fund; I feel no urgency to sell it. I was thinking, can't I just use my new money to bolt on additional gold and long Treasury funds alongside it, in order to make it perform like a PP? I also have lots of emergency fund cash lying around in insured credit union accounts, which I could count as part of the PP, and PRWCX is 9% cash already. Your thoughts? I like the concept of becoming such a lazy and bad news indifferent investor that I don't even bother to hit the "sell" button on PRWCX.

[Pointedstick]

Holy high expense ratio batman! 0.71%! What's the advantage vs simply Vanguard Wellington (VWELX) Looks like more or less the exact same performance but it's three times as expensive to own.

If you really like this fund and have a a lot of cash elsewhere, you could do a lot worse than selling 15 or 20% of it and buying gold.

That said, if you want a PP, ya gotta make a PP. Within that context, this fund should be considered stocks, so you would sell 3/4 of it to buy gold, cash and bonds, or sell all of it to make a new PP with a better fund for the stock component.

[ochotona]

VTI, TLT, IAU, SHY sounds pretty easy.

[ochotona]

I was thinking that, too.

There are other options, of course.  There are many relevant threads with loads of great discussion.

FWIW, lots of people view their emergency cash as part of the cash component.

[ochotona]

OK, I have just put in orders for the plain vanilla PP. 60/40 balanced fund is no more!

25% SHY, 25% IAU, 25% TLT, 12.5% VT, 12.5% VTI