The Max point about multiple types of accounts is VERY well taken, and obviously Chuck J. isn't taking that fact into "account" when he says six funds can do it all. In our household, we've got my IRAs, my wife's IRAs, her 401k, and taxable accounts. We also favor SRI/ESG investing where reasonably priced options exist, and of course that's not everywhere, so that means more funds in and of itself.
Other points: broad foreign funds, including indexes, for the most part have practically nothing in small and mid-caps (EXWAX is one exception), so you've got to add another fund for that kind of exposure, and without it, what opportunity lost!
And in bonds, there are too few actively managed funds with a broad mandate, so (like with Vanguard) if you want more than an index, it's sector by sector by sector, defined very narrowly.
In the universe of more-focused, active global funds, you can pile up half a dozen and have very little overlap.
Last, there's a huge gulf in the last year-plus between active and index funds; our actively managed funds are making money or staying even, while indexes (only choice in 401k) have been diving. In a sideways or down market, indexes just won't cut it, so there's yet another source of the need to own more funds.
The Max point about multiple types of accounts is VERY well taken, and obviously Chuck J. isn't taking that fact into "account" when he says six funds can do it all. In our household, we've got my IRAs, my wife's IRAs, her 401k, and taxable accounts. We also favor SRI/ESG investing where reasonably priced options exist, and of course that's not everywhere, so that means more funds in and of itself.
Other points: broad foreign funds, including indexes, for the most part have practically nothing in small and mid-caps (EXWAX is one exception), so you've got to add another fund for that kind of exposure, and without it, what opportunity lost!
And in bonds, there are too few actively managed funds with a broad mandate, so (like with Vanguard) if you want more than an index, it's sector by sector by sector, defined very narrowly.
In the universe of more-focused, active global funds, you can pile up half a dozen and have very little overlap.
Last, there's a huge gulf in the last year-plus between active and index funds; our actively managed funds are making money or staying even, while indexes (only choice in 401k) have been diving. In a sideways or down market, indexes just won't cut it, so there's yet another source of the need to own more funds.