For someone in their 30s, does the following allocations make sense? The goal is to have a fair amount of diversity and to more or less “set it and forget it”
55% VG INST 500 IDX 35% VG INTL STOCK IDX 10% VG TOT BD MKT IDX
I’m wondering if maybe there should be less in International and more in one of the other two, etc
how much international stock to have vs domestic stock is almost a religious war at this point. Pick whichever you like (I like 0% international personally), and then stick with it. The most important variable will really just be the Equities vs Bond ratio; and even that is nibbling around the edges unless you’re making 1000basis point changes (shifting from 10% to 20% in your case). And stick with that too unless YOU have a reason to change it, not because you think the market has a reason for you to change it, such as becoming more risk averse due to age, life circumstance, etc.
ETA: FWIW at 30yo, even 10% bonds might be unnecessary. But that depend on you and your risk tolerance and when you expect to need that money.
Bogleheads has explained its rationale for its three-fund portfolio strategy. If I were you, I’d be trying to investigate/explain why my three-fund strategy is better than Bogleheads’.
I actually changed mine to 3 fund after discovering the boggleheads post you mentioned a while back. Perhaps I didn’t follow the advice correctly
At first glance the only difference is that you’re excluding US small stocks. But I’m neither an expert nor doing anything more than a first impression.
Ah, good catch! It looks like I have this as an option which may help supplement my S&P 500 choice (Vanguard Extended Market Index Fund).
Thank you for the expert advice :)
