Young poker players and their winnings?
 

I just thought that I'de double check and see if anyone had some insights that I'm missing. I'm extreemly fortunate to be a young successful profesional poker player. I did some basic research on how to invest my winnings and decided on the Vanguard 500 Index Fund. I read good things about it and once I got past $100K invested they bumped it up to admiral shares lowering the fees.

Some questions:
-Would it be a good idea to diversify outside of just a single fund? How important is this?
-Are there any investments that have a higher average return that I might be missing? I am completely risk neutral and don't mind large fluctuations as long as I am receiving a higher expected rate of return as a result.

Also please note that my time is limited because I am still in school and am looking for investments that don't require a significant amount of time.

Re: Young poker players and their winnings?
 

[ QUOTE ]
-Would it be a good idea to diversify outside of just a single fund? How important is this?
-Are there any investments that have a higher average return that I might be missing? I am completely risk neutral and don't mind large fluctuations as long as I am receiving a higher expected rate of return as a result.

[/ QUOTE ]
Congratulations on your success, and having over $100K at Vanguard.

Vanguard has index funds around the world, and by diversifying, you should get a higher expected return with a similar amount of risk. I'd suggest something like this:

20% US Total Stock Market Index
20% US Large Cap Value Index*
10% US Small Cap Index*
10% US Small Cap Value Index*
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index*

The funds with a * should have an expected return higher than the S&P 500 Index fund. The others should have expected returns about the same as the S&P 500.

I'm not sure if you lose Admiral status with all these funds, but even if you do your expected return is higher than the few basis points of expense ratio you'd give up.

If you moved to this allocation, you may have a capital gain when you sell the S&P 500. You could keep the first 20% in the S&P 500 fund instead of that Total Stock market fund; they overlap quite a bit. The Total Stock market fund is more tax efficient over the long haul.

I know you said you don't have a lot of time, but if you could real one book I'd suggest The Four Pillars of Investing by William Bernstein. I think this allocation or something a lot like it is from there.

If not, you could reallocate to this mix, and not look at it at all. If you add new money, add to the funds that have a lower percentage than the target. Longer term, you might reallocate once a year or so, doing small exchanges from the funds that are overweight to the ones that are underweight. Make sure you hold all funds for over a year before exchanging out so gains are all long-term. This rebalance might take you an hour per year. That's really all the time you'd need to allocate to it.

Good luck!

-Tom

Re: Young poker players and their winnings?
 

[ QUOTE ]
20% US Total Stock Market Index
20% US Large Cap Value Index*
10% US Small Cap Index*
10% US Small Cap Value Index*
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index*

[/ QUOTE ]
Scott Burns' Couch Potato and Margarita portfolios do this same sort of thing, but with 2 and 3 funds, respectively.

Re: Young poker players and their winnings?
 

[ QUOTE ]
Scott Burns' Couch Potato and Margarita portfolios do this same sort of thing, but with 2 and 3 funds, respectively.

[/ QUOTE ]
Those portfolios have 50% and 33% in fixed income, so their expected return is much less. Plus, the small and value tilt of my recommendation should have a higher expected return for the level of risk.

-Tom

Re: Young poker players and their winnings?
 

[ QUOTE ]
Those portfolios have 50% and 33% in fixed income

[/ QUOTE ]
Good point. I should have said in my earlier post that if I were in OP's shoes (and having no investing expertise), I would probably just put it all in Vanguard Total Stock Market Index.

Re: Young poker players and their winnings?
 

I would add the vanguard small cap index and the vanguard total international stock market index. For proper diversification, it is important to be invested internationallu and not only in large cap stocks. For sample portfolios and asset allocations visit this
web page.

Later, you could add more funds, such as emerging markets or REITS.

Post deleted by Mat Sklansky
 

Re: Young poker players and their winnings?
 

Ok here is the deal: if you are looking to use this money in the next 5 years or less, stocks are the Wrong investment. Short term money (5 years or less) needs to be in a combination money market funds and short term bond fonds.

You should probably divide your money into 2 pots; one for your short term needs, and the other for your long term investms. Long term investments should really be looked at as 'untouchable' until you retire. Because more intermediate needs (5-10 years) should be invested for differently than long term needs (15+ years).

For your long term investments ,you will need a portfolio of Domestic & International equities + domestic bonds:
any of the portfolios above are good. The Vangaurd 500 alone will not cut it because you need to diversify across asset classes as well as across stocks.


Short Term "safe" Money: (5years or less)
I would recomend the Vangaurd Prime money market fund or ING Direct + the Vangaurd Short Term Bond Fund. You could use a 50/50 split. Truth be told, if your short term funds could just as easily be put into just ING or a MMF because the difference in return will be very small as opposed to adding in short term bonds.

-Matt

Re: Young poker players and their winnings?
 

[ QUOTE ]
Short term money (5 years or less) needs to be in a combination money market funds and short term bond fonds.

[/ QUOTE ]
I'm just putting my shorterm money in the Emigrant Direct American Dream account (basically money market). Why should I also be investing in bonds? I don't know anything about bonds, but am interested to hear.

Re: Young poker players and their winnings?
 

5 years is a long time to tie up funds in low return investments, depending on how replaceable these funds are due to variance and current income, you should manage your risk, taking into account your risk tolerance and as part of your overall financial plan!

Re: Young poker players and their winnings?
 

Short term bond funds would be expected to provide a higher return because they add more risk(liquidity risk, interest rate risk, default risk), as opposed to 'risk free' cash.

Also, notice I said bond funds, not bonds.

For example, currentle the Vangaurd Prime MMF yeilds 4.28%, and the Short Term Bond Fund Index yeilds 4.77%.

http://flagship5.vanguard.com/VGApp/hnw/FundsByType

-Matt

For a longer explanation goodle bond/risk or something.

Post deleted by Mat Sklansky
 

Re: Young poker players and their winnings?
 

I would also read the morningstar.com vanguard diehards forum. Excellent and active forum for passive investing with the occasional well-informed active vs index debate.

Re: Young poker players and their winnings?
 

[ QUOTE ]

there isn't some way to make 10%+ passively and with a minimum of risk?

[/ QUOTE ]

What is a "minimum of risk"?

Why do you think banks make mortgage loans at 6% or 7%? Why do that when they could get 10% passively with a "minimum of risk"?

The market may not be perfectly efficient but it is also not braindead.

Think of it this way: if you have a good credit rating you can probably secure a no questions asked loan at 7% or 8%. If you could invest at minimal risk at 10%, why not just borrow the max, invest, pocket the difference, and repeat until filthy rich?

eastbay

Re: Young poker players and their winnings?
 

[ QUOTE ]
[ QUOTE ]
Short term bond funds would be expected to provide a higher return because they add more risk(liquidity risk, interest rate risk, default risk), as opposed to 'risk free' cash.

Also, notice I said bond funds, not bonds.

For example, currentle the Vangaurd Prime MMF yeilds 4.28%, and the Short Term Bond Fund Index yeilds 4.77%.

http://flagship5.vanguard.com/VGApp/hnw/FundsByType

-Matt

For a longer explanation goodle bond/risk or something.

[/ QUOTE ]

all of these rates suck

ing pays me less than 4% and you just said some stuff that pays less than five

i'm 25, i don't have ANY money that i don't want to have access to in the next 5 years, who knows what may come up (especially with the forclosure boom thats just around the corner in the US [img]/images/graemlins/grin.gif[/img] )

there isn't some way to make 10%+ passively and with a minimum of risk?

[/ QUOTE ]

The short answer is no, not for 'low' risk.

Re: Young poker players and their winnings?
 

wow, there has been a lot of excellent advice here. A big thanks to everyone, it is much appreciated.

[ QUOTE ]

20% US Total Stock Market Index
20% US Large Cap Value Index*
10% US Small Cap Index*
10% US Small Cap Value Index*
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index*


[/ QUOTE ]
Something like this looks great. One question though, if my only concern is expected value and not risk couldn't I only invest in the ones that have a higher rate of return than the S&P?

Re: Young poker players and their winnings?
 

[ QUOTE ]
wow, there has been a lot of excellent advice here. A big thanks to everyone, it is much appreciated.

[ QUOTE ]

20% US Total Stock Market Index
20% US Large Cap Value Index*
10% US Small Cap Index*
10% US Small Cap Value Index*
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index*


[/ QUOTE ]
Something like this looks great. One question though, if my only concern is expected value and not risk couldn't I only invest in the ones that have a higher rate of return than the S&P?

[/ QUOTE ]

You mean "had" a higher rate of return? That is not the same as "have" or more importantly "will have." That's the rub.

eastbay

Re: Young poker players and their winnings?
 

[ QUOTE ]
[ QUOTE ]
wow, there has been a lot of excellent advice here. A big thanks to everyone, it is much appreciated.

[ QUOTE ]

20% US Total Stock Market Index
20% US Large Cap Value Index*
10% US Small Cap Index*
10% US Small Cap Value Index*
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index*


[/ QUOTE ]
Something like this looks great. One question though, if my only concern is expected value and not risk couldn't I only invest in the ones that have a higher rate of return than the S&P?

[/ QUOTE ]

You mean "had" a higher rate of return? That is not the same as "have" or more importantly "will have." That's the rub.

eastbay

[/ QUOTE ]

As Eastbay said, past performance does not necessarily mean the future will look the same... the reason for diversification is to reduce the variance.

That said, if you want to assume a higher risk level, you can do that by changing the % allocations (and the fund types)! Which is exactly the high-level thinking that primarily passive investors should be doing on a periodic basis.

Re: Young poker players and their winnings?
 

[ QUOTE ]
[ QUOTE ]

20% US Total Stock Market Index
[...]


[/ QUOTE ]
Something like this looks great. One question though, if my only concern is expected value and not risk couldn't I only invest in the ones that have a higher rate of return than the S&P?

[/ QUOTE ]
You could.

However, the biggest mistake that most investors make (over and over throughout their lifetimes) is selling out of things that have gone down recently, and buying into things that have done well lately - the hot funds, the 5-star ones that are on Money magazine.

I think if you only had small stocks and emerging markets stocks, you would have a higher expected return with a really high level of risk. So, the bad years would pretty bad. And most investors don't have the discipline to stick with the same allocation year after year.

If you want to be a little more aggressive than my previous recommendation, how about:

15% US Total Stock Market Index
15% US Large Cap Value Index
15% US Small Cap Index
15% US Small Cap Value Index
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index

-Tom

Re: Young poker players and their winnings?
 

[ QUOTE ]

15% US Total Stock Market Index
15% US Large Cap Value Index
15% US Small Cap Index
15% US Small Cap Value Index
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index

-Tom

[/ QUOTE ]

So let say I have 100k to invest every year. Do I keep putting 15k in US Total Stock Market Index, 15k in US Large Cap Value Index etc. every year for the next 20 years? The reason I am asking this because I do not get the idea of asset allocation.

P.S. Yes, my Larry index and Ferri books are coming.

Re: Young poker players and their winnings?
 

[ QUOTE ]
[ QUOTE ]

15% US Total Stock Market Index
15% US Large Cap Value Index
[...]


[/ QUOTE ]
So let say I have 100k to invest every year. Do I keep putting 15k in US Total Stock Market Index, 15k in US Large Cap Value Index etc. every year for the next 20 years? The reason I am asking this because I do not get the idea of asset allocation.

[/ QUOTE ]
No, not exactly. The best thing to do is to determine the exact allocation that you want, and then to keep that allocation for many years. Any time you add or remove money from a portfolio, or every year or so if there are no cash flows, you want to do a portfolio rebalance. That means that when you are done, you want the proportions of the funds to be exactly right.

Let's say you put in $100K the first year, and after a year, the portfolio has grown to $110K, a gain of 10%. You are adding $100K for the second year. When you are done, you'll have $210K in your portfolio. So, you'll want 15% of $210K, or $31,500 in US Total Stock Market Index, $31,500 in US Large Cap Value Index, and so on.

Each of the funds had a different performance in the first year. You started with $15,000 in US Total Stock Market Index, and let's say that fund went up only 4% to $15,600. You need to add $31,500 - $15,600 or $15,900 to this fund this year. You started with $15,000 in US Large Cap Value Index, and let's say that fund went up 12% to $16,800. You need to add $31,500 - $16,800 or $14,700 to this fund this year.

So, you add more money to the funds that have gone up the least (or went down), and you add less money to the funds that have gone up the most.

In retirement, it's done exactly the same in reverse. You'd sell the funds that have gone up the most.

If you are rebalancing without adding money or removing money, you do the same thing, and exchange from the funds that have gone up most (the overweight ones) to the ones that have gone up less or gone down (the underweight ones).

After you finish this type of rebalance, your portfolio is back to the original weightings, so it is balanced and diversified. It is excellent in that is unemotional, and causes you to buy low and sell high. Most people don't have the discipline to do this; they tend to sell their losing funds and buy more of the winning funds, which tends to increase their risk and usually give them a pretty bad year at some point soon.

-Tom

Re: Young poker players and their winnings?
 

[ QUOTE ]
20% US Total Stock Market Index
20% US Large Cap Value Index*
10% US Small Cap Index*
10% US Small Cap Value Index*
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index*


[/ QUOTE ]

Doesn't Vanguard charge a $10 fee every year for a fund under $10,000? If he puts 10% of his $100,000 in each of these and they go down a little, would he be hit with $60 in charges?

Re: Young poker players and their winnings?
 

[ QUOTE ]
Doesn't Vanguard charge a $10 fee every year for a fund under $10,000? If he puts 10% of his $100,000 in each of these and they go down a little, would he be hit with $60 in charges?

[/ QUOTE ]
Looks like you're right. $60 per year on a ~$100,000 portfolio is 0.06%, or 6 basis points. To have this kind of globally diversified passive portfolio is definitely worth 6 basis points.

-Tom

Re: Young poker players and their winnings?
 

1. If you wanted poker advice, you wouldnt go to morningstar. Dont come to 2p2 for investing advice.

2. That said, an S&P500 index fund is going to get you too much variance. You need a broader portfolio.

3. If you're going learn how to DIY, you hvae a lot of work to do. Start with some of the Bogle, Bernstein, Random Walk stuff, etc. YOu also ought to look into ETFs.

4. If you dont want to DIY, you can go with a simple Vanguard balanced fund like VTTHX

Re: Young poker players and their winnings?
 

[ QUOTE ]
1. If you wanted poker advice, you wouldnt go to morningstar. Dont come to 2p2 for investing advice.

[/ QUOTE ]

This is just plain bad advice... there are experts in many subjects, who happen to enjoy playing poker, and post on 2+2. Specifically, this forum has a very good cross section of experts!

There is also a large skill overlap between successfully playing poker and successful investing/trading.

Re: Young poker players and their winnings?
 

Assuming you are a young person, I might suggest you invest in the VanGuard Group Target Requirement2045 with symbol: VTIVX. The has some asset allocation properties; it invests in four other Vanguard index funds; about 66.7% in the Vanguard Total US stock market, 11.97% bonds; 11.95% Vanguard European Stock Index; and about 5.6% in the Vanguard Pacific Stock Index. It's passive (maybe boring to people who want a quick buck), and probably will do as good or better than most index funds over the years. As most Vanguard funds; it has a low expense ratio, and as all Vanguard Funds it is load fee free. I have my wife in it in her IRA (and she is 60 years old -- she can do this because were are about 65% liquid overall).

This fund also automatatically rebalances as you grow older. This is not too important at this stage in you life, but might be 40 years down the line. Like I said, this fund as a somewhat asset allocation approach -- probably good enough but not superlative.

I recommend that you get a ROTH as soon as possible if possible.

Also some of the very knowledgable guys (I presume guys) on this 2+2 format have recommended the FAIRHOLME FD (FAIRX) fund. This funds recent past record(5 yrs or so) is excellent. You can contact the fund on the Internet and they will send you the necessary dope required to buy it. If you buy it through an American brokerage house you will probably be required to pay a small transaction fee (maybe $40 or so). If you buy it through the European firm -- there is no transaction fee. I feel this fund has excellent management and the fees are very fair. Also....

THe Vanguard Strategic Equity Fund FD (VSEQX) is a good fund and I have done well in the past with this fund in my Vanguard cash account. Its record is somewhat similar to the FAIRHOLME FD (FAIRX) fund; it has slacked off a little this year -- about 12% less than FAIRX.

Some guys have recently on this site have recommended William J. Bernstein's book "The Four Pillars of Investing." I have this book and i recommend it to you -- especially since you are a young person. It things go well, the stuff in this book could really pay for you over the years. THe book mentions that time is very important, and it's important to get some money down early in your life to take advantage of your abundance of time. Some of the things (very important things) that the book covers is asset allocation, risk, rebalancing your portfolio, and which type of funds you should buy, and which type of funds should be in taxable accounts and which should be in sheltered accounts. good luck

Re: Young poker players and their winnings?
 

You must buy Wm.J. Bernsteins "Four Pillars of Investing." You can get it at Amazon.com at a good price -- better than the book store.

Larry E. Swedroe has written at least four books on this subject (which I have). You might pick some of these "used ones" at Amazon at very low prices but you will have to pay the postage -- still can be a good deal.
Swedroe goes on like a broken record that low expense index funds are the only way to go. He goes on-and-on about what funds to avoid -- it worth reading once -- I suggest getting his books from a library for free to read.

The are probably other good books on this subject -- but I am not really into them. ETFS are also a way to go -- I suggest you read up on them. The have spread fees -- so always do a little research on the spread. Spiders and QQQQs have low spreads.

guton luck

Re: Young poker players and their winnings?
 

[ QUOTE ]
You must buy Wm.J. Bernsteins "Four Pillars of Investing." You can get it at Amazon.com at a good price -- better than the book store. [...]
ETFS are also a way to go -- I suggest you read up on them. The have spread fees -- so always do a little research on the spread. Spiders and QQQQs have low spreads.

[/ QUOTE ]
You mention a great book; it's my favorite asset allocation book.

But then you suggest QQQQ? Bernstein talks about using a value tilt, based on the Fama French research. QQQQ is a large, undiversified growth index. The long-term growth of QQQQ is not higher than the S&P 500 or a large value index, and the risk is substantially higher.

The S&P 500 averaged 12.3% from 1973-2005. The Nasdaq Composite averaged 12.3% from 1973-2005. Exactly the same.

The annual standard deviation (variance) of the S&P 500 was 17.7%. Nasdaq Composite's was 27.7%! Much higher risk. It may have been exciting in 1999 with an 85% return, but -39% in 2000, followed by -21% in 2001, followed by -31% in 2002 really hurt.

So avoid QQQQ as a long-term investment.

-Tom

Re: Young poker players and their winnings?
 

YOU POSTED:"But then you suggest QQQQ? Bernstein talks about using a value tilt, based on the Fama French research. QQQQ is a large, undiversified growth index. The long-term growth of QQQQ is not higher than the S&P 500 or a large value index, and the risk is substantially higher."


I RESPOND:
I was just "on-the_-fly" mentioning a couple of ETFs symbols that came to my mind -- that's all. I didn't mean to recommend anything. I wanted to mention that ETFs are now available -- many newbies don't know what they are... The ETF concept can be simple or not-so-simple. I am not an expert on them. I know that some traders use them to conventiently lay off their bets -- I think some types of ETFs can be shorted and also shorted on a down-tick. Initially a few of the highly traded ETFs had small spreads, but also initially many of the newer ETFs had larger (very expensive) spreads. I think that there is a technique where the spread differnence is split down the middle for ETFs with high spreads and thin volume. Also as ETFs become used more -- the spreads will become less and less . Enough said on ETFs and spread -- I don't know much about these. .... (by me). Thanks for correcting my thoughts....

Re: Young poker players and their winnings?
 

[ QUOTE ]
[ QUOTE ]
20% US Total Stock Market Index
20% US Large Cap Value Index*
10% US Small Cap Index*
10% US Small Cap Value Index*
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index*


[/ QUOTE ]

Doesn't Vanguard charge a $10 fee every year for a fund under $10,000? If he puts 10% of his $100,000 in each of these and they go down a little, would he be hit with $60 in charges?

[/ QUOTE ]
I don't have the same kind of poker success as the original poster, but I do have about $20,000 to invest. Because of the fee charged on accounts under $10,000, should I stay away from that allocation? Should I instead opt for all $20,000 in the Vanguard Total Stock Market Index fund? Thanks for the advice.

Re: Young poker players and their winnings?
 

[ QUOTE ]
I don't have the same kind of poker success as the original poster, but I do have about $20,000 to invest. Because of the fee charged on accounts under $10,000, should I stay away from that allocation? Should I instead opt for all $20,000 in the Vanguard Total Stock Market Index fund? Thanks for the advice.

[/ QUOTE ]

Putting it all in the total stock market index is fine!

The diversified allocations that you see being presented here are, in general, a passive way to spread your bets. It should be your goal to move in the direction of these types of allocations, once your assets increase, if you intend to stay passive in your investments.

Re: Young poker players and their winnings?
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
20% US Total Stock Market Index
20% US Large Cap Value Index*
10% US Small Cap Index*
10% US Small Cap Value Index*
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index*


[/ QUOTE ]

Doesn't Vanguard charge a $10 fee every year for a fund under $10,000? If he puts 10% of his $100,000 in each of these and they go down a little, would he be hit with $60 in charges?

[/ QUOTE ]
I don't have the same kind of poker success as the original poster, but I do have about $20,000 to invest. Because of the fee charged on accounts under $10,000, should I stay away from that allocation? Should I instead opt for all $20,000 in the Vanguard Total Stock Market Index fund? Thanks for the advice.

[/ QUOTE ]

I would look at t rowe price or vanguard target retirement funds. they are very diversified and cheap.

A balanced fund might work best for you also - there are some with amazing track records like OAKBX and PRWCX which I don't think has ever had a losing year.

Vanguard has a tax managed balanced fund that is basically total stock market and municpal bonds to reduce your tax liability.

Bridgeway has a balanced fund that is relatively new (BRBPX i think).

All of these are good ways to make sure your assets are rebalanced for you so your work is minimized. Some are more aggressive than others.

If you want a shot at skillfull, aggressive active management that can go long and short and buy any sector and asset size, i would look at Pimco all asset authority and CGMFX. Both make economic and macroeconomic asset allocation choices. CGMFX is volatile but has great record and would give you plenty to "sweat" on a daily basis.

Good luck.

Re: Young poker players and their winnings?
 

[ QUOTE ]
I don't have the same kind of poker success as the original poster, but I do have about $20,000 to invest. Because of the fee charged on accounts under $10,000, should I stay away from that allocation? Should I instead opt for all $20,000 in the Vanguard Total Stock Market Index fund?

[/ QUOTE ]
For about 20K, if you want 100% stock at Vanguard, I'd probably suggest:

40% US Total Stock Market Index
30% US Small Cap Index
30% Total International Index

This is a bit more diversified than just to US Total index.

-Tom

Re: Young poker players and their winnings?
 

[ QUOTE ]
[ QUOTE ]
I don't have the same kind of poker success as the original poster, but I do have about $20,000 to invest. Because of the fee charged on accounts under $10,000, should I stay away from that allocation? Should I instead opt for all $20,000 in the Vanguard Total Stock Market Index fund?

[/ QUOTE ]
For about 20K, if you want 100% stock at Vanguard, I'd probably suggest:

40% US Total Stock Market Index
30% US Small Cap Index
30% Total International Index

This is a bit more diversified than just to US Total index.

-Tom

[/ QUOTE ]

Is there anything to consider about investing at Vanguard when you dont live in the US but in Germany? This may be a stupid question but I m just beginning to learn about stocks [img]/images/graemlins/smile.gif[/img]

Re: Young poker players and their winnings?
 

Re: Young poker players and their winnings?
 

[ QUOTE ]
Don't put all your eggs in one basket

[/ QUOTE ]

The interesting thing about baskets, is that some of them while looking like one basket are actually many in disguise, and are quite diversified. A Total Stock Market index fund would be one example of a signle fund that falls into the well diversified category.

Re: Young poker players and their winnings?
 

[ QUOTE ]
Is there anything to consider about investing at Vanguard when you dont live in the US but in Germany? This may be a stupid question but I m just beginning to learn about stocks [img]/images/graemlins/smile.gif[/img]

[/ QUOTE ]
I can't really help you here. I would recommend a similar allocation, but probably less US stocks. Investors in a country usually overweight their own country. However, I don't know which mutual fund companies or brokerages handle investors in Germany or any other non-US country.

-Tom