![]() |
#21
|
|||
|
|||
![]()
Ponks, a 100k (and 100%) portfolio of all domestic equity is taking a big risk in terms of volatility and international opportunity costs.
Now, the issue of a 40 year time frame was mentioned. But this is really not correct. You are 21 years old with 100,000 in a taxable account and maybe 4-8k in your IRA. The 4-8,000 in the IRA does have a 40 year time fram. HOWEVER, the 100,000+ in you taxable account probably has a much different time frame and this shouldbe accounted for. Do you plan on not touching this money until you retire at 60? Do you want to retire younger, maybe 45 or 50? Will you need money for a house? All of these questions will change your optimal asset allocation, and there are many variables and many possibilities. However, there are Very few possible scenarios in which you should have 100% of your taxable account in domestic equity. It is very likely you are not looking at the whole picture. I know im speaking in generalities and not for your specific question. And that is exactly why two people's asset allocation and investment strategy may be different even though they have the same income/net worth/time frame/etc. -Matt |
#22
|
|||
|
|||
![]()
Ponks,
The mid-cap fund is not the best choice for diversifying with the Total stock market fund. International is much better. Small cap is also better than mid cap. If you have $100K, and are saving a lot, you could make your entire allocation. Here is a recent Vanguard recommendation that is a 100% stock portfolio. Matt had good points. Will any of this money go to a house down payment in less than 5 years? Money invested for less than 5 years should not be in the stock market. -Tom |
#23
|
|||
|
|||
![]()
Hey all,
Thanks again for all the help. I think I will go with some kind of recommendation similar to what Tom has posted here. It appears to me that this is very good asset allocation!! If I move money around from fund to fund in order to get a better balance will I be charge any type of fees or taxes? Also I think I will lose the Admiral Status of my VTSAX shares, because I won't have 100k invested in that fund anymore, right? Atleast that is my understanding, but I hope I'm wrong! The website seems unclear to me about this, so if no one knows I will likely give them a call tomorrow. Also, I plan to use this money for retirement so I wont need it for atleast 30-40 years. Hopefully I can retire early though!! I will start saving up for a down payment on a house later this year and early next year so when I graduate school I will be ready to go. Thanks, Ponks |
![]() |
|
|