Personal Finance

3861 readers

1 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 2 years ago

MODERATORS

[email protected]

3 fund retirement strategy (lemmy.world)

submitted 3 weeks ago by [email protected] to c/[email protected]

12 comments fedilink hide all child comments

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

you are viewing a single comment's thread
view the rest of the comments

[–] LazerDickMcCheese 2 points 3 weeks ago (1 children)

I couldn't agree more. The money I've put into international stock and bonds have been wasted compared to domestic stock every time I've tried. This is purely anecdotal however

[–] sugar_in_your_tea 1 points 3 weeks ago

There's also the argument that markets are cyclical, so if one segment has under-performed for a while, it is more likely to overperform going forward, and the inverse argument is valid too. The US has been on an absolute tear for 15 years or so, so it's high time for the US market to correct downward and international markets to correct upward. That said, it could happen in 5 years, 15 years, or 50 years.

So yeah, it's up to you. I try to maintain a market weight portfolio with a tilt toward US and small value, because I have my doubts that the international out-performance will happen soon, but I don't want to miss out either. My portfolio is currently 70/30 US/international, with a 10% tilt toward small value, and I'm considering doubling the tilt.