Investment advice
I mostly invest in s&p 500 (mostly falling for the “popular and “controversial” 90:10 advice), but have been feeling lately it is not a well diversified choice. It lacks foreign sector, and also represents very little non-tech US stocks. I could think about total market fund or qqq; but they are again heavily dominated by tech, which i have already covered with s&p 500 fund. So i am trying to figure out what all other index funds/etfs do people usually invest in and have decent returns? On the same note, how good is fidelity/vanguard 2060 target funds for diversification purposes? (I do agree it only covers total stock market and an intl fund mostly; still doesnt cover real estate and more of non tech us funds) TC 400k #personalfinance #investments
See this for a more diversified choice: https://www.bogleheads.org/wiki/Three-fund_portfolio
Thanks! 3 fund portfolio is actually very close to the 2060 target fund (54% domestic stock, 34% intl stock and rest bonds) - which js what i was considering lately.
Correct, and target fund portfolios automatically adjust the ratios as the target date gets closer leaving you with even less work. Just pick one with low expense ratio and you'll be just fine. You will miss out on some minor tax optimizations, but it's not something I'd worry about while working - your time is much better spent improving your work/salary than doing micro optimizations.
No need to invest in 500 when all you need is top 30. DIA
Thanks! Looks more like basics for investing - i more or less know that already :) Looking more for a directed advice on choice of investment
What’s the point of the image
I split between VOO, IVOO, and VIOO in my brokerage account and the Fidelity equivalents in my 401(k).
My asset allocation is 50% s&p 500, 15% US small cap value (IJS/VSIAX/AVUV/…), 20% INTL large cap, 15% emerging markets. For me this is a good diversification and also just 4 funds (or classes of funds) to care about. Thinking of moving 5% of the portfolio into US real estate. But, not too sure about that.
Almost similar, added mid cap vanguard index fund to the mix.