Goal is to keep it fairly well diversified & low expense ratio while looking for annualized rate of return of 8-10% VTI (Vanguard Total Stock Market Index Fund ETF) - 24% VEA (Vanguard Developed Markets Index Fund ETF) - 22% IWN (iShares Russell 2000 Value ETF) - 13% VTV (Vanguard Value Index Fund ETF) - 13% VWO (Vanguard Emerging Markets Stock Index Fund ETF) - 9% VOE (Vanguard Mid-Cap Value Index Fund ETF) - 9% MUB (iShares National Muni Bond ETF) - 5% BND (Vanguard Total Bond Market Index Fund ETF) - 3% BNDX (Vanguard Total International Bond Index Fund ETF) - 2% I have invested in other assets like crypto, gold and real estate property. Any suggestion on what can be changed to above distribution and reasons? #investments #personalfinance
100% sp500
100% Bitcoin
You have a total mess there. Simplify. Just invest in 3-fund portfolio with small-cap-value fund tilt: https://firetobiz.com/investing-basics/ (Be careful of taxes when simplifying portfolio).
Agree on the simplification. I’ve done better with mid-caps than small-caps, though.
I agree with this, 3 fund portfolio works well. You can keep 10% of your portfolio for playing/individual stocks to keep it intresting and appreciate your 3 funds returns over the years without doing anything
10% bnd, 60% voo, 10% gtek or arkk (prediction is that indexing will give bad yields in next decade so try actively managed), 20% vxus.
Seems complicated, but it looks fine. I think you're missing small cap value which is the tilt investors usually go for if they want to take more risk over long time horizons. If you want 8-10% returns (I'm assuming real returns) I'd just do something like 80-90% VT and 10-20% some SCV low-cost index fund. You could split VT into VTI and VXUS if you want to take advantage of the foreign income tax credit. Historically it's not common to get 8-10% returns over a 20 year time horizon, and a bond allocation will reduce your probability. This isn't to say that allocating to bonds is bad, it's just that your desired expected returns require more risk that you need to determine if it's appropriate.
Why isn’t there any mention of Qqq? They’ve got one of the best returns
What is the purpose of having 20+ years of horizon and still investing in bonds?
It is a very good question for this op's situation There could be benefits, even if it's 10% in bonds, because rebalancing naturally leads to more stock buying after downturns and stock selling at peaks However...(1) if the working income stream is stable and is a big enough % of NW, just working will take care of this. And (2) as you get to higher tax brackets rebalancing makes a drag. This is why for many people 100% stock is perfectly reasonable when there's an income stream coming in. Even 100% isn't a magic number as you can go over 100% (leverage, mortgage, etc)
I only know a few of these by heart, would help to edit the post and add the title or summary with the ticker symbol
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