I have around 75k in vanguard admiral index funds: Total stock market index: 30k Small cap: 15k Total bond index: 15k Total international: 13k What do you guys think? I will be putting more more, should I rebalance? Update: I’ll be putting 50k more. So it will look like: Total Stock: 50k Small cap 25k Bond: 25k International: 23k Goal is long term, have emergency cash separate.
This is fairly similar to my portfolio which is managed by vanguard.
Better to go to Robo Advisor. They do the asset allocation, rebalancing etc. Keep Vanguard but put money in the Robos also
Have two phone call appointments with vanguard personal advisor, and get a personalized investment plan. It is worth it. In the first call, the advisor listens to your goals, and in the second call, he comes up with a very detailed investment plan.
I would like to hear thoughts on increasing the bond portfolio. With interest rate increase around the corner, is it a smart idea anymore ?
Good read and still super relevant even if the blog is 18 months old. https://blog.wealthfront.com/investor-bond-market/
Thanks @Johnny27.
(Age - 10) in total bond index in tax advantaged account. (110 - age) in stocks, preferably in taxable account divided in two parts: 60% of it in total US stock market and 40% in total international. Rebalance yearly.
I have read mixed things about international stocks as major companies of the world are also already listed in US stock markets, is it worth putting 40% in international stocks?
It's like vim vs emacs. Just stick with one and don't tinker around. Same for international. Your return 3-4 decades from now, with or without international may be only tiny bit different (due to the correlation that you hinted at).
Once economy cools off, change that (age - 10) to (age - 20).
Beware of putting a lot into long duration bonds in a hot economy. You will get pummeled when interest rates rise. In that case you may just sit in high interest saving or short term bonds
It looks very reasonable to me. You can take a look at the portfolios from Wealthfront or Betterment (they're both available for free on their website) to get some ideas on allocation. Or look at the target date Vanguard fund corresponding to your age and look what's inside.