namesbond wrote:I took a thousand from each of the three funds and began my VXUS international fund. Thanks for the help. I'm going to keep maxing out my Roth and see where it goes. I personally don't want to get into bond funds at this point because I want to remain more aggressive since I'm still young.
Did you read that Vanguard article I linked to above? You just put in 15% of your portfolio into an international ETF. The article says 20% is a reasonable starting point to gain diversification benefits. I'm not sure you fully understand the point of diversification through asset allocation and rebalancing. Ultimately, it is your money, but where 99% of people fall flat on their face is not understanding the importance of a diverse portfolio and how AA works.
VinTek wrote:namesbond wrote:I'm currently 25 almost 26 and have a Roth IRA of $21,000. In S&P 500 Index Fund 60%, Small Cap Growth 20%, and Large Cap Growth 20%. I also have a 401K totalling $2,000 exclusively in S&P 500. My question is are my fund allocations appropriate?
Just curious: why the emphasis on growth funds? They've historically not performed as well as value funds over the long term.
I would be interested in seeing this history. I know we can all go back in history and pick our dates to prove our point. But since we can do that, it should only make the point that we have no idea which one will perform better than the other into the future. And further highlights my point of diversification and rebalancing. Here are my Cherry picked dates, the last 5 years VVIAX (value) vs VIGAX (growth).
http://quote.morningstar.com/fund/chart ... %2C0%22%7D