Quote:
Originally Posted by Thebud
Hello everyone,
Country you live in: USA
* Income: $10k / month
* Risk Tolerance: Very High
* Timeframe for investment: 50% ~5 years 50% 30+ years
* Debt: none
* Any other information you might have that would help us:
I have a 401k through work which I can contribute up to 16k (no vanguard style low fee funds available...through nationwide). I am fresh out of college so really not planning on withdrawing anytime soon (other than possibly for a condo in about 5 years). I am not looking to put more than 2 hrs a month into this. Note income listed is amount I would like to invest per month.
$10k/month? Really? Wow. If thats what you're willing to 'play' with, my first suggestion would be: build your 6 month "life style" fund - in other words an emergency fund. I'm going to speculate and say thats going to be somewhere in the $40-60k range.
As for the recommendation of where to put it....you say very high risk tolerance but it bears repeating: Someones stated risk tolerance is their perceived risk acceptance. The stated risk tolerance is almost always higher then actual.
However, given a true "very high risk" tolerance, I'd look at:
18% Vanguard Growth (VIGRX)
18% Vanguard Small Cap Growth (VISGX)
18% Vanguard Small Cap Value (VISVX)
18% Vanguard Emerging Markets (VEIEX)
18% Vanguard International Growth (VWIGX)
9% Vanguard Total Stock Market (VTSMX)
It provides a basic 65/35 distribution US&Canada / Rest of World with an obvious tilt towards growth and small cap funds and emerging markets, which offer the highest risk overall. I stuck the Total Stock Market index in there as a large cap value balance to the growth fund. It could be higher risk if you dropped the TSM.
The higher amount of money you can invest, the less risk you really need to take, especially for long term investments. If you want to stick something in there for long term holdings, consider dropping everybody by ~1% and put that 6% into VBMFX and/or VIPSX and in that 5 years re-evaluate.
Remember, this is all taxable.