Quote:
Originally Posted by z28dreams
Any suggestions for helping reallocate some of my portfolio?
I feel like I have too much money sitting in money market funds / "high interest" savings
other stats:
age: 29, fairly high risk tolerance
debt: none
income: prefer not to say, but a reasonable mid-career salary where I'm maxing out 401k and roth IRA
% in money market/high interest savings: 41.8%
% in domestic stocks: 40.4%
- 85% of this in small cap value index
- 15% of this in mid cap value index
% in international stocks: 17.7%
- 87% in total international blend (vanguard)
- 13% in emerging markets
I'm mostly deciding where to shift some of that 41.8% that is sitting in the money market.
Maybe a short term bond fund? Just load it into international index funds?
Also, should I ditch the mid cap and just have a combination of total market + more small caps?
The final %'s look like this:
41.8% money market/savings <---- want to reduce this %
34.4% domestic small cap index value
15.4% international total index <--- put it mostly here?
6% domestic mid cap value
2.3% emerging markets <--- and maybe some here?
Quote:
Originally Posted by z28dreams
^^^
Other questions:
- total international index fund vs. world minus US fund?
- any need to mix in large cap domestic stocks, or stick all to small/mid at my age?
Couple approaches really, but using an All World ex-US type fund leaves your large cap domestics to languish.
Consider dropping the midcap value. I understand the tilt towards mid/small value, but I think in your current make up its weighted too heavily. Letting large caps languish is a recipe for portfolio under performance. Equities that succeed would end up being lost and some of their largest gains that make the largest impact would never be realized to the extent they could be.
With that said..
Without disrupting what you have set for funds/sectors consider the following changes:
7.5% Cash
7.5% Emerging Markets (Vanguard VWO)
5% Total Bond Market (Vanguard BND)
20% US Total Stock Market (Vanguard VTI)
30% Small Cap Value (Vanguard VBR)
30% International Total Stock Market OR All World ex-US (Vanguard VT or
Vanguard VEU)
The difference between the two is ~73% US using VT and 60% using VEU. The shift to AW ex-US adds to Euro and Asia exposure.
You can adjust the percent outflow from cash as you see fit of course, I chose a fairly reasonable distribution to get your large cap exposure up to more "conventional" levels while still leaving small tilt. I added in bonds just to get it started.