Originally Posted by Miss_Lala
Thanks for the advice so far. I have already read the Millionaire Next Door, actually I read it aboutt 5 years ago, and have since read the Millionaire Mind. I'm obsessed with finance articles and blogs, so I guess I'm looking for inspiration and tips to tweak what I've got going.
As for LBYM, we're saving about 3k a month, so I think we've got that down. I just need to know where to put it.
3k per month is excellent. 36k per year on a salary of 200k is 18% savings rate.
I would put the 3k into mutual funds. No load funds for sure. Probably 100% equities, but if you wanted bonds (you said you had 15%, but would reduce?) that is OK, provided bonds are in moderation.
at least 40% domestic
at least 25% international/foreign
at least 10% small cap domestic
at least 10% small cap foreign or emerging markets
I am 34 yo, 99% equity (1% bond). 74% domestic, 25% foreign.
74$ domestic is 44% domestic large cap, 15% domestic mid cap, 15% domestic small cap, International is 15% large cap and 10% small cap.
Everyone's allocation is different. I would try to figure out your allocation, and use the allocation as basis for most investing decisions.