Advice wanted - AA

[Annemarit]

Hallo,

I live in Europe and have a brokerage account in the USA. Unfortunately there is a new regulation for EU residents that will prohibit me from purchasing any new ETFs in the very near future. As such I am forced to choose an asset allocation that I will have to stick to “forever”. I am currently 45. I currently am planning on the following AA for my equities (other than my house I have all my assets in equities):
40% vtsax
15-20% qqq (worried that 20% is to risky due to the 14 year recover time after the 80% downturn, but seems to be very profitable in the last decade)
15% iyj (less if 20% qqq, a little worried that Dow Jones industrial is only 30 companies)
14% voo
8% ijk (mid Cap)
8% slyg (small cap)

What are your thoughts.

Thanks,

Anne

 

[Spock]

What if you put it in a target date fund that automagically adjusts the asset allocation as the years progress...

 

[VanWinkle]

Mine would likely be simplified to 70% VTSAX(total US stock market) and 30% VFWAX(total world ex-US). A slice and dice AA might get too risky if you are unable to rebalance. But then I like simple over more complicated.

My assumption is that you also have fixed income(bonds or CDs) that make up your total Asset allocation.

Good luck with your decision,

VW

 

[Annemarit]

I took out a mortgage on my house (0.74% interest) in the amount that I was planning on investing in the next 5 years had this new EU rule not come into effect. (I know, really crazy....or desperate.)

I already have the above listed investments in my portfolio. I can adjust the AA with the “new” money, but would trigger capital gains if I sold my existing holdings. Unlesss my AA is inappropriate I would like to avoid the capital gains.