Spanky
Thinks s/he gets paid by the post
Only when you have no equity (or significant) holdings.And personally, I would love a great market drop - who doesn't like a sale?
Only when you have no equity (or significant) holdings.And personally, I would love a great market drop - who doesn't like a sale?
Thanks for bringing this up. My tolerance for risk is higher than normal and for the time being, I'm comfortable being 100% allocated in equities. And personally, I would love a great market drop - who doesn't like a sale?
We are currently saving around 30-40k per year and are both early 30's. I suspect around 40 we'll start adding FI and gradually increase the FI allocation as we get closer to retirement and have - hopefully - a bigger nest egg.
Only when you have no equity (or significant) holdings.
At your age I didn't have much in FI either. The current market doesn't seem widely overpriced but I'm not really very good at identifying toppy areas. Leaving a little in FI gives one the ammunition to really take advantage of major market declines. On the other hand, we've just had a modest decline so it's clearly not the top of a bull market. Good luck.
Here's split of DODFX - love this fund - looks like they have well over 50% Europe (adding in UK). I'm suprised Europe is that high.
REGION DIVERS I F ICATION
Fund
Europe (excluding United Kingdom)
35.2%
Japan 19.6
United Kingdom 16.0
Latin America 7.1
Pacific (excluding Japan) 6.6
United States 5.4
Africa 2.8
Canada 1.1
Middle East 0.8
If you're going to base your allocation on a backtesting spreadsheet, then you should definitely be 100% emerging markets.