EvrClrx311
Full time employment: Posting here.
- Joined
- Feb 8, 2012
- Messages
- 648
Looking for others advice and experience (wisdom) in selecting a smart allocation moving forward. What is the best way to invest with a 20+ horizon until I'll need to start pulling down. I've found I have a fairly high(er than average) risk tolerance, and I am at least 20 years out from my plan to FIRE, but I also would like to start transitioning my allocation in a way that I am not over exposed to a downturn or crash, should it happen within a decade of my goal (2035-2040 kind of time frame).
I've read a couple dozen investing books, and gathered a fairly high understanding of the long term history of equity markets. I've been saving 25% of everything I make towards retirement since I started working in my early 20s but until now money going in far outweighed the growth potential of the account. So I've been invested rather aggressively. To be fair, the overall return of the account is important from start to finish, but the risk of making mistakes later in the process rises, and I'm crossing into that territory soon where what I expect the account to make in a year will start to exceed what I'm putting in.
So I've reached about the quarter million mark, and I'm in my mid 30s... on pace with my desired plan, but taking things much more seriously now in terms of my allocation.
What are peoples thoughts about how to manage the account in this period of time. I hope to reach the 1 million mark in a decade... at least that is my ambition. Understanding, a lot of that will depend on the growth, which is not something you can chase, but is rather produced by an overall tide in the market. Looking to avoid the risk on both ends (giving up gain by playing it too safe vs. getting hit at the wrong time in a downturn while overexposed to risk)
I'm currently sitting at:
30% international index
30% S&P 500 index
30% small cap growth index
10% vanguard health care fund
I've read a couple dozen investing books, and gathered a fairly high understanding of the long term history of equity markets. I've been saving 25% of everything I make towards retirement since I started working in my early 20s but until now money going in far outweighed the growth potential of the account. So I've been invested rather aggressively. To be fair, the overall return of the account is important from start to finish, but the risk of making mistakes later in the process rises, and I'm crossing into that territory soon where what I expect the account to make in a year will start to exceed what I'm putting in.
So I've reached about the quarter million mark, and I'm in my mid 30s... on pace with my desired plan, but taking things much more seriously now in terms of my allocation.
What are peoples thoughts about how to manage the account in this period of time. I hope to reach the 1 million mark in a decade... at least that is my ambition. Understanding, a lot of that will depend on the growth, which is not something you can chase, but is rather produced by an overall tide in the market. Looking to avoid the risk on both ends (giving up gain by playing it too safe vs. getting hit at the wrong time in a downturn while overexposed to risk)
I'm currently sitting at:
30% international index
30% S&P 500 index
30% small cap growth index
10% vanguard health care fund
Last edited: