getoutearly
Recycles dryer sheets
- Joined
- Jan 27, 2006
- Messages
- 77
I keep seeing posts implying they are fully diversified. Then they give their allocations, and they are actually about 90% in the US market (US small caps, US large cap, US Mid cap, US short term bonds, US long term bonds. With maybe 10% in international
Am I missing something, or, if you are allocated like that, you are still 90% in the US market. If the US market tanks, most of your portfolio tanks to some extent. If you are planning to ER FI, that's not a comforting feeling.
Anyone have a recommendation for a Trully diversified portfolio? I've read some books lately that seem to make a lot of sense (How to Retire Early, and Enjoy Life, on less than $1MM is one), that make the argument to get truly diversified with very much noncorrelated investments.
Here's my portfolio thinking:
20% US stock index fund
20% International stock index fund
20% Emerging Markets (probably a managed fund, unless someone knows of a good index for emerging markets?)
20% Real Estate (REITS or individual houses / duplexes / apartments)
20% International Bonds?
Thoughts?? I'm thinking this is the portfolio (or something like it) that will work when you are building up your retirement, as well as after retirement.
Where are the holes in my theory?? (I'm sure there are plenty; I just can't seem to see them right now)
Gracias
Am I missing something, or, if you are allocated like that, you are still 90% in the US market. If the US market tanks, most of your portfolio tanks to some extent. If you are planning to ER FI, that's not a comforting feeling.
Anyone have a recommendation for a Trully diversified portfolio? I've read some books lately that seem to make a lot of sense (How to Retire Early, and Enjoy Life, on less than $1MM is one), that make the argument to get truly diversified with very much noncorrelated investments.
Here's my portfolio thinking:
20% US stock index fund
20% International stock index fund
20% Emerging Markets (probably a managed fund, unless someone knows of a good index for emerging markets?)
20% Real Estate (REITS or individual houses / duplexes / apartments)
20% International Bonds?
Thoughts?? I'm thinking this is the portfolio (or something like it) that will work when you are building up your retirement, as well as after retirement.
Where are the holes in my theory?? (I'm sure there are plenty; I just can't seem to see them right now)
Gracias