I'm conducting annual review of portfolio, and would like our CluchInvestors to opine on the following. Assume it's for someone that is 20 yrs from retirement. I'd be curious to see if opinions differ substantially. 1. Asset allocation btwn Domestic and Foreign 2. Asset allocation btwn Large, Mid and Small cap 3. Asset allocation btwn Value and Growth Thanks.
With 20 yrs., you really don't need value right now. I'd go aggressive growth (75% domestic, 25% foreign) split evenly between large, mid, and small caps. When you're getting closer to retirement, reallocate to include value mutual funds, add some bonds and put some into money market.
There are a ton of different ways to go with everyone offering different advice. I am not a financial professional, but I have been succesful at managing my own money. Long-term the most succesful investment is small-cap value stocks. I try to keep a good portion of my portfolio in those stocks. However, it is a lot more fun watching a growth stock take off so I also try to make sure I have a number of growth stocks in my portfolio. They are a lot riskier so you must watch them closer. I usually like to stick to the small and mid-cap stocks that are less closely followed by Wall Street, but I also own several larger stocks also. I think you have a better chance to find a misvalued security with those smaller cap stocks. However, those stocks are volatile and sometimes (like now) it is not for the faint-hearted. I personally think people should have about 50% of their portfolio in foreign stocks. I currently have about 70%, but I expect that to decrease over time. Here is a link to good article on allocation. ultimate buy and hold strategy
I completely agree with this. Any adviser will tell you that the younger you are, the more risk you should take.
I am NOT an investment advisor, but I work for a large international company. We are now a global economy. I believe that over the next 20 years, the foreign economies will grow at a much more rapid rate than the US economy. I have a majority of my investments foreign. The risk IS higher, but so are the returns. You have plenty of time. I would go mostly foreign.
When the market rolls there is a Turkish fund that I like to get into. (TKR) But I'm constantly rotating as I'm tending the sheep most trading days.That precious commodity,time is what we're all after right.We want to work to live,not live to work.Trading for a living/good investing gives one that flexibility.And I'll tell you something,contrary to popular belief,if a person has the inclination,makes the time,and has a good mentor/learning apparatus then it's a great way to go. I do my best to give my straight up opinions here because I want you all to do well.(and I'll keep tossing out those stocks and takes on market turns)What I really love is when I find someone who is genuinely interested in learning.(many people say they are,but when it gets down to brass tacks,nada most of the time).I stick with what works for me.My Mom taught me much and I had a buddy that I really miss, who helped me with the technicals long ago.Marry the innate and the techs and it's on.Remeber there are many ways to skin a cat though....you can do it. Pushkin had a lot of good things to say in his post,but I'm more in line with Fatty said. So there's the portfolio....which comprises 50% for me. Swing trades using another 20 - 30 % of my money. There's also the margin for swings. And usually I'll pick out a small stock,buy up about 5% of the float,and hold it longer than a year.... getting the tax benefits where I'm only paying 15 %. Set up two bank accounts at each bank...one for taxes on profits which you won't touch and another for the rest of said profits that you pull out. I have a philosophy which I've spoken of before,but I'll repeat it here in an abridged version. I see the US extending influence,intelligence,oil companies,etc. and believe that if you hit precious metals,bluechips/future blues if you can find them,real estate,(yes,RE,buy in the right places...ie Lake Tahoe,a place of isolated beauty in this crazy world,insulated to a degree....and the people that own for the most part have homes all over the world/or at least in the Bay area too.Beachfront also is in there bigtime)and oil that you can't go wrong.The disparity between the have's and have nots is widening and I put forth that that US markets will roll.We are uniquely positioned at a place in history....with plenty of opportunities to make major money in our lifetimes....providing again that most precious commodity,time.Time to spend with our loved ones and friends...to find that innerpeace...whatever you like to do. Set your family up down the line. TAKE ADVANTAGE BUT MOST IMPORTANT,IF YOU DON"T KNOW WHAT YOUR DOING,GET HELP. DON"T JUST ROLL THE DICE.
Cash 4% Short/Interm.Term Bond 22% Real Estate 5% US Large-Cap 51% US Mid-Cap 10% Foreign Developed 8%
Cash- 15% (includes checking account) Bond- 27% Gold fund- 9% International (mostly europe)- 12.3% Emerging Asia- 11.5% Large Cap US- 2% Health Stocks- 3.5% Energy Stocks (oil companies and such)- 9% Balanced (mix of stocks and bonds)- 10%
I too am 20 years out of retirement. My portfolio is 70% equities and 30% bonds. On the equity side, I have 60% in stock funds and 10% in REIT funds. On the stock funds, I have 40% is US and 20% in foreign. Here are the details: Code: 70% equities 40% domestic 10% Vangard Total Stock Market ETF 10% Vangard Health Care Fund 10% Small Cap Value ETF 10% Micro Cap ETF 20% foreign 10% Dodge & Cox International 5% World (ex-US) Small Cap ETF 5% Templeton Dragon Fund 10% REITs 5% dometic REIT ETF 5% foreign REIT ETF 30% fixed 25% domestic 5% foreign
