Personal Investments • Creating the 3 Fund Portfolio

At your age and if you have the risk tolerance to handle it without succumbing to bad behaviors when there is volatility, I would suggest the following:

100% stocks

VTI (Total US)

VXUS (Total Intl)

Guidance for Intl is no less than 20% and not more than 40%

Bonds can come later. Importantly, I have found bonds to be more complex than stocks. I would strongly encourage to start educating yourself now so you are well informed when the time comes.

Best wishes.

Can definitely appreciate the total stock strategy. You are referring to the 401k right? Not the Roth IRA?

Total stock for the whole of your portfolio. Completely up to you how you want to manage your asset allocation across your tax advantaged accounts.

I will use my own portfolio as an example (which also includes some bonds) as to what kind of investments I keep in each tax advantaged account.

* 401k: VTI, VXUS, BND, BNDX

* Rollover IRA: VTI, VXUS, BND, BNDX

* Roth: VTI, VXUS

* HSA: VTI


The %s of the investments in each individual tax advantaged account will vary. As a whole, I make sure my portfolio looks like what I want my overall asset allocation to be:

Stocks

* VTI (Total US) - 80%

* VXUS (Total Intl) - 20%


Bonds / Fixed Income

* BND (Total US) - 80%

* BNDX (Total Intl) - 20%


Hope that makes sense / is helpful.

Statistics: Posted by invest4 — Tue Jun 18, 2024 3:35 am — Replies 20 — Views 1661

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