Move More Into International Stocks?

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Nerdicus
Posts: 119
Joined: Wed May 07, 2014 12:58 am

Move More Into International Stocks?

Post by Nerdicus »

So I recently read the Bill Bernstein PDF of "If You Can!" and how he talked about a constant allocation of 1/3 U.S. Stocks, 1/3 International Stocks and 1/3 in Bond Index for Millennials. Well, with U.S. Stocks appearing to be overvalued, talks about some time down the road of interest rates rising and International Stocks being pretty low at the moment, but in the next decade or two projected to be doing much better. I am considering rebalancing my 401(k) (not my IRA) to Bill Bernstein's recommendation. Below is my current 401(k) allocation of 40% U.S. Stocks/20% Intl Stocks/40% U.S. Bonds. By the way, I am 38 and 25-30 years away from retirement. Note: for my IRA, I recently switched from the LifeStrategy Moderate Growth Fund to Vanguard Target Retirement 2040 fund, because when I retire I want to draw my IRA down first before touching my 401(k). So given my situation, would I be better of just staying the course with my current 401(k) allocation or switching to the Bill Berstein recommendation? Just curios.

401(k)
U.S. Stocks
30% Vanguard Institutional Index Fund Institutional Plus Shares .02% fee
4% Vanguard Mid-Cap Index Fund Institutional Plus Shares .06% fee
6% Vanguard Small-Cap Index Fund Institutional Plus Shares .06% fee

International Stocks
20% SSgA Global Equity ex U.S. Index Non-Lending Series Fund Class C .17% fee
(Tracks: MSCI ACWI ex-USA Index)

U.S. Bonds
40% SSgA U.S. Bond Index Non-Lending Series Fund Class C .06% fee
(Tracks: Barclays Capital U.S. Aggregate Index)
Last edited by Nerdicus on Tue Aug 26, 2014 9:55 am, edited 2 times in total.
investor1
Posts: 1050
Joined: Thu Mar 15, 2012 8:15 pm

Re: Bill Berstein If You Can!

Post by investor1 »

Pick an AA you are comfortable with and stick with it. Don't try to time the market, and avoid investment porn.

Your 401k and IRA are accounts that hold assets for the same goal, retirement. If you aren't willing to implement a plan across your portfolio, it likely isn't for you.
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