riskonoff wrote:I have less than 10% of my equity allocation to int'l. I love Vanguard and have been a loyal customer for 25 years. However, I don't listen to everything they say. In 2006/07 I had a windfall of sorts and the vanguard financial planner said to put all of it in equities. I ignored his advice knowing full well we were at all time highs. It just felt too risky and CD's were yielding over 5%....Not listening to Vanguard in '06/'07 allowed me to buy laddered CD's over 5% and be a scale down buyer of VTI in '08/'09.
If you told the Vanguard CFP that you have a long time horizon I don't see it as wrong to rec. more equities. BTW, don't have the data In front of me, my would guess you would have made out well just following their advice and just reinvesting dividends even now and more looking 10+ years.
I think I was lucky
and I have fared much better than if I listened to the vanguard cfp. their advice is cookie cutter...which is fine. however, to put a large lump sum of cash in at the mkt highs did not feel right. as a trader I have learned to wait for pullbacks. when the pull back started in 2008 I never envisioned that it would result in a complete meltdown. I was a scaled down GTC buyer of VTI from 62 down to 38. I felt like cancelling the orders when each level was hit but I unfortunately did not.
I am so thankful that I did not listen the vanguard guy because I have no idea how I would have reacted in late '08/'09. At the time I was a vanguard guy because low cost and I really did not understand what stay the course means (although I was stay the course), Also, there is a big difference when the vanguard guy tells u to put everything in equities and your loss is in the thousands of dollars. If I listed to the vanguard guy it would have been million plus in losses. I was not prepared that.
Right now I see international as similar return and more risk. There are very smart people on this Forum that would say I have no idea what I am talking about. I understand that. However, I always take actions that ensure that I will stay the course