Search found 35 matches

by Kevin22751
Tue Jul 11, 2017 10:11 am
Forum: Personal Investments
Topic: Lazy Portfolio Review Request
Replies: 9
Views: 1551

Re: Lazy Portfolio Review Request

Hi BH91, I agree with the post above that prefers 100% at your age.... especially in this 2% yield (maybe) bond market. You have lots of time to bounce back from any downturn in the US stock market. As for International stocks, I offer the following (most of which comes from Jack Bogle): 1. Over the past 20-years, the Vanguard 500 Index Fund (VFIAX) has outperformed the International stock market (MSCI World Index ex-US) by an annual growth rate of 7.67% compared to 4.51%. 2. The International stocks are more volatile with a standard deviation of returns of 21% versus 18% for Vanguard 500 Index Fund. 3. Performance of these two indexes is highly correlated at 0.87 meaning that they move together 87% of the time. 4. Last but not least.... w...
by Kevin22751
Mon Jul 10, 2017 6:15 pm
Forum: Personal Investments
Topic: Lazy Portfolio Review Request
Replies: 9
Views: 1551

Re: Lazy Portfolio Review Request

Thank you @ruralavalon and @SurveySaysIRock. I have added the additional requested information in case you are interested. I will consider FTIPX for the diversification and I will also research the international bond funds. I just recall reading that Vanguard decided to do that so... Monkey see monkey do. I just noticed upon looking at my 401k funds again they they DO offer the US Bond index. I need to figure out if my 401k will let me convert to the premium class of the investment for lower ER though. So for tax efficiency you think I should keep all my bonds under the 401k? Yes... Whenever possible, the less tax-efficient assets should be in tax deferred accounts (IRA - 401k). Bond funds are generally tax hogs, and the low-turnover stock...
by Kevin22751
Mon Jul 10, 2017 6:04 pm
Forum: Personal Investments
Topic: Lazy Portfolio Review Request
Replies: 9
Views: 1551

Re: Lazy Portfolio Review Request

Hi folks, just looking for some input and approval before I pull the trigger. I'm 26, single (no dependents) living in NYC. Have no debt. I have low six-figs worth of cash to invest (better late than never) and have made a plan as outlined below. I have emergency fund and solid budget in place with ability to invest monthly. But I want to enter with a large lump sum initially (maybe DCA?) Allocation: Equity: 78.00% Fixed Income: 22.00% I arbitrarily chose 33% international allocation (including equity and bonds). More specifically: http://www.morningstar.com/funds/XNAS/FSTVX/quote.html Fidelity® Total Market Index Premium (FSTVX 0.04%) (US Equity): 52.00% http://www.morningstar.com/funds/XNAS/FSGDX/quote.html Fidelity® Global ex US Index P...
by Kevin22751
Mon Jul 10, 2017 5:33 pm
Forum: Personal Investments
Topic: Evaluating Bond ETF's - BND vs AGG
Replies: 19
Views: 6954

Re: Evaluating Bond ETF's - BND vs AGG

Since BND holds the market, and if GNMA's are so horrible in a rising rate env, it seems market participants may hold less of them under these situations. If that happens, BND would naturally have a smaller percentage of them which would lessen their impact. Furthermore, don't GNMA's have higher interest to compensate for these risks? Similar to Muni's in higher tax brackets. Holding BND is a belief that the market knows best; just like with other total market funds AJ76er - How do "market participants hold less" residential mortgage debt ? Who would they sell the GNMA's to ? Non-market participants ? ? ? Don't expect any structural changes to the mortgage market... unless banks start holding mortgages instead of securitizing the...
by Kevin22751
Mon Jul 10, 2017 3:57 pm
Forum: Personal Investments
Topic: Vanguard recommended Retirement allocation too simple?
Replies: 70
Views: 11379

Re: Vanguard recommended Retirement allocation too simple?

Simple can be a very good thing. I am 4 years into retirement with a portfolio that is 50% Vanguard 500 Index Fund (VFIAX), and 50% Vanguard Intermediate-term Bond Index Fund (VBILX), and I'm happy as can be. Depending on your risk tolerance and perspective, you may want to re-visit the international allocation. In looking at the markets over the past 20-year period, I found the following data that supports Jack Bogle's opinion that you don't need international in your portfolio: 1. Over the past 20-years, the Vanguard Total Stock Market Index Fund (VTSAX) has outperformed the Vanguard Total International Stock Index (VTIAX) by an annual growth rate of 7.94% compared to 4.35%. 2. The International Stock Index Fund is more volatile with a st...
by Kevin22751
Mon Jul 10, 2017 1:03 pm
Forum: Personal Investments
Topic: Evaluating Bond ETF's - BND vs AGG
Replies: 19
Views: 6954

Re: Evaluating Bond ETF's - BND vs AGG

EvelynTroy wrote: Thanks for the replies - I would be interested in knowing why the mortgaged backed bonds have that risk of price decline in either rising or falling interest rate environment? Here's my take... When residential mortgage rates decline, borrowers refinance their loans to the lower rates. The flood of principal repayments from the pay-off of the old loans can only be re-deployed into the new lower rate mortgages, thus dragging down the expected return for a portfolio of mortgage back securities. The lower return from the lower rates brings down the value (price) of the bond (portfolio). When rates go up, nobody re-finances their mortgages, so these fixed rate instruments decline in value in order to compete with the new highe...
by Kevin22751
Mon Mar 06, 2017 8:43 pm
Forum: Personal Investments
Topic: Opportunity Cost of Temporarily Raiding Retirement Account
Replies: 21
Views: 2730

Re: Opportunity Cost of Temporarily Raiding Retirement Account

Do you have the option to borrow from the 401k ? That would get you some additional cash, and provide the discipline to replace those funds in the 401k as you repay the loan. Just a thought.

Hope it works out for you..... Kevin
by Kevin22751
Mon Mar 06, 2017 8:29 pm
Forum: Personal Investments
Topic: new to investing looking for advice
Replies: 19
Views: 2350

Re: new to investing looking for advice

Twee.... Welcome to the Forum. Glad to have you aboard !! Your choice of reading/study material is excellent. A book that I would add to the list is a bit on the lighter side.... "The Coffee House Investor" by Bill Schultheis. Bill is a recovering Smith-Barney broker that now "gets it". It's a fun and quick read. I've given copies to friends and they love it.

Good luck to you.... Kevin
by Kevin22751
Mon Mar 06, 2017 8:15 pm
Forum: Personal Consumer Issues
Topic: Car engines. Turbo vs no turbo
Replies: 68
Views: 12932

Re: Car engines. Turbo vs no turbo

I noticed that many car manufacturers (i.e. Lexus, VW, Infinity) use turbo or twin turbo engines. I also noticed Subaru uses a straight boxer engine, and Honda accords are not turbo engines. That got me thinking that maybe that is the reason these cars tend to make it to 100,000+ miles more often than other cars. What do you think? Avoid turbo engines? Buster.... I just purchased a new Honda Accord V-6 (my second). My 2007 Accord ran like a top for 205,000 and hummed all the way to the trade-in. Honda is a great engine company.... my new Accord turns off cylinders when not needed, to improve fuel economy and engine wear. As for turbo versus engine size.... a wise man once told me, "there's no replacement for displacement" !! Good...
by Kevin22751
Mon Mar 06, 2017 7:59 pm
Forum: Personal Investments
Topic: Moving away from Edward Jones to Vanguard
Replies: 52
Views: 22323

Re: Moving away from Edward Jones to Vanguard

I have one more option that I wanted to see what you guys thought about. Would it be a good idea to roll my IRA into my 401K? JSM1708... Here are 2 things to consider... 1. Roth Conversion: Under the current tax law, you have the option to convert some or all of your Rollover IRA to a Roth IRA, pay the taxes and then the money grows tax-free forever. I would not want to give up the conversion option just to have all the money in one bucket, versus two buckets. With that said, your current 401k may have a Roth feature that would allow you to convert funds within the 401k. 2. Access to the Money: Do some checking, but you may find that should you ever need to get cash, it is a lot easier to get your hands on the money from an IRA (or Roth) c...
by Kevin22751
Mon Mar 06, 2017 8:45 am
Forum: Personal Investments
Topic: Portfolio Advice
Replies: 10
Views: 1318

Re: Portfolio Advice

I was looking for a simple solution - is it really that bad? I thought those target funds were recommended on this board You may want to take a deep dive into the composition of those Target Date funds. Many of them are being dragged down by the weak performance of their international stock and bond exposure. My calculations show that you could do better than VTTVX (and probably the other Target Date funds too) with a DIY alternative using an S&P Index fund (VFINX) and a good Intermediate-term bond fund, such as VBIIX. Just re-balance once a year. Kevin An alternative strategy in the Vanguard family of funds would be the Balanced Index Fund (VBINX and VBIAX in Admiral Shares). This fund has a 60/40 allocation of stocks and bonds, and h...
by Kevin22751
Sun Mar 05, 2017 8:05 pm
Forum: Personal Investments
Topic: review of investments please
Replies: 7
Views: 1480

Re: review of investments please

Thank you Kevin, If I understand you correctly, then I would have every account mirror my 457? Also, in July when I have vanguard options for our new 457 account I would align exactly how you suggested. thank you for the book recommendation, I'll def check it out You are very welcome. As for mirroring and balancing, you don't need to be OCD about it. Just make sure that your overall stock/bond mix is where you want it to be, and then re-balance when you feel things need to be tweaked. I think most folks would agree that somewhere around 5% is allowable drift. So, if you are shooting for 75/25 overall, you might re-balance when it gets to 80/20 or 70/30 due to market changes. Enjoy The Coffee House Investor.... I've given copies to many fri...
by Kevin22751
Sun Mar 05, 2017 7:36 pm
Forum: Personal Investments
Topic: Portfolio Advice
Replies: 10
Views: 1318

Re: Portfolio Advice

I was looking for a simple solution - is it really that bad? I thought those target funds were recommended on this board You may want to take a deep dive into the composition of those Target Date funds. Many of them are being dragged down by the weak performance of their international stock and bond exposure. My calculations show that you could do better than VTTVX (and probably the other Target Date funds too) with a DIY alternative using an S&P Index fund (VFINX) and a good Intermediate-term bond fund, such as VBIIX. Just re-balance once a year. Kevin An alternative strategy in the Vanguard family of funds would be the Balanced Index Fund (VBINX and VBIAX in Admiral Shares). This fund has a 60/40 allocation of stocks and bonds, and h...
by Kevin22751
Sun Mar 05, 2017 4:16 pm
Forum: Personal Investments
Topic: Portfolio Advice
Replies: 10
Views: 1318

Re: Portfolio Advice

You may want to take a deep dive into the composition of those Target Date funds. Many of them are being dragged down by the weak performance of their international stock and bond exposure.

My calculations show that you could do better than VTTVX (and probably the other Target Date funds too) with a DIY alternative using an S&P Index fund (VFINX) and a good Intermediate-term bond fund, such as VBIIX. Just re-balance once a year.

Kevin
by Kevin22751
Sun Mar 05, 2017 3:28 pm
Forum: Personal Investments
Topic: Riding the fence on early retirement
Replies: 20
Views: 4933

Re: Riding the fence on early retirement

In building your projections for future cash flow needs and portfolio estimates, please do NOT forget the impact of inflation, between now and retirement, and also during retirement.

A constant rate of inflation of just 2% would take your $75k estimated cash flow need to just over $95k in 12-years, and to $111k in 20-years.

Best of Luck !!
by Kevin22751
Sun Mar 05, 2017 3:12 pm
Forum: Personal Investments
Topic: Portfolio Help
Replies: 12
Views: 1674

Re: Portfolio Help

In going from $175k to $60k, they probably need to "test drive" their new world of retirement before jumping in.

I would suggest running a pro-forma tax return on the $60k pension plus social security scenario, and see how much after-tax cash flow there really is. I'm guessing it's about $4,500 per month. Then slash monthly expenses to a level commensurate with their new world cash flow, and take the excess cash flow from current salaries to pay down debt, and build up emergency fund.

Regarding the $150k in other debt.... is this debt unsecured, or is there collateral that could be sold to reduce the debt ?

Your kindness and concern for your folks is exemplary.

Kevin
by Kevin22751
Sun Mar 05, 2017 2:16 pm
Forum: Personal Investments
Topic: review of investments please
Replies: 7
Views: 1480

Re: review of investments please

Don't overthink this. You really only need two funds. Here's a modification to Buffett's advice: Put 75% in an S&P 500 Index Fund with a low expense ratio, such as Vanguard's VFINX. Put 25% in a good Intermediate-term Bond Fund with a low expense ratio, such as Vanguard's VBIIX or VBMFX. Get a free Morningstar.com membership to check the history on the bond funds that you can choose from. Re-balance the portfolio once a year. p.s. Do not invest in international stock funds... the sales of the S&P 500 are 40% international, so you already have international exposure, with better historical performance, lower volatility, and no currency risk. p.p.s. Pick up a book called "The Coffee House Investor" by Bill Schultheis. He is ...
by Kevin22751
Sun Mar 05, 2017 1:44 pm
Forum: Personal Consumer Issues
Topic: Oil Change Advice Honda CR-V
Replies: 40
Views: 25329

Re: Oil Change Advice Honda CR-V

Just traded-in my 2007 Accord with 205,000 for a new Accord (my 5th Accord). My advice is to service the vehicle at the dealer, and follow the Maintenance Minder codes exactly... no more, no less. If the code says B2, get a B2 and nothing more. Also, be sure to shop Honda dealers and ask the price of a B2, and all other codes. My Honda dealer even printed out a price list for me of all the scheduled maintenance items per the Maintenance Minder codes. Best of Luck to you !!
by Kevin22751
Sun Jun 07, 2015 9:29 am
Forum: Personal Investments
Topic: Why does Jack Bogle have no international funds
Replies: 69
Views: 17203

Re: Why does Jack Bogle have no international funds

Here is the text of a recent interview with Jack Bogle that you may find of interest:

http://www.bloomberg.com/news/2014-12-0 ... -u-s-.html

Best wishes,
Kevin
by Kevin22751
Sat Jun 06, 2015 9:08 am
Forum: Investing - Theory, News & General
Topic: Year long hiatus from Bogleheads: How I found the 3-fund portfolio was right for me
Replies: 40
Views: 17600

Re: Year long hiatus from Bogleheads: How I found the 3-fund portfolio was right for me

After several years of trying to find the perfect AA, I realized that I at least have another risk factor to consider in investing: the risk of going crazy. :D If I were younger, I might do some sort of tilting, but with retirement on the horizon, 6 years or so out (please dear Lord), I'm fine with Treasuries, total US, and total international. I guess I have some sort of tilt toward small blend, simply because of the annoying C fund/ S fund deal in TSP, but that's about it. :beer to those who are enjoying S-and-D, tilting, and whatnot. I used to find joy in complexity, but these days it's joy in simplicity for me. Amen !! Keep the plan simple, and execute. “The enemy of a good plan is the dream of a perfect plan.” - Carl von Clausewitz
by Kevin22751
Sat Jun 06, 2015 7:47 am
Forum: Personal Investments
Topic: Advice Needed: building a $20k portfolio for 25 y/o?
Replies: 21
Views: 3133

Re: Advice Needed: building a $20k portfolio for 25 y/o?

chengong910 wrote: I know I must be wrong since I've never been a fan of index funds. I prefer active-managed funds because I just feel someone is actually "doing something for me" when market turns, particularly when it turns down. That is what I could feel with some funds like Parnassus Core Equity Investor and its performances in 2008 and 2011. With a index fund, I feel I was simply dragged by the whole market to somewhere I don't want to be. Please correct me" You might want to take some time to research the concept and performance of active funds versus index funds. Here's a link to a Vanguard "white paper" titled "The Case for Index-fund Investing". https://institutional.vanguard.com/VGApp/iip/site/i...
by Kevin22751
Thu Jun 04, 2015 7:14 am
Forum: Personal Investments
Topic: Help choosing 401k funds
Replies: 19
Views: 1628

Re: Help choosing 401k funds

Welcome to the forum, and congratulations on getting an early start on retirement investing !!

Here's a quote from Jack Bogle to keep in mind as you evaluate funds... Goes like this: When it comes to expense ratios and management fees, you get what you don't pay for.

Good Luck,
Kevin22751
by Kevin22751
Thu Jun 04, 2015 7:04 am
Forum: Personal Investments
Topic: Are VG Target funds shifting too much to Int'l Stock fund?
Replies: 40
Views: 5904

Re: Are VG Target funds shifting too much to Int'l Stock fund?

" For whatever reasons, they have decided that it's a good idea to move closer to the upper limit of their recommended range."

Has VG put anything in writing as to their reasons for increasing the international exposure ? Certainly the world did not change overnight...

I watched the VG webcast last week on International, and they never addressed the reason for their recommended increase.

Thanks,
Kevin22751
by Kevin22751
Sun May 31, 2015 3:33 pm
Forum: Personal Investments
Topic: 80k to invest. Spoke to Fidelity
Replies: 38
Views: 5829

Re: 80k to invest. Spoke to Fidelity

Freddy, At age 59, (3 yrs before I retired), I sat down and calculated my projected AFTER-TAX monthly cash flow from all sources in retirement, including deducting the cost of my retiree health insurance. I decided that I better be able to live on that amount of monthly cash flow before making any decision to retire at 62. I then put myself on an iron clad budget based on my projected retirement cash flow. I found it challenging at first, but I quickly settled into it, and it gave me the confidence I needed to "let go of the rope" at age 62. The other benefit of this strategy was that living on the reduced level of cash flow while still working, I was able to sock away quite a few bucks during that 3-year period, which has increas...
by Kevin22751
Mon May 25, 2015 11:48 am
Forum: Personal Investments
Topic: Do I really need International equities in my portfolio ?
Replies: 87
Views: 14170

Re: Do I really need International equities in my portfolio ?

Oblivious Investor has posted a nice little article today on why he adds international stocks to his portfolio - "Does Including International Stocks Really Make You More Diversified" www.obliviousinvestor.com Thanks for the link. In that piece, the Oblivious Investor sums it up as follows: "In short, I would argue that you are more diversified with more stocks (or more industries, or more countries) in your portfolio, even if that doesn’t show up in the form of dramatically improved back-tested results." This comment really seems to contradict his historic preference for achieving diversification through index-fund investing. The Vanguard Total Market Index Fund holds a portfolio of 3,814 stocks. How much more diversif...
by Kevin22751
Mon May 25, 2015 8:46 am
Forum: Personal Investments
Topic: Do I really need International equities in my portfolio ?
Replies: 87
Views: 14170

Re: Do I really need International equities in my portfolio ?

rgs92 wrote:I believe Mr. Bogle's comment that, if you want foreign stocks, 20% is OK, refers to 20% of the equity portion of your portfolio, not 20% of your total portfolio. So, if you have a 50/50 portfolio, we are talking about 10% of your total portfolio. Therefore, this is much ado about nothing, as even a large divergence for international has a very minor impact.
RGS 92... Thanks for putting this into perspective.
by Kevin22751
Sun May 24, 2015 7:41 pm
Forum: Personal Investments
Topic: Do I really need International equities in my portfolio ?
Replies: 87
Views: 14170

Re: Do I really need International equities in my portfolio ?

Thanks to all for your insights. Maybe I am missing something here… I understand the need to diversify a portfolio in order to reduce risk and/or increase returns. So, we add bonds to a portfolio of equities because the bond component is negatively correlated with the stocks, i.e. when the stocks “zig” the bonds will hopefully “zag”. My research shows the correlation of stock and bond returns to be about -0.30. The idea is to achieve a lower standard deviation of returns in the stock/bond combination resulting from the negative correlation. When it comes to adding international stock exposure to the portfolio I don’t see the logic. I compared the returns and standard deviations of the S&P 500 to the MSCI EAFE Index over the 20-year per...
by Kevin22751
Sun May 24, 2015 4:05 pm
Forum: Personal Investments
Topic: Do I really need International equities in my portfolio ?
Replies: 87
Views: 14170

Re: Do I really need International equities in my portfolio ?

Thanks to all for your insights. Maybe I am missing something here… I understand the need to diversify a portfolio in order to reduce risk and/or increase returns. So, we add bonds to a portfolio of equities because the bond component is negatively correlated with the stocks, i.e. when the stocks “zig” the bonds will hopefully “zag”. My research shows the correlation of stock and bond returns to be about -0.30. The idea is to achieve a lower standard deviation of returns in the stock/bond combination resulting from the negative correlation. When it comes to adding international stock exposure to the portfolio I don’t see the logic. I compared the returns and standard deviations of the S&P 500 to the MSCI EAFE Index over the 20-year peri...
by Kevin22751
Sun May 24, 2015 10:16 am
Forum: Investing - Theory, News & General
Topic: "Does Your Fund Manager Consistently Beat the Stock Market?"
Replies: 42
Views: 7218

Re: "Does Your Fund Manager Consistently Beat the Stock Market?"

Good stuff, Taylor. Thanks.

All: Here's a link to a recent Vanguard white paper titled "The Case for Index-fund Investing". An excellent treatise.

https://advisors.vanguard.com/iwe/pdf/I ... omain=true

Best Wishes,
Kevin
by Kevin22751
Sun May 24, 2015 9:25 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3895
Views: 2424519

Re: The Three Fund Portfolio

RevYoung wrote:
Kevin22751 wrote:Question: Do I really need to have International equities in my portfolio ?
Hi Kevin22751,

From my post above:
You may be interested to read the thread I recently started asking almost that exact same question. It was very enlightening thanks to the help of fellow Bogleheads:

How important is an international allocation?

If you are specifically interested in Taylor's thoughts on the matter, I'd encourage you to take a look at the thread he started in July 2014:

International investing. A good call by our mentor.

I hope that helps. Have a great weekend! :mrgreen:

Thanks RevYoung !
by Kevin22751
Sun May 24, 2015 9:24 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3895
Views: 2424519

Re: The Three Fund Portfolio

Question: Do I really need to have International equities in my portfolio ? I am in the process of re-balancing and did some research on the International category using Morningstar data. What I found was that over the past 10-15 years the correlation between international equities and the US stock market has risen to about 85%. I also found that the international category has produced lower average returns with a higher standard deviation than the US stock market over this period. So, given that the international category has lower returns with higher risk and is 85% correlated to the US stock market, why would I want to include international equities in my portfolio ? Wouldn't I be better off with a two fund portfolio using VTSAX and VBT...
by Kevin22751
Sun May 24, 2015 9:19 am
Forum: Investing - Theory, News & General
Topic: Advice from John Bogle and Warren Buffett
Replies: 35
Views: 5522

Re: Advice from John Bogle and Warren Buffett

Ok, invest around the world. I understand that but doesn`t the S&P 500 companies derive maybe half or more of their income from foreign entities? Maybe people over think too much and worry too much with investments and that is a detriment to them. A short time ago, foreign stock markets provided double the total investment return of the US stock market. As Jennifer Garner asks every day on commercial television, "what's in your wallet"? Kenner.... can you share your data on the returns of foreign stock markets vs US stock market to support your claim for the period you cited ? I'd be interested in the long-term comparative history of returns (including standard deviation of returns), as well as the correlation of returns betw...
by Kevin22751
Sat May 23, 2015 10:20 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3895
Views: 2424519

Re: Wrong Forum

Thanks, Taylor. And thank you for your warm welcome to the forum. I have re-posted my question, and there does seem to be quite a bit of interest on the topic.

All the best to you,
Kevin
by Kevin22751
Sat May 23, 2015 9:30 pm
Forum: Personal Investments
Topic: Do I really need International equities in my portfolio ?
Replies: 87
Views: 14170

Do I really need International equities in my portfolio ?

Question: Do I really need to have International equities in my portfolio ? I am in the process of re-balancing and did some research on the international category using VGTSX as a proxy. What I found in my research is: a) about 1/3 of revenues of the S%P 500 are derived from overseas sales; b) over the past 10-15 years the correlation between international equities and the US stock market has risen to about 85%; and c) the international category has produced lower average returns with a higher standard deviation than the US stock market over this period. So, given that the US stock market already has international exposure, and the international category has lower returns with higher risk and is 85% correlated to the US stock market, why w...
by Kevin22751
Fri May 22, 2015 11:30 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3895
Views: 2424519

Re: The Three Fund Portfolio

Question: Do I really need to have International equities in my portfolio ? I am in the process of re-balancing and did some research on the International category using Morningstar data. What I found was that over the past 10-15 years the correlation between international equities and the US stock market has risen to about 85%. I also found that the international category has produced lower average returns with a higher standard deviation than the US stock market over this period. So, given that the international category has lower returns with higher risk and is 85% correlated to the US stock market, why would I want to include international equities in my portfolio ? Wouldn't I be better off with a two fund portfolio using VTSAX and VBTL...