help with overall portfolio, 42yo

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sambb
Posts: 2074
Joined: Sun Mar 10, 2013 3:31 pm

help with overall portfolio, 42yo

Post by sambb » Sun Mar 10, 2013 10:17 pm

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Last edited by sambb on Sat Nov 15, 2014 1:07 pm, edited 1 time in total.

DaveS
Posts: 1308
Joined: Fri Jun 15, 2007 9:42 am
Location: Reno, NV

Re: help with overall portfolio, 42yo

Post by DaveS » Mon Mar 11, 2013 10:06 am

If I had your attitude about getting into a mature market, I would pay off the mortgage with that cash. Your allocation is quite normal and can stay that way. Dave
PS World wide International stocks are not hitting new highs. You did not say what your US v. International/Emerging allocation is. If it's lower than 1/3rd of equities, I would buy Total International to get it up to that level. Some go to 50/50. Dave

NYBoglehead
Posts: 1588
Joined: Fri May 25, 2012 9:38 am

Re: help with overall portfolio, 42yo

Post by NYBoglehead » Mon Mar 11, 2013 10:25 am

^I like the idea of buying more international, but it appears you like the Target Date funds and LifeStrategy Fund (which is totally fine). I understand your concern about shifting that cash into the market right now.

That said, it appears you have at least another 20 years of working to go, so don't worry about any pullbacks in the market as you have a lot of time to recover and are still adding new money.

At 4x your income your portfolio is a good size. Assuming that 20% is in taxable I would use it to pay off/pay down the mortgage if you are reluctant to add more money to the market. You're guaranteed to save yourself whatever interest you would have paid and having a paid for home is "imputed income" in itself.

sambb
Posts: 2074
Joined: Sun Mar 10, 2013 3:31 pm

Re: help with overall portfolio, 42yo

Post by sambb » Tue Mar 12, 2013 9:02 pm

thanks
Is there any general thought to the 100-age in stocks/stock funds rule? Is that rule still relevant in 2013? Would I be better off just trusting vanguard and putting my entire portfolio into 2030 target fund?

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