3 fund portfolio

[rafkg29]

I am 22 years old I’d like to know how is asset allocation on this specific portfolio? 75% Vanguard total market fund (VTI)
15% Vanguard total bond market fund (BND) and 10% Vanguard total international (VXUS).

[David Jay]

Welcome to the forum.

Your AA is very reasonable for a beginning investor.

Your AA is not the dominant component of your portfolio in the early years, the amount of your contributions drive the growth.

[mary1969]

your AA is fine. Now save. minimum 15%.

also, be prepared for a 35% drop in your portfolio during your intermediate investing lifetime. will you be prepared for this? will you stick with your plan? bear markets are gifts for young investors.

[rafkg29]

your AA is fine. Now save. minimum 15%.

also, be prepared for a 35% drop in your portfolio during your intermediate investing lifetime. will you be prepared for this? will you stick with your plan? bear markets are gifts for young investors.

Do you think I should make my allocation in VTI instead more aggressive to 80%? And 10% in BND and the other 10% in VXUS?

[averagedude]

As others have said, this is reasonable and the most important thing is getting started and savings. I would recommend more international, but this is controversial. Don't overlook a target date fund because it is similar and it makes the investing part really simple.

[dbr]

your AA is fine. Now save. minimum 15%.

also, be prepared for a 35% drop in your portfolio during your intermediate investing lifetime. will you be prepared for this? will you stick with your plan? bear markets are gifts for young investors.

Do you think I should make my allocation in VTI instead more aggressive to 80%? And 10% in BND and the other 10% in VXUS?

There is no meaningful difference between those choices. The actual investment outcome you will get will be so wildly variable from the expected average that near choices almost completely overlap. It might be a significant difference to choose 40%-60% stocks rather than 70%-90% stocks.

The choice of a specific asset allocation has more to do with having a plan that you don't willy-nilly abandon than it does with engineering some exact process. More than that, as soon as you invest the allocation will move with the market. At some point you would want to rebalance to where you planned to be, perhaps only by how you direct new contributions.

[ETadvisor]

I am 22 years old I’d like to know how is asset allocation on this specific portfolio? 75% Vanguard total market fund (VTI)
15% Vanguard total bond market fund (BND) and 10% Vanguard total international (VXUS).

90/10 or 85/15 is not going to move the needle much. It is more important how much you can contribute. Try to max all tax advantaged space each year. Look at Target Date Funds to see asset allocation at your desired year of retirement. I assume it is 90/10. I follow the premise that international equity is to be 20% to 30% of equity for diversification and settled on 25%. Just stick to your plan. I wish I started at 22.

[Thecallofduty]

As others mentioned the amount you put in at an early age is what matters most now. In regards to asset allocation you can look at different brokerages target date funds to compare how much they allocate towards stocks/bonds/international. At end of day its your choice and what your comfortable with. For me, if I was 22 years old I would be at 75%total stock and 25%international. I would add bonds maybe every 5-10 years. Target date funds will do things like that automatically.

Good luck

[mary1969]

As others have said, this is reasonable and the most important thing is getting started and savings. I would recommend more international, but this is controversial. Don't overlook a target date fund because it is similar and it makes the investing part really simple.

i ditto this thought. just get started saving and focus on working hard at your job and living within your means.