Roth vs IRA 3 fund Portfolio's percentages

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Mr Potter
Posts: 4
Joined: Fri Nov 23, 2018 12:14 pm

Roth vs IRA 3 fund Portfolio's percentages

Post by Mr Potter »

New member here; I am 65 and love the simplicity of the three fund portfolio; I used to check daily and more often when I had 10 or more investments. My question is the percentage you place in each category. It seems in days of 60/40 bonds offset down equity markets, now they both fall with rising rates. International is very scary to me with currency issues, unfavorable court rulings, tariffs, etc..... Myself, I am 50% US total market, 20% intl' (now have gone to about 10%) and TIPs, CDs 30% or enough to draw from for 10 years. My Roth I have a single Vanguard dividend etf. The ratio is 1:5 Roth/IRA. I now direct dividend's to checking and plan on not touching Roth principle. My equity etf's are the new no cost Fidelity funds, Schwab holds my tips. I am wondering am I to heavy in equities? It seems Intl' and bonds are just terrible investments for the foreseeable future.
PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Roth vs IRA 3 fund Portfolio's percentages

Post by PFInterest »

you probably are.
why not start with 60:40 and go from there.
you have an avg of 20 years to go, still plenty of time to weather a few more ups/downs.
but none of this is new. youve literally lived through this before. this is not different.
mhalley
Posts: 8428
Joined: Tue Nov 20, 2007 6:02 am

Re: Roth vs IRA 3 fund Portfolio's percentages

Post by mhalley »

Asset allocation is a totally personal decision. 70% equities is a little rich for my blood in retirement, I went 50/50 myself, but the trinity study shows that 70/30 will work if you can stomach the downturns. Switching to CDs for par of your fixed income is not unreasonable, many threads on it here.
https://www.forbes.com/sites/wadepfau/2 ... aa8b7a6860
viewtopic.php?t=240347
Last edited by mhalley on Fri Nov 23, 2018 3:27 pm, edited 1 time in total.
zengolf2011
Posts: 151
Joined: Tue Jul 21, 2015 1:27 pm

Re: Roth vs IRA 3 fund Portfolio's percentages

Post by zengolf2011 »

Can anyone "foresee" the future? How long is the "foreseeable future"? I think trying to foresee the future is market timing, which has not worked out too well for me. I don't know whether international stocks and bonds are terrible investments now or not. That's why I diversify in different investment classes, not all of which I currently love. As to whether I'm overexposed in equities, I am if I have any doubt I can stay the course, as outlined in my investment policy statement, through a prolonged market downturn.
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J G Bankerton
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Joined: Thu Sep 14, 2017 3:30 pm

Re: Roth vs IRA 3 fund Portfolio's percentages

Post by J G Bankerton »

100% stock if you don't intend to make withdrawals or need income.
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