International - Who really is at 40%
Re: International - Who really is at 40%
Floating global market cap allocation, now around 50% ex-US and it will shift automatically to whatever future market cap growth brings it to. New money is small relative to balances so floating global market cap is pretty well "self-adjusting".
I'm not smart enough to allocate and hold X or XX% to tech, China, industrials, ex-US or any other equity asset class.
So I index.
I'm not smart enough to allocate and hold X or XX% to tech, China, industrials, ex-US or any other equity asset class.
So I index.
70/30 AA for life, Global market cap equity. Rebalance if fixed income <25% or >35%. Weighted ER< .10%. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.
Re: International - Who really is at 40%
Around 40%
Re: International - Who really is at 40%
Interesting because that was the reason I chose 30% to begin with. Is it just Vanguard who is recommending higher international or do others offer similar advice? Also, doesn't having international increase risk since you need to deal with monetary risk as well?furwut wrote: Personally I've set my international allocation at 30% - the mid-point of Vanguard's former recommendation. Having followed Vanguard's advice initially I feel I should consider staying THAT course and increase to 40%.
A time to EVALUATE your jitters: |
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Re: International - Who really is at 40%
I'm currently at 48% int'l, but may rebalance back to 50% in the near future.
I started out in 1995 with three accounts: 53% int'l, 49% int'l, and 30% int'l. As the third account (deferred comp) grew over the years, the overall int'l AA was reduced from about 52% down to about 44%. Then, a few years ago, I changed everything to 50% int'l largely due to Larry Swedroe's rationale.
I started out in 1995 with three accounts: 53% int'l, 49% int'l, and 30% int'l. As the third account (deferred comp) grew over the years, the overall int'l AA was reduced from about 52% down to about 44%. Then, a few years ago, I changed everything to 50% int'l largely due to Larry Swedroe's rationale.
VT 60% / VFSUX 20% / TIPS 20%
Re: International - Who really is at 40%
I got tired of second-guessing my international allocation choice and finally decided that 'stocks is stocks'. Hence, my equity allocation is 100% VT (Total World Stock Index ETF).
So I guess that means I'm currently 48.3% non-domestic, but going with the 'stocks is stocks' thinking, I don't care.
So I guess that means I'm currently 48.3% non-domestic, but going with the 'stocks is stocks' thinking, I don't care.
Re: International - Who really is at 40%
I didn't manually tally up how many people said yes ..... I have been 50 ish non US for more than a decade. As to the good idea - who knows but it's cost me over time.
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Rob |
Its a dangerous business going out your front door. - J.R.R.Tolkien
Re: International - Who really is at 40%
Nope, I'm 35.6% international
Max out your tax sheltered retirement accounts with inexpensive, well diversified, index funds and you will beat 90% of all investors.
Re: International - Who really is at 40%
I was at 40% or so long before "experts" recommended more foreign. Now I guess I am where I need to be
Re: International - Who really is at 40%
Target is 40% of equities. Currently at about 37%.
I know you think you understand what you thought I said but I'm not sure you realize that what you heard is not what I meant. - Alan Greenspan
Re: International - Who really is at 40%
I've been at 40% of equities in international since 11 June 2014, when I updated my IPS and moved away from TargetRetire funds.
Re: International - Who really is at 40%
I am at 40% Int'l now and was higher before Domestic had the recent run up. I've been this way since 2008...
BH Contests: 23 #89 of 607 | 22 #512 of 674 | 21 #66 of 636 |20 #253/664 |19 #233/645 |18 #150/493 |17 #516/647 |16 #121/610 |15 #18/552 |14 #225/503 |13 #383/433 |12 #366/410 |11 #113/369 |10 #53/282
Re: International - Who really is at 40%
My allocation for my taxable account is:
33% VFIAX (US Equities)
33% VWAHX (Muni Bond)
33% VGTSX (International)
Goal is to have 60% US. 30% International. 20% Muni bond by year end.
33% VFIAX (US Equities)
33% VWAHX (Muni Bond)
33% VGTSX (International)
Goal is to have 60% US. 30% International. 20% Muni bond by year end.
Re: International - Who really is at 40%
Not me.renue74 wrote:I see a lot of talk to "going to 40%" for International stock fund allocation, but who is there? Is now a good time to do this?
I'm 45% of stocks (or pretty close). 60/40 stocks/bonds.
Is this a good time? Maybe.
We live a world with knowledge of the future markets has less than one significant figure. And people will still and always demand answers to three significant digits.
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Re: International - Who really is at 40%
I've held 40 to 50 percent international equities for a long time.renue74 wrote:I see a lot of talk to "going to 40%" for International stock fund allocation, but who is there? Is now a good time to do this?
Re: International - Who really is at 40%
37.6% of my stocks are international
my goal is 60/40
25% of my bonds are international
my goal is 80/20
my goal is 60/40
25% of my bonds are international
my goal is 80/20
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Re: International - Who really is at 40%
I don't know. It isn't time to check yet. I might check in a month or so. I wasn't when I checked last year. I greatly underweight International so I am unlikely ever to get there.
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Re: International - Who really is at 40%
My wife and I are invested 100% in equities, with that split between U.S. (mostly VFIAX) and international (all VTIAX) at close to market-cap percentages. I want to own the whole global market, and at the global market's values. That holding them at market-cap percentages obviates the need to rebalance is just a nice bonus.
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Re: International - Who really is at 40%
Around 38% currently. I try to keep it under 40% so as not to appear like I've gone rogue but a good couple of days internationally or a bad couple of days for U.S. might knock me on to the other side of the sanity line. I like living on the edge, though.
Re: International - Who really is at 40%
50% of my equities are international.
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
Re: International - Who really is at 40%
15% of my Stock portfolio is International
But Stocks only make up 50% of my total portfolio (I'm 50/50 stocks/bonds), so only 7.5% of my total portfolio is in International stocks.
But like others have said, I think most of the big companies I own in the Total Stock Market Index are international companies, and do well when the international economies pick up, so I have international exposure with my domestic stocks as well.
But Stocks only make up 50% of my total portfolio (I'm 50/50 stocks/bonds), so only 7.5% of my total portfolio is in International stocks.
But like others have said, I think most of the big companies I own in the Total Stock Market Index are international companies, and do well when the international economies pick up, so I have international exposure with my domestic stocks as well.
Re: International - Who really is at 40%
Been at 50% (of equities) for a while... Staying the course...
Can't understand the commotion about Vanguard's change, if anything, the commotion should be about why their international allocation was so low in the past, not about what it became.
Can't understand the commotion about Vanguard's change, if anything, the commotion should be about why their international allocation was so low in the past, not about what it became.
Re: International - Who really is at 40%
I've been at 50% of my equities in international for a number of years now. Tilted to international small and value and EM. Also a slice of internatinoal REITs. No idea whether this will be the best decision going forward or not, but its probably within the ballpark of not being unreasonable.
The Espresso portfolio: |
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20% US TSM, 20% Small Value, 10% US REIT, 10% Dev Int'l, 10% EM, 10% Commodities, 20% Inter-term US Treas |
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"A journey of a thousand miles begins with a single step."
Re: International - Who really is at 40%
anyone outside the US better be over 40% international - now and always.
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Re: International - Who really is at 40%
I have an about 75% international equities portfolio, a large part of which is a diversified basket of EM countries. My portfolio underperformed the U.S. indices during the last few years. EM are currently undervalued on a relative basis using most valuation metrics, compared to both the U.S. and to historical valuation spreads. But valuations are not everything. Other than valuations, I am aware that there are conflicting opinions on whether or not capital will grow faster in the U.S., or whether valuation discounts are justified or not. There are also conflicting opinions on whether or not higher economic growth leads to higher equity returns. In any case, I believe that my risk return profile is more favorable in the long run, and particularly that my sources of returns are more diversified, than with a largely U.S. index based portfolio.pdriese wrote:I'm 65% international and 35% domestic for my equities. Overall I have 25% of my total portfolio in bonds (G Fund).
It's hard for me to believe that if John Bogle happened to be Canadian, British, or something besides American he would still espouse a 100% U.S. equity allocation. If you believe in market cap indexes you should also use the market cap worldwide (which is around 50% U.S.). Many argue that about half of the revenue from U.S. companies comes from outside the U.S. Likewise, international companies get a lot of their revenue from the U.S. so I think having a 0% international allocation based on that is not wise.
I started heavily tilting toward international about 15 months ago. I didn't work out well for me in 2014, but it's working out great in 2015. Besides, CAPE, PB, PE, Dividend Yield and other valuation factors still heavily favor international markets. It's definitely not too late, but get a plan first and stick with it.
Re: International - Who really is at 40%
Target for international stocks has been 40% of equities for some years; nice to have Vanguard on course to catch up with me in its TR and LS funds My portfolio spreadsheet tells me I'm currently at 39.4%, so although I haven't updated the spreadsheet in awhile, I'm nowhere close to a rebalancing trigger, so I can continue to be lazy about it.
Kevin
Kevin
If I make a calculation error, #Cruncher probably will let me know.
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Re: International - Who really is at 40%
I can't quite tell if the question is "Should I go down to 40%?" or "Should I go up to 40%?" but I guess it doesn't matter, because the answer is the same. Nobody knows but you.renue74 wrote:I see a lot of talk to "going to 40%" for International stock fund allocation, but who is there? Is now a good time to do this?
I've been at 33% since 2005 and plan to leave it there. It seemed smart then. It has seemed both smart and dumb intermittently over the years since then. 40% is a reasonable number. Anything between 15-50% is probably reasonable for a US investor.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy |
4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
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Re: International - Who really is at 40%
My target is 50% international, 50% domestic. For the international, 75% is in VXUS and 25% in VSS.
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Re: International - Who really is at 40%
I've gone almost two months, and...You made me look -- I'm at 32.8% International.
Sometimes pessimism leaves me pretty well prepared for when things don't go my way, and pleasantly surprised when they do.
Re: International - Who really is at 40%
Im 50/50 US/Int and 75/25 equities/fixed income.
Re: International - Who really is at 40%
50% holding.
Even educators need education. And some can be hard headed to the point of needing time out.
Re: International - Who really is at 40%
My equities are setup..
25% US Large Market
25% US Small Value
25% International Large Value
25% International Small Market
And have been for many years.
Simple, Global, 3 Factor Diversification
Bias to Home Country makes no sense to me... To truly be diversified, you will most likely have to get out of your comfort zone.
How you feel about it... will most likely lead you away from truly being diversified.
Good Luck !
Trev H
25% US Large Market
25% US Small Value
25% International Large Value
25% International Small Market
And have been for many years.
Simple, Global, 3 Factor Diversification
Bias to Home Country makes no sense to me... To truly be diversified, you will most likely have to get out of your comfort zone.
How you feel about it... will most likely lead you away from truly being diversified.
Good Luck !
Trev H
Re: International - Who really is at 40%
Malkiel started increasing his recommended international allocation for quite a while in new editions of A Random Walk Down Wall Street. He's recommending 50% these days I think.EnjoyIt wrote:furwut wrote:Is it just Vanguard who is recommending higher international or do others offer similar advice? Also, doesn't having international increase risk since you need to deal with monetary risk as well?
I think older recommendations were based on efficient frontier calculations that were influenced by the fact that the trailing risk-adjusted returns from the US were better, and new recommendations are more influenced by either capitalization or estimates of relative future earning growth. But honestly, I am not sure why recommendations are changing.
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Re: International - Who really is at 40%
My target allocation - EM:DM:Bonds:US::1:2:3:4
That gives me a 70:30 Stock:Bond ratio and 30% of portfolio in International. I have stayed 50:50::US:Int for some time. Using new contribution to nudge it towards the target.
That gives me a 70:30 Stock:Bond ratio and 30% of portfolio in International. I have stayed 50:50::US:Int for some time. Using new contribution to nudge it towards the target.
USStks:IntlStks:Bonds::1:1:1, Tilts US Mid/SmallCap and EM.
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Re: International - Who really is at 40%
It's just going with changes in the global indexes. 20 years ago, countries like China were just beginnng to emerge from communism, and weren't even on the global investing map. Back then, virtually all the big publicly traded stocks were from USA, Canada, Europe, Japan, Australia.tadamsmar wrote:But honestly, I am not sure why recommendations are changing.
Over the last 20 years, more stocks from emerging market countries - like China - have gone IPO. So as those companies get added to global indexes, it squeezes down the percentages for USA, Canada, Europe, Japan, Australia. If China allocation goes from 0% to 3%, then those percentage points have to be taken away from existing countries. Same deal with many emerging market countries over the last 20 years. Korea has grown so much, that it went from being classified as "emerging market" to "developed".
Re: International - Who really is at 40%
When I started reading boglheads last year, I wrote myself an IPS and decided on 40% of my stocks being international through a combination of Total International (VXUS), International Small-Cap (VSS), and Emerging Markets (VWO).
You really don't need to begin saving for retirement before you reach 60. At that point, simply save 250 percent of your income each year and you'll be able to retire comfortably at 70. -Jonathan Pond
Re: International - Who really is at 40%
Having rebalanced at the beginning of the year to my default of 50/50 - simple and roughly world market cap weighting - right now I am at 51.5% international. At the beginning of next year, I will rebalance to
50%.
50%.
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Re: International - Who really is at 40%
My retirement portfolio is 50% international (the stock portion that is). I tried doing the same w/ my partner's, but she is quite content with Wellington so that's where it all is. So I guess we are closer to 25%.
I think if you are between 20-50% you are good to go.
I think if you are between 20-50% you are good to go.
Re: International - Who really is at 40%
I'm really at 40%.
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Pensions= 2X yearly expenses. Portfolio= 40X yearly expenses.
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Re: International - Who really is at 40%
50% International equities, sliced and diced, the past few years. 60/40 asset allocation.
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Re: International - Who really is at 40%
Glad my mad ravings are making a difference! I also chuckled that you wanted their tool to stop nagging you, too - unfortunately it still nags me about having too much international potentially, but at least it no longer tells me I might also be over global weights (I'm around global weights). From PortfolioWatch(TM): "The percentage you've invested in foreign stocks is above our recommended range, but may be below global market capitalization."nisiprius wrote:(Well... I haven't been, either. This is not any kind of advice or recommendation, and people shouldn't pay attention to me merely because I post a lot. I did decide to nudge my personal allocation up to 25%, a) because I wanted Vanguard's portfolio tool to quit nagging at me, b) I don't like to be too far from the mainstream conventional wisdom when I don't have strong personal convictions about something, and c) last but not least, posters like Noobvestor influenced me. The allocation then sunk all by itself down to perhaps 23%, and I'm willing to let it do whatever it wants to).
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe
Re: International - Who really is at 40%
Not I. At this time U.S. Equities are 55% of total, U.S. REITS 8.5% (combined U.S. 63.5%) and International Equities 36.5%.