I would appreciate feedback on these two portfolios

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Topic Author
slahiri
Posts: 7
Joined: Sun Sep 13, 2015 1:27 pm

I would appreciate feedback on these two portfolios

Post by slahiri »

I request your feedback on which of the following two portfolios I should use to invest my IRA ($500K+).

I am 10 years away from retirement.

My investment style is moderately aggressive.

Portfolio #1:

Fund Name Fund Ticker Allocation
Vanguard Total Stock Market Index Fund Admiral Shares VTSAX 40
Vanguard Total Bond Market Index Fund Admiral Shares VBTLX 30
Vanguard European Stock Index Fund Admiral Shares VEUSX 20
Vanguard Real Estate Index Fund Admiral Shares VGSLX 10

Portfolio #2.
Fund Name Fund Ticker Allocation
Vanguard Total Stock Market Index Fund Admiral Shares VTSAX 42
Vanguard Total Bond Market Index Fund Admiral Shares VBTLX 30
Vanguard European Stock Index Fund Admiral Shares VEUSX 28

Assumptions:
============
1. REIT is a good investment during high inflationary periods.
2. European equities is at par with US and has the potential to overtake US equities in the future
3. Emerging markets is very cheap because of Covid and is not suitable for investment at this time. This can change later (mid next year).

Thank you!

Sandip
cacophony
Posts: 767
Joined: Tue Oct 16, 2007 9:12 pm

Re: I would appreciate feedback on these two portfolios

Post by cacophony »

I think you should try to find a plan you can stick with and not try to time the market. All three of your assumptions seem counterproductive towards a long-term investment plan.
Topic Author
slahiri
Posts: 7
Joined: Sun Sep 13, 2015 1:27 pm

Re: I would appreciate feedback on these two portfolios

Post by slahiri »

cacophony, Thank you! Your point is noted.
rhubarbpie
Posts: 42
Joined: Mon May 03, 2021 9:18 am

Re: I would appreciate feedback on these two portfolios

Post by rhubarbpie »

Either should be fine, and I'd imagine the results will be pretty similar - you could backtest them both and see if there's been a notable difference in the past. I personally have a REIT fund in my IRA - 10% of my overall stock allocation - but other Bogleheads think they're not necessary since VTSAX already has some REITs in it.
Topic Author
slahiri
Posts: 7
Joined: Sun Sep 13, 2015 1:27 pm

Re: I would appreciate feedback on these two portfolios

Post by slahiri »

rhubarbpie, Thank you!!!
retiredjg
Posts: 45463
Joined: Thu Jan 10, 2008 12:56 pm

Re: I would appreciate feedback on these two portfolios

Post by retiredjg »

There is no way to know what investments are good for your IRA without knowing the rest of your portfolio. If the IRA is your entire portfolio, either is fine.

If you choose to not hold emerging markets, do yourself a favor and stick with that for decades. If you wait until emerging markets are doing well to buy EM funds, you will be buying after the run-up....a very poor investing strategy.
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