Two-Fund Portfolio?

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Timmy_Tenders
Posts: 8
Joined: Wed Jun 19, 2019 3:13 pm

Two-Fund Portfolio?

Post by Timmy_Tenders » Sat Jul 13, 2019 9:00 pm

I would preface the post with the fact that I am a newb. I am learning and have only been investing about two years now.

Currently, I have a three-fund portfolio with:

9% total bond fund
24% total international stock fund
67% total domestic stock fund

I am wondering if I should: a) completely sell off bond fund and move the money into more of my domestic equity fund portions so I am 76/24 domestic/international, or b) reduce to maybe 5% bond and put the freed up 4% into either the domestic or international equity portion of my portfolio.

Thoughts anyone on that or any other potential suggestions?

I love you all.

mcraepat9
Posts: 1197
Joined: Thu Jul 16, 2015 11:46 am

Re: Two-Fund Portfolio?

Post by mcraepat9 » Sat Jul 13, 2019 9:03 pm

Need much more information to give a complete answer (use standard BH asking portfolio questions format). However none of the changes you suggested will make any material difference in your portfolio so I would suggest not making them.
Amateur investors are not cool-headed logicians.

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southerndoc
Posts: 998
Joined: Wed Apr 22, 2009 7:07 pm
Location: Atlanta

Re: Two-Fund Portfolio?

Post by southerndoc » Sat Jul 13, 2019 9:19 pm

How old are you and what is your risk tolerance?

My risk tolerance is very high. Therefore, I don't own any bonds (except in my Roth IRA). In my Solo 401(k), I have 60% VTSAX and 40% VFWAX. My Roth IRA has 100% VFIFX Target Retirement 2050 fund and is on a glide path for bonds (currently 10.6%). I'm probably going to change it to match my Solo 401(k) funds soon.

Topic Author
Timmy_Tenders
Posts: 8
Joined: Wed Jun 19, 2019 3:13 pm

Re: Two-Fund Portfolio?

Post by Timmy_Tenders » Sat Jul 13, 2019 9:28 pm

Turned 35 yesterday and I tend toward aggressive growth. Yeah, I am thinking of selling off the bond since I also have a pension with my employer that is completely separate from this IRA portfolio. I also have been wondering if I need to convert this one to a Roth, but that is a whole 'nother deal. Thanks for your reply!

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