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Chief
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Chief
Anyone in the Houston area?
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Hi, I need a referral for an internship
in Financial Advisory Team
Valuation, M&A, FDD, or Financial
Consulting - at Big 4 in Germany,
can anyone help me?
I did my bachelor's degree at the
University of Mannheim.
I would appreciate any kind of
support and advice.
I'm not above reaching out to alumni
directly via Linkedln, but l'd prefer to
bug as few as possible. So if you
want to help, guide, or mentor,
please pm me.
PwC Deloitte KPMG EY
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Rising Star
Vanguard is telling you to diversify and in general you should.
Prior performance does not indicate future gains.
That makes sense, thank you
Idk if I’d put 30% international but I’d certainly put 15-20%.
Small and mid will give you more exposure to both risk and reward.
Generally nothing wrong with s&p funds. Idk why vanguard is telling you do diversify more. Those funds are meant to represent the s&p and are fully diversified ie they have like 40+ different securities.
Just put a good 20% into TSLA, thank me in 5 years
Yeah please don’t do that
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Instead of the SP500 you can get into a total stock market fund. There are over 3,000 stocks traded in the US. SP500 is the top 500. But, and here is a big but, SP500 performance is very close to a total stock market performance over the long run. That is because the indices are market capped and higher valued firms have outsized sway.
You'll be fine.
Vanguard is definitely correct in suggesting you diversify your 401k. Being 100% in one asset class can leave you missing out on big gains in others. Google search “Asset Allocation Quilt.” That chart shows the best performing and the worst performing asset classes in the last 20 years. And as you can see, no single asset class has been the best year over year. With proper diversification you can capture gains all across the board, rather than relying solely on one class.
If it were me, i would drop international down to 20%
Look up 3 fund strategy.
This is what I do. Set it and forget it. So much less stressful worrying about it and allocation changes unless something is drastically pulling the international market or bonds down
Rising Star
Standard disclaimer - not an investment advisor.
I have a very small position in international stocks and half my portfolio in mid/small cap. Im 55.
A lot of "aggressive vs less aggressive" math is based on dying at 65. I have no intention of dying at 65 so I need my money to last much much longer. Im probably going to be 20% mid cap in my 80s.
I simply do not trust the vast majority of international stock exchange oversight. I desperately want to invest in Honda and Sony because I understand their business and I see where there is value. But I dont trust Japanese accounting standards. Im not touching Chinese stocks with a 100ft pole. Even European accounting is full of shenanigans.
Vanguard is a great company and has actual investment advisors so they are actual experts. Me? Ill stick to S&P and NASDAQ.
“Too aggressive” is subjective. What Vanguard may be stating is the need to diversify - this is generally good advice. Suggest speaking to them further and seek more clarity about the advice. Also spend time on your own research, including historical correlations across asset classes.
Rising Star
Diversify
I’d keep mostly stocks. Bonds are performing poorly and when the market picks up stocks will skyrocket.
S&P does leave you over exposed to large companies and the tech sector. Look at how much of the S&P is from just the top 7 companies.
That said, if you’re truly safe from ever needing these funds until retirement, you’re ok. But you might look to direct future investments into small and mid cap and international until you have more diversification.
Nah ur good
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Does this plan have the option of a target-date fund? The name of it would normally end with the year around when you would look to retire. These are convenient options in that they allocate to a diverse range of instruments and they slowly allocate in increasing amounts to bonds when you approach retirement age.