Submitted by dennisj9 t3_11duvjl in personalfinance
jrezzzzzz t1_jab1tcp wrote
Not an issue, it is all preference. I personally prefer VTWAX because I like to have more international exposure. I will add bonds when I turn 40ish.
Discally t1_jabwgen wrote
One could always add a bit of that to help diversify, the expense ratio's certainly low enough.
2cool_4school t1_jadhmu5 wrote
You realistically shouldn’t be adding bonds at that point unless you’re trying to retire early, but it all depends on what the market looks like at that point in time. If we are back to a low interest rate environment we saw for the past decade, no, you absolutely should not add bonds. If things are at 5-6% or higher on the 30 year, it would be a little bit better. It also depends on how much you have and how much you need to retire. (Above your goal, then it’s ok to take some risk off the table)
[deleted] t1_jab65x3 wrote
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jrezzzzzz t1_jabahs1 wrote
Like I said, personal preference. International has been performing well these last few years. I want to cover all weighted stocks and that’s what VTWAX does.
[deleted] t1_jabasgj wrote
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jrezzzzzz t1_jabbaom wrote
Certainly has. However, past performance isn’t a good indication of future performance. Plenty of massive companies all around the world that are continuing to grow.
Used to be where if the US markets are performing poorly, the whole world followed. It’s no longer that way, European and Asian markets operate independently. An example is during Covid, the US struggled to obtain micro chips and various supplies since we rely heavily on foreign goods.
Again, VTSAX is diverse and a viable option. I’ll stay more diversified since I cannot predict the future.
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