I think you mean risk seeking, not risk averse.
Couple questions would love take on:
- Risk averse and prefer near 100% weight into stocks at my age
- Have effectively no int'l exposure....if I have one weakness/bias it's to lean towards US mutual funds...most of those companies sell globally....convince me otherwise to add int'l exposure?
- overweight for large cap....worth adding some small/mid cap to more closely match overall stock mkt?
- Finally - worth exploring other ETF options vs only S&P 500 and total stock mkt? Would have to be available through Vanguard but there are many options[/b]
Thanks!
Averse (adjective), having a strong dislike or opposition to something.
As for international exposure, consider that during some past time periods, international stocks out-performed US stocks by a fairly wide margin.
Link: https://www.portfoliovisualizer.com/bac ... KcoDxmI2Rk
Do you really believe that this will not happen again during your lifetime?
For further reading on international stock, consider the following paper from Vanguard. There are diversification benefits, and volatility reduction benefits.
Link: https://corporate.vanguard.com/content/ ... Online.pdf
As for small cap or mid cap funds, the same argument as above can be made. Sometimes they outperform large cap stocks.
Link: https://www.portfoliovisualizer.com/bac ... s5ll9kJD4e
Regards,
Statistics: Posted by retired@50 — Thu Jan 25, 2024 11:51 am