I use Personal Capital and the Investment Checkup suggested I add International Stocks to increase diversification in my 401(k).
The Checkup says:
- Based on your profile, the projected growth rate of your portfolio is appropriate, but you could reduce expected risk without sacrificing expected return. Adding International Stocks would increase diversification.
- It is important to consider potential outcomes in both good and bad market scenarios; the Target Allocation could leave you with $1,700 more at retirement in a bad market scenario.
- It might be time to re-balance your portfolio for better long-term results. Compared to this Target Allocation, you are most overweight in US Stocks and most underweight in International Stocks.
This is a 401(k) through my work, so my selections are limited.
Here's what I have in my 401(k):
VINIX - Vanguard Institutional Index (Large Company) = 75%
FSMEX - Fidelity Spartan Extended Market Index (Small/Medium Company) = 10%
VBTIX - Vanguard Total Bond Market Index = 15%
(Those are the only Vanguard or Fidelity offerings in the whole 401(k).)
However, the international choices in my 401(k) are not index funds and I'm trying to figure out the fees. I have these 2 to international choices:
APHIX - Artisan International Institutional
Summary:
http://www.schwab.wallst.com/Prospect/Research/mutualfunds/fees.asp?symbol=APHIXProspectus:
http://doc.morningstar.com/docdetail.aspx?clientid=schwab&key=84b36f1bf3830e07&cusip=04314H402DFALX - DFA Large Cap International
Summary:
http://www.schwab.wallst.com/Prospect/Research/mutualfunds/fees.asp?symbol=DFALXProspectus:
http://doc.morningstar.com/docdetail.aspx?clientid=schwab&key=84b36f1bf3830e07&cusip=233203868Questions1. What are people's opinions on adding International to my mix? I am thinking of adding 10% international and making VINIX 65%.
2. I'm having a hard time figuring out the fees for APHIX and DFALX. Are the fees too high to make it worth it if I should invest in international funds with one of these?
Any explanations about why or why not to include international funds with asset allocations would be helpful.
Any help would be appreciated!
Thanks.