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Learning, Sharing, and Teaching => Investor Alley => Topic started by: TomasTheSaver on October 25, 2013, 05:34:32 AM

Title: Optimal Asset Allocation for nonUS, nonEURO member
Post by: TomasTheSaver on October 25, 2013, 05:34:32 AM
Hi there,

while reading this site back and forth i started to define my investing strategy. MrMM suggest that good strategy is to put all savings directly to The Vanguard Total Stock Market Index Fund which tracks US stocks. Well thats true for US citizen for sure. For rest of us, there are some drawbacks on this approach - namely currency conversion risk.

How about someone living outside US, in Europe, with local currency being Czech Crowns (= no EURO)? Can you suggest some simple "strategy" similar to above posted: "put all savings into Vanguard US stock fund"?

So far i came to this allocation:

40% - The Vanguard Total Stock Market Index Fund -  in USD as currency
40% - EU stock index fund (probably dbxtrackers fund) - in EURO as currency
20% - Czech stockpicking fund with insurance against currency conversion drawbacks  - in CZK as currency (https://cz.products.erstegroup.com/Retail/en/Products/Funds/Factsheets/Fund_general/index.phtml?q=&ISIN=CZ0008472404&ID_NOTATION=)

What do you think?

Regards,
Tomas