I wanted to get your guys thoughts on my portfolio plan as I see it now. Please let me know if something looks out of whack. I am into minimalism when it comes to this kind of thing. I will set the funds and re-balance every 6 months making tweaks to risk as I get closer to retirement.
My wife and I are 28 and 27 respectively.
3% Employer 401k with 50% match on contribution goes to. Vanguard Target Retirement Fund 2050
8% goes into my personal Roth IRA (this is the one I am curious about)
Current Roth IRA (3 Fund -
http://www.bogleheads.org/wiki/Three-fund_portfolio)
50% - VTSAX - Total Stock Market Index Fund
40% - VGTSX - Total International Index Fund
10% - VBMFX - Total Bond Index Fund
Seems safe if you ask me. So if you treat it as 3 categories US, International, and Bond I am thinking I will add some more "risk." What do you guys think about keeping the same categorical percentages but splitting the US between Total Stock Market and (VISGX) Small Cap. I would also split International between Total International and (VGXRX) International Real Estate.
Revised Roth IRAUS
- 25% - VTSAX - Total Stock Market Index Fund
- 25% - VISGX - Small Cap
International
- 25% - VGTSX - Total International Index Fund
- 15% - VGXRX - International Real Estate
Bonds
-10% - VBMFX - Total Bond Index Fund
I would go from 3 funds to 5 but really retain my same categories. I would just be adding more risk in the short term. However, I would be adding a broader base as I currently have no Real Estate and no Small Caps. As I got older I would phase the two risky ones out (VISGX and VGXRX). Also, from looking into the fund details of those five funds I don't see much overlap at all.
No specific questions; just wanted comments or insight from those who have been at it for a while.