The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: stash4cash on January 02, 2015, 02:00:13 PM
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For Vanguard choices, I have no bond funds and the following four stock funds:
VSGAX (Small cap growth)
VMCIX (Mid cap index)
VSCIX (Small cap index)
VINIX (large cap index - s&p 500)
For the stock portion of my portfolio (have the bond portion in Pimco as its the lowest priced bond fund in my 401k offering), I'm right now weighted as follows:
Large Cap - 77%
Mid - 15%
Small - 8%
I was thinking about increasing my exposure to mid/small. Any recommendations?
You can assume expense rations are very similar. Large cap is .04%. Mid is .08% and small is .09%.
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Oh, one other comment, I've got zero international exposure as the international funds expense ratios are annoyingly high (so I've got international exposure outside of this particular 401k).
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Your current allocation looks like it would more or less approximate a "total market" fund. If you want to increase your risk (and likely long-term reward), adding additional weight to your small/mid-cap allocation could do that. You'll have to decide for yourself how much risk you're willing to accept.
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Tilt small cap if you want, but I wouldn't recommend any more than 20% in either mid-cap or small-cap.
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If you want to tilt small cap remember its a long game. Small caps are even more volatile than regular stocks. So when things get volatile you have to be able to stand the heat.
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Awesome thanks for the clarifications/advice.