Author Topic: Where to invest?  (Read 2391 times)

webcat86

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Where to invest?
« on: January 25, 2016, 10:08:59 AM »
I've decided to go into the Vanguard LS 100, but it's pretty light in certain areas and is very heavy on US and UK, so i thought i would add some extra diversification. This is my first time investing though so would really appreciate some feedback.

Just to state upfront, i'm going in for 100% equities now, and have a cash reserve of 7000 in high interest accounts.

Vanguard LS 100
Vanguard Japan stock index [I'm not sure on this as Japan is 7% of the LS 100 fund]
Vanguard global small-cap index fund GBP
Blackrock global property equity tracker D [for property exposure]

nereo

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Re: Where to invest?
« Reply #1 on: January 25, 2016, 12:42:17 PM »
... only you can answer this question.  To help you do so, I'd highly recommend creating your own Investor Policy Statement (ISP). 
Once you have an ISP - stick to it, and don't the current market conditions change your ISP.


webcat86

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Where to invest?
« Reply #2 on: January 26, 2016, 01:36:58 AM »
... only you can answer this question.  To help you do so, I'd highly recommend creating your own Investor Policy Statement (ISP). 
Once you have an ISP - stick to it, and don't the current market conditions change your ISP.

I'm mostly just concerned about not being inadvertently over exposed to, say, Japan and making sure that my portfolio is not missing anything fairly standard, like small caps.

Basically I want global equity trackers, with property, and just want some input from experienced people here to help me find a reasonable allocation to each
« Last Edit: January 26, 2016, 01:52:34 AM by webcat86 »

soccerluvof4

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Re: Where to invest?
« Reply #3 on: January 26, 2016, 08:14:25 AM »
On the stock side look at the following as options only..no recommendations.
VTSAX
VTIAX
VSMAX
VIMAX


johnny847

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Re: Where to invest?
« Reply #4 on: January 26, 2016, 08:29:59 AM »
... only you can answer this question.  To help you do so, I'd highly recommend creating your own Investor Policy Statement (ISP). 
Once you have an ISP - stick to it, and don't the current market conditions change your ISP.

My mind kept telling me Internet Service Provider when I read that.

nereo

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Re: Where to invest?
« Reply #5 on: January 26, 2016, 08:51:15 AM »
I'm mostly just concerned about not being inadvertently over exposed to, say, Japan and making sure that my portfolio is not missing anything fairly standard, like small caps.

Basically I want global equity trackers, with property, and just want some input from experienced people here to help me find a reasonable allocation to each
Not to sound like a broken record, but only *you* can decide whether you want to be more exposed to, say, China and less exposed to the United States.  Everyone has their own ideas about what overexposed or underexposed means going forward.  Whether you like the historical stability of the US market going forward or think that our future is bound to collapse is a personal call.  Likewise, whether emerging markets will (e.g. Brazil) will become a major global player or suffer from corruption/war/poverty is any analyst's guess.

But - I understand how daunting a task it can be, so I"ll tell you what I have done, and why.  Note this is specific to ME and your reasons will certainly be different.
70% in VFIAX (SP500 fund)
20% in VTIAX (International large-blend fund)
10% in VISGX (Small-Cap growth US fund)

First, I personally like a dirt-simple investment strategy.  Part of that's because I think being very simplistic can yield returns that are good enough for my purposes, and part of that is because I think many people make asset allocations that are so complicated they psych themsevles out.

Why VFIAX: The SP500 are the 500 largest companies traded on the US stock exchange.  However, 1/3 of all the profits from SP500 companies come from abroad, so you do get some exposure to international markets there.  I like that the US is a world-reserve currency, I like the historical data for the SP500, and I like that, for all its problems, it's a pretty straightforward marketplace unlike, say, Russia.

Why VTIAX:  In short, I wanted to increase my international exposure, but own mostly large established companies.  Yes, I loose out on some of the tremendous growth of smaller international companies... but I'm ok with that, mostly because I think the volatility of the larger companies will compensate for it.

Why VISGX:  I added this component recently, and it gives me more exposure to the growth of smaller companies.  So now I own mostly large US and International corporations, as well as a small chunk of small US companies.

YOU might want a completely different allocation.  I don't have any bond exposure, nor am I buying precious metals or small-cap companies in regions like Africa.  I also have relatively small international exposure (though see the comment about 1/3 of all profits from SP500 coming internationally), and what exposure I do have is largely concentrated among large-cap international companies (Toyota, Nestle, Samsung etc). I'm heavily weighted on US stocks - which is exactly what I want.  I don't have any mid-cap exposure either.  I could add some, but I like my simple approach the way it is.  Others would want more diversity.
ALL of these various things may matter to investors in a different way. 
G'luck.