Wife and I have a total combined portfolio of ~$263k across all retirement accounts. Started from zero five years ago. This is comprised of about 10% TIPS MM fund which functions as our emergency fund of 6-12 months expenses and then 90% US Total Stock Market Index. I was initially planning on slowly layering into international starting in January until I eventually settled on an allocation that was roughly 70/30 US/Intl stocks. However, I still have faith in the short term that the US will continue to outperform and that I will still have time to add international slowly in the future if I start to see that change. I feel that although this could be considered market timing, since these fluctuations between US and Intl outperformance usually last a decade or more, one would not miss out on the benefits if they were a year or even several years late to get in. I believe over the next 4-5 years especially that the US markets will be the place to be. My goal is to get our total portfolio balance to at least 500k in US TSM before thinking about adding more diversification. I think US is the place where I am most likely to be able to get there the quickest in the short term, even with downturns. Then, when I hit the 500k milestone I can either choose to make future contributions 50/50 US/Intl until I reach desired AA or just convert 100k of the 500k immediately into exUS index. I know some will say “why 500k why not now if you think you need intl?” I hope my reasons above make sense and I am seeking some further perspective on the matter.
Statistics: Posted by BizarroJerry — Thu Nov 21, 2024 10:07 pm — Replies 12 — Views 718