3
submitted 1 year ago by Sniffy@sh.itjust.works to c/fire@lemmy.ml

Many people around me are saying US based index funds is enough coverage to FIRE but I want to know if it's worth diversifying even more, maybe 10-20%?

all 10 comments
sorted by: hot top controversial new old
[-] Nugget_in_biscuit@lemmy.ml 4 points 1 year ago

I am not your financial advisor. Be wary of anyone who recommends against diversififying your portfolio, as they either have an agenda, or have gotten their advice from a chain that begins with someone who does. In general, emerging markets are going to be a lot more volitile, and sometimes can crash entirely (examples include Venezuela and Sri Lanka), but if you invest smartly you should see average performance that exceeds a mature market like the one in the US.

I would recommend checking out robotraders such as Wealthfront, Betterment, Fidelity, etc. These services have algorithms that are more effective than you or I, and they can establish a properly balanced portfolio.

TL;DR: Unless you are a professional (which you are not, since you are asking this question), use a roboadvisor and don’t worry

[-] FreeLunch@feddit.de 3 points 1 year ago

The issue is that the fees on these usually eat any advantage they provide. As they are marketed to a more uninformed crowd the emitters will not forward the advantages to the investors.

[-] UBWare@lemmy.world 2 points 1 year ago* (last edited 1 year ago)

Yes, I personally do 30%

There is a research paper by Vanguard titled "Global equity investing: The benefits of diversification and sizing your allocation"

On page 5, it shows that for a U.S. investor, the best amount of international exposure for ideal risk adjusted returns is around 25% of your portfolio. Based on their research, I think its wise to have at least a little outside of something like an SP500 fund.

[-] runawaycorvid@rammy.site 2 points 1 year ago* (last edited 1 year ago)

Yes. I keep 25-30% in international stocks. FZILX in my IRA, I-fund in my old TSP, and whatever the institutional equivalent is in my employer plan.

[-] yenahmik@lemmy.world 1 points 1 year ago

Yes, I do. There are a lot of massive companies that are not covered in the US based index funds (Samsung, Nestle, Toyota, Unilever, etc). Why would I want to leave them out of my portfolio over others? I personally target 25% of my portfolio for ex US.

[-] usrtrv@lemmy.ml 1 points 1 year ago

I personally have some out of the US because my job is US based. If the US economy crashes for whatever reason, I don't want all my eggs in one basket.

[-] stray69@lemm.ee 1 points 1 year ago

I do about 30% overseas

[-] exploding_whale@lemmy.ml 1 points 1 year ago

I am and have closer to 30-40% across accounts mostly in the form of FTIHX since thats available in my 401k.

this post was submitted on 30 Jun 2023
3 points (100.0% liked)

FIRE (Financial Independence Retire Early)

1131 readers
1 users here now

Welcome!

FIRE is a lifestyle movement with the goal of gaining financial independence and retiring early.


Flow Charts:

Personal Income Spending Flow Chart (US)

Personal Income Spending Flow Chart (Canada)

Finance Flow Chart (UK)

Personal Income Spending Flow Chart (Australia)

Personal Finance Flow Chart (Ireland)


Useful Links:

Bogleheads Wiki

Mr. Money Moustache - a frugal lifestyle blog

The Earth Awaits


Related Communities:

/c/PersonalFinance@lemmy.ml

/c/PersonalFinance@lemmy.world

/c/PersonalFinanceCanada@lemmy.ca

/c/AusFinance@aussie.zone


founded 1 year ago
MODERATORS