Looking out at 2030 Retirement, yet Vanguard has approx. 70 % US Stock - to me that's too high. Also, should I invest a portion of my retirement outside the US in either Emerging or International stock?
2007-03-24 11:01:08 · 4 answers · asked by rhlang11 1 in Business & Finance ➔ Investing
I just read an article in the past week that says you actually have plenty of international exposure. I wish I could find the article again for you. Sorry!
The article stated that about 50% of the money coming through publicly traded US companies is from foreign sources. So even if the US economy crashes, money will still be coming in to those companies.
Found it! The part about international exposure is on the 2nd page.
2007-03-24 12:06:52 · answer #1 · answered by Lisa A 7 · 1⤊ 0⤋
Lisa has a good point. On the other hand the other 50% is coming from U S investments. Again on the other hand most large foreign companies are extremely dependent on the U S market. BUT. Investments in foreign markets are somewhat insulated from the dropping value of the dollar. That is a fact not to be over looked. I have about 35% of my equity investments outside the U S. More than 1/2 that invested in China and Inda. Only time will tell whether that was a wise choice or not. So far it has been very wise.
2007-03-24 22:21:07 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There's certainly nothing wrong with investing outside the US--everyone who has a long time horizon should probably have some money overseas. I don't know what vanguard fund your looking at, but you might consider putting some cash into an S&P 500 fund to take out the US and then some more into funds the cover the rest of the world. Vanguard is likely to have funds that concentrate on foreign countries. If they don't I'm sure you can find ETFs. Good luck.
2007-03-24 18:21:47 · answer #3 · answered by Adam J 6 · 0⤊ 0⤋
What do you mean Vanguard has 70% stock-- you are the one that determines what % stock Vs Bonds Vs cash you invest. Vanguard is an excellent company and all of their funds have no-loads(free) and their expenses are probably the best in the industry.
You need to spread your assets out to the risk %'s that you want and yes you need some international stock in your portfolio. ( 10% possibly)
2007-03-25 01:24:53 · answer #4 · answered by Brick 5 · 0⤊ 0⤋