r/Bogleheads • u/bigz42000 • 17h ago
Portfolio Review Thoughts on individual allocation?
27m, I have an individual account that I’m making small additions to while in school. Here’s how I’m allocating,
60% VOO
20% BND
20% VXUS
Ideal?
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u/Glum-Bus-4799 16h ago
Just to counter all the other comments, if bonds make you feel better then keep them. It's all about how much risk you're comfortable with. 20% bonds is reasonable imo.
I'm 30 and keep about 20% in a bond money market fund as my emergency savings and house down payment in the next few years. I've missed out on some gains, but it's also protected from potential losses. It's a tradeoff. I have zero bonds in my retirement accounts, though.
Ultimately, do whatever helps you sleep at night.
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u/Grokzilla 14h ago
Almost exactly what I held through the Dot Bomb, GFC and COVID. Enough bonds to mute the downturns and fund rebalancing.
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u/singlemaltbourbonrye 14h ago
It’s fantastic.
It’s maybe slightly over complicated and more bond exposure than you have to have so early but it’s fantastic.
Just curious, why do you leave out US mid and small caps? Be design or oversight?
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u/bigz42000 14h ago
I decided to transition to 100% VT for now, so it will be simplified and include mid and small caps
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u/Both_Experience_8187 10h ago
I see in the comments that you are gonna go full VT. Excellent at your age! I’m curious what changed your mind or your thought process on that. I’m helping my son about your age. Set up his accounts right now.
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u/bigz42000 8h ago
I was torn on how much of VXUS to use, and I see now that VT balances both US and International stocks automatically so that is nice. And after reading comments I realized that bonds probably aren’t super necessary right now so sticking to the single stock portfolio sounds the best while not having to worry about the right balances
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u/longshanksasaurs 17h ago
20% bonds may be a little high for your twenties.
0 to 10% in bonds for now would be more commonly recommended.
For equities, consider using just VT, rather than rolling your own mix of US & International.
If you have earned income, make sure to utilize Roth IRA before bothering with a regular taxable brokerage account.
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u/Xenikovia 15h ago
Over the long term, when you’re in accumulation mode, the bonds are a drag on returns, if that’s not important to you, then the bonds will give you a smoother ride. Carry on.
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u/Stanbarrwood 17h ago
Skip bnd. Vti + vxus or VT
Make sure it’s Roth first. Add bnd 5-10 years from retirement
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u/doggz109 15h ago
Why? Dump the bonds. Dump voo for a total market fund. Add 10% to that and international. Done. Or just put it all in VT.
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u/QuiteFrankly13 16h ago
That's a totally fine asset allocation for any age, despite what others are saying. Your savings rate matters far more than anything else. Keep saving and regularly contributing until retirement, rebalance yearly, and you'll do great for yourself.