I'm 24 with 6K in my IRA and I have the most passive portfolio you can get: 100% in Vanguard's 2050 Retirement Fund (VFIFX, .19% expense ratio): 90% stocks (70% of that is US, 30% of that is international) 10% bonds
Once i have more to work with i'll try to have a bit more fun.
SegaRob said: Actually, I think I will leave OP as it is so people can track it in the future.
I'm using this post to have an updated portfolio. Please post with suggestions.
Expense Dividend
Class Fund Ticker Ratio Yield % Allocation %Stocks
US Stocks Schwab US Broad Market SCHB 0.08% 2% 10%
Intl Stocks Schwab Intl Market SCHF 0.15% 2.75% 10%
SegaRob, Thanks so much for putting the big table of your allocation together! There's a lot of good information there, and I'm sure that the table took quite a long time to put together!
I do want to make some comments / suggestions. One can implement ETF / mutual fund switches without tax concerns if they are held inside of an IRA, or inside of HSA Bank's self-directed investment HSA. If they are held in a taxable account, then it probably doesn't make sense to switch ETFs if it requires recognizing a profit and paying taxes on the gain.
US stocks: Schwab's SCHB contains 1507 holdings and costs 0.08%. May I recommend Vanguard's VTI. This total US stock market ETF costs 0.07% and it contains 3389 holdings. The additional diversification should improve the risk/expected return ratio.
International stocks: While Schwab's SCHF is priced well at 0.15%, it is missing small cap equities and emerging markets. It contains 991 holdings. Vanguard's VXUS costs a tad bit more, 0.20%, but includes small caps and emerging markets and holds a whopping 6501 positions. Since emerging markets represent about a quarter of all international equity by market cap, it's a huge slice that I feel deserves to be included. This should improve the risk-expected return ratio by a good amount. To learn about the multiple generations of international indices, please check this article out.
centrifuge41 said: Schwab's SCHB contains 1507 holdings and costs 0.08%. May I recommend Vanguard's VTI. This total US stock market ETF costs 0.07% and it contains 3389 holdings. The additional diversification should improve the risk/expected return ratio.When SCHB was added to the table, VTI's expense ratio was higher, 0.09%. VTI later changed to 0.07%. But SCHB is actually cheaper again now, at 0.06%.
I just read about a new competitor to VTI/SCHB that has an even lower expense ratio, 0.05%: FMU, Focus Morningstar US Market Index ETF, from FocusShares, which is commission-free at Scottrade.
Maybe VTI's higher number of holdings and higher volume make it still a good choice though.
Lately I've been thinking about equal weighted ETFs such as RSP, though its expense ratio of 0.40% is high compared to VTI/SCHB.
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