Quote:
Originally Posted by l2ridehd
That is the fundamental difference in our investment style. I would suggest that if you are only 15% international then by default you are 85% US which to me is really the huge gamble. I try to map as close as possible to the entire market. Which for equities is about 68% US, 21% Europe and 11% Asia & Emerging markets. The only place I vary slightly from the equity map is I place about a 5% extra bet on small cap stocks. So a 5% tilt away from large cap. I do that both for US and International. Small cap stocks have outperformed Large cap stock in every 5 year window you measure. So a slight tilt improves overall performance by about 110 basis points. As for bonds I also try to map to the global mapping of that market, but that is a little more difficult so I am slightly over weighted to the US market and over weighted to short term and high yield corporate.
I set my IPS to the AA I have determined best for me, re-balance every time I have more then a 5% drift and stay the course using low cost index funds.
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You surely do your homework and that's a good thing. Others here seem to prefer to "set it and forget it" and that works for them. I'll stick to my point: index funds to mirror the market (be it the Large Cap or Small Cap or Balanced or Whatever Market); individual funds to beat the market.
To the original posting's inquiry of Vanguard vs Fidelity, both are long-time highly professional, both will have answers to all your questions, and I bet your personal preferences will point you to the right path. And if it doesn't work for you the beauty of it all is you can change it. Kinda like living at The Villages....some of it is great for you, some of it is more great.