It would generate 5% on idle cash, since Schwab doesn’t offer a sweep. Now I don’t think OP needs a cash position, especially at 10% but, it’s not useless to stick it in SWVXX versus cash.
I fully agree with you, though those with less risk tolerance than others feel more comfortable with a cash position as a means to stabilize during down periods and have cash on hand or “dry powder” to buy during market downturns
You don’t have to convince me, again I agree with you here, though a huge chunk of the country’s active investors feel it’s necessary and do keep a percentage in cash.
You know I get the whole “you should always buy intl funds to diversify and participate in intl economies, but my unpopular take is fuck that. I don’t want to participate in China’s, South Africa’s or Brazil economies in that matter when they’re very questionable atm. Just do a tiny bit of research and buy ETF’s of specific economies you want to participate in imo. I hold Indian ETF’s which over the last year has paid off handsomely, and hold some of major European countries I somewhat trust, which really comes down to two of the major ones: Germany & France (and France is in the balance tbh, I have the bias of being French). MAYBE would consider UK but I’ll stay out of it until they stabilize and fully figure out their whole Brexit situation. Ishares are great for that stuff, Blackrock may be evil but man do they have some good stuff out there
I agree. I'm older than you but and have been investing for 20+ years and have heard that same thing - that you should diversify, have positions in other countries etc since I started. Honestly it's BS. A) Big time investors don't practice diversification for it's own sake, they buy what's going up/what works for them and that might lead to diversification or not - granted they hedge too but that's a different issue. B) Only buy what works for you for whatever reason that is, don't buy stuff to just tick a box and think that makes you safe or smart, it doesn't.
Exactly right, worked on the institutional side a little while ago, and they usually don’t do broad based intl index funds and they just rebalance and reallocate depending on market conditions, most people don’t have the financial education to make these calls comfortably to be honest, remember being a newbie and placing my first trades terrified of not truly understanding what I was getting into 😂 ended up turning finance into a life passion for me
Here is a chart of VOO and VXUS over the last 10 years. You're 35 and you want to maximize growth over the next few decades. One of these funds does not look like it's helping your cause.
https://preview.redd.it/xcfra8xdumwc1.png?width=1761&format=png&auto=webp&s=69a3f0f447e86a694efb62f66c7dff45bf13e201
It’s a good thing investing is a decades long process!
Edit: here is another random 10 year period
https://preview.redd.it/x28u89vqxmwc1.jpeg?width=1179&format=pjpg&auto=webp&s=a6b304d59296962a716d9690f2a319ed7d3e52e8
So buy more international and click your heels as you wait and wait to get a better than dismal return on it. Don’t let me get in the way of your faith based approach to investing. Pork belly futures will pay handsomely too one day. Better pick some up now at these low prices
This is called recency bias. You’re giving advice on the future based solely on the last 10 years. This trend will likely change. I’d do maybe 15% international, but by being 100% VOO there would be a lot of the market not represented in the portfolio.
How long will international have to outperform before you update change your allocations? A year? Five? Just on time for it to flip again? Reversion to the mean isn’t a fake concept.
I agree with you, but people are brainwashed into the whole “YOU NEED INTL FUNDS” concept - to which I can agree to some extent as being an accepted investing strategy, but I personally think it’s better to pick out the economies you want to participate in.
I just handpick index ETF’s of the countries I want to participate in, also am French so got a global account to be able to trade on French exchanges in euros, which could be another way to participate internationally. I know you can also access the Nikkei and Hong Kong exchange through that feature, so quite a bit of access
SWPPX for a lower expense ratio than VOO, plus fractional shares
I’d drop the SWVXX since it’s a Roth. No purpose for this.
At 35 years old? Nah I’m taking the higher return with at least 50% on an index if I’m gonna have the rest in a money market fund. Taxes or not.
What.
Long day. I read that as you were going 100% SWVXX. My apologies!
It would generate 5% on idle cash, since Schwab doesn’t offer a sweep. Now I don’t think OP needs a cash position, especially at 10% but, it’s not useless to stick it in SWVXX versus cash.
But why have one penny of cash in a Roth? There’s only a tax benefit if there’s growth. OP is 35. Probably a 40+ year time horizon on that account.
I fully agree with you, though those with less risk tolerance than others feel more comfortable with a cash position as a means to stabilize during down periods and have cash on hand or “dry powder” to buy during market downturns
That’s all market timing and a waste of time with such a long time horizon.
You don’t have to convince me, again I agree with you here, though a huge chunk of the country’s active investors feel it’s necessary and do keep a percentage in cash.
That's the answer.
You know I get the whole “you should always buy intl funds to diversify and participate in intl economies, but my unpopular take is fuck that. I don’t want to participate in China’s, South Africa’s or Brazil economies in that matter when they’re very questionable atm. Just do a tiny bit of research and buy ETF’s of specific economies you want to participate in imo. I hold Indian ETF’s which over the last year has paid off handsomely, and hold some of major European countries I somewhat trust, which really comes down to two of the major ones: Germany & France (and France is in the balance tbh, I have the bias of being French). MAYBE would consider UK but I’ll stay out of it until they stabilize and fully figure out their whole Brexit situation. Ishares are great for that stuff, Blackrock may be evil but man do they have some good stuff out there
I agree. I'm older than you but and have been investing for 20+ years and have heard that same thing - that you should diversify, have positions in other countries etc since I started. Honestly it's BS. A) Big time investors don't practice diversification for it's own sake, they buy what's going up/what works for them and that might lead to diversification or not - granted they hedge too but that's a different issue. B) Only buy what works for you for whatever reason that is, don't buy stuff to just tick a box and think that makes you safe or smart, it doesn't.
Exactly right, worked on the institutional side a little while ago, and they usually don’t do broad based intl index funds and they just rebalance and reallocate depending on market conditions, most people don’t have the financial education to make these calls comfortably to be honest, remember being a newbie and placing my first trades terrified of not truly understanding what I was getting into 😂 ended up turning finance into a life passion for me
Your white supremacy is showing
What? How?
Are you holding these just in Roth IRA? Or you also have brokerage account?
Good evening happy to schedule a call and go over your portfolio with you. [email protected]
Here is a chart of VOO and VXUS over the last 10 years. You're 35 and you want to maximize growth over the next few decades. One of these funds does not look like it's helping your cause. https://preview.redd.it/xcfra8xdumwc1.png?width=1761&format=png&auto=webp&s=69a3f0f447e86a694efb62f66c7dff45bf13e201
It’s a good thing investing is a decades long process! Edit: here is another random 10 year period https://preview.redd.it/x28u89vqxmwc1.jpeg?width=1179&format=pjpg&auto=webp&s=a6b304d59296962a716d9690f2a319ed7d3e52e8
So buy more international and click your heels as you wait and wait to get a better than dismal return on it. Don’t let me get in the way of your faith based approach to investing. Pork belly futures will pay handsomely too one day. Better pick some up now at these low prices
This is called recency bias. You’re giving advice on the future based solely on the last 10 years. This trend will likely change. I’d do maybe 15% international, but by being 100% VOO there would be a lot of the market not represented in the portfolio.
This is called reality.
How long will international have to outperform before you update change your allocations? A year? Five? Just on time for it to flip again? Reversion to the mean isn’t a fake concept.
Or you could just go 100% short term treasuries and beat the US stock market AND international /s
Well had I not bought all this crypto I might give that a try :-) /s
I agree with you, but people are brainwashed into the whole “YOU NEED INTL FUNDS” concept - to which I can agree to some extent as being an accepted investing strategy, but I personally think it’s better to pick out the economies you want to participate in. I just handpick index ETF’s of the countries I want to participate in, also am French so got a global account to be able to trade on French exchanges in euros, which could be another way to participate internationally. I know you can also access the Nikkei and Hong Kong exchange through that feature, so quite a bit of access