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URL:  http://boards.fool.com/here-is-a-link-to-a-paper-that-talks-about-26046855.aspx

Subject:  Re: Asset allocations Date:  10/30/2007  1:11 PM
Author:  JLC Number:  59918 of 78166

Here is a link to a paper that talks about diversification by asset class. I have been implementing some of its ideas for about one year. Plus, it keeps things simple.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=962461

Now to your specific questions:

#1--Yes. The S&P 500 is a good baseline to start and maintain.

#2--Yes. You should have exposure to international stocks. While the world's economy is becoming more intertwined, there can still be differences in return from U.S. and International. Be forewarned, even though you are risk tolerant, you don't know how truly risk tolerant you are until you experience a big downturn. I prefer ETFs for things, so EFA for International and EEM for Emerging Markets.

#3--Given your time horizon, no time like the present. FWIW, I started investing in EEM about 2 years ago, and things were at a high then. Well, we're highe