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Author: JayinSF1 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76074  
Subject: Increase international allocation in IRA? Date: 1/4/2005 5:59 PM
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Hi, I have an IRA that I know I have allocated over too many funds, but I've been leaving it alone for a couple of years and it's been doing pretty well. I'm ready to do some house cleaning, though, and thought I'd run my ideas by the board and see what people think.

I am 46, and this IRA account is currently valued at about $28,000. Currently my allocations are:

Artisan International Fund (ARTIX) 4.6 %
Harbor Capital Appreciation (HACAX) 6.8%
Managers Funds Special Equity Fund (MGSEX) 5.3 %
RS Investment Emerging Growth Fund (RSEGX) 4.8 %
Vanguard Total Stock Market (VTSMX) 24.4 %
Vanguard S&P 500 Index (VFINX) 36.5 %
VAnguard Windsor II (VWNFX) 16.3 %


I am ready to ditch the RS Emerging Growth (hasn't done well and is too similar to Managers Funds, which has done pretty consistently well) and the Harbor Capital Appreciation, which also has been lackluster.

I am thinking about closing those two out and shifting all of those assets into the international fund, which would bring my international allocation to about 15 % (I think?). I'm thinking that I would particularly like to be invested in international stocks right now because I am concerned about the long term effects of U.S. monetary policies -- trade and budget deficits, declining dollar, immigration policies, etc., while at the same time it seems like other countries may be poised for strong growth.

What do you think? I guess 15 percent is not a huge exposure, but I'm interested to hear what others think about all this. Thanks!
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Author: 2old4bs Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 43883 of 76074
Subject: Re: Increase international allocation in IRA? Date: 1/5/2005 3:46 PM
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What do you think? I guess 15 percent is not a huge exposure, but I'm interested to hear what others think about all this.

It's hard to know what to think, because you did not mention if this is your only investment/retirement account. I never look at my investment allocations on a "per account" basis, but on a total portfolio basis. On a total portfolio basis, my international exposure is 21.5%, or 25% of my total equity positions. (I also am guessing that international equities might do better than domestic over the next few years.)

You might want to consider reading William Bernstein's "The Four Pillars of Investing" for explanations and suggestions of different portfolio allocations.

2old


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Author: JayinSF1 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 43891 of 76074
Subject: Re: Increase international allocation in IRA? Date: 1/5/2005 5:33 PM
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I'll pick up a copy -- thanks!

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