No. of Recommendations: 0
With a 30 year time horizon, I don't think you're taking too much risk. If you have the stomach for it, you *might* even be able to take a little more with more daring asset classes and market sectors.

I'd presonally add growth and value components to your large cap and small cap holdings. I'd probably add 10-15% in REITs as well. I'd consider another 10% or so in more risky but potentially rewarding investments like emerging markets, natural resources and sector plays.

With 30 years to go and a stomach for volatility you don't need bonds yet -- but I do think some REITs are worth considering. With no bonds and 30 years to go, I'd look at something like this:

15% large cap growth
15% large cap value
15% small cap growth
15% small cap value
15% international developed markets
10% REIT
5% emerging markets
10% Other*

* Other could be more allocations into the classes above or could be sector plays (such as natural resources and health care, my two favorite sectors) or things like precious metals and micro-caps. As these are more risky, I'd not consider more than a total of about 10% in these categories.

I personally don't think mid-caps are that necessary. They tend to act halfway between large caps and small caps, and if you hold small and large caps your overall domestic portfolio acts more like mid caps in terms of return and volatility, anyway.

Again, this assumes that you are shooting for maximum growth with at least some dampened volatility through asset allocation, and that you have 30+ years to go AND a stomach for weathering storms in the market.

#29
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