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Also, the Wellesley doesn't provide international diversification, which you must have. I'd put 25% of your stock investment in international equities.

I'm grappling with this right now. Can you tell me why you think we must have international equities in our portfolio, especially right now, considering the state of the world? Also, most recent things I've heard is that international diversification is not as important as it used to be because so many American companies do business overseas that the markets are more and more moving in tandem.

My situation is:

I have a Roth at TIAA-CREF. Half in Bond Plus, Half in the International Equity fund. I also have a Roth at Scottrade, where I hold Vanguard Total Stock Mkt index (VTSMX).

I need to liquidate my TIAA holdings and transfer them to my Scottrade Roth. (TIAA is going to start instituting low-balance fees, and Scottrade doesn't trade TIAA funds, so I can't transfer-in-kind.)

I had not planned on buying bond funds right now because they're so high, but I have to invest this money somewhere, and putting it into my VTSMX leaves me with no bond diversification at all.

So I was thinking about giving up international and doing one of several things:

1. invest 1/2 into Vanguard Total Bond Mkt index (VBMFX), & 1/2 into Vanguard Reit Index
2. invest all into VBMFX
3. invest all into VTSMX and hold off on bonds until economy recovers (I have 20 year investment timeline.)
4. invest all into Dodge & Cox Income Fund (DODIX) (I believe this holds some real estate, but I'm not sure.)

So, given that I had all but decided on giving up on international, I'm really curious about your thoughts on needing it. (and anyone else's too.)

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