No. of Recommendations: 0
When I first retired, I had Vanguard do a investing plan for me. It cost me 400.00 and was allocated across many asset classes. I studied it for a long time.

I took about 60% of the advice and then filled in the rest with my plan. I was determined to "do this myself". I kept about 6% for short term trading.

I plugged inVanguards suggestions into a yahoo portfolio and have watched it grow over the last seven years. I have only beaten it by a few percent every year. That does add up over the years.

when I become old and drifty, I will be happy as a clam to turn it over to vanguard to run.

Emerging Markets. Several years ago Bill Gross of Pimco was advising a move into emerging markets, he said he had put a HUGE percent of his personal IRA into EM. I don't remember the % but it was way overweighted to any normal weighting. So I put in 10% into Vanguards EM.

Over the following year I increased it to 20%. After about three years of up-trending , I became uncomfortable with the allocation and dropped it back to 10%.

Last summer I got a letter from Vanguard expressing worry about Emerging Market. It encouraged cutting back the allocation. it discussed "reversing to the mean", yada yada.

So, i cut it back to 4%, and bought some individual foreign stocks instead.

Vanguard EM is still going up, after last summers correction.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.