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Old 04-29-2008, 06:31 AM
Scanner Scanner is offline
$ Saving College Junior
 
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Let's use a scale of 1 to 10 for risk (market, inflation and principal risk) to give you my opinion on riskiness.

Inflation risk: 7
Market risk: 5
Principal risk: 5

With 50% of your portfolio in domestic stock, to me, the main risk you have is domestic American stock underperforming the next 20 years (inflation risk).

Your international at 19% is a hedge on that somewhat though, which is why you aren't at a 10.

Personally, I think you are overdiversified.

You have about $31,000 in retirement. . .IMO, the maximum number of sectors/funds you should own should be 3. Or you can just shove them all into Vanguard 2045.

I know the forum hates to liken investing to gambling but sometimes the analogy holds up. . .you spread your chips all over the roulette table and you aren't going to win anything.

Now. . .you have another $5000 sitting in a mutual fund that's not earmarked for anything. . .this should be in a tax efficient fund or ETF that's blended, if this is for a house or something.
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