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2-fund portfolio advice

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    2-fund portfolio advice

    I only began investing last year. I don't get any help from my company so I opened a Roth IRA. I invested in a total stock market index fund.
    I then came across multiple articles suggesting a 3 fund portfolio with a total US stock fund, international fund (minus US) and a bond fund. This year I can add one more, but I won't have enough money to fund all 3 areas so what do I do? Do I add bonds or international? Or do I keep with the US stock fund another year since I'm only 29?
    I have 3-4k to invest and already have nearly 5k in US Stock fund.

    #2
    Being so young, I don't think you need any bonds. Even at my age (32), I have less than 5% bonds. So I would recommend the International Stock Index. Next year you can add bonds.

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      #3
      On the other hand, if you are a Boglehead, your bond fund can be as high as 30%.

      But in the end, you have to decide how much is too much or too little. How much are you willing to put on the line to grow your money? If you are risk adverse, I would lean towards the Boglehead figure. If not, you can lower that %.

      If you would rather not think about it at all, take a look at target retirement funds.

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