Market Milestone
Yesterday, the Dow Jones Industrial Average went above 13,000 for the first time. It only took 126 days to get there from 12,000. That's the third fastest 1,000 point gain. While this is certainly happy news for investors, this article is suggesting that at least one third of a portfolio should be invested in international stocks or international mutual funds because foreign markets are performing better than the U.S. markets right now.
When I set up my 401k, I used the guidelines suggested by The Armchair Millionaire. I bought the book a few years back and have referred to it regularly since then. I have my 401k split up with approximately 1/3 in a U.S. small cap mutual fund, 1/3 in a U.S. large cap mutual fund and 1/3 in an international large cap mutual fund. I would never have considered an international fund on my own. But the book made sense saying that it provides balance to have an international fund in the mix in the event that the U.S. markets are struggling. My international has consistently performed better than my U.S. ones. I may be moving things around to put a little bit more into my international fund but I'll do some additional research first.
I didn't get serious about saving for retirement until I was in my late thirties. Better late than never. I started small so I could at least take advantage of my employer's match. As I got raises, I added to the percentage taken out for my 401k so I didn't notice the change to my take home pay. Thankfully, I've got a while to go until I reach seventy so I'll just keep on saving as much as I can.
Dow Milestones
When I set up my 401k, I used the guidelines suggested by The Armchair Millionaire. I bought the book a few years back and have referred to it regularly since then. I have my 401k split up with approximately 1/3 in a U.S. small cap mutual fund, 1/3 in a U.S. large cap mutual fund and 1/3 in an international large cap mutual fund. I would never have considered an international fund on my own. But the book made sense saying that it provides balance to have an international fund in the mix in the event that the U.S. markets are struggling. My international has consistently performed better than my U.S. ones. I may be moving things around to put a little bit more into my international fund but I'll do some additional research first.
I didn't get serious about saving for retirement until I was in my late thirties. Better late than never. I started small so I could at least take advantage of my employer's match. As I got raises, I added to the percentage taken out for my 401k so I didn't notice the change to my take home pay. Thankfully, I've got a while to go until I reach seventy so I'll just keep on saving as much as I can.
Dow Milestones