Take it from me; you need to simply stay the course with your investments. I constantly feel as if I am my own worst enemy when it comes to getting in the way of my investments. I read so often that it’s hard for me not to react to what I feel as credible advice.
Do I add a Growth index fund?
Most recently, I was on Vanguard reviewing my account asset allocation, where Vanguard provides recommendations based off your investments. They suggested I was too heavily allocated toward Value, which left me susceptible to low market returns when Growth performs well. I am predominantly in Blended with a slight skew towards Value. So it got me thinking if I should add more Growth…
Do I add a Developed Markets index fund?
Then I was reviewing the International side of my portfolio, which said I was too heavy in Emerging Markets. I was lacking exposure to Developed Markets, particularly Europe. I’m invested in the Total International Stock Index Fund, as well as the Emerging Markets Index Fund. It got me thinking that I should consider adding a Developed Markets Index Fund…
Do I need to add more International?
Next I decided to log in to my free version of Personal Capital which also does a “checkup” on my allocation strategy and provides rebalance recommendations to ensure I am evenly distributed to maximize my returns, while minimizing risks. Personal Capital actually thought my portfolio was properly allocated. It did however suggest I was overly invested in US stocks versus International…by 11% actually. So it did suggest I consider making this change…
I’ve been beating the market!
And then I see that over the last 90 days I have beaten the market by a score of 7.71% (my portfolio) to 7.01% (S&P 500, aka “the market”). I also beat the market over the last one year, as well as 10 years. So I am wondering why I would even considering changing my portfolio, regardless of what any of these tools or articles say?
So my message to all you Millennials is to stay the course and just keep investing. Don’t get in your own way!