Mutual Fund Mix for Late 20 Somethings

With 30 years to retirement what mix of Funds would you choose for a taxable account at a low fee fund family (TRP or Vanguard). I was thinking something like this...

30% Total Market
30% Total International Market
15% Small Cap Growth
15% Mid Cap Growth
10% Sector (Healthcare, Energy, REIT, etc)


Am I off the mark? Should it be a little less diversified? Thoughts....

Take note that you are going slightly heavy toward mid- and small-sized companies and they could be the worst affected if something happens with this choppy market. If you are worried about near-term volatility in the US markets, you might want to go a little heavier towards large growth.


Than again, you still have 30 years to go still. :)

great point Dingo... Any body else?

With 30 years to retirement what mix of Funds would you choose for a taxable account at a low fee fund family (TRP or Vanguard). I was thinking something like this...

30% Total Market
30% Total International Market
15% Small Cap Growth
15% Mid Cap Growth
10% Sector (Healthcare, Energy, REIT, etc)


Am I off the mark? Should it be a little less diversified? Thoughts....

I think allocation looks good. It will be more volatile than the total market. you may want to consider the 30% position to be Large Cap only. You will still be more volatile than total market (I think mid+small is about 25% of total market?). 25% of Wilshire 5000 is my thought. I xrayed this a few weeks ago, but I don't remember why or where I posted it...

The 10% sector play will also be volatile. If this is a small portfolio at TRP, you may want to wait until all other positions are higher than 5k (to waive fees) prior to opening sector fund.

Thanks jIM

How about something like this to simplify the asset mix and provide good returns?

Total Market: VTSMX 55%
FTSE All World Ex-US: VFWIX 35%
Total Bond Market: VBMFX 10%

I adapted this from a discussion the morning* chat forum... Any thoughts

Is this going to be the majority of your investments or just your taxable accounts? It looks like a pretty good "sit back and relax" portfolio. Almost too laid back, but that can be a good thing, depending on your investment-style.

It will be my taxable investment account