I’m racking my brain thinking about how I might want to modify my 401k allocations. Is 50% S&P 500 and 50% Total World Stock Index decent?

[michaelsblade700]

Right now I have 45% S&P 500, 20% mid, 20% small, 15% international, but I’m thinking my new strategy might be better?

 

[chesed73]

@michaelsblade700

Is 50% S&P 500 and 50% Total World Stock Index decent?

You'd overweigh the US allocation, since US Total Stock is 60% of Total World Stock, and S&P 500 is around 80% of US Total Stock.

 

[michaelsblade700]

@chesed73 What ratio do you recommend?

 

[rhianne]

@michaelsblade700 Using just total world could make sense.

Or is it a "total world ex-US" fund?

 

[michaelsblade700]

@rhianne It’s total world. What do you do?

 

[rhianne]

@michaelsblade700 In accounts where I have the ability, I do stick with total world ratios, at least rounded to the nearest multiple of 5 (and as long as they stay between 70/30 and 30/70).

 

[michaelsblade700]

@rhianne Like VTWIX?

 

[rhianne]

@michaelsblade700 Exactly like VTWIX, since I use the Admiral share class, VTWAX, as my reference.

VTWIX is the institutional share class with an initial minimum in the millions, your 401K qualifies as a whole company, had this been say your IRA, VTWAX would be what you'd have to use instead.