Many people around me are saying US based index funds is enough coverage to FIRE but I want to know if it’s worth diversifying even more, maybe 10-20%?
Many people around me are saying US based index funds is enough coverage to FIRE but I want to know if it’s worth diversifying even more, maybe 10-20%?
Yes, I do. There are a lot of massive companies that are not covered in the US based index funds (Samsung, Nestle, Toyota, Unilever, etc). Why would I want to leave them out of my portfolio over others? I personally target 25% of my portfolio for ex US.
Oh good point about those companies. Though I think those massive companies do have major branches in the US too, so the economies are interlinked anyway. US has been outperforming International for awhile which is why I’m a little hesitant about rebalancing my portfolio.