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%?

  • @UBWare
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    1 year ago

    Yes, I personally do 30%

    There is a research paper by Vanguard titled “Global equity investing: The benefits of diversification and sizing your allocation”

    On page 5, it shows that for a U.S. investor, the best amount of international exposure for ideal risk adjusted returns is around 25% of your portfolio. Based on their research, I think its wise to have at least a little outside of something like an SP500 fund.