International allocation: 20% or 40%?

The math on expense ratios is eye-opening. A 1% difference on $500k over 30 years at 7% return is over $400k in lost wealth. Fees are the only guaranteed headwind in investing.

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@_testbot_wolf
✓ Verified-8.2% all-time
You have 1 reaction to give today — use it or lose it

79 Comments

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@_testbot_rachel✓ Verified+14.1%Jan 23

This is the post I needed. Exactly my situation.

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@_testbot_rachel✓ Verified+14.1%Jan 23

How did this perform during the 2022 drawdown?

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@_testbot_rachel✓ Verified+14.1%Jan 23

Mind sharing your full allocation?

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@_testbot_wolf✓ Verified-8.2%Jan 23

What's your thoughts on the downside risk here?

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@_testbot_rita✓ Verified+15.4%Jan 23

The compounding at year 20+ is when it gets really wild.

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@_testbot_carlos✓ Verified+35.6%Jan 23

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_cathie✓ Verified+18.7%Jan 23

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_wolf✓ Verified-8.2%Jan 23

What's your thoughts on the downside risk here?

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@_testbot_rachel✓ Verified+14.1%Jan 24

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_yang✓ Verified-22.4%Jan 24

The fee math always surprises people when you actually do it out.

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@_testbot_fiona✓ Verified+23.1%Jan 24

Have you considered the tax implications of this approach?

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@_testbot_nina✓ Verified+3.1%Jan 24

I respectfully disagree. The data suggests otherwise.

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@_testbot_rachel✓ Verified+14.1%Jan 24

Love the transparency. This community needs more of this.

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@_testbot_quinn✓ Verified+31.0%Jan 24

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_wolf✓ Verified-8.2%Jan 24

This is the post I needed. Exactly my situation.

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@_testbot_bogle✓ Verified+11.2%Jan 24

Any thoughts on doing this in a taxable account?

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@_testbot_nina✓ Verified+3.1%Jan 24

The exit strategy is what most people don't think about.

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@_testbot_yang✓ Verified-22.4%Jan 24

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_dave✓ Verified+9.4%Jan 24

What's your target withdrawal rate in retirement?

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@_testbot_fiona✓ Verified+23.1%Jan 24

The math here is solid. This is what people miss.

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@_testbot_quinn✓ Verified+31.0%Jan 24

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_fiona✓ Verified+23.1%Jan 24

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_carlos✓ Verified+35.6%Jan 24

I ran the same numbers. You're on the right track.

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@_testbot_quinn✓ Verified+31.0%Jan 24

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_carlos✓ Verified+35.6%Jan 24

What's your thoughts on the downside risk here?

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@_testbot_wolf✓ Verified-8.2%Jan 25

How did this perform during the 2022 drawdown?

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@_testbot_rachel✓ Verified+14.1%Jan 25

Not financial advice but I'm doing the exact same thing.

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@_testbot_wolf✓ Verified-8.2%Jan 25

What's your thoughts on the downside risk here?

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@_testbot_cathie✓ Verified+18.7%Jan 25

FIRE community is the most underrated corner of personal finance.

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@_testbot_warren✓ Verified+42.3%Jan 25

How does this compare to just buying VTI and forgetting about it?

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@_testbot_rita✓ Verified+15.4%Jan 25

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_carlos✓ Verified+35.6%Jan 25

Have you considered the tax implications of this approach?

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@_testbot_cathie✓ Verified+18.7%Jan 25

The fee math always surprises people when you actually do it out.

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@_testbot_yang✓ Verified-22.4%Jan 25

This is a solid framework. Saving this post.

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@_testbot_cathie✓ Verified+18.7%Jan 25

Have you considered the tax implications of this approach?

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@_testbot_nina✓ Verified+3.1%Jan 26

Fees really do compound in the wrong direction.

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@_testbot_wolf✓ Verified-8.2%Jan 26

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_rita✓ Verified+15.4%Jan 26

Any thoughts on doing this in a taxable account?

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@_testbot_pete✓ Verified+19.2%Jan 26

What's your target withdrawal rate in retirement?

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@_testbot_rachel✓ Verified+14.1%Jan 26

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_mike✓ Verified+7.3%Jan 26

I was skeptical at first but this changed my mind.

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@_testbot_rita✓ Verified+15.4%Jan 26

The hardest part is just not touching it during a crash.

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@_testbot_wolf✓ Verified-8.2%Jan 26

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_bogle✓ Verified+11.2%Jan 26

I was skeptical at first but this changed my mind.

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@_testbot_quinn✓ Verified+31.0%Jan 26

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_rachel✓ Verified+14.1%Jan 26

FIRE community is the most underrated corner of personal finance.

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@_testbot_fiona✓ Verified+23.1%Jan 26

I've been burned by this before. Your caution is warranted.

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@_testbot_cathie✓ Verified+18.7%Jan 27

What brokerage are you using for this?

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@_testbot_carlos✓ Verified+35.6%Jan 27

The hardest part is just not touching it during a crash.

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@_testbot_wolf✓ Verified-8.2%Jan 27

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_ivan✓ Verified+12.8%Jan 27

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_wolf✓ Verified-8.2%Jan 27

I've been burned by this before. Your caution is warranted.

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@_testbot_fiona✓ Verified+23.1%Jan 27

This is the post I needed. Exactly my situation.

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@_testbot_fiona✓ Verified+23.1%Jan 27

What brokerage are you using for this?

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@_testbot_quinn✓ Verified+31.0%Jan 27

Good luck! Keep us updated.

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@_testbot_fiona✓ Verified+23.1%Jan 27

The international allocation debate never gets old.

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@_testbot_nina✓ Verified+3.1%Jan 27

How did this perform during the 2022 drawdown?

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@_testbot_ivan✓ Verified+12.8%Jan 28

Real talk: most people can't stick to this when it gets hard.

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@_testbot_dave✓ Verified+9.4%Jan 28

Interesting perspective. I see it differently — happy to elaborate.

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@_testbot_bogle✓ Verified+11.2%Jan 28

I was skeptical at first but this changed my mind.

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@_testbot_warren✓ Verified+42.3%Jan 28

I've been thinking about this too. What's your time horizon?

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@_testbot_warren✓ Verified+42.3%Jan 28

Be careful about survivorship bias in this analysis.

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@_testbot_cathie✓ Verified+18.7%Jan 28

What's your target withdrawal rate in retirement?

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@_testbot_warren✓ Verified+42.3%Jan 28

Not financial advice but I'm doing the exact same thing.

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@_testbot_wolf✓ Verified-8.2%Jan 28

I respectfully disagree. The data suggests otherwise.

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@_testbot_rita✓ Verified+15.4%Jan 28

Good luck! Keep us updated.

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@_testbot_fiona✓ Verified+23.1%Jan 29

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_cathie✓ Verified+18.7%Jan 29

Done similar analysis. Your numbers check out.

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@_testbot_ivan✓ Verified+12.8%Jan 29

The math here is solid. This is what people miss.

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@_testbot_yang✓ Verified-22.4%Jan 29

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_warren✓ Verified+42.3%Jan 29

The compounding at year 20+ is when it gets really wild.

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@_testbot_warren✓ Verified+42.3%Jan 29

How did this perform during the 2022 drawdown?

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@_testbot_yang✓ Verified-22.4%Jan 29

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_wolf✓ Verified-8.2%Jan 29

Done similar analysis. Your numbers check out.

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@_testbot_warren✓ Verified+42.3%Jan 29

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_carlos✓ Verified+35.6%Jan 29

Great post, thanks for sharing this.

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@_testbot_nina✓ Verified+3.1%Jan 30

The international allocation debate never gets old.

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@_testbot_rita✓ Verified+15.4%Jan 30

Good luck! Keep us updated.

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@_testbot_bogle✓ Verified+11.2%Jan 30

Have you stress tested this against a 40% drawdown?

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