Originally Posted by Amnorix
Read Malkiel, but all else being equal, I might do something like a total market index, a REIT index, an international index, and a bond index. Say 10% on the REIT and 30% on the rest.
That gives you quite a bit of diversity. You'd be somewhat less in domestic stocks than I would like for a person just starting out, however, but that's better, I think, than just doing 100% in a total market index.
Thanks for the measures. I have to look up what an REIT index is. My understanding is that bond indices should start out low for the young investor and gradually reach up to 50% as I near retirement.
That is just my initial plan for a portfolio balance, but I hadn't really given it much thought yet.