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403(b) Allocation/Emerging Markets question

I've posted a few times here and people have given me wise responses. I finally set up 403 account with Vanguard. I'll be maxing it out every year. I decided with the following initial allocation. I have about 39 years for retirement (assuming at age 65).

Vanguard Total Stock Market Index Fund 30% Vanguard Total International Stock Market Index Fund 20% Vanguard Morgan Growth Fund 13% Vanguard Explorer Fund 12% Vanguard Windsor Fund 10% Vanguard REIT Index Fund 10% Vanguard Total Bond Market Index Fund 5%

Is this a good initial mix for a young (and hence agressive) investor? Or should I drop the 'active managed' funds and put it to the total indices?

Also I have a ROTH IRA with Fidelity which has 4K and is invested in Freedom Fidelity 2040. For next year, I'll max that out and have 9K. I'm thinking I'd like to put this $9K (sell the Freedom fund) in an emerging markets area as the growth is tax free and I think emerging markets will continue to do well in the next 5-10 years. I'm a buy and hold investor and am willing to ride out volatility.

I am however reluctant about investing a big chunk in China (I think China has grown too fast too quickly) and I prefer India, South-east Asia (i.e. Singapore, Thailand, etc) and other parts (Latin America/ Middle East/Eastern Europe)

Can people recommend some funds I can look at that will be good investment? So far my possible list is VWO (Vanguard) or FIGRX (Fidelity International Discovery Fund). I own a little bit in both of them but FIGRX is well diversified international/developed economies. I'm very happy with FIGRX and might add more to it but in a taxable account.

I've been reading ETF Seeking alpha and a lot of the ETFs there have good exposure in China. What about the Claymore BRIC (EEB)? Any other emerging markets funds/ETFs I can research out? Thanks for your time again.

Reply to
pallav
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The Vanguard allocation looks good for someone with 39 years to retirement. Depending on amount inside 403b, the Roth may or may not want to have more than just emerging markets. If 9k is 50% of what you own, I would not put all 9k into something so volatile.

I saw Vanguard allocation as 95% equity, 5% bonds, 75% domestic, 20% international equity 5% domestic bond.

I would look to add a) emerging markets b) international small cap c) mid cap domestic

Reply to
jIM

Consider Fidelity Emerging Markets, FEMKX.

Dave

Reply to
Dave Dodson

What that logic leads to is something like UUPIX which doubles the BRIC return, which I am doing. An IRA of mine fell behind inflation during years of overconservative investment. Last few years I Rothified it to shield growth from tax, and put it all into funds that leverage with options. This assumes you can tolerate extreme volatility or even implosion, and may want to compensate by making non- Roth funds extra conservative.

Reply to
dumbstruck

Do you want/need to monitor and rebalance your portfolio on a regular basis? If not, you could go with a date-based retirement mutual fund - the plan I have at work offers one aimed at people retiring in 2045. It's a "set it and forget it" option.

Reply to
bo peep

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