Comments on: Is it time to invest overseas? http://blogs.e-rockford.com/savantips/2007/11/21/is-it-time-to-invest-overseas/ Your Wise Wealth Advisor Tue, 2 Dec 2008 08:02:54 +0000 http://wordpress.org/?v=wordpress-mu-1.2.4 By: Brent Brodeski http://blogs.e-rockford.com/savantips/2007/11/21/is-it-time-to-invest-overseas/#comment-3 Brent Brodeski Wed, 21 Nov 2007 21:28:08 +0000 http://blogs.e-rockford.com/savantips/2007/11/21/is-it-time-to-invest-overseas/#comment-3 Great clarifying question! When I suggest 30% to foreign, I am referring to 30% of an investor’s total equity commitment. As such, if an investor puts 70% of their portfolio to equities (with the remainder to fixed income and preservation assets), and one applied my 30% rule to ONLY the 70% in equities, this equals the 21% total in foreign that you refer to. Said differently, 70% x 30% = 21%! Whether an investor should put any of their bonds overseas is a separate question. And, for the record, in general, we are not a huge fan of foreign bonds unless an investor has a very large part of their assets (typically > 50%) in fixed income. This is because foreign bonds are much more volatile than domestic bonds due to the extra currency risk. Great clarifying question! When I suggest 30% to foreign, I am referring to 30% of an investor’s total equity commitment. As such, if an investor puts 70% of their portfolio to equities (with the remainder to fixed income and preservation assets), and one applied my 30% rule to ONLY the 70% in equities, this equals the 21% total in foreign that you refer to. Said differently, 70% x 30% = 21%! Whether an investor should put any of their bonds overseas is a separate question. And, for the record, in general, we are not a huge fan of foreign bonds unless an investor has a very large part of their assets (typically > 50%) in fixed income. This is because foreign bonds are much more volatile than domestic bonds due to the extra currency risk.

]]> By: steve wise http://blogs.e-rockford.com/savantips/2007/11/21/is-it-time-to-invest-overseas/#comment-2 steve wise Wed, 21 Nov 2007 16:20:32 +0000 http://blogs.e-rockford.com/savantips/2007/11/21/is-it-time-to-invest-overseas/#comment-2 Brent Your blog indicates Savant believes exposure to foreign stocks should be about 30%. Currently my portfollio with Savant has about 21% in foreign stocks. Could please explain the difference? Thanks Brent
Your blog indicates Savant believes exposure to foreign stocks should be about 30%. Currently my portfollio with Savant has about 21% in foreign stocks. Could please explain the difference?

Thanks

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