Hi all, I was just thinking about this and am curious as to what everyone's thoughts on this are:
Given that:
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The S&P 500 has been outperforming target date funds for the last few years (http://ift.tt/2pbXxne) -- due to, I believe, US (large cap) stocks outpacing international stocks and bonds, and
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The historical average S&P 500 annual return is relatively healthy, even with certain caveats/qualifications (http://ift.tt/1vVQQrC),
For someone who is far enough away from retirement (I'm 28, for instance), would it not make sense to solely invest in the S&P 500 for 10-15 years before adding in bonds (and diversifying to include international stocks)? It's not as though the S&P 500 isn't already (somewhat) diverse in terms of companies/sectors.
I get that adding in international stocks further reduces risk through geographical diversity, but it seems that the typical average annual return of the S&P 500 over 10-15 years is good enough that diluting it may very well reduce the potential gains.
Thoughts?
Submitted April 07, 2017 at 11:02PM by finaid_madhat http://ift.tt/2pc1SXo
