When I was moving from the US to Japan, I came across the idea of a Global Nomad Portfolio. It’s recommended for people who aren’t sure where they will retire or live long-term. This resonated with me since I wasn’t sure if I was moving to Japan for a year, a few years, or forever.
“Global nomad” investors allocate their assets based on global market capitalization without a home-region bias. So your stocks would be approximately:
- 56% in the US
- 34% in developed markets excluding the US (e.g. Japan, UK, Canada)
- 10% in emerging markets (e.g. China, Taiwan, India)
With that in mind, here’s the breakdown of my portfolio right now.
My Asset Allocation
- 61% – US
- 31% – Developed Markets ex-US
- 8% – Emerging Markets
16% Bonds & Cash
Note #1: I’m a bit overweight in US equity for legacy reasons. When I was working in the US, the only good investment options for my 401k (an employer-sponsored retirement savings account) were for US equities. I’m in the process of rolling it over to a new provider, so this should only last for another month or two.
Note #2: When I first started investing, I decided on an 80/20 split between equities and bonds. Based on the books I read, I felt comfortable going with that until retirement. I figured in the future, if there were ever a significant drop in the market, I’d bump it up to 90/10.
Well, looks like I got my wish, right? 😅
Now that stock prices are cheaper than they were when I first started investing, I’m dollar-cost averaging (DCA) my way to 90/10. I’ve thought going all-in on equities after reading others who have been moving to 100% equities or already there (e.g. GoCurryCracker, A Purple Life) or reducing my bonds based on Early Retirement Now’s research, but I haven’t fully decided… yet, haha. 🙂
The last thing I want to mention is that while my asset allocation looks fairly simple, it’s a bit more complicated under the hood. Since I moved to a new country twice in the last three years, I hold almost 20 different ETFs or mutual funds in three currencies in five different investment accounts. The good news is that I’m in the process to simplify this as much as I can and more than half of my portfolio is in VHVE.