Fearless Money

A couple weeks ago, my rollover transfer from my last employer’s 401K to a dedicated IRA finally completed. For some reason, we had to do it via check, so it was much more time consuming and laborious than it needed to be.

I’ve decided to allocate this money in a very aggressive way. One-third to an in-country (U.S.) value stock ETF and two-thirds to out-of-country index ETFs. I am not optimistic about the growth of the U.S. economy, but I don’t necessarily think it is going to go into the tank. I simply think that out-country investments are likely to out perform the U.S. for at least the next 4-6 years.

My choices:

• IVE - iShares S&P 500 Value Index. It focuses on S&P stocks that have the lowest price-to-book rations.
• FXI - iShares FTSE/Xinhua China 25 Index. A simple index fund which tracks the major China index. It’s gotten less popular recently, but I think it is an incredible long-term purchase (and it is still up, despite losing popularity).
• EWW - iShares MSCI Mexico Index. This index fund tracks a major index in Mexico, and it has been an incredible performer. With the conservative win in the recent elections, it has rebounded nicely after the dip due to the uncertainty. Luckily I guessed it would and bought in the dip.

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