Al,

 I enjoy your posts in this forum.

For a person with a high risk tolerance for market swings, what do you suggest for percentage of bonds for a 46 year old?  Also, what percentage of equities should be international?  Last, does American Funds Capiital World Growth and Income have sufficient emerging markets exposure?

Thank you.

and the tolerance you have for risk I would think 20% bonds/cash would work.  Remember many of the American Funds carry large cash positions so that helps with the 20%, unless you think they will use cash to buy when markets become exceedingly cheap and you want "constant" exposure to cash/bonds.

International equity percentage I would think 20%-30% but again that runs into questions.  Coke is an Atlanta based firm but I think 80% of profits are from overseas.  Is that a foreign or domestic firm? Unless you invest in a fund like AMCAP (I own it) or Washington Mutual/American Mutual (I own it)  you will get a lot of foreign exposure in so many of the funds they manage.  I was out in LA a few years ago and they would not deal with a question like you have.  They talked about buying the best companies anywhere in the world.  Fundamental (I own it) has about 30% foreign and can be a good proxy for you.

I can't tell you for sure the actual emerging markets exposure for World Growth & Income (we own for ourselves/kids/grandkids) and what would be "sufficient", but it has less than EuroPacific and New World (own for grandchild).  Remember WG&I has a real emphasis on dividends, thus larger companies.  I am not sure that is the fund I would recommend to someone looking for some exposure to emerging markets.  Use the fund but add in New World--maybe 10%.

Coke is an Atlanta based firm but I think 80% of profits are from overseas.  Is that a foreign or domestic firm?

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Very good point.  The morningstar Xray doesn't help you analzye this type of situation.

  Also, what percentage of equities should be international? 

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Many different people have varying opinions on this matter.  Like Al said, with most of the AF it will be hard to hold this down to an exact percentage.

Why not go global, go anywhere, with the fine AF funds and let the smart teams at AF and there global research root out the value where they see it and allow them to run with their best ideas, unless you think you know better then them. 

Add in some EM and go anywhere with them too!

Unless you can understand the logic and thought process behind answering these questions yourself, why tie the hands of your fund managers, who understand these things.

Be part of the global growth story, if you believe such!

Good Luck

Brian

  Also, what percentage of equities should be international? 

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Why not go global, go anywhere, with the fine AF funds and let the smart teams at AF and there global research root out the value where they see it and allow them to run with their best ideas

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That is what you are paying for when you buy an actively managed fund after all.

Thanks to everyone for your great comments and suggestions.  Your advice is very helpful.