I do not have access to that fund in my 401k.  The international fund is higher ER and I want ONE fund to minimize cost and maximize returns. 

Do you have to invest before April 15th?  Growth Fund of America should be coming out with a semi-annual report in April of this year and it could be helpful in deciding what to do.

This fund is not one of my favorites, but others love it.

I can invest whenever I want to, the funds are in the small value fund at the moment but I have reservations about my whole retirement in small value.  I will wait for the report.  Thanks for your opinion.

 

Dave

I like (and totally understand) the idea of concentrating in ONE or two funds.

Is there a 'worldwide option' available to you?

t

There is AIM global Equity which is about 47% US with around 1.5 ER.  Also Thornberg International Value which I think may be something like 30% US which has 1.6 ER but really good returns as of late.  The other choices are so so, Federated Kaufman, Columbia Acorn, etc.  Do you think I should go with the global or international fund instead?

Consider a combo of Thornburg International Value and Growth Fund of America, 50/50

t

I would go with Taylors advice.  You need some global....I do not think the global  economy is ever going away, some exposure over the long hall should server you wll.  Growth Fund of America has 18% Foreign currently.  So you might break your percentages with that in mind.....or not.  I am sure you will be fine.

B.

TaylorZR:

Consider a combo of Thornburg International Value and Growth Fund of America, 50/50

A 50:50 mix of AGTHX:TGVAX would be too high of a percentage of foreign stocks for my tastes. 

If you go with a 75:25 mix of AGTHX:TGVAX, that would put you at about 50% US stocks, 35% foreign stocks, 10% cash and 5% bonds.  At 31 yo, a 75:25 mix of AGTHX:TGVAX is too biased towards large cap stocks for my tastes and a bit light on the bonds, too, for my tastes.  YMMV.

Well, I have no need for bonds, and actually per the fund info they only own cash/cash equivalents-no bonds at this time.  I would rather have a 50/50 mix or one fund.  I am not worried about percentages, just total return.  Perhaps a 50/50 mix of 500 index and international value would be better?  However, the growth fund has a lower ER than the index fund and higher returns so I do not want to go in that directions.  Besides the growth fund will change over time in respect to international exposure.  Also, some people feel its good to overweight international to take advantage of the weak dollar.  Something to think about.  For now I would prefer a simple 50/50 split and I will go from there.  Otherwise I will just use growth fund and leave it at that. 

I disagree.

40 US/ 60 International for a 31 YO is much more rational today......

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As far as bonds, both funds hold some cash, and for a 31 YO, cash and stocks make much more sense today then owning any bonds

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Large Caps:

Large Cap Value and Growth (at a reasonable price) is the key for long term success.

Smallcaps shouldn't represent any more than about 5% of anyone's portfolio.

t

daverx:

Well, I have no need for bonds, and actually per the fund info they only own cash/cash equivalents-no bonds at this time. 

I see where AGTHX says that on the high level summary, but if you read the annual report, they say they own bonds and short term securities as of August 2007.  Whether or not you call a short term note issued by Fannie Mae a bond I suppose is a matter of opinion.  I call it a bond - a short term bond or an ultra-short term bond depending on its duration.  Morningstar says the fund holds bonds.  I suspect that Morningstar classifies the short term notes as bonds and that is why they say that AGTHX holds bonds.

It looks like most of the short term securities listed in their annual report have matured, though.  They are due to put out a semi-annual report in April.  I would call American Funds if you want more info on this point.  They have always been extremely helpful to me when I have called.

If you have no need for bonds, then you have no need for bonds.  Enuf said.  I like 'em but don't think now is a good time to start investing in intermediate or long term bonds as I think the Fed will raise interest rates in 2009 to combat inflation.

 

daverx:

I would rather have a 50/50 mix or one fund.  I am not worried about percentages, just total return.  Perhaps a 50/50 mix of 500 index and international value would be better?  However, the growth fund has a lower ER than the index fund and higher returns so I do not want to go in that directions.  Besides the growth fund will change over time in respect to international exposure.  Also, some people feel its good to overweight international to take advantage of the weak dollar.  Something to think about.  For now I would prefer a simple 50/50 split and I will go from there.  Otherwise I will just use growth fund and leave it at that. 

AGTHX has a limit to its international exposure of 15% outside the US and Canada.  I view it as a domestic large-cap growth fund.

Many funds hedge currency so I am not sure how much you profit from the weak dollar in these funds.  I would read the prospectuses and the annual reports and/or call the funds to find out how/if they hedge currency. 

At your age, I would go with the 50:50 split before I would go with 100% in AGTHX.  The 50:50 split is too heavily weighted to foreign stocks for my tastes as I said, but given the choice of the 50:50 split and 100% in AGTHX, I would go with the 50:50 split.