Invest in 50-50 Cspx and vwra a sound strategy for long term?

Hi KC,

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I've just recently looked into VWRA and considering to start DCA-ing. So by no means I'm any expert, please take my comments as from a fellow newbie :)
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VWRA has 63% exposure to US market. The split you mentioned means 80% allocation to US market in total. It feels a little too heavy on one country. I understand USA has performed very well in the past 10-15 years perhaps but if you look back further 30-40 years ago emerging market was the investors' darling. So from these perspectives I am actually considering monthly DCA with 80% VWRA + 20% EIMI (Emerging Market) to lessen exposure to USA.

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Welcome your thoughts or anyone else here :)

• portfolio visulizer only able to backtest ETF listed in US. So i used similar ETF to backtest.
• About 9.92% p.a.

https://www.portfoliovisualizer.com/backtest-po...

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• Projection: using compound calculator $12000 per years, 9.92% p.a. for 20 years
• End value = $748 650
• Total invested= $240 000
• Total profit =$508 650

http://www.moneychimp.com/calculator/compound_i...

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Opinon

• The ETF you choose is ok
• Try to increase your contribution amount If possible.
• 9%+ p.a. returns are based on historical data, where interest rate are low. With increase interest rate the returns may be much lower. Nobody know how long will the interest rate hike last.
• In addition, 20 years from now, i am not sure if $750k + CPF is enough to retirement comfortably for you. Because inflation.
• If you retire at 55, live till 85. This has to last at least 30 years. You need to calculate yourself.

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