Advice on Long Term Investment Allocation

SWPPX (50%)
- What it is: Schwab S&P 500 Index Fund, tracking 500 of the largest U.S. companies.
- Why it's good: Provides a strong foundation with broad market exposure and low fees.
- Long-term perspective: Perfect for steady growth over decades.
SCHG (20%)
- What it is: Schwab U.S. Large-Cap Growth ETF, focusing on growth-oriented companies like tech stocks.
- Why it's good: Adds a higher-risk, higher-reward component to your portfolio.
- Long-term perspective: Growth stocks historically perform well over long periods but can be volatile during downturns.

To maximize diversification and enhance long-term growth potential, consider these adjustments:

Add Small-Cap Exposure (5-10%)
- Funds like IJR (iShares Core S&P Small-Cap ETF) or VB (Vanguard Small-Cap ETF) provide exposure to smaller companies with high growth potential.
- Why? Small-cap stocks often grow faster than large-cap stocks over the long term, though they carry higher risk.
Add International Exposure (10-20%)
- Consider a fund like IXUS (iShares Core MSCI Total International Stock ETF) or VEA (Vanguard FTSE Developed Markets ETF).
- Why? International markets provide diversification and exposure to growth outside the U.S., especially in emerging markets.
Consider Dividend Stocks (Optional)
- A dividend-focused ETF like SCHD (Schwab U.S. Dividend Equity ETF) can add stability and provide income through reinvested dividends.
- Why? While you're young and focused on growth, dividends can add some balance and compound over time.

SWPPX: 50% — 45%; For core large-cap U.S. exposure.

SCHG: 20% — 20%; For growth stock exposure.

IJR/VB: 0% — 10%; For small-cap diversification.

IXUS/VEA: 0% — 15%; For international diversification.

SCHD: 0% — 10% (optional); For dividend income.

Diversification: Exposure to large-cap, small-cap, and international stocks reduces risk and captures growth opportunities.
Growth Focus: SWPPX and SCHG anchor your portfolio in large, established companies with solid potential.
Risk Mitigation: Adding small-cap and international funds helps offset reliance on U.S. markets.

Stay Consistent: Invest regularly, even if it's just $5 or $10 at a time.
Reinvest Dividends: Enable automatic reinvestment for compounded growth.
Learn as You Go: Keep reading about investing to refine your strategy. Books like The Little Book of Common Sense Investing by John Bogle can be helpful.
Keep Fees Low: Stick with low-cost index funds or ETFs to maximize returns.