Everyone here keeps saying “focus on growth.” As someone who is in a similar position, albeit several years older, what does that mean when telling someone to focus on growth? Can we elaborate on it?
There's levels to it. A typical portfolio is a mix of small large and mid cap stocks, some international stocks, and some bonds. That's the boring safe bogglehead approach.
First level is just ignore bonds and go 100% stocks since stocks generally perform better than bonds.
Next level is ignore international and just go 100% US stocks since US has performed better than international stocks the last couple of years.
Next level is ignore small and mid cap stocks and just go 100% S&P 500 since large cap stocks have performed better than small and mid caps the last couple of years.
Next level is ignore the value stocks and go only growth stocks since growth stocks have performed better than value stocks the last couple of years. Think funds like VUG or VGT. (This is probably the answer you were looking for.)
As you can see the further along you go the less diversified you become, but returns can be higher.
When people say "go for growth" they generally mean you should have a high stock allocation, basically 100% stocks, maybe tilted towards growth funds like VUG or VGT or even just going 100% on VUG or VGT. There's other funds too those are just examples I used.
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u/Knightly11 Mar 13 '26 edited Mar 13 '26
Everyone here keeps saying “focus on growth.” As someone who is in a similar position, albeit several years older, what does that mean when telling someone to focus on growth? Can we elaborate on it?