Is Brent Kessel's Investment Advice Still Solid?

[benny]

Finishing up It's Not About the Money by Brent Kessel. He suggests taking a long-term time horizon and investing in index funds and ETFs to replicate the market. He recommends the following allocations for stocks:

 

U.S. Large: 21%

U.S. Large Value: 21%

U.S. Small: 9%

U.S. Small Value: 9%

International Large Value: 8%

International Small: 4%

International Small Value: 4%

Emerging Markets Portfolio: 3%

Emerging Markets Small: 3%

Emerging Markets Value: 3%

Real Estate: 10%

Commodities: 5%

 

He also advises diversifying into real estate, either by owning three separate (and very different) types of properties or, failing that, investing in REITs. This keeps you asset class diversified, which minimizes portfolio volatility, which maximizes compound gains.

 

Is this solid advice? I'm developing my financial literacy, but I still need to develop the acumen to evaluate the merit of strategies. On paper, it sounds great, but I would love other opinions. I have 130k, and this is one avenue I'm considering.

 

Also curious about what @Leo Gura thinks.

Edited May 27, 2023 by benny