I'm unsure about the second-last sentence of the question titled "Invest in low cost small cap index funds when saving towards retirement?":

  • Is it a question about "asset allocation", which is encouraged by the FAQ?
  • Or is it a request for specific buy/sell advice, which is forbidden by the FAQ?

P.S. I'm hoping that telling you about myself, giving a specific example of an asset allocation, and asking what the disadvantages might be, help to make this a good question.

3 Answers 3


I agree it is not a specific buy/sell question that would be prohibited.

One test I use is asking "Does it age well?". Specific buy/sell recommendations rarely age well.

  • Should I buy Apple stock?
  • Should I buy gold?
  • Should I sell FSIIX?

The answer to all of those is something like "Today yes, Tomorrow No, Next Week ... Maybe"

Compare those to asset allocation questions which, most of the time, are relatively timeless:

  • What are the basics of the name-of-popular-book portfolio?
  • How much US Stock should I have as a percentage of my portfolio?
  • How should I use index funds to save for retirement?

The answers to these questions will not significantly change over time.


It does not seem like a specific buy/sell question to me, though it could be considered subjective.

It is difficult to tell whether a specific asset allocation is right for someone else. That is typically the kind of thing you need to answer for yourself by learning about investing or by following the advice of a good financial adviser; which can obtain more detailed information about your specific situation. Of course, that does not mean that people will not provide their opinions. As long as they also provide their reasoning, it is useful information in my book.

I expect most members of the community to point this out in their answers.

I also like the fact that you ask for input about the disadvantages and such.


The question as worded looks fine and is welcome on the site. As long as question are generic its fine. The buy and sell should'nt be tied to on stock.

  • Why did you think it was good to add the 'Canada' tag, that this question is "specific to or only relevant within Canada"? I'm not sure that the question is only relevant to Canada (though it is true that I am in Canada), so I reversed your tag edit (at least temporarily).
    – ChrisW
    Apr 24, 2011 at 3:56
  • The reason I added the Canada tag was i though you were looking for some recommendation in Canada. No harm if you remove the tag.
    – Dheer
    Apr 24, 2011 at 13:50
  • 1
    I am in Canada, but I don't think that the question is exclusive/specific to Canada. Also apart from some recommendation (about the strategy) I am looking for any counter-arguments or 'caveats' (the strategy seems to be 'accepted wisdom': I haven't seen the counter-arguments, assuming there are some).
    – ChrisW
    Apr 24, 2011 at 14:03

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