Hey @ Another Brew! 50% offshore is 50% Australian which is a huge over weighting towards Australia compared to market capitalisation. Currency in which most of what you consume is produced should probably also come into the equation I think. I’m not sure 50% max offshore is a good rule of thumb. I got to 50/50 because I could safely say 100% home currency was not optimum. 100% offshore was not optimum. I don’t know enough to fine tune optimum. I couldn’t say 40/60 is better than 30/70 or 50/50. Having to decide with less than perfect knowledge I split the difference to come up with 50/50. Staying the course on that allocation will probably be more important than fart arsing around to fine tune for optimum anyway. I wouldn’t go as far as to say 50% max is a good rule of thumb for everybody. I see four stages of investment – and they aint necessarily age or retirement related. Accumulation: Where the savings you put in dwarf returns and drawings Compounding: Where the return you make dwarfs, savings put in and drawings taken out. Neutral: Where the drawings taken out neutralise the savings put in and the return made. Drawdown: Where the drawings dwarf the savings put in and the return made. Each of the four stages have graduations before they morph into the next stage. If you are in the draw down stage or even the neutral stage that could be tipped into a draw down stage with untimely returns, you face significant sequence of return risk. You had better think of hedging in “short term volatility terms” and you may need to hedge 100% and take long term home country risk over short term currency volatility risk depending on your capital adequacy to expense requirement ratio. If you are comfortably in the accumulation or compounding stage – you actually want short term volatility to enhance your long-term return, so hedging is an unnecessary expense, potentially unnecessary volatility damper. Plus you don't want to be undermining the diversification benefits of offshore exposure. I have sardine (well smoked salmon) tastes on a caviar budget so retirement for me does not mean leaving the compounding stage of investment hence I expect to always have my global diversification completely unhedged. Others will have different circumstances and need to think about hedging differently.