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Allocation check
Old 03-26-2007, 09:19 PM   #1
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Allocation check

I'm doing a 401(k) rollover to Fidelity so I am going to take the opportunity to tweak the allocation plan. This is the equity allocation only, I'm a bit partial to value so I am trying to over weight there, hopefully not too much. I'm looking at the indexes as growth, so I'm adding specific value indexes.

Since the money is in multiple accounts between my wife and my 401(k) I'm not listing the actual fund names as we have different options.

I can see reducing large cap by 10% and putting that in REIT at some point, not sure now is the best time to be sending money there though. (I know, that makes me a timer, but I'm not sold on REITs yet anyway). I haven't included commodities either, I'm not anti commodities, but not sold on them yet either.

Large Cap 20%
Large Cap Value 20%

Small Cap Index 10%
Small Cap Value 10%

Mid Cap Value 10%

Total International Index 10%
International Value Index 15%
Emerging Market Index 5%

Am I way over weighted in value?
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Re: Allocation check
Old 03-26-2007, 09:49 PM   #2
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Re: Allocation check

Your overall allocation b/t large/medium/small cap and domestic/international seems to be within a reasonable range for an investor with a long time frame. IMHO, you are overweighted in value stocks and under weighted in midcap, but that is a personal preference and may not be a bad thing. You may be right and I may be wrong. Only time will tell.

I assume you have a reason for no bonds/cash, as in you do not need the money for a long time or have a lot of money (low expected withdrawal rate)?
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Re: Allocation check
Old 03-27-2007, 03:37 AM   #3
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Re: Allocation check

You did not mention your age and when you will need to rely on the income for the investments. From my point of view that is a factor.

Your portfolio percents add up to 120%... unless I am interpreting your post the wrong way.




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Re: Allocation check
Old 03-27-2007, 08:16 AM   #4
Confused about dryer sheets
 
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Re: Allocation check

Quote:
Originally Posted by chinaco
You did not mention your age and when you will need to rely on the income for the investments. From my point of view that is a factor.

Your portfolio percents add up to 120%... unless I am interpreting your post the wrong way.
I guess my math skills are a bit weak at night. I have updated the numbers to add up to 100%

This is only my equity portfolio, fixed income is elsewhere. The equity side is expected to last forever.
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Re: Allocation check
Old 03-27-2007, 09:31 AM   #5
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Re: Allocation check

The portfolio looks good - you are only about 45% in Value. So it is not a large overweight. Also large keeps fluctuating between overweight in Growth and leaning towards growth. Make sure you understand that your portfolio volatility has increased and esp now with value outperforming growth for a while, the value premium for your portfolio might take some time(counting in multiple yr / decades)

-h
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Re: Allocation check
Old 03-27-2007, 10:20 AM   #6
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Re: Allocation check

Quote:
Originally Posted by Fttaw
This is only my equity portfolio, fixed income is elsewhere. The equity side is expected to last forever.
I am not sure I understand this. Are you suggesting that you never intend to withdrawal from the EQ portion of the portfolio?

What is your ratio of FI/EQ
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