Another Asset Allocation OUTING

[Rich_by_the_Bay]

I just thought I'd post an epilogue as to where I ended up:

Vgd REIT 10%
Vgd Total Stk Idx 45%
Small mkt idx 20%
Vgd Tot Intl 25%

My philosophy was to basically mirror the market, tilt toward small, use REIT as ballast. I didn't tilt much toward value because my Wellesley adds another absolute 4% big value stocks to the mix (currently residing in my bond-income bucket).

I'll get back to you in 15-20 years.

 

[lswswein]

Hi Rich
While you are at it I would suggest you think and write down the ranges you are comfortable holding these assets, ie are you going to rebalance yearly or will you rebalance only when one of the assets is completely out of whack. You could come up with a model which says you will rebalance REITS +-5% Intl +-10% etc and as long as those are not met you don;t rebalance; Or you could just go on a yearly schedule and bring everything back to targets yearly; I recommend looking into what ranges you are comfortable holding the various asset classes

-h

 

[Rich_by_the_Bay]

While you are at it I would suggest you think and write down the ranges you are comfortable holding these assets, ie are you going to rebalance yearly or will you rebalance only when one of the assets is completely out of whack. You could come up with a model which says you will rebalance REITS +-5% Intl +-10% etc and as long as those are not met you don;t rebalance; Or you could just go on a yearly schedule and bring everything back to targets yearly; I recommend looking into what ranges you are comfortable holding the various asset classes

Still working and still buying in for now, so I'll rebalance every year or so. I imagine when I finally FIRE (or stop contributing), I'll do a final tweak or two to the allocation. Always open to suggestions, of course.

I am not inclined to rebalance very often, unless something gets way out of whack.