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As I said in my introduction, I now realize our asset allocation is all out of whack.* We are mostly in large-cap growth with some international and a rental house that I consider our real estate position.* Based on what I've gleaned here and by reading I'm thinking this asset allocation would be good for us:
50% Large Cap US (25% Value/25% Growth)
15% Mid-Cap
15% Small-Cap
20% International
Some extra thoughts:* Due to my future military retirement and our 10-15 year time horizon to retirement I do not think we need bonds in our allocation at this time.* We also have a rental house that works for our RE position and has appreciated well (its in AZ so I'm not too concerned about it crashing if the RE market tanks).
So I'm looking for validation...does this allocation make sense?
Now to the second part of my question.* Our investments are all in actively managed funds with 3 different fund families (but 70% or so Fidelity), and I'm now fairly convinced that I want to put them all in the same fund family (for ease of rebalancing) in index funds (to lower our expenses and get more consistent performance relative the market).* My thoughts are to sell all, bite the taxable event, and switch over to Vanguard index funds.* I'm guessing this will make life easier year to year when rebalancing the funds.* True?
Third and final question for now.* We both have IRA accounts and then a taxable account to consider (also the TSP 401k, but that's not germaine).* Do you allocate each of the three accounts the same as I describe above?* I know you wouldn't necessarily have to, but I'd think you'd want to be balanced between the taxable and tax-exempt accounts.*
Thoughts?
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