How Many Asset Classes Do You Utilize?

[sengsational]

Many U.S. investors crowd their assets into a combination of large-cap U.S. stocks and U.S. bonds. This allocation represents only one and a half of the six asset classes described here.

Asset allocation means always having something to complain about.

Source: http://www.marottaonmoney.com/invest-in-all-six-asset-classes/

 

[Meadbh]

I can't answer your poll because there are more than six.

Cash
GICs
Canadian Equities
Canadian Mutual Funds
Canadian Bonds
Canadian REITs
US Equities
Foreign Equities
Precious Metals
Income Producing Real Estate
Venture Capital (in the past)

 

[FIREd]

I use all 6 of those asset classes (and a few more).

 

[sengsational]

I can't answer your poll because there are more than six.

I was going to put "six or more", but I figured people could shoe-horn their classifications into the six, or use a post to say "my asset class X" doesn't fit anywhere in the six.

 

[Meadbh]

I was going to put "six or more", but I figured people could shoe-horn their classifications into the six, or use a post to say "my asset class X" doesn't fit anywhere in the six.

OK, I have five of the six listed in the graphic. I don't have any US bonds. It's difficult to shoehorn income producing real estate into that graphic.

 

[MichaelB]

I use all 6 of those asset classes (and a few more).

+1

 

[sengsational]

OK, I have five of the six listed in the graphic. I don't have any US bonds. It's difficult to shoehorn income producing real estate into that graphic.

Yep, maybe not such a good poll. But the perfect poll wouldn't have any conversation, hehe.

It's a force-fit, but I'd stick the real estate into hard assets; not a stock, but is a hard asset. It would probably correlate best in the hard asset stock bucket.

The reason I shoe-horn my allocation into those is so I can manage my asset allocation along the lines of this:

 

[Meadbh]

It makes sense to have a benchmark asset allocation with which to compare. I have a customized net worth spreadsheet which I update once or twice a year, which does all these calculations for me. I started it in 2000 and it has evolved to meet my needs over the past 14 years. It works well for me.


Sent from my iPad using Early Retirement Forum

 

[pb4uski]

I use five of the six. I don't have any allocation specific to hard asset stocks, but I suspect there are some hard asset stocks included in my domestic and foreign equity positions.

 

[LOL!]

Barely 4 of those asset classes. Because REITs were in "hard assets", I get to squeeze in another asset class.

I don't have short-term cash, CDs, etc. I have US bonds, US equities, and foreign equities.

Also I am not crowded into large cap stocks.

 

[HFWR]

All but foreign bonds.

 

[Lsbcal]

I answered 6 (currently at 8) but I'm a weird one here.

In equities I do swapping based on a home brew algorithm that selects from the following choices (1 to 3 are US only):
1) SV or SG
2) MV or MG or LV
3) LV or LG or MV
4) International large or LV or LG
5) International small or MV or MG

So currently these are in:
1) SV
2) MV
3) MV
4) LV
5) International small

The FI are sort of standard: cash, short bonds, intermediate bonds, I-bonds

 

[easysurfer]

I'm in 3 or 4 depending on the definition of asset class.

I voted 4.

 

[rodi]

I voted 4. I have a total bond fund, that might have some foreign bonds... but I don't have any funds that are specifically foreign bond.

I don't have any in the hard asset - but do have a rental property that doesn't fit on that chart. It generates about 15% of my gross budget, after expenses. (Generates more than 15% but we have to budget for big ticket maintenance to periodically pop up.)

I actually group my investible assets differently:
small cap US equities
large cap US equities
foreign equities
short US bonds
long US bonds
Cash or cash equivalent

 

[galeno]

05% Cash: MMF and CDs maturing in less than 1 year.
35% Bonds: 1 corporate bond fund + 4 laddered 5yr CDs
60% Stocks: 5 equity ETFs

 

[Lsbcal]

The reason I shoe-horn my allocation into those is so I can manage my asset allocation along the lines of this:

What is Stability in the table?

 

[Meadbh]

What is Stability in the table?

Stability is everything blue and Appreciation is everything in green.

 

[mrfeh]

Using the definitions in the first post, 4: US stock, ex-US stock, US bonds, short term.

Although, personal capital says my bond holdings include some foreign bonds, so maybe it's actually 5.

 

[FUEGO]

All 6 although I don't think I have very much in the international bonds component. It isn't an explicit asset class I invest in, but funds end up in there through various mutual funds I own.

 

[6miths]

All but foreign bonds.

+1

Well unless my Canadian Bonds would be considered 'foreign' or my US ones? None that I would really consider 'International'.

 

[sengsational]

Looks like the eggs, generally, are in many baskets.

There was one poster here, I forgot who, that was "100% equities", but must not have answered the poll:

 

[Animorph]

Looks like the eggs, generally, are in many baskets.

There was one poster here, I forgot who, that was "100% equities", but must not have answered the poll:

I'm supposed to be "100%" equities, but I keep 2% cash for liquidity, foreign and hard asset stocks for diversity, and since the market has been up pretty strongly and I have raised cash for expenses through 2016, I even have a little bit of it in domestic bonds. Though the excess cash and bonds are notionally outside my portfolio and AA. So I answered 4.

 

[FUEGO]

Looks like the eggs, generally, are in many baskets.

There was one poster here, I forgot who, that was "100% equities", but must not have answered the poll:

I'm nominally 100% equities, although I have a tiny amount of bond holdings and a pile of cash that keeps rolling in to my accounts from dividends.

So probably closer to 96-97% equities. But my equities span 3 asset classes per the OP's definition: US, international, and hard assets (namely, REITs).

 

[sengsational]

I'm nominally 100% equities, although I have a tiny amount of bond holdings and a pile of cash that keeps rolling in to my accounts from dividends.

So probably closer to 96-97% equities. But my equities span 3 asset classes per the OP's definition: US, international, and hard assets (namely, REITs).

The poll should probably have suggested excluding the checking account (i.e. cash to support the next 6 months or a year), and exluding things that are 1% or less.

Polls here a like a battle plan...they sound great until the first comment gets posted, hehe.