Join Early Retirement Today
View Poll Results: Number of Asset Classes You Utilize (as defined by the graphic)
One 0 0%
Two 5 8.20%
Three 8 13.11%
Four 14 22.95%
Five 17 27.87%
Six 17 27.87%
Voters: 61. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
How Many Asset Classes Do You Utilize?
Old 08-06-2014, 11:32 AM   #1
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,825
How Many Asset Classes Do You Utilize?

Quote:
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.



Quote:
Asset allocation means always having something to complain about.


Source: http://www.marottaonmoney.com/invest...asset-classes/
__________________

__________________
sengsational is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-06-2014, 11:42 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
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)
__________________

__________________
Meadbh is offline   Reply With Quote
Old 08-06-2014, 11:57 AM   #3
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,036
I use all 6 of those asset classes (and a few more).
__________________
FIREd is online now   Reply With Quote
Old 08-06-2014, 12:01 PM   #4
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,825
Quote:
Originally Posted by Meadbh View Post
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.
__________________
sengsational is offline   Reply With Quote
Old 08-06-2014, 12:07 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
Quote:
Originally Posted by sengsational View Post
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.
__________________
Meadbh is offline   Reply With Quote
Old 08-06-2014, 12:10 PM   #6
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,419
Quote:
Originally Posted by FIREd View Post
I use all 6 of those asset classes (and a few more).
+1
__________________
MichaelB is online now   Reply With Quote
Old 08-06-2014, 12:49 PM   #7
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,825
Quote:
Originally Posted by Meadbh View Post
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:

__________________
sengsational is offline   Reply With Quote
How Many Asset Classes Do You Utilize?
Old 08-06-2014, 01:07 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
How Many Asset Classes Do You Utilize?

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
__________________
Meadbh is offline   Reply With Quote
Old 08-06-2014, 01:40 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,410
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.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 08-06-2014, 01:58 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
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.
__________________
LOL! is offline   Reply With Quote
Old 08-06-2014, 02:14 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
All but foreign bonds.
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 08-06-2014, 02:49 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,676
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
__________________
Lsbcal is offline   Reply With Quote
Old 08-06-2014, 04:18 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,885
I'm in 3 or 4 depending on the definition of asset class.

I voted 4.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is offline   Reply With Quote
Old 08-06-2014, 04:58 PM   #14
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,804
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
__________________
rodi is offline   Reply With Quote
Old 08-06-2014, 06:51 PM   #15
Recycles dryer sheets
galeno's Avatar
 
Join Date: Nov 2002
Location: Alajuela, Costa Rica
Posts: 220
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
__________________
AA = 60/35/5. Expected CAGR = 5.7%. GSD (5y) = 7.8%. USD inflation (10 y) = 1.8%. AWR = 3.0%. TER = 0.5%. Net Port Yield = 1.7%. Term = 36 yr. FI Duration = 4.9 yr. Portfolio survival probability = 86%.
galeno is offline   Reply With Quote
Old 08-06-2014, 07:02 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,676
Quote:
Originally Posted by sengsational View Post

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?
__________________
Lsbcal is offline   Reply With Quote
Old 08-06-2014, 07:36 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
Quote:
Originally Posted by Lsbcal View Post
What is Stability in the table?
Stability is everything blue and Appreciation is everything in green.
__________________
Meadbh is offline   Reply With Quote
Old 08-07-2014, 10:05 AM   #18
Recycles dryer sheets
 
Join Date: Jul 2013
Posts: 388
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.
__________________
mrfeh is offline   Reply With Quote
Old 08-07-2014, 01:20 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
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.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 08-07-2014, 01:25 PM   #20
Thinks s/he gets paid by the post
 
Join Date: Feb 2013
Location: Toronto
Posts: 1,414
Quote:
Originally Posted by HFWR View Post
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'.
__________________

__________________
6miths is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Does your employer sponsored 401k plan utilize a third party plan advisor? Disappointed FIRE and Money 13 03-25-2008 04:12 AM
Why are so many asset classes correlated and impact on AA? Olav23 FIRE and Money 8 03-29-2007 08:32 PM
Total market index vs asset classes Roger_R FIRE and Money 5 06-12-2004 06:27 PM
Categorizing Asset Classes DFW_M5 FIRE and Money 12 02-23-2004 04:23 PM
Balancing when Asset Classes are across tax bounds Telly FIRE and Money 9 09-14-2003 07:55 PM

 

 
All times are GMT -6. The time now is 02:35 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.