Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
More aggressive allocation
Old 06-01-2015, 06:08 PM   #1
Dryer sheet aficionado
 
Join Date: May 2015
Posts: 26
More aggressive allocation

Hey all!

I'm looking for some advice on making my taxable brokerage account allocation a little more aggressive. My current allocation is approximately 70% VTI (total stock market) and 30% VXUS (total int'l stock market). I'd like to make it something like 60% VTI, 25% VXUS, and 15% X, where X is something a little riskier but potentially more rewarding. I currently am considering some combination of the following ETFs:
  • VB/VBK/VBR (US small cap/small cap growth/small cap value ETFs)
  • VSS (int'l small + mid cap ETF)
  • VDE (energy ETF) or VHT (health care ETF)
  • VWO (emerging markets ETF)
I understand that I would be over-weighting things already contained in either VTI or VXUS. This is my "retire early" account to hold me over until I'm 59 and can withdraw from my Roth IRA and 401k. I'm 28 years old and would like to retire sometime between 45 and 50, which makes my time frame around 20 years. Any suggestions would be super appreciated !

Thanks so much everyone!
__________________

__________________
sergio 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 06-01-2015, 06:57 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Nov 2006
Posts: 2,268
I probably wouldn't go with 15%, but VHT would be my choice. Health Care has been one of the best sectors for a long time and I don't see it slowing down anytime soon.
__________________

__________________
utrecht is offline   Reply With Quote
Old 06-01-2015, 07:16 PM   #3
gone traveling
 
Join Date: Sep 2013
Posts: 1,248
Quote:
Originally Posted by sergio View Post
Hey all!

I'm looking for some advice on making my taxable brokerage account allocation a little more aggressive. My current allocation is approximately 70% VTI (total stock market) and 30% VXUS (total int'l stock market). I'd like to make it something like 60% VTI, 25% VXUS, and 15% X, where X is something a little riskier but potentially more rewarding. I currently am considering some combination of the following ETFs:
  • VB/VBK/VBR (US small cap/small cap growth/small cap value ETFs)
  • VSS (int'l small + mid cap ETF)
  • VDE (energy ETF) or VHT (health care ETF)
  • VWO (emerging markets ETF)
I understand that I would be over-weighting things already contained in either VTI or VXUS. This is my "retire early" account to hold me over until I'm 59 and can withdraw from my Roth IRA and 401k. I'm 28 years old and would like to retire sometime between 45 and 50, which makes my time frame around 20 years. Any suggestions would be super appreciated !

Thanks so much everyone!
I love your allocation. Simple and great. You are on right track. If you can stick to your plan you will do great over a long time. You do not see often that simple and that good allocation as you have.

I would allocate maybe 20% to High Quality wide Moat equities. That is VIG and SCHD. That makes it a bit LESS aggressive with
tilt for High Quality. Quality pays off for people with 20 year time horizon.

You do not need more aggressive portfolio. You need quality tilt IMO.
__________________
eta2020 is offline   Reply With Quote
Old 06-02-2015, 09:50 AM   #4
Recycles dryer sheets
 
Join Date: Jul 2013
Posts: 388
Quote:
Originally Posted by eta2020 View Post
You do not need more aggressive portfolio.
+1

You are 100% equities. Great index funds, but I don't see why you want to be "more aggressive".

If you want a tilt, I suggest small-value (VBR). However, I would also suggest 10-20% of your portfolio in bonds. It won't hurt your returns (historically there is essentially no difference in returns between 80% equities and 100% equities).
__________________
mrfeh is offline   Reply With Quote
Old 06-03-2015, 12:29 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,035
Quote:
Originally Posted by mrfeh View Post
However, I would also suggest 10-20% of your portfolio in bonds. It won't hurt your returns (historically there is essentially no difference in returns between 80% equities and 100% equities).

I have a really hard time, at this particular moment in macroeconomic history, believing 100 won't beat 80. You could certainly be right, but i just can't imagine this being a good bet at the zero bound.


Sent from my iPhone using Early Retirement Forum
__________________
dallas27 is offline   Reply With Quote
Old 06-03-2015, 09:04 PM   #6
Dryer sheet aficionado
 
Join Date: May 2015
Posts: 26
Quote:
Originally Posted by mrfeh View Post
+1

You are 100% equities. Great index funds, but I don't see why you want to be "more aggressive".

If you want a tilt, I suggest small-value (VBR). However, I would also suggest 10-20% of your portfolio in bonds. It won't hurt your returns (historically there is essentially no difference in returns between 80% equities and 100% equities).
Why be more aggressive? I'm be willing to risk a bit of volatility over a 20-year period for the prospect of a (slightly) higher return. Again, this would be around ~10% of my taxable brokerage.

Also, does it make sense to put bonds in a taxable brokerage account? My tax-advantaged accounts (401k, HSA, and Roth IRA) are each 10-12% bonds.
__________________
sergio is offline   Reply With Quote
Old 06-04-2015, 07:14 AM   #7
Recycles dryer sheets
 
Join Date: Jul 2013
Posts: 388
Quote:
Originally Posted by sergio View Post
Why be more aggressive? I'm be willing to risk a bit of volatility over a 20-year period for the prospect of a (slightly) higher return. Again, this would be around ~10% of my taxable brokerage.

Also, does it make sense to put bonds in a taxable brokerage account? My tax-advantaged accounts (401k, HSA, and Roth IRA) are each 10-12% bonds.
Ah, I wasn't aware we were discussing a portion of your portfolio. I was under the impression the AA of your entire portfolio was 100% equities.
__________________
mrfeh is offline   Reply With Quote
Old 06-04-2015, 10:57 AM   #8
Recycles dryer sheets
racy's Avatar
 
Join Date: May 2007
Posts: 481
Quote:
Originally Posted by utrecht View Post
I probably wouldn't go with 15%, but VHT would be my choice. Health Care has been one of the best sectors for a long time and I don't see it slowing down anytime soon.
+1
__________________

__________________
The Big Lebowski: Are you employed, sir?
The Dude: Employed?
racy 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
Extremely aggressive asset allocation to a target portfolio balance aerohokie FIRE and Money 36 07-15-2012 04:17 PM
Anyone's asset allocation now more aggressive? Lusitan Young Dreamers 24 07-06-2009 12:31 PM
how many thought they were aggressive investors? mathjak107 FIRE and Money 45 09-30-2008 07:28 PM
Could an Aggressive Energy Program Revitalize the US? chinaco Other topics 58 09-26-2007 02:30 AM
What's more important, asset allocation or taxation nun FIRE and Money 3 04-07-2006 07:40 PM

 

 
All times are GMT -6. The time now is 11:12 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.