Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Simplify Allocation
Old 08-01-2013, 03:56 PM   #1
Dryer sheet wannabe
Join Date: Aug 2012
Location: Los Angeles
Posts: 15
Simplify Allocation

Currently I have 6 funds in my portfolio. TIP, total bond index, total US market, total int'l market, REIT index, and small cap value index. I've simplified this from 10+ funds but this 6 seems too much now… I get lazy when it comes to rebalancing b/c it's a pain to reallocate 6 funds in 5 different investment accts. Lazy to the point of not rebalancing when I should be.

I'm thinking about getting this down to 4: total bond index, total US market, total int'l market, and REIT index.

Should I do this? Should I get rid of REIT index and just do 3?


Enjoy the Ride 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 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 08-01-2013, 04:09 PM   #2
Thinks s/he gets paid by the post
Onward's Avatar
Join Date: Jul 2009
Posts: 1,567
You portfolio holdings, as it stands now, are similar to mine. If you drop TIPS, REITs, or small value, you will lose some diversification.

If you drop small value, you will almost certainly lose some performance over the long run.

I would stand pat.

And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 08-01-2013, 05:55 PM   #3
Thinks s/he gets paid by the post
nash031's Avatar
Join Date: Jun 2013
Location: Coronado
Posts: 1,272
Outside of a couple of small holdings of individual stock, my portfolio is: S&P 500 Index Fund, Barclay Aggregate Bond Index Fund, Int'l Stock Index Fund. That makes up probably 95% of it. Simple is good. Simple with almost no expenses is better. Depending on whether or not you have a pension coming, that may be all you need.
nash031 is offline   Reply With Quote
Old 08-01-2013, 10:14 PM   #4
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 3,805
For simple, do the three. But you could keep the REITs and SV and just not rebalance them.
Animorph is offline   Reply With Quote
Old 08-02-2013, 09:30 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,247
What good are TIPs and bonds? I would toss them out until after rates rise to reasonable levels again. They cannot go up anymore.

What comes to my mind is Wellesley (bonds and dividend stocks), small cap index, value index, Dodge & Cox International (looking at this myself) and REITs.

This is part of my AA but not all.

Notwithstanding my opinions about bonds and other fixed income securities at this time, your AA looks OK to me.

Rebalance annually.
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 08-02-2013, 11:02 AM   #6
Dryer sheet wannabe
Join Date: Aug 2012
Location: Los Angeles
Posts: 15
Thanks all. I might combine TIP and bond to all bonds but looks like consensus is to keep REIT and small cap value.

Ugghhh... hate rebalancing these but I guess I gotta suck it up.
Enjoy the Ride is offline   Reply With Quote
Old 08-03-2013, 08:02 AM   #7
Full time employment: Posting here.
Join Date: Feb 2008
Posts: 920
Our overall allocation is pretty simply 30/30/30/10 for total stock market, total intl stock, total bond, and small cap. I'm kinda twisted with the bond part right now because of economic conditions, it is actually almost all in a GIC type dealie in wife's 457, last time I checked was paying 2.5%.

My biggest challenge is the combination of accumulating and rebalancing across my 401k, her 457, our IRAs, and our taxable investments with an eye towards keeping asset classes where they belong for tax efficiency.

tuixiu is offline   Reply With Quote

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


All times are GMT -6. The time now is 04:13 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.