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Old 11-16-2010, 01:39 AM   #21
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Curious as to others' portfolio asset allocations and reasoning. I am new poster here so forgive if this topic has come up before. Thanks.

Bob
I just ran an Instant Xray on my portfolio, which is split between a tax-deferred account at my j*b (74% of the total) and a Roth IRA (the rest). I don't have a taxable investment account.

Right now, the AA is at 29% equities, which includes 5% international stocks and about 6% in REITs. The rest is bonds (including about 20% TIPS index) and cash. My target allocation is 30/70, so no need to rebalance at the moment. New money in the tax-deferred account goes into VTINX (Target Retirement Income), and new money in the Roth IRA goes into VIPSX (a TIPS fund).

The reasoning behind this conservative allocation is that I'm even more chicken than freebird.

I second LOL's suggestion to check out the asset allocation tutorial. I found it really helpful.
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Old 11-16-2010, 03:09 AM   #22
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Originally Posted by Contrarian View Post
Curious as to others' portfolio asset allocations and reasoning. I am new poster here so forgive if this topic has come up before. Thanks.

Bob
50% gold/silver-both physical metal and funds, with funds in 401(k); 50% australian dollar and aussie small caps (I have dual citizenship, so buy directly in my Australian superannuation fund, not through ADRs). The same since 2001-2, with some minor fluctuations in between.
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Old 11-16-2010, 03:27 AM   #23
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hello Bob

I have zero equity. My AA is 100% CDs, Municipal bonds, or cash.

Reasoning : safety

Quote:
Originally Posted by Contrarian View Post
Curious as to others' portfolio asset allocations and reasoning. I am new poster here so forgive if this topic has come up before. Thanks.

Bob
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Old 11-16-2010, 05:40 AM   #24
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No pension. 85% CD, bonds, cash / 15% stocks. age = 57
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Old 11-16-2010, 05:59 AM   #25
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70/30 equity/bonds and we own two properties. We're 10 years from retirement.
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Old 11-16-2010, 06:08 AM   #26
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45 stocks/45 bonds/10 cash-CD's

We will retire spring 2011 at 55. Need cash to pull until 59.5 plus emergencies and health insurance. Should probably be higher in stocks, but feel more comfortable with this mix. Will have a pension that will cover approx 25% of expenses (with ins and taxes as expenses).
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Old 11-16-2010, 06:48 AM   #27
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Well, there you go: The entire spectrum of asset allocation has been reported in this thread from 0% stocks to 100% stocks to lots silver & gold.

@Contrarian, how does all this knowledge help you now?
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Old 11-16-2010, 07:05 AM   #28
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Our AA is 35/45/20 (equity/fixed-income/cash). The rule of thumb is to allocate fixed income to age, e.g., age 40 = 40% fixed income.
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Old 11-16-2010, 07:07 AM   #29
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Thank you Helen. Less then 3 months ago we were in more than 25 funds thanks to our financial advisor. He's been let go and we now self-manage.

Learned everything I know (which isn't much yet!) from this forum, Bogleheads and recommended readings from same.

Indeed this is a simple one to handle. I just wonder though if there is less risk if you have more diversity in selecting more funds in the stock and bond categories. In other words if you have all the eggs in one or 2 baskets is there more chance of losing all the eggs instead of just a few bad ones?
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Old 11-16-2010, 07:17 AM   #30
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Indeed this is a simple one to handle. I just wonder though if there is less risk if you have more diversity in selecting more funds in the stock and bond categories. In other words if you have all the eggs in one or 2 baskets is there more chance of losing all the eggs instead of just a few bad ones?
Looking at the index funds Lisa chose in those "one or 2 baskets", I'd say she's reasonably well diversified. Unless she adds entirely different asset classes such as REITs or precious metals (not everyone's cup of tea), I'm not sure adding other funds would accomplish anything regarding risk reduction and would likely increase her costs.

There is much to be said for elegant simplicity...
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Old 11-16-2010, 08:10 AM   #31
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I am 81% equities/9% bond funds and a little cash. Not thinking about increasing bond exposure.

AA target for equities is 50/50 US/international. Same with bond funds.

Mostly index funds, but a few individual stocks. I buy what I know on weakness (mine and theirs) and only small amounts.

Have not rebalanced in a year or so. Maybe soon.

Focusing on small cap, value and yield these days. I think capital gains are purely gambling, but by going for value and small cap you stack the deck a little in your favor.

All in IRAs at Vanguard.

Vanguard says that the average return from 1926-2009 for a portfolio like this one was 9.7%. They say the best year was +50% (1933)and the worst was -39% (1931). Losing years were 25 out of 84. We are still down 19% from our peak 2.5 years ago, but are up 45% from March '09 (even after some hefty withdrawals when out of work). Yes, it is volatile, but it seems to be working OK.

DW tells me we will retire in 3 years.
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Old 11-16-2010, 08:26 AM   #32
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DW tells me we will retire in 3 years.

Those Financial Advisors can be really bossy
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Old 11-16-2010, 08:57 AM   #33
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7 yrs of expenses in cash/STB, another 7 yrs in balance funds, rest in equities (REITs,EM,LC,MC,SC,Intl, etc)
TJ
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Old 11-16-2010, 08:59 AM   #34
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Vanguard says that the average return from 1926-2009 for a portfolio like this one was 9.7%. They say the best year was +50% (1933)and the worst was -39% (1931). Losing years were 25 out of 84. We are still down 19% from our peak 2.5 years ago, but are up 45% from March '09 (even after some hefty withdrawals when out of work). Yes, it is volatile, but it seems to be working OK.
Did you get this info via web site or did one of the VG advisors gives you this info?
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Old 11-16-2010, 09:06 AM   #35
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Indeed this is a simple one to handle. I just wonder though if there is less risk if you have more diversity in selecting more funds in the stock and bond categories. In other words if you have all the eggs in one or 2 baskets is there more chance of losing all the eggs instead of just a few bad ones?
We also have three rental properties that I don't include in our current AA because they're being sold next year.

Once sold, we'll consider buying a REIT index so that real estate can continue to be part of our portfolio.

Having said that, when Vanguard did our investment plan in September the planner advised against REITs based on our goal of retiring in 2016. He said the asset was too volatile for our goals. We'll see when the time comes to make the investment decision. I will have done a lot more reading by then and expect to understand the pros and cons of the asset class.
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Old 11-16-2010, 09:06 AM   #36
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Well, there you go: The entire spectrum of asset allocation has been reported in this thread from 0% stocks to 100% stocks to lots silver & gold.
In just 26 posts, too!
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Old 11-16-2010, 09:11 AM   #37
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60/40

Equity - vanguard total stock market, total intl stock market, small cap index
Bond - vanguard total bond index

6-7 years from retirement
Funny, we're exact same except 25x4.
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Old 11-16-2010, 09:15 AM   #38
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Not only is it nice and simple, also think of the savings on advisor fees
And expenses, with the 10k floor for most admiral shares it doesn't take much of a portfolio to be running extremely lean.
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Old 11-16-2010, 09:16 AM   #39
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Well, there you go: The entire spectrum of asset allocation has been reported in this thread from 0% stocks to 100% stocks to lots silver & gold.

@Contrarian, how does all this knowledge help you now?
I think he just sent the mods a PM asking if he could change his forum name to "WTF"...
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Old 11-16-2010, 09:23 AM   #40
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36% equities/64% bonds
%Bonds = Age
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