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What's Your Non-Equity Portfolio Look Like?
Old 01-05-2014, 02:41 PM   #1
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What's Your Non-Equity Portfolio Look Like?

With all the understandable angst about no good choices for fixed income or cash, despite lots of bits and pieces of info, I wonder what our non-equity portfolios all look like - percentages in various bond, funds, cash, etc.?

In case someone wonders, I wouldn't think annuities, real estate, Soc Sec or pensions should be included, but to each his/her own.

I don't recommend what we're currently holding (below), there will be some substantial changes this month.

Of course only if you're comfortable sharing your percentages...might be interesting.
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Old 01-05-2014, 02:59 PM   #2
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No fancy pie charts for me.
PenFed CDs 5%
Sallie Mae Inflation bonds 5%
Other individual bonds 1%
I bonds .5%
Money Markets checking, saving 7%

Oh I should say this percentage of total liquid assets.
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Old 01-05-2014, 03:09 PM   #3
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Something approximately like
50% Total US Bond
16% GNMA fund
16% short-term corporate bond
08% TIAA real estate account
08% TIAA traditional annuity
02% cash from recent dividends to be reinvested somewhere shortly
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Old 01-05-2014, 03:18 PM   #4
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Quote:
Originally Posted by clifp View Post
No fancy pie charts for me.
None needed, thank you!
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Old 01-05-2014, 03:46 PM   #5
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Non-equity portion = 32% of portfolio.

Of this non-equity portion, the breakdown is as follows.

Stable Value Fund (401k) = 32%
I-bond = 26%
Cash (MM and loose cash in various accounts) = 24%
Global bond = 10%
US bond = 8%
Total = 100%

The 24% cash is what has been bothering me. It needs a home, and should be in bonds, but I am still debating. Its percentage in portfolio is 24% X 32% = 7.7% of portfolio, which is more than 2 years of expense. It is currently earning very little.

If I put that in something like PenFed CD, it would get me several Ks in interest. The market timer in me wants that cash floating free, so I can use it for some opportunistic moves. But again, that should ideally be in bonds.
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Old 01-05-2014, 03:50 PM   #6
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My fixed income portfolio looks like this at the moment:
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Old 01-05-2014, 04:04 PM   #7
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My target AA is 60% equities, 4% cash (online savings) and 34% fixed income.

Right now the fixed income is 29% PenFed 3% 5 year CDs, 3% whole life policy, 33% MM, 15% Guggenheim 2017-2018 High Yield target maturity funds and 20% Vanguard International Bond Index Fund.

Usually, the 33% in MM would be in corporate bonds. I recently decided to transition from Guggenheim's 2019/2020 corporate target maturity bond funds to iShares 2020 corporate target maturity bond fund (IBDC) and completed the sales but haven't completed the purchases yet.

Wondering if I should wait, but right now I plan to get into IBDC over the next 6-12 months if I can buy at NAV or at a discount.
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Old 01-05-2014, 04:23 PM   #8
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27.4% PenFed 3% CDs
40.1% Cash (MM Funds here and there)
21% Bond Fund (OSTIX)
11.5% REIT

Currently AA is 69% equities ad 31% non-equity (stated above). A little risky for an old dog like me..I should back off ETFs and stock funds this year, or have nerves of steel.
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Old 01-05-2014, 04:23 PM   #9
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Vanguard Wellesley Income Fund Inv (65%) 6.7%
Vanguard Ltd-Term Tax-Exempt Inv 2.3%
Vanguard Inter-Term Tax-Exempt Inv 4.0%
Vanguard High-Yield Tax-Exempt Adm 40.1%
Vanguard Balanced Index Fund Adm (40%) Roth IRA 2.6%
Dodge & Cox Income Fund Roth IRA 1.3%
I SAVINGS BONDS US 1.00%
Vanguard NY Tax-Exempt Money Mkt 1.1%
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Old 01-05-2014, 04:45 PM   #10
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Wellesley (fixed income portion) - 9.8%
Vanguard High Yield Corporate - 12.7%
Cash/Prime Money Market - 14%
Vanguard Short Term Investment Grade - 34.7%
PenFed CD (well, as soon as the transfer goes through, until then in Total Bond) - 28.9%
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Old 01-05-2014, 04:57 PM   #11
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For the Fixed Income portion only, the bulk is in these 2:
50% in Sh-Term Investment Grade bonds (keeping the duration short),
26% Wellesley (the portion that's in bonds --letting the experts manage some),

Then some of these for further diversification:
Intermediate-term bonds,
International bonds,
High Yield bonds, and
a touch of Deed of Trust (farmland).
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Old 01-05-2014, 05:19 PM   #12
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Great topic. I'm very interested to see what people are doing here because my own FI portfolio is very sub-optimal (partly due to laziness and partly due to focusing on equities at the start of my investing back when there were those juicy 3% real i-bonds).

Cash @0% (MM, bank) -- 27%
Cash @0.85% (ally) -- 17%
i-bond @1.18 (0% real) -- 13%
CDs @3% (penfed) -- 5%
ST Corp @1.5% -- 24%
Int Corp @2.9% -- 3.5%
Total BND @2.2% -- 12%
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Old 01-05-2014, 05:37 PM   #13
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13%cash (in AMEX savings @.85%)
33%PenFed 5 year CD's
Balance in Bond Funds yet to be determined, but likely split between what is in Wellington and what is in Fidelity Freedom Fund 2015 (husband's 401k)
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Old 01-05-2014, 07:59 PM   #14
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The "big bond fund" I mention in my signature line is a Fidelity long-term corporate bond fund which invests in corporate bonds at (BBB) or slightly below investment grade (BB, some B). I have about 80% of my taxable account's bond fund holdings in that fund. In my IRA I have bond fund holdings (about half of the IRA) in an intermediate-term, investment-grade, corporate bond fund. In my taxable account I also have some holdings in a national intermediate-term muni bond fund and a home-state (NY) long-term bond fund as a holdover form my working years when I was in a higher tax bracket.
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Old 01-05-2014, 08:10 PM   #15
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Savings accounts, PenFed Cds, gold - 29.3%
loans to others, property sold and receiving payments: 20.7%

Rental and investment property (our version of equities) 50%
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Old 01-05-2014, 08:29 PM   #16
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24.5 % in bonds and 10.5% in cash .
Bonds are mostly short & intermediate with .97% in long term .
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Old 01-05-2014, 08:29 PM   #17
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Quote:
Originally Posted by racy View Post
26% Wellesley (the portion that's in bonds --letting the experts manage some),
I have some in Wellesley, too, for the same reasons.

Percentage of the fixed income portion of my portfolio, only:

10% ..cash
22% ..TSP G Fund
31% ..VBTLX Total Bond Market Index
37% ..VWIAX Wellesley (bond portion)
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Old 01-05-2014, 08:50 PM   #18
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Non-equity is about 36% lf my total. Distributed as follows:

20.5% CDs
6.7% Stable Value
15.5% merger arbitrage funds
12% cash
17% foreign bonds
28.3% US bonds
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Old 01-05-2014, 08:51 PM   #19
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37% - cash (including CD's)
13% - International
47% - US (30% NHILX, 30% DFRPX 10% VWINX and several others..)
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Old 01-05-2014, 08:53 PM   #20
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I assume the various classes like Business Development Companies, Utilities, REITs, Pipeline MLPs and the like would be considered "equities" for the purposes of this exercise.

Fixed Income as a % of overall portfolio: ~14%, average yield 5.95%

6.7% Preferred stocks, average yield 7.73%
4.2% I-bonds, average current yield 4.5%
0.9% Wellington/Windsor/Wellesley combined
0.8% Vanguard Convertible Bond Fund VCVSX, yield ~2.1%
0.7% Global/Senior loan ETFs, average yield 7.69%
0.5% Municipal ETFs (may double weighting later this year), avg yield 5.05%
0.3% Individual bond (Fairfax Financial), coupon 8.3% (will hold to maturity)
0.3% Cash (Edited to add "cash" and %)

I also have an amount equal to about 6% of my portfolio in EE bonds and a PenFed CD, but those are earmarked for paying off my mortgage as they mature over the next few years, so I don't include that in my portfolio values/weightings.
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