Re: Year End 2005 Asset Allocations
Season's Greetings to All,
My AA has not changed much since the last time I posted.
My wife's IRA is in Wellington compounding nicely.* She is 5
years from RMD. Her IRA is about 17% of our total financial
Our taxable mix is 50/50 with the equity split equally between
Vanguard's Tax Managed G & I, Tax Managed Small Cap and
Tax managed International.* The FI is in Intermediate Term Bond
index and a CD with PenFed.* Total taxable is also about 17%
of the grand total.*
My IRA, which we are drawing down at about 6% per year, is
40/60 equity to FI.* The equity is split equally among 7 VG
funds a la "coffeehouse" ...... Large Cap Index, Small Cap Index,
Small Cap Value Index, REIT, International Explorer, Total International and Windsor II.*
The FI part of my IRA is committed to GIM (unhedged foreign bond ETF),
several intermediate term corporate bonds that pay CPI + 2-2.38%.
and a MM to collect income and pay a monthly draw.* I keep about
10% of my total IRA in the MM to act as a buffer in bad equity years.
My most recent addition was a short term bond paying 3 Mo T-Bill +
2.05% .* With T-Bills at about 4% this pays about 6% monthly.
As you can see, I am still betting on a falling dollar (at some point),
but GIM pays a nice 6% monthly dividend while waiting.* I might add
more if the price dips below $8 again.* The floating bond strategy
seems to be working OK so far with recent divs at better than 6%.
I hope you all have a prosperous new year!