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Year End 2005 Asset Allocations
Old 12-21-2005, 11:14 PM   #1
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Year End 2005 Asset Allocations

* What is your allocation going into 2006? Here is mine:
* * * * * * * * * * * * * *
Cash & I-Bonds*52%
Energy*18%
Foreign Stk*11%
US Stk *7%
Foreign Fixed *6%
Gold *5%
REIT* 1%

Ha
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Re: Year End 2005 Asset Allocations
Old 12-21-2005, 11:22 PM   #2
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Re: Year End 2005 Asset Allocations

Intn'l 20%
Bonds Index fund 8%
Small Cap Index 14%
S&P Index 29%
REIT 19%
Growth fund (active) 10%
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 12:22 AM   #3
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Re: Year End 2005 Asset Allocations

Theoretical/Pretend Target Allocation:

100% Portfolio:
75% Equity
15% Commodity Futures (PCRIX)
10% US$ Bonds/cash (ideally short to intermediate TIPS, in reality for me, mostly VIPSX)

Health care will be overweighted, by having the above include a 10% position in VGHCX.
This is because I think HC equity is relatively cheap, and I hope it will help hedge my own HC costs.

75% Equity:
40% International (40% +15% PCRIX =55% exposed to a rising dollar )
35% US (underweight since I think it's more expensive than non-US)

40% International equity:

15% EM and Asia ex-Japan
15% Europe,Australia,NZ,Canada
10% Japan
These come from VWO, VGK, VPL, part of VGHCX. In future, when I decide to overweight value again, I may use value ETFs and/or DODFX or HAINX. If small cap fn indexes become available to me, I may use them as well, probably changing the small vs large allocation slightly, to use them. If smallcap becomes cheap and there are no indexes, I may add OAKEX or find a cheap DFA adviser.

35% US equity:

VTI, total market index
VGHCX (healthcare; the US portion)
If I decide to change weight of small vs large, I would add [VB and/or BRSIX] or [BRLIX], but probably not both. For example, VB+VTI probably has lower internal transaction costs than VB+BRLIX, as less VB is needed. In future, when I decide to overweight value again, I would use value ETFs and/or DODGX. I would add REIT index when it seems RE has gotten cheap.
VB=small BRSIX=micro BRLIX=large

Real allocation, probably will have by year end:

100% Portfolio:
75% Equity
15% Commodity Futures (PCRIX)
9% US% Bonds/cash (mostly VIPSX)
1% rounding error
Health care is overweighted; above includes a 10% position in VGHCX.

75% Equity:
45% International
30% US

45% International equity:

16% EM and Asia ex-Japan
19% Europe,Australia,NZ,Canada
10% Japan
These come from VWO, VGK, VPL, part of VGHCX, an 11% position in small-cap OAKEX, 5% in largecap HAINX, and small positions in a few other funds.

30% US equity:

11% IJS, smallcap value
7% VGHCX (healthcare; the US portion)
3% BRLIX largecap index
2% VUG largegrowth index
7% other

This comes after selling value and smallcap this year. A chunk of IJS early in the year, and a chunk of OAKEX this week. Another small chunk will likely not be until the first week or so of next year, already reflected above though.
The remaining IJS,OAKEX,HAINX positions I'd like to sell too (and switch into positions in top part of this post) but am delaying for tax reasons. Maybe late next year, I'll sell part of those positions.
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 02:59 AM   #4
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Re: Year End 2005 Asset Allocations

Something like this:


StocksREITsBondsCommodities
Japan:22.45.610--
US:22.45.610--
Elsewhere:11.22.85--
--------5


Fun with tables!

Notes:
  • Commodities = PCRIX (with a wary eye on the recent tax developments)
  • "Elsewhere" REITs = EGLRX (while waiting for a true international REIT fund to come along)
  • Considering a gradual shift of JP/US/Elsewhere from 40/40/20 to 50/30/20 at some point.

Fun with lists!

Bpp
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 03:46 AM   #5
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Re: Year End 2005 Asset Allocations

44% Lg Cap Stocks
3% Sm Cap Stocks
4% Natural Resources
13% International
4% REITs
16% Corp Bonds/GNMA/Muni
6% Treasuries
10% Preferred Stocks
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 07:20 AM   #6
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Re: Year End 2005 Asset Allocations

Current:
Large = 20.22%
Small = 14.97%
INTL = 23.74%
Bond = 32.91%
Cash = 6.12%
REIT = 2.05%

Target:
Large = 15.29%
Small = 14.7%
INTL = 19.46%
Bond = 25.97%
Cash = 1.73%
REIT = 2.05%
EM = 16.41%
Commodity = 4.39%
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 08:26 AM   #7
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Re: Year End 2005 Asset Allocations

By Vanguard fund

49.2% LifeStrategy Mod Growth
23.2% Wellington
11.9% REIT Index
7.1% Cash/MM
4.5% Extended Market Index
4.1% Total International Stock Index

If you prefer, subtract 10% from each of the above and add a 10% allocation of the car, furniture, electronics and toothpicks fund.

I'm too lazy to break it down into asset classes right now. It's difficult because Wellington and LS can vary--especially LS with its actively managed AA component that can be all bond, all stock or anywhere in between at the manager's whim (my only concern with LS). Vanguard gives a % breakout but throws REIT and int'l in with the U.S. equity and doesn't know about most of my cash. Is there an online tool that can do some or most of this work for me? Vanguard says my bond % is 24.6; 22.9% bonds (total index and adjusted for non-Vanguard cash) is probably correct.

I hadn't realized cash made up such a high percentage of my port. My cash pile is new this year and has really shot up since July. There's a fair possibility I'll spend that cash pile in 2006, but hopefully I won't.

I'm also lighter on bonds than I thought.

EDIT: After playing around with Vanguard's features I came up with this allocation breakout. It throws my 11.9% REIT in with U.S. Stock...not sure if it counts is as large or mid/small:

39.0% Large U.S. Stocks
22.9% Bonds
22.0% Mid/Small U.S. Stocks
9.0% International Stocks
7.1% Short-Term Reserves

The cash % will shrink as the rest of the port grows. I'd like to put more bonds in. The rest is pretty close to my intended target; REIT and Int'l should each be 10%. I accidentally overweighted REIT when I bought but am not adding to it.

This info is repeated as a new post and as an edit to my first post in this thread.
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 09:07 AM   #8
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Re: Year End 2005 Asset Allocations

All Vanguard proceeds get re-invested. Extra cash is put into I-Bonds. I'm thinking of buying Vanguard Inflation-protected securities fund. Any thoughts??
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 09:09 AM   #9
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Re: Year End 2005 Asset Allocations

60%, *real estate
15%, junk bonds
15%, HY bond fund
10%, gov. backed bonds

Not much change from last year.
BTW, for those paying close
attention, my CDs are 100% CC money and so not included
above, even though it produces significant income.

JG
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 09:12 AM   #10
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Re: Year End 2005 Asset Allocations

Mr G - what are you up to in CC money? (if you don't mind me axing) :P
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 09:22 AM   #11
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Re: Year End 2005 Asset Allocations

LCB - 9% (S&P500)
SCB - 9% (RUSS2000)
INTB - 9% (MSCI EAFE)
SCV - 8% (VBR, JKL, PWY, IWN)
uC - 5% (PZI, IWC, FDM)
EM - 10% (VEIEX, VWO, CEE)
INTV - 3% (EFV)
REIT - 12% (RWR, IGR)
FIXED - 14% (mostly TIP)
PM/COMM - 10% (VGPMX, GLD, PCL)
CASH - 11%
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 09:25 AM   #12
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Re: Year End 2005 Asset Allocations

Ha,

18% Energy seems high.

Spanky
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 09:26 AM   #13
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Re: Year End 2005 Asset Allocations

Quote:
Originally Posted by Arin38
Mr G - what are you up to in CC money? (if you don't mind me axing)* :P
$140,000.

JG
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 09:27 AM   #14
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Re: Year End 2005 Asset Allocations

1/3 each U.S Stock, International Stock, Real Estate + a small savings account
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 09:35 AM   #15
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Re: Year End 2005 Asset Allocations

1/3 cd's, 1/3 stocks, 1/3 bonds

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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 10:15 AM   #16
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Re: Year End 2005 Asset Allocations

40% L Cap
12.5% Sm/Mid Cap
10% INTL
5% REIT
23% I-Bonds
9.5% cash

Cash includes work to be done on house in 2006 (and a couple years living expenses). Plan to increase international.
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 10:23 AM   #17
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Re: Year End 2005 Asset Allocations

Cash +Bonds - 13%
US stocks - 62%
Intl - 25%

of the equities - 84% large cap, 14% midcap, 3% small cap.

by industry - close to the SP500.


The high percentage in cash comes from a large allocation to actively managed funds - they hold large cash reserves - 10%-15% for most. I've just started an index-slice-n-dice approach in the last few months that will hopefully bring more balance to my portfolio over time. Here is the breakdown of my slice-n-dice “diversified” portfolio:

Cash +Bonds - 4%
US stocks - 62%
Intl - 34%

of the equities - 65% large cap, 25% midcap, 10% small cap.

by industry - close to the SP500.

Over time, my "diversified" portfolio will have more international exposure, more mid and small cap, and I'll probably tilt it towards value more than it is now (even value/growth).


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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 10:55 AM   #18
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Re: Year End 2005 Asset Allocations

Quote:
Originally Posted by Spanky
Ha,

18% Energy seems high.

Spanky
Could be. I sold quite a slug in early December, but what is left keeps going up.

My own feeling is that I sold too soon. I got too clever by half with timing.

Ha
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 11:11 AM   #19
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Re: Year End 2005 Asset Allocations

17% EAFE
10% commodities
9% unhedged foreign bonds
6% cash and CDs
2% junk bonds
2% short equity and long put options
balance is individual equities, virtually all small caps

With an influx of some cash in January, I will be adding to my stake in junk bonds (slowly, issue by issue) and cash/CDs. I also will be more aggressively looking to take some profits on some of my small cap exposures and will probably put the proceeds into (mostly junk) bonds and preferreds.
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Re: Year End 2005 Asset Allocations
Old 12-22-2005, 11:13 AM   #20
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Re: Year End 2005 Asset Allocations

Large Cap Equities (stocks and mutual funds) 40%
Mid Cap 12%
Small Cap 8%
International 16%
Fixed Income 13%
Cash 11%

Those are the percentages if I ignore DB pensions in the calculations. If I treat the pensions as if they were a stream of income from Treasury Bonds then the percentages are:

Equities 37%
Fixed Income (including pensions) 57%
Cash 6%

Grumpy
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