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.
