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What is your asset allocation for this year?
Old 01-16-2012, 06:41 PM   #1
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What is your asset allocation for this year?

For those who still have a decade to go, what is your asset allocation?

My 401K is:
34% in S&P 500
33% in small cap stock index
33% in international stock index.
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Old 01-16-2012, 06:51 PM   #2
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Still have a couple decades to go, but here's my breakdown:

~40% common stock index
~20% small cap stock index
~20% International stock index
~20% Government Securities
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Old 01-16-2012, 08:00 PM   #3
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55% stock mutual funds, 42% bond mutual funds, 3% money market fund.

The bond funds are split 50% TIPS fund, 50% intermediate term bond fund.

The stock funds are roughly 55% total US stock market, 30% international, 15% US small cap value.

The rebalancing bands I set are deliberately huge. I last rebalanced in February 2009, and it looks like I might be doing it again this year. We'll see...
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Old 01-17-2012, 12:26 PM   #4
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Quote:
Originally Posted by NextInLine View Post
For those who still have a decade to go, what is your asset allocation?

My 401K is:
34% in S&P 500
33% in small cap stock index
33% in international stock index.
Wow! No bonds?! Do you mind me asking what the rationale is?

I use Bernstien's Cowards portfolio...

Total US..........20%
Large Val.........10%
Small Blend.......5%
Small Val..........10%
Europe.............7.5%
Pacific.............7.5%
Emerging..........5%
REIT................5%
ST Bond...........20%
Int Bond...........10%

A lot more complex, but since we have added taxable investments, the wheel fell off the simple wagon. I'm sure I could simplify a bit....
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Old 01-17-2012, 12:36 PM   #5
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Originally Posted by NextInLine
For those who still have a decade to go...
oops! I think I misinterpreted that. I figure I still have 20-30 years to go, but I'm retired already! :-)

A decade pre-retirement, I was running close to 80% stocks (and employee options) and about 20% bonds.
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Old 01-17-2012, 01:50 PM   #6
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Quote:
Originally Posted by NextInLine
For those who still have a decade to go, what is your asset allocation?

My 401K is:
34% in S&P 500
33% in small cap stock index
33% in international stock index.
Pretty aggressive. What is the risk of this portfolio, historically?
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Old 01-17-2012, 04:28 PM   #7
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I retired a few months ago, but ten years out and before, I was also 100% equities. I never held bond (funds) until later. However, I probably shouldn't have gone any further than 80:20 at any time. I was probably lucky, 'too soon old, too late smart...'
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Old 01-17-2012, 05:30 PM   #8
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Originally Posted by Midpack
I retired a few months ago, but ten years out and before, I was also 100% equities. I never held bond (funds) until later. However, I probably shouldn't have gone any further than 80:20 at any time. I was probably lucky, 'too soon old, too late smart...'
I too had been in 100% equities. I would not suggest it. Not only did bonds fare much better but it doesn't allow for buying on the dips unless you do it with more money and then your in deeper and deeper.
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Old 01-17-2012, 06:18 PM   #9
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[QUOTE=ronocnikral;1151642]Wow! No bonds?! Do you mind me asking what the rationale is? ]
I anticipate the bond bubble will bust according to many "analysts". It haven't, but I'll be patient.
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Old 01-17-2012, 06:20 PM   #10
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oops! I think I misinterpreted that. I figure I still have 20-30 years to go, but I'm retired already! :-).
Sorry, I thought posting in "Young Dreamer" would imply that.
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Old 01-17-2012, 06:30 PM   #11
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Pretty aggressive. What is the risk of this portfolio, historically?
I know. Being young and reckless. Doing pretty well in the first part of last decade, hit hard during 2007 down turn. But since recover. I'm ready for bond, but still try to time the bond burst.
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Old 01-17-2012, 07:34 PM   #12
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for reference, I'll be 29 in a couple of weeks and I think holding no bonds is a mistake. but, i've only being researching and learning for the past couple of years.

why not get in with some short-term bonds?

my take on 100% equities. you could do better than a mixed portfolio. you're also likely to worse.
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Old 01-18-2012, 10:13 AM   #13
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Originally Posted by NextInLine
I know. Being young and reckless. Doing pretty well in the first part of last decade, hit hard during 2007 down turn. But since recover. I'm ready for bond, but still try to time the bond burst.
Could you describe the bond burst? It wouldn't be unusual if interest rates remain at this level for decades. In fact, that would be my guess. Either way, a total return bond fund should provide decent returns, relatively speaking. I don't think 100% equities is reckless. It could be pretty good. But if stocks take off, will you then diversify? For example, if you bought AIG at 2 bucks, would you have ridden it to 40 or sold it at 6 or somewhere in-between. If you don't think you will ride a stock run up completely, I think you should have some bonds.
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Old 01-18-2012, 10:53 AM   #14
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I am 39 and still more or less 100% equities. I am reaching the point where I would like to start moving a little into bonds, but I cannot bring myself to purchase them when their yields are far less than current inflation rates.

I would not be surprised to see longer-term bonds lose 20-30% over the next 3-5 years.

Quote:
Originally Posted by Gatordoc50 View Post
Could you describe the bond burst? It wouldn't be unusual if interest rates remain at this level for decades. In fact, that would be my guess. Either way, a total return bond fund should provide decent returns, relatively speaking. I don't think 100% equities is reckless. It could be pretty good. But if stocks take off, will you then diversify? For example, if you bought AIG at 2 bucks, would you have ridden it to 40 or sold it at 6 or somewhere in-between. If you don't think you will ride a stock run up completely, I think you should have some bonds.
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Old 01-18-2012, 11:56 AM   #15
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I am 39 and still more or less 100% equities. I am reaching the point where I would like to start moving a little into bonds, but I cannot bring myself to purchase them when their yields are far less than current inflation rates.

I would not be surprised to see longer-term bonds lose 20-30% over the next 3-5 years.
That is a possibility. Especially since they went up 30% last year. No doubt we will get another 30 % correction in the next 20 years. Maybe bonds, maybe stocks, maybe both. The value of diversification is that you lower the standard deviation of your investments while maintaining the overall return over the long haul. The time horizon to achieve historical returns is significantly less than a portfolio of 100% stocks. Your portfolio will do great, it's just that it may be your descendants who enjoy it.
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Old 01-21-2012, 04:54 PM   #16
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I am 46. I do not own any stocks. I am 100% in CDs, munis or equivalent.

Quote:
Originally Posted by Illbuck2006 View Post
Still have a couple decades to go, but here's my breakdown:

~40% common stock index
~20% small cap stock index
~20% International stock index
~20% Government Securities
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Old 01-22-2012, 09:13 AM   #17
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Right now it is:

65% indiv stocks/stock funds
10% st bonds
25% cash
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Old 02-01-2012, 01:37 PM   #18
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I'm 29 so I've got a ways to go. As it stands right now, my 401K and IRA accounts are at about 80:20.

I'll be moving a large chunk of savings into a short term bond fund which will probably tweak my breakdown to reflect 75:25.
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Old 02-03-2012, 03:46 AM   #19
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I'm currently all at vanguard

25% bonds
45 % US
30% international
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Old 02-03-2012, 05:08 AM   #20
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Originally Posted by Gatordoc50 View Post
Could you describe the bond burst? It wouldn't be unusual if interest rates remain at this level for decades. In fact, that would be my guess. Either way, a total return bond fund should provide decent returns, relatively speaking. I don't think 100% equities is reckless. It could be pretty good. But if stocks take off, will you then diversify? For example, if you bought AIG at 2 bucks, would you have ridden it to 40 or sold it at 6 or somewhere in-between. If you don't think you will ride a stock run up completely, I think you should have some bonds.
My cost basis for one share of AIG is over $1,245
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