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Old 02-16-2008, 10:53 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 3,080
Here's a link with some asset allocation numbers that I will use to compare your numbers to:
Asset allocation tutorial?

A total domestic market weighted equity allocation is about 72% large cap and 28% mid/small cap. But a Fama&French (also Bernstein) asset allocation is about 50% large cap and 50% mid/smal. So your equities are just fine.

I'm not sure how you got 0% growth (M* would not present it that way), but a total domestic market would be 33% value, 33% blend and 33% growth. A F&F asset allocation would have up to 50% in the value category and just 20% in the growth. So you appear to be somewhere in the middle and just fine.

Yes, I also think REITs are essential. I'm not sold on commodities yet, but will add them myself in a market timing move later. Furthermore, some of your equity holdings undoubtedly already hold REITs. Here is a link with some numbers: Bogleheads :: View topic - Small-Cap Value Funds and REITs.

Some folks go overhoard I think in the diversification of the fixed income side of things. We are often limited to what's available in our tax-advantaged accounts like a 401(k). Since you hold a benchmark, that is just fine as well.

So my bottom line is that you have a fine portfolio and asset allocation. You could probably reduce the expense ratios by getting rid of the actively managed funds and also take advantage of the foreign tax credit by switching funds. But your taxes to switch may overwhelm any advantages of doing so.

[Edit] I see your M* figure now. Your expense ratio is outstanding. The rest of my comments above can remain unchanged.
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