What is your asset allocation for this year?

[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.

 

[Illbuck2006]

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

 

[M Paquette]

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...

 

[ronocnikral]

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....

 

[M Paquette]

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.

 

[Gatordoc50]

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?

 

[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...'

 

[Gatordoc50]

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.

 

[NextInLine]

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.

 

[NextInLine]

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.

 

[NextInLine]

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.

 

[ronocnikral]

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.

 

[Gatordoc50]

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.

 

[Hamlet]

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.

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.

 

[Gatordoc50]

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.

 

[obgyn65]

I am 46. I do not own any stocks. I am 100% in CDs, munis or equivalent.

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

 

[wildcat]

Right now it is:

65% indiv stocks/stock funds
10% st bonds
25% cash

 

[SDCAKMenig]

..

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.

 

[jaerco]

I'm currently all at vanguard

25% bonds
45 % US
30% international

 

[justplainbll]

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

 

[Birchwood]

1/3 stocks( stock mutual funds, ind. stocks, DRIPS)
1/3 bonds( US Treasury and Bond funds.)

1/3 cash( CD. money market funds)/

 

[Major Tom]

67% stocks (mainly VG index funds, small amount in 3 individual stocks for fun)
22% TIPS (VG fund)
11% Cash (savings account)

 

[Mulligan]

Not a big investor, and dont have big assets either, but growing them monthly.
15% Vanguard Total Stock
20% I Bonds
65% CD/Cash
Save about 25% of monthly pension and split contributions 50-50 with Total Stock and I Bonds. I decided I will keep doing this until I die, unless I ever need the money. Warren Buffet will never have a reason to seek my counsel obviously.

 

[meierlde]

My cost basis for one share of AIG is over $1,245

I have not heard anyone suggest raising the 3000 limit on capital losses to regular income, I wonder why this was not also indexed when most other items were.

 

[Berkshire_Bull]

For our retirement my wife and I, I use a global approach in which 1/2 of our portfolio is "sailing" with a 100% equities asset allocation 60% US and 40% international.

Next I've got roughly 20% in alternative investments / absolute return type funds. I target 3% above inflation for this and use it in lieu of bonds, although some of the funds have bond of course.

This 70% is my "core."

For the other 30% I use an "explore" philosophy, some of it runs on Mebane Faber's Ivy Portfolio which I'm a big fan of, some is long positions in individual stocks, some of it's writing covered calls.

The "core and explore" appraoch has worked great for me. When things are flat to good, the "explore" I'm using outperformes the rest, in 2008 my core beat what I was doing.