I have an asset allocation question. My situation.
Im 42 and married. We plan to retire in 7 years. We will have pensions that will account for about 65% of out projected income so I am now and plan to stay fully invested in stocks and funds even in retirement.
Current portfolio is as follows
61% Large Cap growth (Spartan index 500 fund, Contrafund and SPY)
10% Large Cap Blend (Vanguard Total Stock Market fund)
11% Mid Cap (Fidelity Low Priced Stock)
3% Small Cap (Vanguard Small Cap index)
14% International (Vanguard Intl, Fidelity Diversified Intl, MS Emerging Markets)
Any comments on this mix is appreciated but my real question is in regards to this: These funds are spread across 2 457b accounts, 2 Roth IRAs and a taxable account. Each account has different options available and the 457b accounts (where most of the money is) options are limited.
I want to add some more small cap exposure and some sector ETFs. The easiest way to do this would be to sell the SPY which is in the taxable account and buy something else there. But since the taxable account only account for about 9% of my entire portfolio, if I wanted to have , lets say 9% of my portfolio to be in an energy ETF or a REIT, it would amount to my entire taxable account being in one specific sector. That account would be very volatile. Is that a big deal if its still only a small portion of the total portfolio?
Also, do you think its best to think of my and my wifes accounts seperatley for AA purposes or as one larger unit?
Im 42 and married. We plan to retire in 7 years. We will have pensions that will account for about 65% of out projected income so I am now and plan to stay fully invested in stocks and funds even in retirement.
Current portfolio is as follows
61% Large Cap growth (Spartan index 500 fund, Contrafund and SPY)
10% Large Cap Blend (Vanguard Total Stock Market fund)
11% Mid Cap (Fidelity Low Priced Stock)
3% Small Cap (Vanguard Small Cap index)
14% International (Vanguard Intl, Fidelity Diversified Intl, MS Emerging Markets)
Any comments on this mix is appreciated but my real question is in regards to this: These funds are spread across 2 457b accounts, 2 Roth IRAs and a taxable account. Each account has different options available and the 457b accounts (where most of the money is) options are limited.
I want to add some more small cap exposure and some sector ETFs. The easiest way to do this would be to sell the SPY which is in the taxable account and buy something else there. But since the taxable account only account for about 9% of my entire portfolio, if I wanted to have , lets say 9% of my portfolio to be in an energy ETF or a REIT, it would amount to my entire taxable account being in one specific sector. That account would be very volatile. Is that a big deal if its still only a small portion of the total portfolio?
Also, do you think its best to think of my and my wifes accounts seperatley for AA purposes or as one larger unit?