|
08-01-2013, 03:56 PM
|
#1
|
Dryer sheet wannabe
Join Date: Aug 2012
Location: Los Angeles
Posts: 15
|
Simplify Allocation
Currently I have 6 funds in my portfolio. TIP, total bond index, total US market, total int'l market, REIT index, and small cap value index. I've simplified this from 10+ funds but this 6 seems too much now… I get lazy when it comes to rebalancing b/c it's a pain to reallocate 6 funds in 5 different investment accts. Lazy to the point of not rebalancing when I should be.
I'm thinking about getting this down to 4: total bond index, total US market, total int'l market, and REIT index.
Should I do this? Should I get rid of REIT index and just do 3?
Thanks
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
08-01-2013, 04:09 PM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Jul 2009
Posts: 1,934
|
You portfolio holdings, as it stands now, are similar to mine. If you drop TIPS, REITs, or small value, you will lose some diversification.
If you drop small value, you will almost certainly lose some performance over the long run.
I would stand pat.
__________________
And if I claim to be a wise man, it surely means that I don't know.
|
|
|
08-01-2013, 05:55 PM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Bonita (San Diego)
Posts: 1,795
|
Outside of a couple of small holdings of individual stock, my portfolio is: S&P 500 Index Fund, Barclay Aggregate Bond Index Fund, Int'l Stock Index Fund. That makes up probably 95% of it. Simple is good. Simple with almost no expenses is better. Depending on whether or not you have a pension coming, that may be all you need.
|
|
|
08-01-2013, 10:14 PM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
|
For simple, do the three. But you could keep the REITs and SV and just not rebalance them.
|
|
|
08-02-2013, 09:30 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,588
|
What good are TIPs and bonds? I would toss them out until after rates rise to reasonable levels again. They cannot go up anymore.
What comes to my mind is Wellesley (bonds and dividend stocks), small cap index, value index, Dodge & Cox International (looking at this myself) and REITs.
This is part of my AA but not all.
Notwithstanding my opinions about bonds and other fixed income securities at this time, your AA looks OK to me.
Rebalance annually.
__________________
I have outlived most of the people I don't like and I am working on the rest.
|
|
|
08-02-2013, 11:02 AM
|
#6
|
Dryer sheet wannabe
Join Date: Aug 2012
Location: Los Angeles
Posts: 15
|
Thanks all. I might combine TIP and bond to all bonds but looks like consensus is to keep REIT and small cap value.
Ugghhh... hate rebalancing these but I guess I gotta suck it up.
|
|
|
08-03-2013, 08:02 AM
|
#7
|
Full time employment: Posting here.
Join Date: Feb 2008
Posts: 920
|
Our overall allocation is pretty simply 30/30/30/10 for total stock market, total intl stock, total bond, and small cap. I'm kinda twisted with the bond part right now because of economic conditions, it is actually almost all in a GIC type dealie in wife's 457, last time I checked was paying 2.5%.
My biggest challenge is the combination of accumulating and rebalancing across my 401k, her 457, our IRAs, and our taxable investments with an eye towards keeping asset classes where they belong for tax efficiency.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|