easysurfer
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 11, 2008
- Messages
- 13,152
I'm curious, what do the rest of you do in determining your target asset allocation for the year? Do you play it by ear or have a set method?
As for me, I have this spreadsheet which I created. For each year, I input my age and then from that the spreadsheet determines my target percentages I plan on having in stocks and fixed income (I consider fixed income as bonds and cash).
The spreadsheet breaks down the percentages in US stocks, International Stocks, Bonds, Cash. For my formulas (based of my sleeping at night risk tolerance), I use: 100 - age = % in stocks, age = % in fixed income; 1/3 of stocks in international, 1/3 of fixed income in cash
This spreadsheet keeps me honest so that gradually each year I will take a little off the table in equities and have a little more in fixed income.
Also, For my emergency fund, I do not count in the asset allocation.
As for me, I have this spreadsheet which I created. For each year, I input my age and then from that the spreadsheet determines my target percentages I plan on having in stocks and fixed income (I consider fixed income as bonds and cash).
The spreadsheet breaks down the percentages in US stocks, International Stocks, Bonds, Cash. For my formulas (based of my sleeping at night risk tolerance), I use: 100 - age = % in stocks, age = % in fixed income; 1/3 of stocks in international, 1/3 of fixed income in cash
This spreadsheet keeps me honest so that gradually each year I will take a little off the table in equities and have a little more in fixed income.
Also, For my emergency fund, I do not count in the asset allocation.