timwalsh300
Recycles dryer sheets
- Joined
- Nov 7, 2009
- Messages
- 131
So I've been hemming and hawing over the last six weeks (when I first posted here) about how to invest the growing pile of cash that we're sitting on. I finally picked up Bernstein's Four Pillars over the weekend. About halfway through it I drew up the following asset allocation... 50% bonds, 20% international, 12% domestic large blend, 11% domestic small value, 7% REIT.
That looked good until I realized that it would involve managing a whole slew of different funds between our TSP, Roth IRA's, and taxable accounts. I have a feeling that constantly fiddling with such a portfolio would be far too tempting for me.
Anyway, maybe trying to find the optimal mix of small-cap value, large-cap growth, etc. is missing the forest through the trees? Bernstein's more important advice is probably just that we put together a low-cost, diversified portfolio that fits our risk tolerance (erring on the conservative side) and maintain a long-term perspective.
On that note, I think I'm ready to just settle on a balanced fund and start living life instead of worrying about the minutia... maybe Wellington or STAR for our Vanguard accounts and Life Cycle 2020 (currently a 60/40 mix) for the TSP.
I can't really go too wrong with that, right?
Tim
That looked good until I realized that it would involve managing a whole slew of different funds between our TSP, Roth IRA's, and taxable accounts. I have a feeling that constantly fiddling with such a portfolio would be far too tempting for me.
Anyway, maybe trying to find the optimal mix of small-cap value, large-cap growth, etc. is missing the forest through the trees? Bernstein's more important advice is probably just that we put together a low-cost, diversified portfolio that fits our risk tolerance (erring on the conservative side) and maintain a long-term perspective.
On that note, I think I'm ready to just settle on a balanced fund and start living life instead of worrying about the minutia... maybe Wellington or STAR for our Vanguard accounts and Life Cycle 2020 (currently a 60/40 mix) for the TSP.
I can't really go too wrong with that, right?
Tim