AA - Not letting perfection be the enemy of good enough

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AZK
Posts: 52
Joined: Tue Dec 07, 2010 9:49 am

AA - Not letting perfection be the enemy of good enough

Post by AZK »

I've done a lot of reading since discovering this site a few weeks ago....I've read a lot about small/value/emerging tilts and I was thinking of tweaking my AA a bit...

I used to be 50/50 US/INTL with equal splits among small/mid/large for US and equal splits developed/emerging in INTL...thinking of shifting the tilt a little bit more...

Please note, this is all taxable, starting this year i've been able to contribute to a 403b/IRA so that is where all my bonds (30%) go...

70% Equity

15% small cap value (IJS)
10% mid cap blend (JKG)
10% large cap blend (VTI)

10% large cap emerging (VWO)
15% small cap intl (VSS)
10% large cap developed (either VEA or VEU)

Using VEA as large cap:

U.S. & Canada 53.58
Europe 17.70
Japan 5.30
Latin America 4.19
Asia & Australia 15.75
Other 3.48

Using VEU:
U.S. & Canada 54.45
Europe 14.74
Japan 4.17
Latin America 5.08
Asia & Australia 17.45
Other 4.11

Thoughts on this allocation? Is it too small cap/value/emerging tilted? Am I splitting hairs?

M* box is as follows:

13 11 13
10 14 8
14 11 5

Some of these positions have + returns over the years so I can't sell them without paying taxes (i.e. I've thought about switching the blends to value but it'd result in capital gains) but I have a healthy amount of money to invest this year so I can alter my %s as needed....


I'll likely start another thread for my bond options as my 403b was recently transferred between institutions and I have new bond options that don't look that appealing.
livesoft
Posts: 85971
Joined: Thu Mar 01, 2007 7:00 pm

Post by livesoft »

What happens to your 9-grid f you didn't have any JKG at all?

I can't tell from the M* report how much EM you actually have. I don't think you can either.

It's all splitting hairs anyways.
Topic Author
AZK
Posts: 52
Joined: Tue Dec 07, 2010 9:49 am

Post by AZK »

If I just swap out all JKG for VTI:

16 15 15
8 8 7
12 13 6

But again, have held JKG for a long time and cannot sell at this point due to capital gains.... I also like the extra midcap exposure...

I just watned to make sure I wasn't weighted too heavily that I was reaching the point of diminishing potential returns and increased risk.

As for the emerging part... I figured 1/4 of VSS would be small cap emerging, so that would complement VWO....
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