asset allocation - thoughts welcome

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Topic Author
prk
Posts: 98
Joined: Wed Jul 09, 2008 1:39 pm

asset allocation - thoughts welcome

Post by prk »

here is my allocation, all in VG

30% - SP500
25% - SV index
5% - VG Explorer
25% - Tot Int'l index
5% - VH Int'l Explorer
10% - Total Bond index

suggestions welcome
mcraepat9
Posts: 1616
Joined: Thu Jul 16, 2015 11:46 am

Re: asset allocation - thoughts welcome

Post by mcraepat9 »

prk wrote: Thu Jul 25, 2019 4:50 pm here is my allocation, all in VG

30% - SP500
25% - SV index
5% - VG Explorer
25% - Tot Int'l index
5% - VH Int'l Explorer
10% - Total Bond index

suggestions welcome
Eh, i would take the 2 5% slugs (which won't move the needle) and move them to more SV and total int'l respectively. Could also take the 10% and stake out an international tilt of some kind (EM, small or something else).
Amateur investors are not cool-headed logicians.
danielbird193
Posts: 36
Joined: Thu Mar 21, 2019 2:15 pm

Re: asset allocation - thoughts welcome

Post by danielbird193 »

Difficult to give an opinion without knowing a little more about your situation... Time horizon? Ability / need to take risk? (These things are often related to age and existing investment balance versus annual expenses).
Topic Author
prk
Posts: 98
Joined: Wed Jul 09, 2008 1:39 pm

Re: asset allocation - thoughts welcome

Post by prk »

i am 15 years from retirement and i am comfortable with risk

thoughts on allocation?
Living Free
Posts: 528
Joined: Thu Jul 19, 2018 7:31 pm

Re: asset allocation - thoughts welcome

Post by Living Free »

Personally I’d want a higher percentage in bonds at only 15 years to retirement
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Sandtrap
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Re: asset allocation - thoughts welcome

Post by Sandtrap »

Based on your very limited info:
Something like.

50% - SP500
15% - SV index
5% - VG Explorer
15% - Tot Int'l index
5% - VH Int'l Explorer
20% - Total Bond index

Allocation: 80/20

*Keep it simple.

Is Total Stock available?
If so, combine SP500 and SV.

You might want to increase your bond percentage as you move along toward retirement.
80/20 is a bit aggresive. You can also go to 70/30 now.
*IE: 60/40, or 50/50.

What you really need to do is provide a comprehensive picture. Otherwise the suggestions are just generalized and not specific to you.
Do this: (edit your original post to include. . . use the pencil icon).
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Flyer24
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Re: asset allocation - thoughts welcome

Post by Flyer24 »

Please follow this format for asking questions. You will get better answers.

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ruralavalon
Posts: 19405
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Location: Illinois

Re: asset allocation - thoughts welcome

Post by ruralavalon »

prk wrote: Thu Jul 25, 2019 4:50 pm here is my allocation, all in VG

30% - SP500
25% - SV index
5% - VG Explorer
25% - Tot Int'l index
5% - VH Int'l Explorer
10% - Total Bond index

suggestions welcome
prk wrote: Thu Aug 01, 2019 8:07 am i am 15 years from retirement and i am comfortable with risk

thoughts on allocation?
.
At 15 years from retirement, I probably would suggest higher than 10% fixed income. More details would have an impact on my opinion. Willingness to take risk and years to retirement is not the whole picture.

Your age? Any debt? If so what types, how much, interest rates? Likely to be zeroed out in 15 years? Any dependents? Current size of portfolio, and estimated annual living expenses in retirement? Current level of contributions? Any pension coming? Any medical or health issues?

You have 42% of domestic stocks in small-cap value. Rick Ferri has suggested using a small-cap value index fund at around 25% of domestic stocks. “My preference is 75 percent to a total market index fund and 25 percent allocation to a small-value index fund“, Rick Ferri, etf.com (7/21/2014), "To Tilt Or Not To Tilt?". I use 25% of domestic stocks in Vanguard Small-cap Value Index Fund Admiral Shares (VSIAX).

In my opinion it is counter-productive to have a small-cap value tilt and then add a mid-cap growth fund like Vanguard Explorer Inv
(VEXPX) ER 0.46%. Adding the growth fund just cancels out some of your value tilt. I do not suggest growth funds, historically in both large-cap and small-cap they have underperformed both value and blend funds long-term. Larry Swedroe, etf.com (10/11/2013), "The 'Black hole of Investing' ". That article shows both the annualized returns and the annual standard deviations for the period 1927-2012 (75 years).

What is "VH Int'l Explorer "?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
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