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AA checkup

Posted: Mon Jan 12, 2009 4:36 pm
by Tatupu
All --

I'm still in the process of getting my financial house in order and before I complete the process I wanted to get the forum's thoughts on my projected AA for my retirement portfolio. Between taxable and tax-deferred accounts I'm shooting for the following targets:

5% REIT (VG VGSIX in Rollover IRA)
5% TIPS (VG VIPSX in Rollover IRA)
15% Bonds (TSP G)
41% Total Stock Market (VG Total Stock Market, TSP C, TSP S)
34% International Equities (VG Total Int'l in Rollover IRA and VG FTSE All World ex US in taxable account)

On a related note, I'm 35 and will retire with a USG pension (barring a catastrophe!).

Thanks for your thoughts/suggestions!

Posted: Mon Jan 12, 2009 4:43 pm
by chaz
You seem to have a good AA.

What is USG?

Re: AA checkup

Posted: Mon Jan 12, 2009 4:49 pm
by sewall
Tatupu wrote:All --

I'm still in the process of getting my financial house in order and before I complete the process I wanted to get the forum's thoughts on my projected AA for my retirement portfolio. Between taxable and tax-deferred accounts I'm shooting for the following targets:

5% REIT (VG VGSIX in Rollover IRA)
5% TIPS (VG VIPSX in Rollover IRA)
15% Bonds (TSP G)
41% Total Stock Market (VG Total Stock Market, TSP C, TSP S)
34% International Equities (VG Total Int'l in Rollover IRA and VG FTSE All World ex US in taxable account)
We're almost the same age. Your options are identical to mine (TSP & VG) and your choices of funds are the nearly the same. Our AA differs in two ways: (1) I have 30% total in bond funds, split evenly between TSP G and VG TIPS and (2) my non-REIT equities are split evenly between US and international.

That's not saying you're wrong and I'm right. We're both fine. What is your reason for leaning more heavily toward TSP G than TIPS in your bond allocation?

Posted: Mon Jan 12, 2009 5:30 pm
by ruralavalon
I wanted to get the forum's thoughts on my projected AA for my retirement portfolio.
5% REIT . . .

41% Total Stock Market . . .
34% International Equities
Your proposed asset allocation would be a bit heavy in international, with about 43% of your equities in international (34/80 = 43%). Here is a helpful Vanguard paper on the subject. https://institutional.vanguard.com/iip/pdf/ICRIECR.pdf .

I would also say that your proposed allocation is a bit light in bonds, at 20%.

Posted: Mon Jan 12, 2009 7:43 pm
by retiredjg
It's a personal decision, but I would be a little lighter in international and a little heavier in bonds. All in all, I think your choices are fine though.