Asset allocation in multiple accounts

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rhythm
Posts: 9
Joined: Sun Nov 18, 2018 7:24 am

Asset allocation in multiple accounts

Post by rhythm » Sun Jan 27, 2019 2:07 pm

Hi all,

After reading the wiki article (https://www.bogleheads.org/wiki/Asset_a ... e_accounts), I have a question for you.
My particular situation has me with 3 separate pension accounts, in 3 different currencies:

1 pension in UK (GBP) - Approx. £9,000 (50 / 50 Equities & Bonds)
1 pension in Ireland (EUR) - Approx. €13,000 (50 / 50 Equities & Bonds)
1 pension in Australia (AUD) - Approx. $122,000 (75 / 25 Equities & Bonds)

They are all considered tax advantaged accounts.

Is it possible to spread asset allocation as per the wiki in a correct way? I not sure how to interpret the differing currencies into this strategy.
Or due to this circumstance, would it be better to mirror asset allocation instead?

I currently live and work in Ireland but plan to move back to the UK.
Regulations state I am allowed to transfer my pension from Ireland to UK, so I should be able to consolidate them.
I am not able to move my Australian pension.


Thank you.

bloom2708
Posts: 7239
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Asset allocation in multiple accounts

Post by bloom2708 » Mon Jan 28, 2019 9:20 am

Since all are tax-advantaged, I would base placement on fund quality and expense ratio.

You might have a lower expense ratio bond index fund in one account.

It means you don't have to have bonds, Ex-US or US stocks in all 3 accounts. In accounts with fewer/higher cost funds, only pick the best option.
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

Topic Author
rhythm
Posts: 9
Joined: Sun Nov 18, 2018 7:24 am

Re: Asset allocation in multiple accounts

Post by rhythm » Tue Jan 29, 2019 4:51 am

Thanks bloom2708,

I think the problem I'm facing is trying to understand the financial value of the total portfolio when looking at it from a whole.

For example, all things being equal except currency value, if I put 10K GBP in bonds, this is worth more than 10K AUD in bonds.
Doesn't this mess with the allocation percentage?

Perhaps this is thinking about it in too much detail and is trivial...
What do you think?

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