Portfolio Review Request

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Topic Author
boglehooligan
Posts: 7
Joined: Mon Mar 23, 2020 11:38 am

Portfolio Review Request

Post by boglehooligan » Mon Mar 23, 2020 12:09 pm

Hello all,

I'm in my mid 40s with 10 year horizon to retire I'm also new here and this is my first post :sharebeer

I am currently investing 50% of my income in the following allocation split of 60% Equities and 40% Bonds.

60% Equities
VTI 50%
VEU 40%
VNQ 5%
VNQI 5%

40% BOND
PFFD

Tax
Im not taxed on capital gains but taxed 30% on dividends

Current allocation:
Emergency Cash: 10%
Cash: 70%
Equity & Bonds: 20%
Mortgage: 3 years to go

As I have a very high 70% cash reserve, do you think it makes sense under the current market downturn situation to move MORE of my cash allocations into above mentioned portfolio. (It was too scary to dump it all into the market from the beginning)
Last edited by boglehooligan on Wed Mar 25, 2020 11:58 am, edited 3 times in total.

miket29
Posts: 151
Joined: Tue Jun 20, 2017 9:07 pm

Re: Should we be switching our allocation at this time

Post by miket29 » Mon Mar 23, 2020 1:27 pm

the general sentiment among Bogleheads it not to try to time the market. While Schiller and other indicators indicate what may be the likely return to investors over a decade or more, they were not intended to be used as market timing indices as a little research will show.

Of course if you want to play the game then you can use any criteria you want; these, rolling averages, some guru, tea leaves, etc

bloom2708
Posts: 7411
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Should we be switching our allocation at this time

Post by bloom2708 » Mon Mar 23, 2020 1:30 pm

Is it 10 years before you retire? Your investment horizon is (likely) much longer than 10 years unless you know your specific death dates.

If you were 60/40, have you re-balanced to stay at 60/40?

I was 60/40 and now I am visiting 50/50. I am not changing my asset allocation, but I'm not re-balancing until something changes.

If you want to be 50/50, just wait a little bit and you will likely get to visit that allocation mix.
"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
boglehooligan
Posts: 7
Joined: Mon Mar 23, 2020 11:38 am

Re: Should we be switching our allocation at this time

Post by boglehooligan » Tue Mar 24, 2020 1:31 am

thank you bloom and micket for your advise :happy

WIAV8TOR
Posts: 67
Joined: Thu Dec 10, 2015 7:26 pm

Re: Should we be switching our allocation at this time

Post by WIAV8TOR » Tue Mar 24, 2020 9:19 am

A while back I put all future 401k contributors into stocks. I’ve also been adding recently, even yesterday. My horizon is still 15+ years out.

Another thing, not all ‘stock funds’ or stocks are equal. One can dabble with more stable stocks or stock funds, on the other end we have the most aggressive of funds.

Last I looked, some of the grocery stores were up in all this mess. Even in ‘stocks’ one can find reasonable stability if desired. Of course with that, upside could be limited too.

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Sandtrap
Posts: 9696
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: Should we be switching our allocation at this time

Post by Sandtrap » Tue Mar 24, 2020 4:59 pm

boglehooligan wrote:
Mon Mar 23, 2020 12:09 pm
Hello all,

I am currently 60% Equities and 40% Bonds and have a 10 year investment horizon - I'm also new here and this is my first post :sharebeer

As per Waren Buffet's indicator [https://www.gurufocus.com/stock-market-valuations.php] while the markets have dropped significantly they are still "Modestly Overvalued" Other indicators such as PMI and Shiller PE also share same valuations.

Do you think it makes sense to move asset allocations a little more into equities i.e. 80% Equities and 20% stocks when the market becomes Fair to Modestly Undervalued?
Welcome.
You could do just fine by holding between a 60/40 and 40/60 allocation from now through retirement.
But, a lot depends on your overall financial picture and suggestions based on the limited data you've given wouldn't be too helpful.
Perhaps, now would be a good idea to either edit your post (use the pencil icon) and modify the title for a "portfolio review".
This would yield for you suggestions on a long term comprehensive financial strategy going forward that considers your thoughts as well.

Here's the format:
Portfolio Review Request
https://www.bogleheads.org/forum/viewt ... =1&t=6212

And, some reading to get you started:
Here are links to the wiki's "Getting Started" and "Investing Startup Kit" pages:
https://www.bogleheads.org/wiki/Getting_started
https://www.bogleheads.org/wiki/Bogleh ... rt-up_kit
Define General Investment Goals and Objectives (what is your plan?)
https://www.bogleheads.org/wiki/Invest ... statement
IPS Statement Worksheet PDF at Morningstar
http://news.morningstar.com/pdfs/inves ... pr2016.pdf
Outline of Investing
https://www.bogleheads.org/wiki/Outline_of_investing

j :happy
Wiki Bogleheads Wiki: Everything You Need to Know

Topic Author
boglehooligan
Posts: 7
Joined: Mon Mar 23, 2020 11:38 am

Re: Should we be switching our allocation at this time

Post by boglehooligan » Wed Mar 25, 2020 11:54 am

Sandtrap wrote:
Tue Mar 24, 2020 4:59 pm
boglehooligan wrote:
Mon Mar 23, 2020 12:09 pm
Hello all,

I am currently 60% Equities and 40% Bonds and have a 10 year investment horizon - I'm also new here and this is my first post :sharebeer

As per Waren Buffet's indicator [https://www.gurufocus.com/stock-market-valuations.php] while the markets have dropped significantly they are still "Modestly Overvalued" Other indicators such as PMI and Shiller PE also share same valuations.

Do you think it makes sense to move asset allocations a little more into equities i.e. 80% Equities and 20% stocks when the market becomes Fair to Modestly Undervalued?
Welcome.
You could do just fine by holding between a 60/40 and 40/60 allocation from now through retirement.
But, a lot depends on your overall financial picture and suggestions based on the limited data you've given wouldn't be too helpful.
Perhaps, now would be a good idea to either edit your post (use the pencil icon) and modify the title for a "portfolio review".
This would yield for you suggestions on a long term comprehensive financial strategy going forward that considers your thoughts as well.

Here's the format:
Portfolio Review Request
https://www.bogleheads.org/forum/viewt ... =1&t=6212

And, some reading to get you started:
Here are links to the wiki's "Getting Started" and "Investing Startup Kit" pages:
https://www.bogleheads.org/wiki/Getting_started
https://www.bogleheads.org/wiki/Bogleh ... rt-up_kit
Define General Investment Goals and Objectives (what is your plan?)
https://www.bogleheads.org/wiki/Invest ... statement
IPS Statement Worksheet PDF at Morningstar
http://news.morningstar.com/pdfs/inves ... pr2016.pdf
Outline of Investing
https://www.bogleheads.org/wiki/Outline_of_investing

j :happy
thank you sandtrap :happy

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