75% real estate, 12.5 cash, 12.5 equity,
Mind if I ask what kind of real estate? REIT or physical real estate?
All physical, mostly direct.
If it were a reit, I’d be tempted to classify it in public equities.
Rough numbers
10% international securities
50% US securities
20% real estate (houses)
20% commercial real estate (tree farm)
My asset allocation is based on (1) short time horizon, (2) low risk tolerance, (3) sufficient fund accumulation, and (4) current market trend:
25% (S&P 500 index fund)
15% (TIAA Real Estate fund)
60% (stable value funds such as the 4% TIAA Traditional annuity)
To each her/his own.
I use the Permanent Portfolio.
25% gold
25% Total Stock Index Fund
25% 30-year US Treasuries
25% 1-year US T-Bills
About 60% of net worth is currently in equity of primary residence, thanks to the huge jump in the real estate market appreciation in the last 5 years.
Retirement allocation as follows (35 years of age):
Bonds (Tax Deferred/Gov) 25.00%
Intermediate-term Bonds 12.50%
Short-term Bonds 7.50%
TIPS inflation protection Bonds 5.00%
US Stocks S&P 37.50%
U.S. Large Caps 7.50%
U.S. Large Cap Value Stock Index 7.50%
U.S. Small Caps Fund 7.50%
U.S. Small Cap Value Stock Index 7.50%
REITs 7.50%
International Stocks 37.50%
International Large 15.00%
International Small 15.00%
Emerging Markets 7.50%
I’ve subscribed to the BogleHeads approach and I sleep very well at night. I do hold 4%-5% metals which isn’t fully subscribed to but it scratches my itch for diversity. For those that don’t know that approach, it’s an appropriate asset allocation based on age and risk tolerance, in highly diversified low expense funds. See below.
Overall: 65% / 30% / 5% Equities / Bonds / Metals
Equities = 70% VTSAX, 30% VTIAX
Bonds = 95% VBTLX, 5% iBonds
Metals = 50% Gold 50%, 50% Silver - Both Physical in Safe Deposit Box
Also want to add that I don’t count primary residence (real estate) or emergency fund or cash that is earmarked for business or certain purpose.
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For 401K:
89% stock, 11% bond
detail:
30% US Equity
19% Blended stock fund
14% Emerging Markets
12% International Equity
14% Small Cap
11% Bond
Far more conservative in standard/taxable accounts:
30% boring dividend stocks, mostly energy/utilities
20% various equity mutual funds I acquired years ago
40% cash/cash equivalents (waiting on opportunities or emergencies)
10% home equity (paid off, no outstanding loans)
All equities here, 40 yo. With my wife and I both earn a good living, so we’re completely happy with it being this aggressive.
I don’t necessarily have a target I try to hit. We’ve got money flowing into all 4 buckets with regularity, so they can’t get too out of whack. If we reach a point where we get out of line (whatever that means), I’ll make an adjustment.
This majority is done through index funds, dependant upon the investment options in our respective employers’ retirement plans and HSAs.
47% Large Cap
23% Small Cap
18% Mid Cap
12% International
@therivler1 forgot to mention that I appreciated seeing your “re-balance with new contributions” comment. I’ve done the same for the past ~20 years and it’s worked quite nicely in my experience. This is another area where folks often have passionate opinions - “you have to rebalance annually!”, etc. I believe I’ve done better by putting confidence in my past decisions/historical performance and just not messing with it. Avoids temptation to chase prior returns.
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LG US 22%
LG US Value 10%
SM US 7%
SM US Value 6%
International 15%
Int Value 5%
Emerging Markets 5%
REIT 7%
Muni Bond 19%
Corporate Bond 4%
Basically all Vanguard index funds and ETFs.
And, like @therivler1, I rebalance with new contributions, and I also have all of my taxable funds send their distributions to a money market account so I can use that to rebalance without another taxable event.
My numbers are across tax-deferred and taxable accounts, and I accord each dollar the same weight to keep it manageable, but that’s really a mistake to some extent.
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I wanted to chime in on re-balancing. I’m a big believer in keeping your asset allocation aligned with your target (based on age and risk tolerance).
I’m in agreement to use new contributions to balance on a quarterly basis, but you reach a point where new contributions don’t have as much effect on your portfolio as market movements.
Also I try to avoid creating taxable events during re-balancing by using my tax sheltered accounts to make changes.
Bottom line – yearly re-balancing at a minimum and if you are up for it quarterly doesn’t hurt either. Vanguard PAS will re-balance quarterly if you are >5% off your target allocation. Or you can do it yourself and save .30% in expense.
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I’m basically on that same page.
My contributions and re-allocation of distributions aren’t keeping my bond funds where they should be. Not surprising given recent market movements.
I’ll have to sell some large cap stuff soon.
Well, if you retire early and do the roth conversion ladder, it’s much less of a mistake.
I give each dollar the same weight as well, no matter the type of account.
I stumbled across this site that was referenced in an article on Seeking Alpha:
Notice the first box has a couple of links to backtest portfolios or asset allocations. I don’t know how accurate or reliable the results are. I was able to play around with the links without registering. You might find it interesting or helpful.
Disclaimer: I’m not affiliated with Seeking Alpha or Portfolio Visualizer. Just a former FW member trying to learn to be a better investor.
My allocation is roughly:
65% Vanguard Equity Income Fund
12.5% Vanguard REIT Index Fund
12.5% Mairs & Power Small Cap
5% Vanguard International High Dividend Index
5% Vanguard International Dividend Appreciation Index
Used the Portfolio Visualizer linked above.
I’ve done OK, but I could have used the Bernstein No Brainer and done almost as well with much less complexity.
What apps are good for tracking the performance of entire portfolios over time? Ideally, I’d like to be create a handful of portfolios with a few securities each and track the performance of each portfolio as its own entity against other common indexes (S&P 500, etc) in chart form.
Why not that portfolio visualizer linked above?