Author Topic: Your Current Holdings & Asset Allocation  (Read 949 times)

investor2019

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Your Current Holdings & Asset Allocation
« on: June 10, 2019, 04:29:45 PM »
MMM recommends various reasons to ONLY own VTI (e.g., diversification, simplicity, etc.).

Wondering how many people still follow this recommendation. Figured this is also a good way to discover other funds.

What are your current holdings and asset allocation? (include age/risk tolerance)
« Last Edit: June 10, 2019, 09:56:03 PM by investor2019 »

Laserjet3051

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Re: Your Current Holdings & Asset Allocation
« Reply #1 on: June 10, 2019, 04:50:33 PM »
Did MMM really advise to only hold VTI and nothing else? I must have missed that. My AA has never been 100 US equities. And why on earth would I not want to diversify into non-US equities? With a short runway (>50 years of age currently), fixed income holdings seems highly prudent.

Roughly speaking my AA is 75/25 (equity/bond), with an 80/20 split on US/non US equities. I also have a small REIT (VGSLX) and small cap tilt. I dont want the volatility of EM so I exclude that from my AA. Regarding risk, I have a need and willingness to take on more risk (hence the 75/25), but my ability to take on such risk is probably lower than I estimate. I have been through both the dot com and 2008 meltdowns, and been brutally burned, if that means anything.
« Last Edit: June 10, 2019, 08:12:08 PM by Laserjet3051 »

PDXTabs

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Re: Your Current Holdings & Asset Allocation
« Reply #2 on: June 10, 2019, 08:06:44 PM »
I'm as close to 100% VT as I can get with my workplace retirement account. That is, I approximate VT with some other funds.

stepingum

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Re: Your Current Holdings & Asset Allocation
« Reply #3 on: June 10, 2019, 10:05:29 PM »
Both 35 with 2 small children. Currently very low income, with 245k in investment accounts. Debating continuing to work very little just to make ends meet and let our accounts grow until 65ish.

20% VTSAX
20% VFSAX
20% VFWAX
20% IJS
20% bonds/cash (heavy on cash right now because we might buy an investment property)

talltexan

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Re: Your Current Holdings & Asset Allocation
« Reply #4 on: June 11, 2019, 09:00:09 AM »
The strength of $VTI is getting a good return with only market risk.

The downside is cash flow. A dividend rate of 1.8% means that you're having to sell some shares.

Rental property has a much better cash flow. But that leaves you exposed to the local real estate market conditions. For some people it's not a ton of trouble to manage a rental property, but that may not be you.

NorCal

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Re: Your Current Holdings & Asset Allocation
« Reply #5 on: June 11, 2019, 09:30:04 AM »
I don't follow this advice at all.

I think it is excellent advice for those who are starting out or want to keep investing simple.

Personally, I am not comfortable with the risk associated with this investing strategy.  I keep an AA of 65% equities (2/3 domestic, 1/3 international), 25% well diversified fixed income, and 10% alternatives.  This is my well-earned risk tolerance, and not really a recommendation for anyone other than myself.

I think the other place the 100% VTI (or similar) strategy could be improved is diversification.  Sure, the bloggers shout from the rooftop that it's diversified.  But dig under the hood a bit, and these funds are typically heavily weighted towards large-caps, and large countries.  I haven't looked at VTI specifically, but it is a common issue among cap-weighted indices.  Mathematically, increased diversification is the only free lunch in investing (per the efficient market hypothesis), so I prefer to increase this above the basic amount provided by a single index tracker.

flipboard

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Re: Your Current Holdings & Asset Allocation
« Reply #6 on: June 11, 2019, 10:13:37 AM »
Strong small-value tilt.

Slight tilt away from US.

Individual funds are an implementation detail.

Dare2Dream

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Re: Your Current Holdings & Asset Allocation
« Reply #7 on: June 11, 2019, 12:27:19 PM »
I don't follow this advice at all.

I think it is excellent advice for those who are starting out or want to keep investing simple.

Personally, I am not comfortable with the risk associated with this investing strategy.  I keep an AA of 65% equities (2/3 domestic, 1/3 international), 25% well diversified fixed income, and 10% alternatives.  This is my well-earned risk tolerance, and not really a recommendation for anyone other than myself.

I think the other place the 100% VTI (or similar) strategy could be improved is diversification.  Sure, the bloggers shout from the rooftop that it's diversified.  But dig under the hood a bit, and these funds are typically heavily weighted towards large-caps, and large countries.  I haven't looked at VTI specifically, but it is a common issue among cap-weighted indices.  Mathematically, increased diversification is the only free lunch in investing (per the efficient market hypothesis), so I prefer to increase this above the basic amount provided by a single index tracker.

+1

No way I am doing a 100/0, 90/10 or even a 60/40.  I am closer to 40/50/30 (equity, bond, alternative) and sleep very well at night.


ardrum

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Re: Your Current Holdings & Asset Allocation
« Reply #8 on: June 11, 2019, 01:01:58 PM »
100% stocks...

60% total US
37.5% total ex-US
2.5% EM (mild tilt)

Goal was to be at 9x living expenses by year end.  Currently at 10+ so correction/recession isn't worrying me with diversification like this and a near 75% savings rate.
« Last Edit: June 11, 2019, 01:04:00 PM by ardrum »

appleshampooid

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Re: Your Current Holdings & Asset Allocation
« Reply #9 on: June 11, 2019, 01:12:16 PM »
I am 89% stocks/11% bonds.

Within the stock category, I am 75% total US and 25% total international.

Total US is mostly VTSAX, but also a mix of Fidelity funds that are available in my 401(k) (FXAIX, FSMDX, FSSNX) and some VFIAX/SCHX/SCHA from past AA iterations and accounts that I don't want to sell due to cap gains.

Total international is almost all VTIAX, but some leftover SCHE.

Bonds are FXNAX (again, what's available in my 401(k)).

Bonds are held pre-tax. International is targeted at taxable for the tax credit, but some still hanging out in Roth until I can save more in taxable. US fills in the gaps everywhere else.

Year 1 of implementing a 20 year bond tent (10 years up, 10 years down). Subject to change, of course, if FIRE looks closer or further off in a couple years.

talltexan

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Re: Your Current Holdings & Asset Allocation
« Reply #10 on: June 11, 2019, 01:25:56 PM »
Great signature line about how you should be unhappy with part of your portfolio!