Author Topic: Allocation Changes  (Read 938 times)

Zman

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Allocation Changes
« on: July 02, 2015, 11:42:12 AM »
Just wondering if anyone had some suggestions on 403(b) allocations they could share with me, based on the below information. Thanks!
(Perhaps some suggested changes and a reason?)

Current Allocation is:

VINIX - 45%
Vanguard Institutional Index Fund Institutional Shares

VIEIX - 22%
Vanguard Extended Market Index Fund Institutional Shares

VTSNX - 22%
Vanguard Total International Stock Index Fund Institutional Shares

VTBIX - 10%
Vanguard Total Bond Market Index Fund Institutional Shares

Retirement is still at least 15 years away, so I can be a little aggressive.

MDM

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Re: Allocation Changes
« Reply #1 on: July 02, 2015, 02:08:27 PM »
That allocation is as defensible as any other "rational" (which of course is in the eye of the beholder) allocation.

Some would say to have a higher international component, some would say do 100% VTSAX (or the institutional equivalent), etc.

Main question I'd have: are you comfortable enough with this allocation to resist changing (other than rebalancing back to this setup) when one fund does poorly for a year or three?

Zman

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Re: Allocation Changes
« Reply #2 on: July 02, 2015, 02:27:21 PM »
Those are the 3 funds (from vanguard) that I have available to choose from.

I figure to weight VINIX (which from what I understand is the SP500) heavily and compliment it with some lowcap and international exposure too ( a little bit of risk :-) ) and then do 10% in bonds because supposedly it is wise to have bonds....

As time goes on I will probably up the Bonds contribution and skim the others accordingly. So to answer the question, yes I am comfortable but will adjust every few years based on risk tolerance.

GGNoob

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Re: Allocation Changes
« Reply #3 on: July 02, 2015, 02:47:45 PM »
There's really nothing wrong with this. Personally, I'd probably be more like 30 or 40% of stocks in the International index.

One reason why you'd maybe want to invest differently is if you had investments outside of this 403b and you could then look at your entire portfolio as a whole for your allocation.