Hi there, Mustachians. I'm hoping you can help me with my asset allocation question:
-We currently use Bernstein's Simpleton's Portfolio:
http://ed-chang.com/review/ 25% Large US Stocks (VFIAX)
25% Small US Stocks (VSMAX)
25% International Stocks (VTIAX)
25% Short Term US Bonds (VBIRX)
-But with this AA, we are missing out on midcap, a large variety of bonds, and are simply not tracking the true market cap for Large & Small US companies (i.e. - we're overweighted for small, underweight for large)
-I know there are as many recommendations for asset allocation as there are investors. But I'm torn between simply sticking with our AA as we initially thought it was a sound plan (trust our former selves) and between going with a more traditional AA (X% Total Stock, Y%Total Bond, Z% Total International, and, um, A% Total International Bond).
-The latter plan will have tax consequences: most of our holdings for US Stocks are in taxable accounts, due to us hitting the limits on 401k and IRA pretty early. In fact, the amount we have in taxable accounts is about equal to what we have in tax-advantaged accounts. If we were to completely sell out of our taxable positions today to get into some new AA, we'd have about $1,400 in short term gains and about $6,200 in long term gains.
-Anyway, I thought the Mustachian investor community might be able to help us out with a plan. Thanks in advance.