Author Topic: Asset allocation advice  (Read 2283 times)

brokeresident

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Asset allocation advice
« on: May 10, 2013, 05:19:41 PM »
I have a rough idea on asset allocation for my portfolio and wanted to run it by some of you guys to see if anything should be changed.

A little about me: 26 years old, starting residency with expectation of higher tax bracket by the time I retire. Starting this year with my first contributions to a Roth IRA and the hospital-sponsored 403(b) retirement plan, which matches 2% of 100% of contributions AFTER one year of employment. I currently have an ETRADE account with "slush money" and I have become very fond of dividend growth investments. I would like to include this in my portfolio asset allocation in some capacity.

1)   Equity (80%)
   Total Stock Market 25%
   Extended Market 10%
   Large Value 10%
   Small Value 10%
   Dividend Growth 5%
   Foreign Developed Equity 15%
   Emerging Market Equity 5%

2)   Fixed Income (20%)
   TIPS 10%
   High-Grade Corporate Bonds 5%
   CDs 5%

Joet

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Re: Asset allocation advice
« Reply #1 on: May 11, 2013, 11:07:58 AM »
Waaaaay too complicated. Don't you work 100 hour weeks? 3-fund portfolio, set and forget. When you start making 400k or whatever as a specialist then do something like this. Although your tilts don't seem to be all that horrible.

I'd still recommend a 3-fund portfolio, pretty much for life. Maybe with a small/value tilt. That's it. Nothing wrong with dividing bonds up between tips/total bond fund tho

http://www.bogleheads.org/wiki/Three-fund_portfolio
« Last Edit: May 11, 2013, 11:18:27 AM by Joet »

brokeresident

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Re: Asset allocation advice
« Reply #2 on: May 11, 2013, 07:53:04 PM »
Waaaaay too complicated. Don't you work 100 hour weeks? 3-fund portfolio, set and forget. When you start making 400k or whatever as a specialist then do something like this. Although your tilts don't seem to be all that horrible.

I'd still recommend a 3-fund portfolio, pretty much for life. Maybe with a small/value tilt. That's it. Nothing wrong with dividing bonds up between tips/total bond fund tho

http://www.bogleheads.org/wiki/Three-fund_portfolio

It'll be "80 hour" work weeks :P but in my spare time I enjoy reading about personal finance and don't mind putting in the time.