Author Topic: Asset Allocation/Portfolio  (Read 1758 times)

OTPHJ

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Asset Allocation/Portfolio
« on: June 19, 2017, 10:34:38 AM »
Hello all, first time poster so I apologize if Im in the wrong area but looking for some advice. I currently have 433k spread out between a taxable act, 3 inherited iras, and 1 roth ira. By the end of the year it should be at 750k (Had recent deaths in the family and still sorting out real estate/insurance policies/etc.) Right now everything is 100% cash. I have been keeping everything as cash while I have been trying to formulate the best approach to enter the market and how to allocate funds (I know market timing is wrong but this is alot of money and we are at all time highs).

My idea is to purchase 100% bonds (CSJ). Then I will DCA into the market from the bond fund over the next 24 months, until I have my desired stock/bond ratio.I was thinking for my portfolio:

VTI(total market)-65%
VNQ(reit)-5%
VWO(emerging market)-10%
VEA(developed market)-10%
JNK(hi yield bond)-10%

So basically 1. what do you think of this approach to entering the market and 2. Anything you like/dislike about my desired portfolio. Thanks in advance for your help!

Frankies Girl

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Re: Asset Allocation/Portfolio
« Reply #1 on: June 19, 2017, 11:06:27 AM »
Also don't see the point in any of the proposed moves. But then without knowing your age, your goals, your debts, your family size... we have no way of knowing what you're proposing is just a really bad idea or just "meh."

Here's the best and easiest advice: Figure out a simple asset allocation for your comfort level and situation, and then put the money into it. Most folks on here advocate a simple 2-4 fund indexed portfolio. Your choices seems unnecessarily complicated and fussy and buying bonds first and then selling them off later to get into your chosen selections? Really odd and likely to create taxable events/fees all over the place if you're not careful.

And yes, you could DCA if it makes you feel better.


https://www.bogleheads.org/wiki/Investment_policy_statement
Do this first.

https://www.bogleheads.org/wiki/Asset_allocation
Do this second.

https://www.bogleheads.org/wiki/Lazy_portfolios
Check this stuff out then.




bryan

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Re: Asset Allocation/Portfolio
« Reply #2 on: June 20, 2017, 12:22:55 PM »
https://portfoliocharts.com/ is the best resource I know to recommend.

Radagast

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Re: Asset Allocation/Portfolio
« Reply #3 on: June 22, 2017, 07:44:48 AM »
You are pretty close to a low-bond Swensen portfolio. Don't use junk bonds, they have less return than stocks but less return than quality bonds. I'd maybe change it to

40% VTI
15% VEA
15% VWO
15% VNQ
15% VGIT
Which is like a Swensen porfolio that exchanges safe bonds for emerging markets stock and some US. You are pretty well diversified if you use VGIT, no real need for dollar cost averaging I think.