Author Topic: What do you think of my asset mix?  (Read 4087 times)

heybro

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What do you think of my asset mix?
« on: October 04, 2014, 02:09:25 AM »
I am 31.  I plan on always working (but just part time) and don't think I'll ever "retire" and not hold some kind of part time job.

Retirement Plan:
50% S+P 500 Index Fund .18 Expense Ratio
25% Small Cap Russell Index Fund .09 ER
25% International Stock Index Fund .15 Expense Ratio

These are the only index funds offered (all others are managed funds).
There is also a Bond Index Fund though, but I don't think I want to be in any bonds.

I almost went with no International Fund (because I think of it as betting against the US and would rather just have a pure "all-in" type of thing but I think that is the wrong view on my part).  [I had almost gone 75% S+P and 25% Small Cap].

GGNoob

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Re: What do you think of my asset mix?
« Reply #1 on: October 04, 2014, 07:07:33 AM »
Personally, I go 70% US and 30% international (recommended by Vanguard). But then in my portfolio, I actually tilt more towards small and mid cap for the potential of greater returns. So with your funds, I'd probably go with something like this:

30% S&P
40% Small Cap
30% International

But your chosen allocation looks very solid as well. So its really all up to you and what lets you sleep better at night. I'm all for the 100% stocks.

GardenFun

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Re: What do you think of my asset mix?
« Reply #2 on: October 04, 2014, 03:24:14 PM »
Personally, I go 70% US and 30% international (recommended by Vanguard). But then in my portfolio, I actually tilt more towards small and mid cap for the potential of greater returns. So with your funds, I'd probably go with something like this:

30% S&P
40% Small Cap
30% International

But your chosen allocation looks very solid as well. So its really all up to you and what lets you sleep better at night. I'm all for the 100% stocks.

Same here.  Specifically like mid caps, which is a class people hardly talk about but seem to have the best flexibility for growth (over the small cap hurdle of needing more capital, but large enough to have a dominant market position).  Also agree with the International.  There are many overseas companies that US consumers use their products daily. 

heybro

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Re: What do you think of my asset mix?
« Reply #3 on: October 05, 2014, 10:48:08 PM »
Personally, I go 70% US and 30% international (recommended by Vanguard). But then in my portfolio, I actually tilt more towards small and mid cap for the potential of greater returns. So with your funds, I'd probably go with something like this:

30% S&P
40% Small Cap
30% International

But your chosen allocation looks very solid as well. So its really all up to you and what lets you sleep better at night. I'm all for the 100% stocks.

As far as I know, though, my "small cap" is only small caps.  I don't think I have mid cap anywhere.

GardenFun

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Re: What do you think of my asset mix?
« Reply #4 on: October 06, 2014, 07:51:01 AM »
There is tons of info backing up different theories:  large vs. small cap, international vs. domestic, etc.  Reading through this forum, all these different theories and data have led to some interesting "graph wars". 

Personally, I follow two rules:  investing diversification and high savings rate.  I've tried fretting over % allocation per asset group and found it to be more hassle than it is worth.   

foobar

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Re: What do you think of my asset mix?
« Reply #5 on: October 06, 2014, 01:08:38 PM »
Personally, I go 70% US and 30% international (recommended by Vanguard). But then in my portfolio, I actually tilt more towards small and mid cap for the potential of greater returns. So with your funds, I'd probably go with something like this:

30% S&P
40% Small Cap
30% International

But your chosen allocation looks very solid as well. So its really all up to you and what lets you sleep better at night. I'm all for the 100% stocks.



As far as I know, though, my "small cap" is only small caps.  I don't think I have mid cap anywhere.

The S&P 500 has some midcaps  and so do most small cap funds. Recent studies suggest 20-40% in small caps and 20-40% international.  Pretty much anything you do in that range will workout fine.  The rest is tweaking around for fun

heybro

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Re: What do you think of my asset mix?
« Reply #6 on: October 07, 2014, 01:47:32 AM »
There is tons of info backing up different theories:  large vs. small cap, international vs. domestic, etc.  Reading through this forum, all these different theories and data have led to some interesting "graph wars". 

Personally, I follow two rules:  investing diversification and high savings rate.  I've tried fretting over % allocation per asset group and found it to be more hassle than it is worth.   

High Savings Rate?  You mean, based off your income?

surfhb

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Re: What do you think of my asset mix?
« Reply #7 on: October 07, 2014, 02:53:40 AM »
I am 31.  I plan on always working (but just part time) and don't think I'll ever "retire" and not hold some kind of part time job.

Retirement Plan:
50% S+P 500 Index Fund .18 Expense Ratio
25% Small Cap Russell Index Fund .09 ER
25% International Stock Index Fund .15 Expense Ratio

These are the only index funds offered (all others are managed funds).
There is also a Bond Index Fund though, but I don't think I want to be in any bonds.

I almost went with no International Fund (because I think of it as betting against the US and would rather just have a pure "all-in" type of thing but I think that is the wrong view on my part).  [I had almost gone 75% S+P and 25% Small Cap].

My 401K is identical

Now the trick will be when the market makes a serious correction (which it will) that you keep your shorts clean and dont touch that AA :)   Good luck!

But remember, its mostly about how much you save rather then tweaking your AA to death. 
« Last Edit: October 07, 2014, 02:59:12 AM by surfhb »

gobius

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Re: What do you think of my asset mix?
« Reply #8 on: October 07, 2014, 03:48:56 AM »
There is tons of info backing up different theories:  large vs. small cap, international vs. domestic, etc.  Reading through this forum, all these different theories and data have led to some interesting "graph wars". 

Personally, I follow two rules:  investing diversification and high savings rate.  I've tried fretting over % allocation per asset group and found it to be more hassle than it is worth.   

High Savings Rate?  You mean, based off your income?

Correct; having a high percentage of your income going toward savings (over 50%) is a big part of it.  Jacob of Early Retirement Extreme made this point well.  Asset allocation is important, but if you are only saving 10% of your money, it'd be better to focus on saving 50% of your money than to worry about where your AA is going.

Le Barbu

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Re: What do you think of my asset mix?
« Reply #9 on: October 07, 2014, 06:41:31 AM »
Did you read this post ? Why Hardcore Saving is much more Powerful than Masterful Investing

The Warren Buffet quote says it all : -“Hmm. In this case, Mr. Money Mustache has outdone me.”

That said, I save as much as I can but still look for the best assets mix !

akdfjlkajsd;lkfjs;lk

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Re: What do you think of my asset mix?
« Reply #10 on: October 09, 2014, 09:08:34 AM »
I am 31.  I plan on always working (but just part time) and don't think I'll ever "retire" and not hold some kind of part time job.

Retirement Plan:
50% S+P 500 Index Fund .18 Expense Ratio
25% Small Cap Russell Index Fund .09 ER
25% International Stock Index Fund .15 Expense Ratio

These are the only index funds offered (all others are managed funds).
There is also a Bond Index Fund though, but I don't think I want to be in any bonds.

I almost went with no International Fund (because I think of it as betting against the US and would rather just have a pure "all-in" type of thing but I think that is the wrong view on my part).  [I had almost gone 75% S+P and 25% Small Cap].

Pretty good. Don't honestly think I would have done so much in int'l and small cap. Maybe 15% for each, and the rest in your S&P fund? I mean, American companies already do a lot of business outside the US, so I view a large percentage in an int'l fund as excessively risky since your portfolio already has so much international exposure. And small cap funds just don't produce the kind of income I'd like. i do agree with your decision to avoid bonds though for a while.