for questions that relate to asset allocation. Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance...

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5
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1answer
85 views

How does Vanguard determine the optimal asset allocation for their Target Retirement Funds?

Until 25 years before retirement, Vanguard Target Retirement Funds all have an identical asset allocation of 63% U.S. stocks, 27% international stocks, 8% U.S. bonds, and 2% international bonds. I ...
1
vote
1answer
94 views

Investing in alternative strategies for people in their 20s/30s

I'm exploring alternative investing / trading strategies for my personal portfolio and had questions regarding their viability and appropriateness as a retail investor. Here's my risk / liquidity ...
3
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3answers
161 views

Retirement & asset allocation of $30K for 30 year old single guy

Recently came into some money, 30K via inheritance, which I would like to invest. I Would like to put some if not all of it towards retirement, as I have no plans to touch the money for at least 10 ...
5
votes
1answer
231 views

Should my retirement portfolio's asset allocation become more conservative over time?

It seems to be common advice that a retirement portfolio should be invested aggressively when one is young, and conservatively when one is older and closer to retirement. Is this good advice? ...
4
votes
1answer
47 views

How to treat multiple currencies in global asset allocation?

Say I'm trying to diversify my portfolio along multiple asset classes and countries. Many of those assets are in different currencies. For example, I'm based in the UK and I'm evaluating a 3 asset ...
5
votes
2answers
102 views

Does long term asset growth really converge to that derived from compound interest formula?

Many websites/experts claim that the longer you hold your assets, the likelier your asset's return is closer to that predicted by the compound interest formula. However, some other experts claim ...
3
votes
1answer
69 views

Question on asset allocation

http://portfolios.morningstar.com/fund/summary?t=PTTRX&region=usa&culture=en-US Trying to understand this fund as I'm learning more about it. I don't understand this: What does it mean when ...
0
votes
2answers
178 views

Where can I get current data on US equity/bond markets as a share of the global markets?

I would like to periodically rebalance my asset allocation to match the world market capitalization for domestic vs. international holdings. Rick Ferri's "All About Asset Allocation" book has a pie ...
6
votes
1answer
273 views

Couch Potato Portfolio for Europeans?

I recently came across the Couch Potato Portfolio concept and was happy to find an investment strategy that made sense to me. Its origin seems to be the Canadian version, and it has been translated ...
1
vote
2answers
390 views

Can GoogleFinance access total return data?

I'd like to be able to access historical total (market) return data with the end goal of creating a rolling return histogram of various asset allocations. However, it looks like the GoogleFinance ...
7
votes
1answer
356 views

How much in inflation protected securities (TIPS) should I buy?

I'm wondering whether it's worthwhile to allocate some of my bond portfolio in the Vanguard TIPS fund. I plan to work until about 2040, and I prefer (efficient) risk over return. I plan to buy and ...
2
votes
1answer
233 views

What is the best resource for determining a specific age-based asset allocation?

I found a lot of information about how to allocate between stocks and bonds based on age, but I cannot find much about the proper allocation between domestic/international assets, large cap/small cap, ...
3
votes
1answer
90 views

Overall portfolio vs. your investment product's portfolio?

I'm just starting to invest and going with a managed account. I'm sure any investment firm would love to manage all my available money, however I'm not ready to put all my eggs in one basket (if ...
5
votes
2answers
357 views

Asset Allocation Tools that understand Mutual Funds

I am looking for a tool that will help me understand my current asset allocation given that I invest only in mutual funds. What I want is something where I can enter my current fund share balances ...
7
votes
4answers
191 views

Is my first 401(k) fund allocation reasonable, and with respect to fees?

I just started my first job after school and am now being enrolled in my company's 401k plan, which is handled by Vanguard. By default, I was put into the Target Retirement 2050 Trust II fund, which ...
0
votes
1answer
121 views

What else besides fees should I consider in rebalancing my fund portfolio's asset allocation?

My portfolio is currently $10k invested in VWNFX. I also have a 401k (contributing about $13k/year) and an emergency fund. But for the purposes of this question I am just talking about my ...
0
votes
1answer
947 views

Is it possible to manage my multiple accounts and my wife's multiple accounts as a single portfolio with TD Ameritrade?

Is it possible to manage my multiple accounts and my wife's multiple accounts as a single portfolio with TD Ameritrade's online tools? I would like to do easy asset allocation across all those ...
7
votes
4answers
887 views

How to convince someone they're too risk averse or conservative with investments?

I have a friend who is very risk-averse, by self admission. By my standards he is too much risk averse for his own good. He says that his personal experience over the last 15-20 years taught him that ...
7
votes
3answers
212 views

How to find a good third-party, 401k management/advice service?

I have a 401k with my employer that offers a pretty good contribution matching benefit. I am young and I've had the plan for about 5 years and my money is starting to grow into a pool that is big ...
1
vote
0answers
143 views

How to LAY/SHORT SELL multiple mutually exclusive outcomes in sequential events?

(n.b. Still not sure if this is the right place, but it was suggested by @SRKX) How would I calculate the percentage of my wealth to invest when LAYING/SHORT SELLING multiple mutually exclusive ...
3
votes
2answers
55 views

International (ex-US) ETFs with low exposure to financial sector?

I've noticed that many international ETFs (especially emerging market funds) have a large stake in the financial sector. Are there any ETFs that de-emphasize financials? Conversely, are there any ...
2
votes
1answer
440 views

Are there any online tools to examine asset allocation and portfolio diversification?

Are there any good online tools to examine asset allocation, portfolio diversification? I would be interested in being able to plug in numbers, run scenarios etc. I could build a worksheet in Excel ...
9
votes
4answers
533 views

Should I include retirement funds in calculating my asset allocation?

When calculating my asset allocation for applying allocation guidelines, should I include my retirement funding or not? You see, my investments have an asset allocation. But then, so do my ...
2
votes
1answer
127 views

What is the best way to balance my asset allocation with world allocation (aka “Go Anywhere”) mutual funds?

I purchased a couple of "world allocation" (aka "Go Anywhere") mutual funds. When I plugged one of them (FAIRX) into Morningstar and it showed up as a "large blend" fund. So I figured I could ...
7
votes
3answers
246 views

Should I fund retirement with a static asset allocation or an age based glide path?

It seems a lot of people recommend lifecycle funds. They're even an allowed default investment for 401ks now. But given how little I trust Wall Street, I'm curious if there's any quality academic ...
5
votes
1answer
53 views

Balanced medium horizon investment for today's situation?

I am looking for a balanced investment for a medium term (max 8 years). At the beginning I looked at bonds in their different forms, but actually they offer almost the same interest rate as saving ...
7
votes
5answers
2k views

What percentage of my portfolio should be in individual stocks?

It's easy to find guidelines for how much of my non-retirement portfolio should be in stocks as an asset class (i.e. via mutual funds) but I'm having trouble finding recommendations for how much ...
5
votes
2answers
181 views

Analysis of Valuation-Informed Indexing?

My question. I've been reading about Valuation-Informed Indexing (VII). What is your reaction? Would you recommend this strategy? What are its potential strengths/weaknesses? Background. For those ...
7
votes
2answers
206 views

The Asset Allocation Paradox

I've had this problem stuck in my head for a while and I'd like some help with it. In David Swensen's Unconventional Success, the argument is made that asset allocation is the best way to get a good ...
4
votes
3answers
132 views

Single investment across multiple accounts… good, bad, indifferent?

Are there any implications associated with investing in a single investment across multiple accounts? For instance, investing in 100 shares of Stock XYZ in both my Roth IRA and my Traditional IRA. ...
3
votes
1answer
116 views

Asset allocation on Betterment.com: What's the make-up of the stock & bond portfolios?

Is there any Betterment user that could tell me if it's possible to have more information about how my invested money are allocated besides simple portfolio allocation between treasury bonds and stock ...
8
votes
1answer
136 views

Which assets are best suited for a Roth IRA?

What are the most suitable assets types to own within a Roth IRA vs. a taxable account? Generally, Roth IRAs are best suited for assets that a) generate a high return over a long holding period and ...
1
vote
1answer
113 views

Need help understanding asset allocation vs stock picking

Is there an easy to understand explanation of this statement: Asset Allocation is more important in determining over all returns of the portfolio as opposed to picking the right stocks.
7
votes
2answers
247 views

Are there index tracking funds that avoid the “buy high - sell low” problem?

An index tracking fund is a fund that buys direct stocks with a view to directly matching a particular index (e.g. the S&P500 or Russell 2000). One way to allocate assets in such a fund is to ...
10
votes
7answers
4k views

Is there a general guideline for what percentage of a portfolio should be in gold?

I have some gold (GLD), but not much - a little over 1% of my net worth, and about 2% of my non-retirement investments. I'd like to increase this position as an inflation hedge and to have something ...
5
votes
1answer
199 views

What is a good asset allocation for a 24 year old planning to do a startup?

I am planning to quit my current job and do a tech startup. How should I invest my savings of ~$210K? Assume that a fixed amount X = $2000 gets withdrawn per month and the aim is to maximize the ...
4
votes
2answers
1k views

help with asset allocation for an early-30s guy with an uncertain future?

I've read a lot of guidelines on asset allocation but am basically hoping for more individualized advice like I've seen on so many posts here. I'll do my best to keep this brief: Me - 32 years old, ...
8
votes
2answers
245 views

Invest in low cost small cap index funds when saving towards retirement?

This is a question about "Personal investing and asset allocation". About me: I earn more than I spend I may retire in 15 or 20 years, and I have savings to be invested in something or managed ...
13
votes
5answers
373 views

Is there any benefit to investing in an index fund?

Does an index fund comprise of stocks that mimic the index? So when the index is altered to include new players/exclude old ones, the fund also adjusts? But how can this be, since index funds are not ...
5
votes
2answers
477 views

Using P/E Ratio of an ETF to decide on asset mix

I am a conservative investor with an asset mix of around 50% bonds/cash and 50% stock via large index ETFs. Recently I've been thinking about settling down on a non-emotional way to decide whether ...
9
votes
6answers
376 views

How do I find an ideal single fund to invest all my money in?

Suppose I wanted to follow the advice on this blog post: An ideal bal­anced port­fo­lio would be a sin­gle fund. This forces you to look at your invest­ments as one big bucket, ...
4
votes
4answers
212 views

Why are typical 401(k) plan fund choices so awful?

I don't expect a huge number of funds to choose from in a 401k plan, but all the plans I've ever seen are loaded with funds that have outrageously high management expense ratios (MERs) and they ...
3
votes
3answers
509 views

“Diversifying” by going Long and Short Simultaneously

I was hoping someone could take a critical eye to an idea i've had. Traditionally it's said that one should diversify across various asset classes and ultimately types to spread the risk out based on ...
3
votes
2answers
74 views

What is the best resource to research the current state of asset classes for mutual funds?

I have a fairly simple asset allocation as follows: 50% Large Cap stocks 15% Small Cap Stocks 5% REIT 10% International Stocks 20% Bonds What is the best web site to track how each one of these ...
6
votes
5answers
728 views

Is the stock market too risky for long term retirement funds? Why should a 20- or 30-something person invest in stocks?

Given the crash of 2008, how do you explain to a person in their 20's or 30's why a good portion of their retirement funds should go into the stock market? (And if you wouldn't, what would you ...
6
votes
1answer
65 views

re balancing portfolio by only buying more or by both selling and buying under and over allocated assets?

For doing a re-balance of a portfolio, is it a better idea to just buy more of the under allocated assets or sell some over allocated assets to buy the under allocated assets. For my background, 28 ...
4
votes
2answers
266 views

classify investments in to different asset types

I am trying to do a portfolio re-balance starting this year. To do that I want to divide my investments into different asset buckets. I have chosen to use the following type of asset allocation -- ...
6
votes
4answers
236 views

How can I tell if a mutual fund is inflated?

To reach a prudent asset allocation, I need to add a small cap mutual fund to my portfolio. I'm a little concerned that I am "buying high" because all the small cap funds I'm considering (below) have ...
8
votes
2answers
2k views

What is most time-efficient way to track portfolio asset allocation?

I've recently decided I wanted to track my investments over time so that I could accurately determine really cool financial things like: My actual asset allocation My actual rate of return over time ...
2
votes
2answers
483 views

Any tips for asset allocation across multiple retirement accounts?

My family has 4 brokerage accounts: 1 traditional IRA & 1 Roth for both my wife and me. I would like to do a single asset allocation (such as the one below) across the 4 accounts? Is this a good ...