Questions tagged [asset-allocation]

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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How to maintain NAV (Net Asset Value) for family fund

I have a Google Sheet which consolidates multiple funds in which I am invested. I also track my trades in the same sheet and update the profits to track XIRR returns overall. This is working fine for ...
Raj Pawan Gumdal's user avatar
4 votes
3 answers
293 views

Is it sensible to skip Europe altogether in my asset allocation given my situation?

I am 31 years old. For health reasons I am bounded to live in a European country, where I was born and have access to the public healthcare system. I currently hold a modest portfolio with 20% bonds - ...
D1X's user avatar
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0 votes
2 answers
143 views

Comprehensive Investment Strategies: Does Going Beyond S&P 500 ETFs Pay Off?

I am intrigued by investment strategies beyond S&P 500 ETFs. How significant is the impact of elements such as international stock ETFs, bond ETFs, real estate ETFs, commodity ETFs, or additional ...
S. G.'s user avatar
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2 votes
1 answer
82 views

Can we mix different asset allocation funds (funds-of-funds) to obtain a custom percentage mix of equity to fixed-income assets?

Since 2018, Canadians (and Americans) have easy-access to an array of auto-rebalanced asset allocation funds. These "funds of funds" combine equity and fixed-income in different ratios, in ...
pf_init_js's user avatar
6 votes
1 answer
1k views

What does it mean "You are buying the underlying asset"?

On some trading apps, when you buy a normal stock, they say "You are buying the underlying asset". I'd like to know what this means... Is it a "positive" message, like "Just ...
Lorenzo's user avatar
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2 votes
0 answers
34 views

Asset allocation and IRA [duplicate]

I have to take a required minimum distribution from my IRAs every year. And I pay taxes on it at a marginal rate of 24%. I also have assets in a non-IRA investment account. I do make some charitable ...
Bob Fulton's user avatar
1 vote
2 answers
85 views

Asset allocation based on age [closed]

What is a safe asset allocation for 65 year old retiree for growth and capital preservationl. Is it approximately 60% stock, 40% bonds? Or it is more aggressive? The primary focus is capital ...
zeffen's user avatar
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1 vote
2 answers
144 views

Asset allocation and tax efficiency

Common advice for asset allocation to increase tax efficiency is to: Put bonds in tax-advantaged accounts (401k, Roth IRA, etc) Put stocks (e.g., S&P 500 ETF) in regular brokerage accounts The ...
minou's user avatar
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1 vote
2 answers
138 views

Do I need a cash reserve when investing in stocks?

I would like to know if I need to keep a fraction of my assets in cash or if I can simply invest 100% into stocks. Here is my thinking: As a young person I'd like to keep most money in stocks and ...
boot4life's user avatar
  • 161
8 votes
4 answers
832 views

Can I open a Roth IRA AND get to choose what companies my money is getting invested into?

In my experience with investing in IRAs, it seems like you just tell the people that you want to retire in (insert number of years), tell them how risky you're willing to be with your money and then ...
Bridgebot101's user avatar
1 vote
1 answer
160 views

Money-Weighted-Return (MWR) or Time-Weighted-Return (TWR)?

Assume, I monthly invest a fixed part of my income. I strictly transfer this money to my broker account and never take money off (transfer-rule). There, I usually (but not always) immediately add to a ...
Clyde Frog's user avatar
1 vote
1 answer
130 views

Do asset managers provide value? What's the evidence?

Hundreds of trillions of dollars are managed by asset management firms, according to this PWC article. The fees paid on those trillions must be enormous. I understand that if you are investing a lot ...
Boeo's user avatar
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0 votes
1 answer
96 views

Asset allocation and keeping cash as an asset in a foreign currency?

I already have an emergency fund with which I am comfortable with and no debts. The emergency fund is in euros, my local currency. This question concerns the asset allocation of my investment ...
D1X's user avatar
  • 271
2 votes
1 answer
104 views

How to allocate assets between asset types and tax-benefit accounts?

I hoped I could simply put all my funds into a TDF in a tax credit account and done with it, but it seems it's not that easy. I'm trying to reallocate to these accounts: Individual Retirement Pension(...
user2652379's user avatar
1 vote
0 answers
92 views

Why should I buy bonds for my long-term portfolio when bonds have a lower upside than stocks? [duplicate]

I am one of those people who have 100% of their long-term portfolio in stocks (both in individual stocks and diversified index funds). I have an investment horizon of 50 years, so by "long-term&...
Flux's user avatar
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0 votes
1 answer
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Is there a criterion for the different % allocation values in ETF or funds diversified portfolios?

This question does a good job covering the basics of asset allocation. My question concerns the asset allocation of stocks, so we leave the bonds out of the question. All the recommended portfolios ...
D1X's user avatar
  • 271
2 votes
1 answer
364 views

How can I find the asset allocation of the FTSE All-World Index?

I am trying to find the asset allocation of Vanguard's FTSE All-World ETF. Even though Vanguard's documents preciselly state ETFs holdings in percentage, I have not found the asset allocation in terms ...
D1X's user avatar
  • 271
1 vote
1 answer
637 views

What percentage of my money should I invest?

I am looking to begin investing some of my money, as I have been fortunate enough thus far to be able to save a decent amount. My trouble is, I don't know how much of it I should invest. I have read a ...
elben's user avatar
  • 11
4 votes
1 answer
156 views

How should I distribute investment types between differently-taxed accounts?

Background: I'm 37 and work in the U.S. I have a gross income ~100k, a 401k funded to the legal limit, a Roth IRA funded to the legal limit, and a regular investment account. The 401k has most of the ...
Andrew's user avatar
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0 votes
1 answer
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Is it necessary to have different asset allocation for short-term needs?

I'm in my early 20s and have 60K in retirement accounts and 80K in taxable accounts. Both are invested in low-cost mutual funds, 80/20 stock/bond split (specifically 60% VTSAX, 20% VTIAX, 20% VBTLX). ...
user91660's user avatar
27 votes
8 answers
7k views

50% portfolio in single stock, JPM - appropriate for 80 year old?

I've recently taken a look at my 80-year old mother's finances, run by a money manager at Morgan-Stanley. Half of her $3.5M portfolio is in a single stock, namely JPM = J.P. Morgan. This seems to ...
Concerned's user avatar
  • 361
0 votes
2 answers
121 views

How do I properly allocate capital into the different stocks I own?

Late last year (Aug. 2018), I started building a portfolio of stocks using fundamental analysis and management analysis. The portfolio is mainly built around high-income, dividend-paying companies ...
JC Betana's user avatar
5 votes
2 answers
2k views

Is it risky to move from broad geographical diversification into investing mostly in less developed markets?

I currently invest in a handful of index funds that includes U.S. equities, U.K. equities, some emerging markets, and some Asian equities. But I have in mind that the West is eyeball deep in debt, ...
matewilk's user avatar
  • 876
1 vote
1 answer
57 views

Chart showing returns by asset class vs CAGR [closed]

I know of charts that show yearly returns by asset class. Are there charts that show 10 year CAGR by asset class?
paulj's user avatar
  • 1,101
1 vote
1 answer
209 views

How to improve geographical diversification?

Recently realised on my investments' geo distribution map that they are largely (~83%) in NA/EU. Given this, should I diversify by region further? What kind of ETFs/funds in general avoid NA/EU? ...
Razor's user avatar
  • 113
0 votes
1 answer
141 views

U.S. 10 year treasury bonds behavior during crisis

It's often advised to buy and keep government bond to protect ourselves against the next upcoming crisis. (For example, in a defensive stock portfolio you can have 50% of stock and maybe 30% of ...
phaxos khor's user avatar
2 votes
2 answers
101 views

Investing in a target date fund for retirement [closed]

Any suggestions about investing in a Vanguard target date fund 2045 for a Roth IRA? I'm 38 years old. Is 90/10 stocks/bonds too heavy for my age?
Mario's user avatar
  • 21
2 votes
3 answers
604 views

What is the "definition" of a "diversified" portfolio and why a diversified portfolio is better?

A short version of my question - What is the "true" definition of a diversified portfolio and why is it better? A long version of my question - Regarding portfolio diversification, people ...
B Chen's user avatar
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5 votes
4 answers
2k views

Post Tax 401k or Taxable Brokerage Account?

I max out my pre-tax 401k, HSA, and do a roth IRA or backdoor Roth IRA. With my additional savings is there any reason i would want to do a post-tax 401k instead of keeping it in a regular taxable ...
Frank Visaggio's user avatar
3 votes
3 answers
377 views

Understanding bond ETFs

I am failing to understand the bond ETFs. I somewhat understand stock ETFs: ETFs own stocks, I buy a part of ETF, therefore, I also indirectly own stocks. When I sell my share of ETF, the ETF gets ...
Danijel's user avatar
  • 298
0 votes
2 answers
164 views

Allocation basics not so basic [closed]

I've been trying to put together a long-term (15-20 years) ETF portfolio (stocks only, no bonds). As I read about the investment and allocation basics, I realized it's far from simple. I would like my ...
Danijel's user avatar
  • 298
26 votes
9 answers
6k views

What does one typically use as a money reservoir for stocks, when they are "on sale"?

I've read about people who claim to have made a lot of money investing in stocks (or funds) after a crash. They say the stocks were "on sale". But I wonder, where did they get the money to buy these ...
Ken - Enough about Monica's user avatar
3 votes
4 answers
166 views

Is adjusting my portfolio's distribution according to bad signals from news risky?

I'm distributing my investment to stock(mostly MSCI ACWI) and bond funds, Basically 60:40. I also rebalance monthly as I got paid monthly. I recently worried about the global and local(South Korea) ...
user2652379's user avatar
1 vote
2 answers
154 views

How to allocate alternative assets?

I'm doing diversification with stocks and bonds. Basically 60%:40%. But when I'm trying to add alternative assets(like gold or REITs) or high-risk high-return bonds(like Brazil bonds), I'm not sure ...
user2652379's user avatar
3 votes
1 answer
186 views

Asset Allocation, Risk Free Part with Negative Yielding Bonds

I read a few books about asset allocation, e.g. Bernsteins's Asset Allocation states that mixing bonds with stocks lowers the risk significantly but only decreases the profit slightly. So there is a ...
Andi Giga's user avatar
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6 votes
3 answers
791 views

Is it a bad idea to frequently change my stock/bond mix in response to the market?

I'm currently investing in a couple of Betterment retirement accounts, and if you have used Betterment, you know that the site makes it easy to adjust your portfolio mix of stocks and bonds (see ...
Will's user avatar
  • 1,047
3 votes
1 answer
392 views

Why does a target 2050 retirement fund hold so much cash?

I'm specifically looking at BlackRock's STLFX LifePath Dynamic 2050 Fund. As the target date is so far out (2050), I'd expect almost all of the portfolio to be allocated to stocks. However I noticed ...
V Maharajh's user avatar
5 votes
3 answers
352 views

Asset allocation across multiple retirement accounts

I am a 47 year old passive investor (i.e index funds) with 2 investment accounts (401K & IRA). I have 50,000 in my 401K and 20,000 in my IRA for a total of $70,000 to invest. My proposed ...
Ron Skufca's user avatar
1 vote
2 answers
153 views

How can a retail investor short the German car industry and its suppliers?

Suppose that I want to make a small investment of around 1000€ and that I want to short the German car industry and its suppliers over the long term (5-15 years). How would you do this?
stollenm's user avatar
  • 113
0 votes
1 answer
80 views

Does it make any sense to have individual stocks, bonds, preferred shares

I have a self-directed trading / investment account that has only ETFs in it. Each trade is $10. Does it make any sense to have individual stocks, bonds, preferred shares and if yes, what is the ...
Andrey Belykh's user avatar
4 votes
1 answer
60 views

Consider pre-tax status of retirement accounts in determining portfolio allocation?

I have a mix of accounts for my investments including brokerage, 401k and Roth IRA. I handle all my own investments and my current target allocation is 48% US stocks, 24% international stocks, 8% ...
minou's user avatar
  • 7,506
0 votes
1 answer
103 views

Diversification for large bond investments

I do all my investments with four index funds, and I currently have a fairly aggressive approach with 20% in a bond ETF (AGG) and 80% in three equity ETFs. As I get older, I'll put more money in ...
minou's user avatar
  • 7,506
2 votes
2 answers
320 views

Bond ETFs as a means to achieve risk parity

Background One of the investors that I really look up to is Ray Dalio. He has stated that a 50/50 stock to bonds allocation does not achieve risk parity because 80% of your risk is still in your ...
The Gilbert Arenas Dagger's user avatar
12 votes
3 answers
2k views

Should I exclude bonds from our retirement investment portfolio if our time horizon is still long enough?

My wife and I (ages 35 and 38) have 25-30 years until we reach retirement age, and I'm doing some research regarding our asset allocation. In addition to various podcasts, articles, and online posts, ...
Jeff Levine's user avatar
1 vote
1 answer
113 views

Cash or Bonds (UK)

I'm currently making my way through Benjamin Graham's book. He mentions that ± %25 of assets should be held in either cash or bonds. Could someone clarify the government bonds situation in the UK? Is ...
Charles Fried's user avatar
2 votes
1 answer
314 views

What's the simplest, cheapest way to reproduce the WMA private investor indices's "income index"?

I'm aware that some discretionary wealth management and advisor types use the WMA private investor indices as a benchmark and as a guideline for asset allocation. (Update: that link is now broken/...
timday's user avatar
  • 3,937
4 votes
2 answers
251 views

How should residents of smaller economies allocate their portfolio between domestic and foreign assets?

Investment advice is often written from the perspective of a large domestic economy, where global effects have less impact. I live in Australia, where GDP is $1.13 trillion and our stock exchange has ...
sjy's user avatar
  • 202
2 votes
1 answer
97 views

How do annual risks translate into long-term risks?

Suppose that the annual return of a 1 dollar investment has a standard deviation s and mean m. How does this translate into the risk of this asset over let's say 20 years? We may assume that annual ...
HRSE's user avatar
  • 281
5 votes
1 answer
275 views

How often should one's retirement portfolio be adjusted (rebalanced), and how?

I'm opening my Roth IRA Account. My question is: How often should I adjust my portfolio? I know this depends on a variety of factors: I'm 23, plan to retire when I'm in my 60s (or at least withdraw ...
DukeLuke's user avatar
  • 745
2 votes
3 answers
400 views

First 401K portfolio with high expense ratios - which funds to pick? (24yo)

Just got my first 401K at work through Mass Mutual. I have 17 options to choose from. I don’t think we have index funds, and most funds have high expenses between 0.75-1.66%. So I decided to care ...
user34678's user avatar