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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2
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1answer
205 views

Index Fund Style: Blend or Value and Growth

I am trying to put together a portfolio and I am looking at ETF index funds. As i cover the different sectors, in the past I have had small, mid cap and large cap funds/etfs with both Growth and value ...
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5answers
3k 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 ...
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5answers
760 views

Why do US retirement funds typically have way more US assets than international assets?

I have noticed that US retirement funds generally seem to allocate far more space to US stock than international (non-US) stock. Of course, there is not really any such thing as a prototypical ...
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Is my mutual fund strategy to rebalance to fixed portions of cash, equity, & bonds a good one?

Is this a good mutual fund strategy: Once a year I adjust the asset allocation of all my mutual funds, equity and bond. I maintain a fixed percent of cash, equity, and bonds. If any fund gets ...
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1answer
89 views

Does the common advice about diversification still hold in times of distress

The common advice about diversification goes something like this: (just as an example) 40% us large cap 20% us govt and AA corporate bonds 20% us growth stocks 20% international equities. My ...
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3answers
269 views

Fundamentals of creating a diversified portfolio based on numbers?

There are a number of articles and posts across the internet describing how to diversify your portfolio. But, each claim typically focuses on how to allocate your portfolio rather than describing ...
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3answers
4k 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 ...
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2answers
277 views

What is the standard deviation and mean return of oil?

Let's use WTI. I'd like to add oil to my portfolio, and I was wondering how much I should have. I'm in 60-70% index and 40-30% individual value stocks. I want to cut back on my value plays and add ...
3
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1answer
194 views

Does anyone know where I can find a free efficient frontier tool, or an informative and legitamate/academic graph of the efficient frontier?

I'd like to build a portfolio based upon modern portfolio theory and I'd like to find a tool I can use to calculate the proper mix of asset classes. Can anyone help with this? I think a good chart/...
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0answers
378 views

Can I use Quicken asset class information to rebalance my portfolio?

Common wisdom is that a good low-effort investment strategy is to choose an asset allocation, then rebalance your portfolio to stick to it. I've been using Quicken Deluxe for this. Obviously it's ...
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1answer
240 views

What are the pros/cons of these investment types?

My UK pension company allows me to make one-off online payments, and surprisingly I found out I can invest the money in any way I want. My options are as follows: International All Share ...
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4answers
2k views

Is it smart to only invest in mid- and small-cap stock equity funds in my 401(k)?

Historically, mid-cap and small-cap company stocks have outperformed the market. Correct? Since I'm not going to touch the money in my 401(k) in over 40 years, wouldn't it make sense to invest ...
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4answers
360 views

Optimal Asset Allocation

Something I've recently gotten into is asset allocation optimization and using AI (Extended Kalman Filter) & statistics in this area. Anyway, I was ready to move 100% into stocks so I put 80% into ...
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2answers
1k 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 -- ...
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1answer
1k 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 ...
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1answer
134 views

How should I allocate short-term assets in a rising-interest rate environment?

I'm looking to rebalance my portfolio and move some of my stock investments into lower-risk investments, largely because I want to use some of it in the not-too-distant future (say 2-3 years). How ...
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3answers
313 views

Bonds vs equities: crash theory

Let's presume a market crash is coming sometime within 6 months to a year. Theoretically speaking, would it be wise to reallocate my index fund, which is presently about 80 % stocks and 20% bonds, to ...
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2answers
1k 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 ...
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5answers
1k views

How to choose a good 401(k) investment option?

I am starting my first 401(k) which will have 9% of my salary invested each month. I have the option of doing a Roth 401(k) or a traditional 401(k) with a range of investment options. I think the ...
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3answers
107 views

Allocating IRA money, clarification needed

I transferred my 401k to Vanguard IRA and allocated 70% of my money across: VIG (Dividend growth) VYM (High Dividend) VXUS (International) VTI (Total stock market) With market being high ...
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2answers
182 views

Portfolio theory and the business cycle: Determining ideal allocation to stocks?

Historically, there is a level of mean reversion with stock prices. So the expected return of a market portfolio changes with boom and bust periods. Is there a generalization of portfolio theory that ...
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4answers
1k views

For young (lower-mid class) investors what percentage should be in individual stocks?

For relatively speaking young, middle / lower middle-class investors, what percentage of our investments should be individual stocks? I've done an excellent job keeping my credit outstanding and my ...
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1answer
1k views

Should I be more aggressive in a Roth IRA, 401k, or taxable account?

I presently have a mix of Vanguard funds spread throughout taxable and non-taxable accounts. Some advisors claim it's better to take risk in the taxable accounts while placing bonds in the IRA. ...
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1answer
477 views

Why do both stock and bond seem overvalued in 2014?

The general wisdom is that when stock is overvalued, bond is undervalued, and vice versa. Why are both suggested to be in a bubble in 2014? Also, if one believes in tactical allocation, what asset ...
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1answer
69 views

Switch between funds - Standard Life pension scheme

I have a pension scheme with Standard Life UK where my employer contributes monthly. Currently money is invested in a BlackRock fund. It is an equity fund. I was wondering how does the switch ...
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1answer
423 views

Allocation of HSA assets

I have a health savings account (HSA) linked to my high-deductible health plan (HDHP). I have been contributing to it for several years at the annual maximum. I have the HSA through UMB. The account ...
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3answers
425 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 ...
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1answer
205 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 ...
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1answer
347 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? Shouldn'...
5
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1answer
277 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 ...
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2answers
214 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 ...
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4answers
574 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 ...
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1answer
299 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, ...
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2answers
2k 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 ...
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1answer
809 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 ...
3
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1answer
113 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 ever)...
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4answers
355 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 ...
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1answer
214 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 non-...
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4answers
1k views

What is the best way to manage your hard earned money?

This is all about money management which we need to do on a periodic basis to have financial freedom. There are many articles which say about this, but in real life I found many people managing it in ...
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6answers
493 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, elim­i­nat­ing ...
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1answer
6k 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 ...
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2answers
96 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 ...
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0answers
172 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 ...
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2answers
760 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 ...
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2answers
302 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 ...
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5answers
9k views

What is a good asset allocation for a 25 year old?

I have a mid-sized portfolio (under $100K). And am currently in 100% stocks. I have seen some advice being given that states 80/20 bonds will yield similar returns as 100% stocks with less volatility.
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1answer
182 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 ...
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3answers
1k 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 ...
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1answer
143 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 ...
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3answers
156 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. ...