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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2k 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, ...
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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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693 views

Asset Allocation Tools that understand Mutual Funds [closed]

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 ...
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1answer
282 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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4answers
587 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 ...
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3answers
157 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. ...
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4answers
436 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 ...
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2answers
161 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 ...
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3answers
643 views

What evidence or research suggests that mid- or small-capitalization stocks should perform better than large caps?

In my 401k I have always allocated a greater percentage of my portfolio into mid cap funds because they seem to be riskier and have a higher upside. Yet, as of the past year or so, the large cap funds ...
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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
426 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 ...
4
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1answer
240 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 ...
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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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96 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 ...
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1answer
40 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% ...
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5answers
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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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4answers
2k 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
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1answer
366 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 ...
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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3answers
273 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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4answers
367 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 ...
3
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1answer
196 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 ...
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2answers
98 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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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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1answer
110 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 ...
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1answer
200 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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1answer
107 views

Setting and measuring risk profile target for retirement account

I understand that as you age you want to slowly lower the risk profile of your retirement account, but how should I determine how much risk I should take on currently and how do I measure how much ...
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3answers
458 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
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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5answers
1k views

What's the most conservative split of financial assets for my portfolio in today's market?

Mid 30's, looking for what split I should have between Australian shares, International shares, property, cash, interest, bonds, options, etc. or maybe none of the above. What is considered to be a "...
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4answers
229 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 ...
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2answers
87 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?
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4answers
150 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) ...
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3answers
449 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 ...
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1answer
301 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, ...
2
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1answer
214 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 ...
2
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1answer
7k 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 ...
2
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1answer
152 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 acheive risk parity because 80% of your risk is still in your ...
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3answers
353 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 ...
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1answer
90 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 ...
2
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1answer
206 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 ...
2
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1answer
183 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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1answer
162 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.
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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 ...
2
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1answer
247 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/...
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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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2answers
98 views

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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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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1answer
241 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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2answers
103 views

Best Way to Allocate Invest Dollars Using a Market Timing Investment Approach

I was wondering if anyone knows of a way to best allocate my investment funds when using a Market Timing approach. For example, I have a market timing system I developed and tested since 2005. Every ...