Asset Allocation -- Check In

[Shimmy8]

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Alright, been awhile since we have had one of these. I've learned so much over the last few years from Blade, doze, and others, thought I'd check in to see where everyone stands.

I'll start:

32, single, no state income tax.

Total Retirement:
82% 401k
9% Backdoor Roth IRA
9% HSA

No real estate, no taxable.

AA:

33% Fidelity 500 Index Fund Institutioal Class FXSIX Large Cap
18% Fidelity International Index Fund Premium Class FSIVX International
13% Fidelity Extended Market Index Fund Premium Class FSEVX Mid Cap
7% Fidelity US Bond Index Fund Premium Class FSITX Bond
4% Fidelity Small Cap Index Fund Premium Class FSSVX Small Cap
3% Fidelity Emerging Markets Index Fund Premium Class FPMAX International

13% Vanguard 500 Index Fund Investor Shares VFINX Large Cap

8% Fidelity Total Market Investor Class FSTMX Large Blend

Leaves me with a grand total of:

46% Large Cap
8% Large Blend
13% Mid Cap
4% Small Cap
22% International
7% Bond

Due for my annual reallocation this December.

 

[Psai]

100% vanguard total stock market

Gotta get paid

 

[BLADEMDA]

Alright, been awhile since we have had one of these. I've learned so much over the last few years from Blade, doze, and others, thought I'd check in to see where everyone stands.

I'll start:

32, single, no state income tax.

Total Retirement:
82% 401k
9% Backdoor Roth IRA
9% HSA

No real estate, no taxable.

AA:

33% Fidelity 500 Index Fund Institutioal Class FXSIX Large Cap
18% Fidelity International Index Fund Premium Class FSIVX International
13% Fidelity Extended Market Index Fund Premium Class FSEVX Mid Cap
7% Fidelity US Bond Index Fund Premium Class FSITX Bond
4% Fidelity Small Cap Index Fund Premium Class FSSVX Small Cap
3% Fidelity Emerging Markets Index Fund Premium Class FPMAX International

13% Vanguard 500 Index Fund Investor Shares VFINX Large Cap

8% Fidelity Total Market Investor Class FSTMX Large Blend

Leaves me with a grand total of:

46% Large Cap
8% Large Blend
13% Mid Cap
4% Small Cap
22% International
7% Bond

Due for my annual reallocation this December.

I will readily admit "nobody knows nothing" when it comes to timing but Emerging markets have taken a beating this year. Of course, they could get beaten up even more but they look attractive right now especially for a young investor with time on his/her side.

I still like Small and Mid caps International as well but don't forget Emerging markets.

 

[dchz]

100% vanguard total stock market

I know he's trolling, but this is my plan once i graduate for the first 5 years. No debt, single. estimated cost of living: $50k. rest of salaries go to this 😀

 

[dchz]

Alright, been awhile since we have had one of these. I've learned so much over the last few years from Blade, doze, and others, thought I'd check in to see where everyone stands.

I'll start:

32, single, no state income tax.

Total Retirement:
82% 401k
9% Backdoor Roth IRA
9% HSA

No real estate, no taxable.

AA:

33% Fidelity 500 Index Fund Institutioal Class FXSIX Large Cap
18% Fidelity International Index Fund Premium Class FSIVX International
13% Fidelity Extended Market Index Fund Premium Class FSEVX Mid Cap
7% Fidelity US Bond Index Fund Premium Class FSITX Bond
4% Fidelity Small Cap Index Fund Premium Class FSSVX Small Cap
3% Fidelity Emerging Markets Index Fund Premium Class FPMAX International

13% Vanguard 500 Index Fund Investor Shares VFINX Large Cap

8% Fidelity Total Market Investor Class FSTMX Large Blend

Leaves me with a grand total of:

46% Large Cap
8% Large Blend
13% Mid Cap
4% Small Cap
22% International
7% Bond

Due for my annual reallocation this December.

saw your situation in the burnout thread, why do you even bother with bond allocation? seems kinda pointless at this time in your life.

 

[Psai]

I know he's trolling, but this is my plan once i graduate for the first 5 years. No debt, single. estimated cost of living: $50k. rest of salaries go to this 😀

Not trolling, ten percent this year. Last year was like fourteen

 

[deleted126335]

Alright, been awhile since we have had one of these. I've learned so much over the last few years from Blade, doze, and others, thought I'd check in to see where everyone stands.

I'll start:

32, single, no state income tax.

Total Retirement:
82% 401k
9% Backdoor Roth IRA
9% HSA

No real estate, no taxable.

AA:

33% Fidelity 500 Index Fund Institutioal Class FXSIX Large Cap
18% Fidelity International Index Fund Premium Class FSIVX International
13% Fidelity Extended Market Index Fund Premium Class FSEVX Mid Cap
7% Fidelity US Bond Index Fund Premium Class FSITX Bond
4% Fidelity Small Cap Index Fund Premium Class FSSVX Small Cap
3% Fidelity Emerging Markets Index Fund Premium Class FPMAX International

13% Vanguard 500 Index Fund Investor Shares VFINX Large Cap

8% Fidelity Total Market Investor Class FSTMX Large Blend

Leaves me with a grand total of:

46% Large Cap
8% Large Blend
13% Mid Cap
4% Small Cap
22% International
7% Bond

Due for my annual reallocation this December.

Any debt?

Reasonable. Little light on international for my taste.

 

[Shimmy8]

$300k student loans refinanced at 3.6%. $5k/mo payments will be paid off in 4 years if I don’t make extra payments.

Contributing max to 401k, backdoor IRA, and HSA.

Also owe my parents ~$40k for help with down payment that I’ll have paid off in 3-4 months.

After I pay them off, building emergency fund and contributing taxable.

 

[nimbus]

100% vanguard total stock market

Gotta get paid

I know he's trolling, but this is my plan once i graduate for the first 5 years. No debt, single. estimated cost of living: $50k. rest of salaries go to this 😀

Not trolling, ten percent this year. Last year was like fourteen

It’s a solid plan when you’re young.

 

[vector2]

Alright, been awhile since we have had one of these. I've learned so much over the last few years from Blade, doze, and others, thought I'd check in to see where everyone stands.

I'll start:

32, single, no state income tax.

Total Retirement:
82% 401k
9% Backdoor Roth IRA
9% HSA

No real estate, no taxable.

AA:

33% Fidelity 500 Index Fund Institutioal Class FXSIX Large Cap
18% Fidelity International Index Fund Premium Class FSIVX International
13% Fidelity Extended Market Index Fund Premium Class FSEVX Mid Cap
7% Fidelity US Bond Index Fund Premium Class FSITX Bond
4% Fidelity Small Cap Index Fund Premium Class FSSVX Small Cap
3% Fidelity Emerging Markets Index Fund Premium Class FPMAX International

13% Vanguard 500 Index Fund Investor Shares VFINX Large Cap

8% Fidelity Total Market Investor Class FSTMX Large Blend

Leaves me with a grand total of:

46% Large Cap
8% Large Blend
13% Mid Cap
4% Small Cap
22% International
7% Bond

Due for my annual reallocation this December.

Needs more dividend and small cap exposure given your age. Compounding is magical, and I still can't get over the fact that $10k invested in Coca Cola 30 years ago would be worth over $300k today with dividends reinvested. KO may be toward the dusk of their tenure but there are plenty of companies with 15 yr hx of divvy increases (even through the recession) who still likely have decades of earnings growth ahead. I mainly use dividendgrowthinvestor.com, seekingalpha.com, and Morningstar.com to find and evaluate individual stocks.

And if you're not interested in individual stocks, consider some ETFs like VIG, FDVV, SCHD, VYM, NOBL. I'm thinking about adding some DLS to my portfolio soon for some international small cap div exposure.

 

[deleted126335]

$300k student loans refinanced at 3.6%. $5k/mo payments will be paid off in 4 years if I don’t make extra payments.

Contributing max to 401k, backdoor IRA, and HSA.

Also owe my parents ~$40k for help with down payment that I’ll have paid off in 3-4 months.

After I pay them off, building emergency fund and contributing taxable.

Solid plan. After building emergency fund, I would put extra $ towards debt before adding a taxable portfolio.

 

[Notorious T.E.E.]

Any debt?

Reasonable. Little light on international for my taste.

Large cap US stocks generate a significant portion of their revenue from international sources (Apple sees more than 50% coming from outside the US). It is something to consider when determining your AA. Someone influential (I think it was John Bogle?) has stated you don't need any specific "international" allocation in your mix. While that may be extreme, I think the point is you have more international risk/exposure than you may realize.

 

[Notorious T.E.E.]

I will readily admit "nobody knows nothing" when it comes to timing but Emerging markets have taken a beating this year. Of course, they could get beaten up even more but they look attractive right now especially for a young investor with time on his/her side.

I still like Small and Mid caps International as well but don't forget Emerging markets.

I agree timing is bad. I did see a chart showing that last 7-8 times emerging markets were down 20% against their gains the next year, and there was quite a bit of profit to be had. The bad is VWO is down over the last 5 years, so you really have to get the timing right or be in it for a LONG time.

 

[deleted126335]

Large cap US stocks generate a significant portion of their revenue from international sources (Apple sees more than 50% coming from outside the US). It is something to consider when determining your AA. Someone influential (I think it was John Bogle?) has stated you don't need any specific "international" allocation in your mix. While that may be extreme, I think the point is you have more international risk/exposure than you may realize.

I am aware of this argument. While I agree that diversification benefit of international has lessened, It is still there. Also, right now, International both developed and emerging are significantly cheaper than domestic. If you believe in mean reversion, international stocks have higher expected but not guaranteed returns going forward than domestic.

https://www.advisorperspectives.com/articles/2018/04/16/dont-abandon-international-diversification

 

[Shimmy8]

I’ve set December of each year to rebalance, will be higher in emerging and overall international. Maybe at expense of bonds?

 

[sethco]

Needs more dividend and small cap exposure given your age. Compounding is magical, and I still can't get over the fact that $10k invested in Coca Cola 30 years ago would be worth over $300k today with dividends reinvested. KO may be toward the dusk of their tenure but there are plenty of companies with 15 yr hx of divvy increases (even through the recession) who still likely have decades of earnings growth ahead. I mainly use dividendgrowthinvestor.com, seekingalpha.com, and Morningstar.com to find and evaluate individual stocks.

And if you're not interested in individual stocks, consider some ETFs like VIG, FDVV, SCHD, VYM, NOBL. I'm thinking about adding some DLS to my portfolio soon for some international small cap div exposure.

On the flip side, if you told me 30 years ago that Toys R Us, KB Toys, Circuit City, and others would be out of business, I would have never believed you. Then again, I was only 9 years old at the time and still believed in the Tooth Fairy, Santa Claus, and Military Intelligence.

 

[sethco]

Large cap US stocks generate a significant portion of their revenue from international sources (Apple sees more than 50% coming from outside the US). It is something to consider when determining your AA. Someone influential (I think it was John Bogle?) has stated you don't need any specific "international" allocation in your mix. While that may be extreme, I think the point is you have more international risk/exposure than you may realize.

Yep. That's JL Collins point of view. Basically, the largest American companies have a strong international presence, also. So, he feels international exposure is overrated and redundant. I do a Total International Index for some exposure that this concept misses

 

[ButterButter]

Not trolling, ten percent this year. Last year was like fourteen

Average 10-year return 10.98%/yr. Vanguard Growth is on par with ~12%/year

 

[Psai]

We are in a ridiculous bull market now though there will be a correction soon

 

[Mman]

We are in a ridiculous bull market now though there will be a correction soon

while it will happen at some point, this same prediction is going on 7 years old now as it has been predicted since 2011 to be coming any time now.

 

[Psai]

while it will happen at some point, this same prediction is going on 7 years old now as it has been predicted since 2011 to be coming any time now.

😉

 

[pgg]

We are in a ridiculous bull market now though there will be a correction soon

Could be. Nobody knows nothing. The question is, what do you actually do with that belief, and why do you think your market timing will work this time, when the evidence overwhelmingly shows that it's harmful.

I don't see a reason to change my asset allocation right now. If the stock market drops significantly, I'll rebalance into it per my current plan and AA, and things will be OK.

 

[Twiggidy]

Could be. Nobody knows nothing. The question is, what do you actually do with that belief, and why do you think your market timing will work this time, when the evidence overwhelmingly shows that it's harmful.

I don't see a reason to change my asset allocation right now. If the stock market drops significantly, I'll rebalance into it per my current plan and AA, and things will be OK.

Agree. All of it is hard to predict. No one knows what the next big thing will be for you to dump your money in and wait. My strategy has always been "invest in what people will always need/use". Coca-Cola, Amazon (I got it when it was in the hundreds), Apple (also got it on the earlier side and hit a stock split), PG, Nike (don't believe the boycott hype). I may not get rich but my portfolio will always follow the market and the market always trends up long term. I'm sure in another 5 or 10 years I'll shift my portfolio to more conservative positions. I'm also probably never selling my home even if I move. It's in a market that tends to withstand market shifts and is always a desired area so it's pretty much part of my portfolio. Also, hopefully this artist I collect becomes super famous, not holding my breath on that one though.

 

[Twiggidy]

I know he's trolling, but this is my plan once i graduate for the first 5 years. No debt, single. estimated cost of living: $50k. rest of salaries go to this 😀

Up 137% over that last 10 years.

 

[deleted185747]

Put 5% into GME and hold

 

[coffeebythelake]

Put 5% into GME and hold

TSLA, Amazon, AAPL, FB, GOOGLE
RDFN, BYND for me