Portfolio Asset Allocation | TigerDroppings.com

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BJ titsnbeer
LSU Fan
Gods Country
Member since Mar 2011
192 posts

Portfolio Asset Allocation


I'm in my early twenties and I have about $5000 in a brokerage account (I have already maxed out my roth for 2012). Right now it is just sitting in cash but I'm thinking about putting it in the following ETFs and mutual fund.
30% VIG-Vanguard dividend Appreciation ETF
25% VYM-Vanguard High Dividend yield ETF
20% PIPAX-Pimco International Stock Fund
15% VNQ-Vanugard REIT Index ETF
10% GCC-Greenhaven Commodity Index

Do yall think I should mix it up more as far as domestic equities go? Any and all suggestions and advice are appreciated.

ETA: I'm up for suggestions as far as commodity options go




This post was edited on 3/2 at 1:12 pm



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AUtigerNOLA
Auburn Fan
New Orleans, LA
Member since Apr 2011
10118 posts

re: Portfolio Asset Allocation


What you have listed right now is pretty solid IMO. In my late twenties.

I would look at PIMCO all assets fund as well.



This post was edited on 3/2 at 2:55 pm


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Chris Farley
Maryland Fan
Regulating
Member since Sep 2009
3673 posts

re: Portfolio Asset Allocation


What kind of commissions would you be paying on these trades? I wouldn't be putting less than $1000 into a fund at a time if I had to pay commissions on the trades. Otherwise, seems like a nice mix. I would suggest leaning more towards growth as opposed to dividends due to your age, but that's up to you.





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LSUtoOmaha
LSU Fan
Nashville
Member since Apr 2004
21167 posts
 Online 

re: Portfolio Asset Allocation


quote:

What kind of commissions would you be paying on these trades? I wouldn't be putting less than $1000 into a fund at a time if I had to pay commissions on the trades. Otherwise, seems like a nice mix. I would suggest leaning more towards growth as opposed to dividends due to your age, but that's up to you.



I just blindly put money into a 45 to-go fund every month. I don't trust myself to pick individual stocks anymore, and that is after a few years of trying.






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Chris Farley
Maryland Fan
Regulating
Member since Sep 2009
3673 posts

re: Portfolio Asset Allocation


quote:

I just blindly put money into a 45 to-go fund every month. I don't trust myself to pick individual stocks anymore, and that is after a few years of trying.


I basically do the same and add in some random Global and Large/Mid/Small Cap Index ETFs. Because of my job I'm not even allowed to trade any individual equities and any of my ETF trades end up getting reviewed by our Compliance Dept. This has probably saved me a good chunk of money






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LSUtoOmaha
LSU Fan
Nashville
Member since Apr 2004
21167 posts
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re: Portfolio Asset Allocation


quote:

and any of my ETF trades end up getting reviewed by our Compliance Dept


quote:

regulating


Figures






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BJ titsnbeer
LSU Fan
Gods Country
Member since Mar 2011
192 posts

re: Portfolio Asset Allocation


quote:

What kind of commissions would you be paying on these trades?

$5 for the ETFs and no commission for the PIMCO fund.

quote:

I would suggest leaning more towards growth as opposed to dividends

My roth is more aggressively allocated, though not by much. I am a more conservative investor, I think of the brokerage account as more of a savings account than anything.






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BARNEYSTINSON
LSU Fan
Member since Oct 2011
198 posts
 Online 

re: Portfolio Asset Allocation


Here is what I am currently using for Growth accounts.

Large Growth 19.0%
Large Value 19.0%
Mid Growth 4.0%
Mid Value 4.0%
Small Growth 4.0%
Small Value 4.0%
REITs: Global/International 3.0%
Large Foreign 9.0%
Emerging Markets 9.0%
Intermediate-/Long-Term Bond 8.0%
High-Yield Bond 4.0%
Sector (Commodities: Natural
Resources)6.0%
Unconstrained Eclectic 4.0%
CASH 3.0%

You may want to look at a tactical asset allocation fund to achieve a diversified position until you build the capital up to invest in individual ETFs.






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matthew25
Ole Miss Fan
Member since Jun 2012
3401 posts

re: Portfolio Asset Allocation


Early 20's? Then go in strong.

I'd go 50% each on VIG and the T.Rowe Health Mutual Fund.


PIPAX is rated 5-stars, but lost 11% just 2 years ago. I have no confidence in real estate. The commodities play has lost nearly 3% so far this year, while the DOW is up 7.5%.






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Springfield XD
Member since Feb 2013
1782 posts

re: Portfolio Asset Allocation


Vanguard Total Stock Market Portfolio





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RedStickBR
LSU Fan
Member since Sep 2009
10020 posts

re: Portfolio Asset Allocation


With emerging economies contributing 30%+ to global GDP but only 10%+ to global market cap, I think there are opportunities to exploit that divergence. Low rates in the U.S. should continue to drive demand for foreign yield, as is supported by capital flow data to date. You can invest in these economies through regional funds, country-specific funds or individual foreign companies, although the play I like is with domestic companies with heavy emerging market revenue concentration. You'll find a direct correlation between the amount of exposure to EMs and stock performance in 2012. I think 2013 continues that trend. Look for companies generating substantial gross profit dollars as a percentage of total assets. And the more basic the product they sell, the better. I think a 5-10% EM allocation is reasonable, but only with select economies.





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