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re: Retirement asset allocation
Posted on 8/27/24 at 8:39 pm to Bob Sacamano 89
Posted on 8/27/24 at 8:39 pm to Bob Sacamano 89
Any money in bonds when you’re 30+ years from retirement is probably unnecessary, but if target date funds means you won’t mess with it in bad times, it can be worthwhile.
0
Posted on 8/28/24 at 12:57 am to TheWiz
quote:
VTSAX
Vtsax has been really good to me.
Posted on 8/28/24 at 6:36 am to Redstickbaw
My 401K is with Fidelity and my choices were limited so I did 50% S&P and 50% Contrafund.
More aggressive with my Roth since I have more options
30% SMH etf
30% VGT etf
20% AGTHX
20% CWGIX
I'm 41 now but I've been using this allocation for the last 5-6 years, and it has served me well. SMH has definitely been the Rockstar of this group, by a large margin.
More aggressive with my Roth since I have more options
30% SMH etf
30% VGT etf
20% AGTHX
20% CWGIX
I'm 41 now but I've been using this allocation for the last 5-6 years, and it has served me well. SMH has definitely been the Rockstar of this group, by a large margin.
Posted on 8/28/24 at 3:33 pm to Bob Sacamano 89
What are you missing?
My only complaint with that would be that I would prefer a higher percentage in the total stock market as opposed to the international stocks.
My only complaint with that would be that I would prefer a higher percentage in the total stock market as opposed to the international stocks.
Posted on 8/28/24 at 3:53 pm to Bob Sacamano 89
quote:
Not arguing but what am I missing with this choice?
As mentioned above, 1/3 rd of your money is going into international stocks. They have sucked for 20 years. Every year some genius forecasts them to beat US stocks and they never do. If they do turn around, their valuations are low enough that you will be able to get in before it's over, but I wouldn't hold my breath, nor is it likely to be very bad if you miss a rally in international stocks.
Then, 10% is going into bonds. Bonds lose value to inflation, stocks beat inflation. You've got 30 years. The inflation concerns might be greater.
Then, you have less than 4% of your total money going into small cap stocks.
There's really nothing wrong with any of that if you are comfortable with it, because the best plan is one that you will stick with and execute reliably, and any reasonable investment is going to outperform doing nothing, but check back with me after the election because that might not be true anymore.
Posted on 8/28/24 at 5:08 pm to CharlesUFarley
quote:
Small Value stocks are the highest returning asset class over the long term. That would probably be less than 1% of your allocation in the target date fund. It is probably 0% in your current allocation.
Not in a long time, and it takes a lot of patience to stick with it. Most will throw in the towel.
Posted on 8/28/24 at 9:45 pm to tirebiter
quote:
Not in a long time, and it takes a lot of patience to stick with it. Most will throw in the towel.
True, for the most part. Small Value lead during the early 2000's, but in 2018 the large stocks pulled away, then pre- and post-COVID, the narrow advance of the mega cap growth stocks dominated and has continued to this day. If that is a bubble, and there is a correction, then in a few years those stats will change. That is the reason for keeping some assets in multiple stock styles: large and small, growth and value, because at different times they all lead the market for different reasons.
That used to be the reason to keep some in Foreign, but I have decided I have had enough of that. That could change in the future.
Posted on 8/29/24 at 7:02 am to danilo
quote:
you should run away from target date funds ALMOST as fast as you run away from Edward Jones.
Even Vanguard?
Yes, target date funds suck.
Posted on 8/29/24 at 1:44 pm to CharlesUFarley
Ok I get that.
This is through my work of course so I chose this as I think it’s the best option. There are not. Tons to pick from.
The only other aggressive one I would have to choose from is
VFINX or VWUSX.
Both are doing a little better percentage point wise, but Vfinx is about double the expense ratio and vxusx is about 7x
I wish I had the total stock market index as an option but I don’t
This is through my work of course so I chose this as I think it’s the best option. There are not. Tons to pick from.
The only other aggressive one I would have to choose from is
VFINX or VWUSX.
Both are doing a little better percentage point wise, but Vfinx is about double the expense ratio and vxusx is about 7x
I wish I had the total stock market index as an option but I don’t
This post was edited on 8/29/24 at 1:54 pm
Posted on 8/29/24 at 4:32 pm to Redstickbaw
JEPQ - 20%
JEPI - 20%
SMH - 20%
SCHG - 40%
Shift will be into Value Stocks in the short term. This allocation gives you a nice mix of growth and dividend yield on a monthly basis that can be dollar cost averaged.
JEPI - 20%
SMH - 20%
SCHG - 40%
Shift will be into Value Stocks in the short term. This allocation gives you a nice mix of growth and dividend yield on a monthly basis that can be dollar cost averaged.
This post was edited on 8/29/24 at 5:10 pm
Posted on 8/30/24 at 4:14 pm to Bob Sacamano 89
I always chose the best fund(s) in my 401K and then adjusted my rollover IRA and Roth to complement. So if the best fund in the 401K was large value, I'd try to do large/small growth or small value with my Roth contributions and maybe tweak my rollover allocation some to balance things out.
Also, VWUSX is actively managed, whereas VFINX and the target fund are indexed. No need to get into the argument, but some aren't sold on indexing. At least one issue is that the index funds will become more concentrated in expensive and therefore riskier stocks as the market grows, the active fund might too, or, its managers may decide to let some air out of their Apple.
Also, VWUSX is actively managed, whereas VFINX and the target fund are indexed. No need to get into the argument, but some aren't sold on indexing. At least one issue is that the index funds will become more concentrated in expensive and therefore riskier stocks as the market grows, the active fund might too, or, its managers may decide to let some air out of their Apple.
This post was edited on 8/30/24 at 4:18 pm
Posted on 8/31/24 at 7:14 pm to CharlesUFarley
I get that and that is essentially what I have done.
My HSA is more aggressive and as a result has seen more growth lately in this market.
Like I said I wish they offered the total stock market index as an option bc I would likely chose that one vs the planned retirement account.
Are you a FA?
Just curious. I am not but do enjoy the topic and read a lot on it. My company’s option allow a diy approach so I do enjoy that part
My HSA is more aggressive and as a result has seen more growth lately in this market.
Like I said I wish they offered the total stock market index as an option bc I would likely chose that one vs the planned retirement account.
Are you a FA?
Just curious. I am not but do enjoy the topic and read a lot on it. My company’s option allow a diy approach so I do enjoy that part
Posted on 9/1/24 at 7:55 pm to Bob Sacamano 89
quote:
Are you a FA?
Just curious. I am not but do enjoy the topic and read a lot on it. My company’s option allow a diy approach so I do enjoy that part
No. Mechanical Engineer by education, now retired early. Worked the last half of my career in industrial automation, but got tired of that too.
I got interested in investing rather late, about my middle thirties. I would have done a lot better if I had known something about saving and investing when I first got out of college, but I had to learn about it the hard way, but luckily Al Gore invented the internet and Investing for Dummies is actually a pretty good book.
Posted on 9/2/24 at 1:29 am to Redstickbaw
I’m in a similar boat, and I switched to a target date fund a couple of years ago. It’s been great because I don’t have to worry about adjusting my investments as I get closer to retirement. I used to be heavily into stocks like you, but I like the idea of having someone else manage the shifts for me. If you’re into a more hands-off approach and want to simplify things, a target date fund could be a good fit. Plus, it’ll automatically balance out as you get older, which is nice for long-term planning.
Posted on 9/2/24 at 1:41 pm to Crescent Connection
quote:4 downvotes and no upvotes. Too much in small/mid caps for a 39 y.o.? Generously curious.
25% Growth/tech 20% S&P 20% mid cap 20% small cap 10% international 5% value
Posted on 9/2/24 at 2:56 pm to Crescent Connection
I added another downvote. How old are you? What’s your goal?
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