Inspired by a recent article by Nickel, over at Five Cent Nickel, about his current asset allocation, I thought it might be a good time to take a look at our current asset allocation.
Between us, my wife and I have five retirement accounts – two Roth IRAs, my 403(b), a SEP-IRA, and my wife’s pension. The calculations in this article are based on four of those accounts – and exclude my wife’s pension.
Our current asset allocation:
100% stocks, broken into the following -
Our allocation will shift over the coming months, as we continue to make contributions to my wife’s Roth IRA and my 403(b). Current plans are for future contributions to the 403(b) to be invested in an S&P 500 Index Fund and future contributions to my wife’s Roth IRA to be invested in a Total US Stock Market mutual fund.
Like my buddy, FMF, over at Free Money Finance, I prefer investing in Index Funds. I’m still working to refine my investing strategy, and it feels good to have a snap-shot of my current situation. Just like Nickel suggested, I have decided to treat all of my investments as ‘one big pot of money’ – and I’ll make adjustments to our allocation using my SEP-IRA contributions throughout 2008.
Edit: After reading a comment left by Nickel, I wanted to make a note about the aggressive nature of our investments. Instead of bonds or a bond fund, we have my wife’s pension, which grows at a guaranteed rate. If we did not have her pension, we would change our asset allocation.