Comments on: Our Current Asset Allocation http://www.ncnblog.com/2008/05/12/our-current-asset-allocation/ Debt Reduction Rocks - We Are Living Debt Free! Sat, 21 Nov 2009 11:44:22 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Liz http://www.ncnblog.com/2008/05/12/our-current-asset-allocation/comment-page-1/#comment-149988 Liz Sat, 07 Mar 2009 20:30:21 +0000 http://www.ncnblog.com/?p=1225#comment-149988 2nd try at posting so my daughter 25 years old a teacher in NJ has friend that recommended she start a a 403 B in addition to her pension anyone have any thoughts on this good/bad ? should she also start an IRA what about real estate we think she should start looking for a condo or small house. Thanks 2nd try at posting so my daughter 25 years old a teacher in NJ has friend that recommended she start a a 403 B in addition to her pension anyone have any thoughts on this good/bad ? should she also start an IRA what about real estate we think she should start looking for a condo or small house. Thanks

]]> By: Kirk http://www.ncnblog.com/2008/05/12/our-current-asset-allocation/comment-page-1/#comment-107974 Kirk Wed, 14 May 2008 21:38:19 +0000 http://www.ncnblog.com/?p=1225#comment-107974 I admire you putting your allocation out there for all to see. It takes guts as you will get many naysayers or critics. So my post is in the spirit of discussion and not judgement. I would look at the S&P 500 and Total stock market funds to see which offers a lower cost because they have a very high correlation. In other words, not much diversification benefit there so look to cut costs. Granted, the total stock includes more mid and small, but that is only 6% or so of the total fund. You may want to explore adding a tilt to value for large and small cap. While it has a higher standard deviation than broad based funds, it does offer the long term investor extra return over the long haul. I don't see any commodities in the portfolio. While many argue commodities are in a bubble, and they might be, commodities are a great diversifier to a portfolio due to their negative correlation with US stocks and bonds. I love to see the REITs in your portfolio. So many investors neglect them as an asset class, but they are great diversifiers and offer nice returns. For international, do you have emerging and small cap in the 18% allocation. These asset classes have lower correlations with US based investments, especially small cap, so they are a nice addition to a portfolio. Overall, you are doing a great job. You will be well rewarded when it comes time to enjoy the wealth. I admire you putting your allocation out there for all to see. It takes guts as you will get many naysayers or critics. So my post is in the spirit of discussion and not judgement.

I would look at the S&P 500 and Total stock market funds to see which offers a lower cost because they have a very high correlation. In other words, not much diversification benefit there so look to cut costs. Granted, the total stock includes more mid and small, but that is only 6% or so of the total fund.

You may want to explore adding a tilt to value for large and small cap. While it has a higher standard deviation than broad based funds, it does offer the long term investor extra return over the long haul.

I don’t see any commodities in the portfolio. While many argue commodities are in a bubble, and they might be, commodities are a great diversifier to a portfolio due to their negative correlation with US stocks and bonds.

I love to see the REITs in your portfolio. So many investors neglect them as an asset class, but they are great diversifiers and offer nice returns.

For international, do you have emerging and small cap in the 18% allocation. These asset classes have lower correlations with US based investments, especially small cap, so they are a nice addition to a portfolio.

Overall, you are doing a great job. You will be well rewarded when it comes time to enjoy the wealth.

]]> By: tracy ho http://www.ncnblog.com/2008/05/12/our-current-asset-allocation/comment-page-1/#comment-107555 tracy ho Tue, 13 May 2008 06:24:05 +0000 http://www.ncnblog.com/?p=1225#comment-107555 Good allocation , hope more gain from each of your porfolio , Tracy Ho wisdomgettingloaded Good allocation , hope more gain from each of your porfolio ,

Tracy Ho
wisdomgettingloaded

]]> By: nickel http://www.ncnblog.com/2008/05/12/our-current-asset-allocation/comment-page-1/#comment-107518 nickel Tue, 13 May 2008 01:57:51 +0000 http://www.ncnblog.com/?p=1225#comment-107518 Ah, I didn't think of the pension. Good point. That should help settle things down. Ah, I didn’t think of the pension. Good point. That should help settle things down.

]]> By: nickel http://www.ncnblog.com/2008/05/12/our-current-asset-allocation/comment-page-1/#comment-107506 nickel Tue, 13 May 2008 00:11:02 +0000 http://www.ncnblog.com/?p=1225#comment-107506 You're one aggressive dude. :) In my view, being 100% invested in stocks is essentially performance chasing. A small amount of bond exposure can reduce your volatility dramatically with minimal impact on total return. But to each their own. That's why they call it *personal* finance. :) You’re one aggressive dude. :)

In my view, being 100% invested in stocks is essentially performance chasing. A small amount of bond exposure can reduce your volatility dramatically with minimal impact on total return.

But to each their own. That’s why they call it *personal* finance. :)

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