Twice a month, I update a spreadsheet of all my accounts that calculates 1) my net worth and 2) my current asset allocation. I figured that it might be interesting to post it on my blog once per month
In my previous blog at the link shown below, I explained the details of the mutual funds I invest in and how I figure what my allocation targets are.
http://mypersonalfinancejourney.blogspot.com/2010/01/index-mutual-funds-and-current-assett.html
On February 3rd, 2010, my asset allocation picture was as shown below.
As you can see, I have some serious work to do to get to my allocation targets. Remember, the general rule of thumb is to rebalance your allocation if it exceeds +/- 5% of the target you select.
The areas that I need to drastically improve are highlighted in red below. The reason that I am so over-allocated in domestic large cap equity is that for the past year and a half, I have been contributing 100% of the money in my 401k to buying an S&P500 index fund. I have recently been trying to exchange money out of that and in to bond and international funds (as you can see, the international equity and non-inflation bond funds %’s are more or less on target).
However, my current goal is to get more funds shifted towards investing in Emerging Market funds. Keep on learning!
Detailed Allocation Calculations
|
| % Cash (money market target 5%) Currently 14%
|
| % non-inflat Bond Funds (target 15%) Currently 11% |
| % TIPS Bonds (target 5%) Currently 0%
|
|
| % International Equity (Target 11%) Currently 12% |
|
| % International Emerging Markets (Target 11%) Currently 5%
|
| % Domestic Large Cap (Target 8%) Currently 33%
|
|
| % Domestic Small Cap (Target 9%) Currently 6% |
| % Domestic Small Cap Value (Target 13%) Currently 6% |
| % Domestic Large Cap Value (Target 13%) Currently 7% |
| % REIT (target 10%) Currently 6% |
