Wednesday, August 23, 2006

My Portfolio

I will quickly try to explain how I am positioned in the market. I need to get some sleep, because I work at night, and it is far too daytime for me to be awake. These will be broad brush strokes, but feel free to ask questions and I will answer as best I can.

As I said, I'm an asset allocator. I max out my 401(k) with a 50% match up to 6% of my salary from my employer in stock, IIRC. (Ugh!) Oh well, not gonna argue. Sure makes it harder to allocate assets though when I get a huge chunk of retirement funds defaulted into a Fortune 500 stock.

My target portfolio allocations are 20% small cap US equities, 8% US fixed income, 5% US inflation protected fixed income, 10% international small caps, 16% international mid caps, 5% international large caps, 6.25% emerging market equities, 6.25% international/emerging market fixed income, 5% commodities, 1% forex, 4% real estate, 12.5% US large caps, and 1% cash. MS Excel tells me that is 100%. Currently, I have nothing in the emerging market equities or fixed income, but I plan to handle the equity side in the next 1-2 months. Except for the commodities and forex, everything is in mutual funds and 1 ETF - XLP.

Right now, I am over-allocated in my commodity, US large caps, forex, mid cap international and fixed income accounts. I tend to rebalance the 401(k) monies regularly, about monthly. For the monies in my taxable account, I usually stop adding once I get over my target allocation. Then I focus on upping the amounts in the accounts that are short. I don't have a self-directed Roth IRA yet because my employer has changed recently and I was getting a feel for the new 401(k). Needless to say, I am disappointed. I have so little control over their "contributions" that I don't even count them in net worth or asset allocation. Its purely bonus money. By year end I will roll my old 401(k) into a self-directed Roth through which I definitely plan to do some more real estate investing.

So thats me in a nutshell. If you have any questions, you know what to do.


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