Asset Allocation
Several major keys to a good investing strategy are diversification, minimizing fees/taxes, and automating. I personally have a few different buckets of investments.- RoboAdvisor: this bucket makes up small but growing portion of my investments. It achieves all three keys, but I don't have much control over the asset allocation that they choose for me.
- Financial Advisor: this bucket makes up about a 3rd of my investments. There's a management fee that goes along with it, but the financial planner offers personal / family planning in addition to asset management, so I think the fee is worth it. They manage the asset allocation and the fees are reasonable.
- My Allocation: I have an account at a brokerage that I manage on my own. I diverify across the following allocations and rebalance regularly, usually by using the incoming cash flows.
- Retirement Account: The last bucket is my retirement account with my company. I take full advantage of the match, which is generous. I then diversify as much as possible across the low cost options that the 401k provider offers.
My Asset Allocation
- Large Cap - 6%
- Large Value - 6%
- Small Value - 6%
- Small Cap - 6%
- Intl Blend - 5%
- Intl Value - 5%
- Intl Small - 5%
- Intl Small Value - 5%
- EM - 10%
- REIT - 4%
- Intl REIT - 4 %
- Commodities - 8%
- Foreign Corp Bond - 5%
- TIPS - 5%
- Short Bonds - 5%
- Govt Bonds - 5%
- Foreign Govt Bonds - 5%
- High Yield Bonds - 5%