Wednesday, June 13, 2007

Asset Allocation - June 2007

I thought I would post on my current asset allocation. This view is really just an overall high level view, since I have chosen not to split out between my 401(k), pension and non-retirement accounts. In addition, some of my non-retirement funds are held directly with the mutual fund, as opposed to dealing with a brokerage (such as Zecco and Scottrade). One thing that makes things a little confusing is the fact that because I have different accounts (401k, non retirement etc), I have more funds than I really would like to have. For example, I currently have 2 foreign funds + my emerging market fund. This is because the offerings in my 401(k) aren't necessarily what I would pick. This is why I haven't provided more detail on the individual funds I own yet. I know there are options to request your company to let you have a self-directed 401(k) and that can be a topic of later discussion, but I really haven't had time to look into it yet.

Currently, it looks I have about 24% parked in stable value/bonds with the balance in various stock holdings. Actually, the percentage would probably be skewed more to stocks, except that I have included my company's pension balance in the stable value category, since the interest paid on it is pegged to the 10-year T-bill rate as of last September. Other than that, I think things are pretty straightforward. Of the stock mix, I have an approximately 40/60 split between US and foreign equities. While it may be somewhat chasing the hot idea, I feel that a significant exposure to foreign stocks will give me good returns, while being less risky than chasing sector performance. What do you think?

No comments: