I’ve done it! I got tired of my market-timing foolishness and bought IVV anyways today. I also put in orders to exchange all my Vanguard funds to try and match the asset allocation I decided on previously. Here’s what my actual portfolio looks like now:
16% iShares S&P 500 Index ETF (IVV)
19% Vanguard [Large Cap] Value Index Fund (VIVAX)
20% Vanguard Small-Cap Value Index Fund (VISVX)
11% Vanguard REIT Index Fund (VGSIX)
11% Vanguard International Value Fund (VTRIX)
11% Vanguard Emerging Markets Stock Index Fund (VEIEX)
11% Vanguard Intermediate-Term Investment-Grade Bond Fund (VFICX)
If you want to know exactly how much I have of each, my total invested amount is $63,400. I’m very happy I finally did this. My previous Vanguard Target Retirement Funds (such as VTIVX) were not a horrible choice, but I think this portfolio will outperform it in the long run with minimally added risk. In other words, I believe that it is closer to the Efficient Frontier.
If you want to read about my whole retirement portfolio planning saga, here are the highlights, starting from way back in 2004:
December – Which Broker for my Roth IRA?
December – Read some books which really helped me understand the reasoning and power behind index investing: A Random Walk Down Wall Street and The Four Pillars of Investing.
January – Decided on Vanguard Target Retirement 2035 Fund (VTTHX)
August – Should I Rollover My 401k and Where To? Part 1, Part 2, Part 3, Part 4.
March – A Portfolio Snapshot; Decided a change was needed.
March – Portfolio Options: Slice & Dice, Keep It Simple, or Just One Fund.
April – Final Target Portfolio
April – Choosing a Discount Stock Broker: Part 1 and Part 2.
April – Ended up with opening an account with Scottrade.
Now that this is all set, and I have some free trades from Scottrade burning a hole in my pocket (thanks to you all), I have the itch to spend some time learning about trading individual stocks and options. However, if anything, active trading will remain a very small part of my overall portfolio.
By Jonathan Ping | Retirement | 5/2/06, 4:13pm