Given recent events, I suppose I should take a look at how my investments are doing. I am also planning to make some large-ish 401k contributions and need to figure out which asset classes to buy in order to rebalance my portfolio.
|Asset Class / Fund||%||%|
|Broad US Stock Market||38.8%||34%|
|VTSMX – Vanguard Total Stock Market Index Fund|
|DISFX – Diversified Stock Index Institutional Fund*|
|DODGX – Dodge & Cox Stock Fund*|
|US Small-Cap Value||9%||8.5%|
|VISVX – Vanguard Small Cap Value Index Fund|
|Real Estate (REITs)||8.4%||8.5%|
|VGSIX – Vanguard REIT Index Fund|
|Broad International Developed||21%||25.5%|
|FSIIX – Fidelity Spartan International Index Fund*|
|VDMIX – Vanguard Developed Markets Index Fund|
|International Emerging Markets||6.5%||8.5%|
|VEIEX – Vanguard Emerging Markets Stock Index Fund|
|Bonds – Short-Term||9%||7.5%|
|VFISX – Vanguard Short-Term Treasury Fund|
|Bonds – Inflation-Indexed||8%||8.5%|
|VIPSX – Vanguard Inflation-Protected Securities Fund|
|Total Portfolio Value||$105,654|
* denotes 401(k) holding given limited investment options
Throughout 2008, my wife has been making regular salary deferrals to her 401k, and has recently reached the annual $15,500 limit. I plan to start contributing to my Self-Employed 401k plan shortly.
The 2008 year-to-date time-weighted performance of my personal portfolio is -27.9% as of 9/18/08. In fact, despite sizable additional contributions, my portfolio is down over $10,000 since my last update in April. Today might have been a bad day to run these numbers…
Although not necessarily a benchmark, the Vanguard S&P 500 Fund has returned -20.07% YTD, their FTSE All World Ex-US fund has returned –29.74% YTD, and their Total Bond Index fund is up 2.71% YTD as of 9/18/08. (My emerging markets fund is down nearly 40%!)
First of all, I am not changing my asset allocation or moving into safer investments. In fact, I am doing the exact opposite and buying what has been dropping the most…
I am still following the general asset allocation plan outlined here, with a 85% stocks/15% bonds split [115-Age]. Here is an example of how we implemented the asset allocation across multiple accounts, although I’ve since moved some funds around.
So, it looks like I need to buy more Emerging Market and Broad International. I am now a bit overweight in Bonds and Broad US, so I need to sell those. Due to the limited index fund choices in my Fidelity Solo 401k account, I may start buying ETFs if I can justify the $10.95 commissions.
You can view all my previous portfolio snapshots here.