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GamingHyena posted:Does anyone have any thoughts on this portfolio? Is my rationale completely off base? Is 60% stocks too conservative for my time frame? I've read the rule of thumb is your bond holding percentage age + 10, in which case I'm actually more aggressive than the rule. I've thought about going as high as 65/30 split for more growth, or switching out oil for a gold or other precious metal ETF. However, from what I've read about how gold historically performs relative to the economy I'm not sure now is a good time to buy. That looks pretty good for the most part, although I have a couple comments/suggestions. A 60% equity allocation with a 30 year time horizon does seem on the conservative side, but without knowing anything of your personal situation, and without knowing what your ability, willingness, and need to take risk are, 60% could very well be appropriate. A 2-to-1 allocation of US to international stocks is fairly high when the US only makes up about 45-50% of the global economy. Personally I would probably go with an allocation with a more even distribution between US/international. I'm not really a fan of just holding USO for a commodity allocation. Individual commodities can be extremely volatile; you're much better off holding a basket of diversified commodities. There's different funds that do this, but personally I use DBC. DBC still has a sizable allocation to oil, but it also has allocations for aluminum, corn, gold, and wheat. Finally, this is up to you, but I would probably switch the medical ETF out for a small value ETF. Small value has been shown to outperform the rest of the market over time, and having a small to moderate allocation can improve your risk-adjusted performance over a timespan of 30 years.
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Jun 23, 2009 19:06
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80k posted:TIPS offers a diversification benefit, and allow you to lock in a real rate of return, so they are very different from the G-Fund. Rather than simply divide 50/50 TIPS/G, a better strategy is to buy TIPS individually, and only when they are at attractive rates (like 2.5% or greater). So you can skip TIPS for the time being. I've been a net seller of them over the past few months. Does this advice change for someone that prefers to invest in a TIPS fund instead of individual TIPS? In what cases does it make more sense to buy individual TIPS rather than a fund that invests in TIPS, and in what cases is the opposite better?
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Aug 7, 2009 00:47
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il serpente cosmico posted:So I just opened my Roth IRA, and I have a quick question--I understand that I can contribute for 2009 until April 2010. Can I contribute for 2010 earlier than that, or is April considered the fiscal year for IRAs? You can start contributing funds to a Roth IRA starting January 1 of each calendar year. Because of this, there is an "overlap" period from January 1-April 15 where you can contribute to both the previous year and the current year (assuming you haven't reached the contribution limit for either year). quote:Also, I'm assuming Roth IRA contributions won't affect my tax return filing? You are correct; Roth IRA contributions are post-tax.
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Aug 13, 2009 00:12
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