The Money Writers is having a group writing project. Each of us have decided to share our asset allocation and performance from the first of the year to last Friday. You might want to put the children to sleep, this could get ugly.
I would like to say that I put together a great graph for you, but I didn't. My only excuse is what you already know... I'm Lazy. Instead I've put together my portfolio holdings inside my retirement accounts. You may ask why I don't have significant money invested outside of retirement accounts. Good question and I'm not sure I have the best answer. I believe in having a healthy emergency fund as well as maxing out my retirement accounts (401Ks and Roth IRAs). I've also bought some significant private stock in companies I used to work at. I can't sell these shares and I can't communicate them to you (they'd give away my anonymity to a number of people).
Below is my asset allocation. You'll notice that one Roth 401k doesn't make the tickers very readily available. I know I could look them up if I went to click through some PDFs, but it's not really important to me. My goal with each account is to be fairly diversified. I know it's not perfect diversification, but I plan to roll them over into a Zecco IRA when the economy rebounds. There I can invest in low cost ETF (as you'll see in my Roth IRA where I have more trading ability). I don't want to move it while the prices are low in the off chance that we get a recovery while I'm out of the market shifting the money.
I don't know if anything in particular sticks out with this asset allocation. I suppose the shares of Google stand out, since it's the only single company that I specifically went out of my way to own. I like to think of it as a hedge. Many websites, including this one, rely to some degree on Google sending traffic which leads directly to advertising dollars. If Google continues to monopolize Internet search, I want to stand to gain in the off-chance that they update their algorithm to hurt my sites. That said, you can tell I still don't have a lot of money in Google.
The other thing that I find interesting is that I have just 20% of my money in international stocks. This is the first time that I've looked at it in totality and I'm disappointed in that allocation. I want to have much more money overseas. I don't mean that to be anti-American.Â I think it's simply arrogant to keep 80% of my money in one country. It's not just any one country, but the one country that I depend on for my income. It feels like working at a company and investing in the company stock... one bad turn of events and you could be wiped out.
You are probably wondering two things at this point. The first: What's the return on portfolio like this? I'm 7.22% in the hole YTD. I would like to say that I found a way to stay positive, but the market has just not been good. Long term, I still think diversified equities is a solid investment.
The other question you might be wondering at this point: How are the other Money Writers doing this year? I'm afraid to look, I'm sure they are doing better than me. Just so you have good laugh at my misery check out their asset allocations:
- My Dollar Plan's Asset Allocation
- The Sun's Financial Diary's Asset Allocation
- Generation X Finance's Asset Allocation
- Brip Blap's Asset Allocation
- Million Dollar Journey's Asset Allocation
- The Digerati Life's Asset Allocation
- Money Smart Life's Asset Allocation
401ks, Asset Allocation, diversification, emergency fund, google, portfolio holdings, private stock, retirement accounts, roth ira, roth iras... and focuses on:
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