Small > Large
Value > Growth
International > Domestic
Emerging > international
Assuming > = Does better than....
This rule is based off of 70+ y ears of data.
I used the above rules to set up the weight of my asset class's for both my international and domestic portions of my portfolio.
I have posted the domestic portion below.
|US ASSET CLASS||Goal||Symbol||Actual|
|US Small Value||18%||HSCSX||17%|
|US Small Growth||10%||NNLEX||23%|
|US Mid Value||14%||ABYSX||17%|
|US Mid Growth||8%||GGOSX||10%|
|US Large Growth||5%%||UMBWX||7%|
|US Large Value||10%||amanx||8%|
|US BREAK DOWN||65%||100.00%|
You will notice the goal weight changes drastically based on the above rule
Mid - 22%
Large - 15%
You will also notice a larger weight towards value
Value - 42%
Growth - 23%
- I re-balance once yearly to get my portfolio back to my original goal
- I put new money in to the funds every 2 weeks
- If the market drops 10% i add more even more money.and dont really lose since the market will go up eventually
- I compare funds to catagory and index quartery to make sure they are performing well if not they are on my watch list--
- I make sure my the reasons I bought the funds are still true once per quarter and if not said fund also goes on my watch list
- GGOSX recently changed managers so I am watching the fund like a hawk but even after the change the fund is in the top 10% of mid cap growth funds so until next time I am keeping it.
I plan on using this asset allocation for at least another 25 years. When i do change it I will just shift some value money to growth and the same would go for small money being shifted to large.
When i am in retirment i Would have more towards growth and large.
This is it guys.
year one of my investing career I am up 82%
My actual weights are off because I did not purchase all my mutual funds for international yet leaving 10% of my international allocation to be broken down among other asset class's.
Disclosure: No positions