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The perfect break down.

The only rule you need to know

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

Small- 28%
Mid - 22%
Large - 15%

You will also notice a larger weight towards value

Value - 42%
Growth - 23%



Other rules.
  1. I re-balance once yearly to get my portfolio back to my original goal 
  2. I put new money in to the funds every 2 weeks
  3. If the market drops 10% i add more even more money.and dont really lose since the market will go up eventually
  4. I compare funds to catagory and index quartery to make sure they are performing well if not they are on my watch list--
  5. 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
  1. 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