Not Rich Yet | Managing higher incomes

May/10

12

My asset investment allocation approach

Across my and my wife’s various investment accounts I recently instituted a new portfolio allocation.

The concept here was to be:

  • Well diversified across multiple asset classes (8)
  • Have a good representation of international stocks (20%)
  • Slightly more conservative approach by weighting bonds heavier than I have done in the past (30%)
  • Not invest in asset classes I currently consider overheated – delay that investment until prices come down: this means currently avoiding investing in gold, although I do want to invest in that once the gold price cools down

Source of inspiration for my approach was the book The Intelligent Asset Allocator by William Bernstein, one of the best books on the subject IMO.

As you will notice, we have all our account with Vanguard. I am a huge proponent of investing in indexes vs. mutual funds, and therefor prefer Vanguard to most all other providers.

And here is my portfolio:

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