Happy Independence Day to anyone celebrating today! I’m celebrating by spending time with friends later and sharing my investment portfolio with readers now.
Last month, I began sharing my investment portfolio more in-depth than I have in the past. This is part of a renewed effort to make myself more familiar with the investments I have chosen and to develop a better overall investing strategy for multiple targets and time horizons. This will also help with determining the proper asset allocation for my investments.
The last time I rebalanced was when my 401(k) was basically my only investment. At that time, I configured my account to automatically rebalance my portfolio every quarter. Now, with investments scattered in IRAs at two different companies and non-retirement investments in the mix as well, it has been more difficult to determine what I should be doing with my investments.
First, according to Quicken, here is my overall asset allocation for my investment account only.
If this allocation were to include all assets, it would be heavily weighted towards cash. The chart above only takes into account cash held in investment accounts and cash that is part of a mutual fund’s mix. The “Other Asset Class” consists of the Real Estate Fund in my 401(k). Unfortunately, the asset mix categories are not configurable by Quicken. Each investment must be assigned one or more of the existing categories.
Here is the detailed breakdown, account by account.
Flexo’s investment detail
I provided an explanation for these investments last month, so I won’t repeat that here. The YTD performance calculation comes from Quicken’s internal rate of return included in the Investment Performance report. It is the “average annual return” for each investment.
The investments where I have been dollar-cost averaging as the stock market increased have performed worse than the investments I have not added funds to. As I continue buying, I’m buying at higher prices as the fund values increase, so my performance will continue to get worse. That is a drawback to periodic investing, such as the biweekly investment into my 401(k) or my monthly investment of VTSMX. Dollar-cost averaging works better when the stock market is declining, assuming values return to a high at some point in the future.
Published or updated July 4, 2009.