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Portfolio Asset Allocation

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  • Portfolio Asset Allocation

    Hi everyone,
    I'm in my early 30s and new to investing. I have recently created my investor policy statement. Below is my proposed stock/bond allocation based on risk tolerance and what is offered in my current 401k and IRA. I know there are my different ways to make a portfolio, is there anything glaringly wrong with what I plan to do?
    Thanks for reading

    Desired stock/bond mix is 75%/25%, separated as follows:
    S&P 500 Index Fund = 40%
    US Small-Cap Market Index fund = 4%
    US Small-Cap Value Index fund = 8%
    Total International Index Fund = 15%
    REIT Index fund = 8%
    Bond index fund = 25%

  • #2
    Nothing glaringly wrong.

    I would suggest combining S&P 500 and SC to TSM. TSM is basically 80% S&P500 and 20% MC and SC.

    I would change the 4% and 8% to 5% and 10% and lop 5% off something else so you have rounder numbers.


    • #3
      My 401k doesn't have a TSM, so that's why I chose to invest in some small cap funds, in essence fill out what is missing from TSM.
      Thanks for your response.


      • #4
        Looks fine to me, too.

        I might consider simplifying to:
        S&P 500 40%
        SCV 10%
        International 15% (or 20%)
        RE 10% (or 5%)
        Bond 25%

        ...for rounder numbers, too.