No announcement yet.

Asset Allocation with spreadsheet vs aggregator, which is more accurate?

  • Filter
  • Time
  • Show
Clear All
new posts

  • Asset Allocation with spreadsheet vs aggregator, which is more accurate?

    I have been adjusting my asset allocation the last year or so and finally came upon a plan I am comfortable with. I only have 5 major asset classes (Total stock, total international, Total Bond, SCV, REIT). Every few months I put my current numbers in a spreadsheet and based upon my desired allocations I then allocate new money in the appropriate locations/funds. So if REIT is only at 8% and I want 10%, I will add 2% to the REIT. However, with some of the aggregators, specifically Personal Capital, they are taking into consideration all of your portfolio when defining your current percentages. For instance, I may have 8% directly in a REIT fund, but then there are REITs in TSM for instance which pushes the REIT overall percentage higher. Same thing applies for SCV as another example.
    So... while I'm guessing the numbers in the aggregators are more accurate since they look at everything all together, it seems like it would be more of a pain to balance. I'm wondering what the approach is for rebalancing and maintaining your allocation if you utilize both spreadsheets and Personal Capital. Does it really matter that much? Are the SCV and REIT portions in TSM that significant anyway to be concerned?

  • #2

    Choose the fund, then find the latest N-Q filing. That will show you what you hold and in what %.

    Overall, I would venture a guess that if you're choosing round numbers like 10% to balance your portfolio then there's some wiggle room and it doesn't really matter how you do it.