FutureAdvisor (one of the many robo-advisor products coming up) allows you to upload your data in the same style as Personal Capital or Mint and make a quick analysis of your asset allocation at no cost. The algorithm is NOT flexible -- you choose "conservative" "moderate" or "aggressive" and then it spits out the recommended re-balancing needed to fit their algorithms predicted asset allocation.
On a whim, I tried it out and was surprised to see the asset allocations pan out like this:
38 yo AGGRESSIVE allocation
38 yo MODERATE allocation
38 yo CONSERVATIVE allocation
I'm surprised by their heavy reliance on International/Emerging. I split domestic/intl stock 70/30 at present. It looks like they aim for the reverse 35/65. I also see they throw caution to the old "age in bonds" rule even for their conservative AA. Anyone have experience with this? I'm too hands on to turn over my retirement to a roboadvisor but I'm interested about the thought process behind the AA.
On a whim, I tried it out and was surprised to see the asset allocations pan out like this:
38 yo AGGRESSIVE allocation
Domestic Total Stock Market | 27% |
Domestic Small Capitalization Stocks | 3% |
Real Estate Investment Trusts | 7% |
International Total Stock Market | 33% |
Emerging Market Stocks | 17% |
Total Bond Market | 7% |
Treasury Inflation Protected Securities | 6% |
38 yo MODERATE allocation
Domestic Total Stock Market | 25% |
Domestic Small Capitalization Stocks | 3% |
Real Estate Investment Trusts | 6% |
International Total Stock Market | 32% |
Emerging Market Stocks | 17% |
Total Bond Market | 9% |
Treasury Inflation Protected Securities | 8% |
38 yo CONSERVATIVE allocation
Domestic Total Stock Market | 21% |
Domestic Small Capitalization Stocks | 2% |
Real Estate Investment Trusts | 5% |
International Total Stock Market | 27% |
Emerging Market Stocks | 14% |
Total Bond Market | 17% |
Treasury Inflation Protected Securities | 14% |
I'm surprised by their heavy reliance on International/Emerging. I split domestic/intl stock 70/30 at present. It looks like they aim for the reverse 35/65. I also see they throw caution to the old "age in bonds" rule even for their conservative AA. Anyone have experience with this? I'm too hands on to turn over my retirement to a roboadvisor but I'm interested about the thought process behind the AA.
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