(Updated April 12, 2017)
“There is more than one road to Dublin.” -Taylor Larimore
- Vanguard Total Int Admiral (VTIAX) 34.52% of portfolio
- Vanguard Total Stock Admiral (VTSAX) 36.87 % of portfolio
- Vanguard Small Cap Value Admiral (VSIAX) 10.92% of portfolio
- Vanguard Total Bond Admiral (VBTLX) 17.9% of portfolio
Allocation Goal: 45% US Stocks (tilted small cap value) , 35% International , 20% Bonds
Currently Dollar Cost Averaging (DCA) into VTSAX twice a month. I will switch to VTIAX if it starts getting heavily tilted towards US. I will add more to VBTLX in January 2018 to increase bond percentage. I have not set a strict reallocation plan yet (leaning towards a +/- 5% off goal allocation). I never would have guessed that having some bonds would decrease the worry factor. Once again I have been proven wrong. I suppose Harry Markowitz was right when he said that diversification is the only free lunch.
This allocation will hopefully prepare me to withstand the bear market whenever it decides to come out of hibernation. I do not know when this will happen. I am not going to waste my time even guessing. All I know, is that it will eventually happen. I am trying to mentally prepare for it, but it is hard since I am a young padawan investor. The goal is to avoid ‘youth is wasted on the young’ mistakes.
I only have my limited experience and what I read and learn from others to base my decisions off of. I will be excited if/when I can make it out of my first real bear market without making an atrocious decision.
Good luck to all! Keep leaning in.