Putting your mouth in the money: What is your current allocation?

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systemskeptic
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Putting your mouth in the money: What is your current allocation?

Post by systemskeptic » Wed Jan 25, 2012 4:30 pm

It's fun to talk theory on here, but I am curious how people's portfolios stack up in reality and where people are currently at in their re-balancing bands.

So, let's be honest, what assets allocations are you at for your entire portfolio (PP + VP, either listed together or separate)?  Have you hit any re-balancing bands recently?  Do you have any other mentionable asset classes that do not fall into the PP four?  Another interesting data-point would be what percent your gold allocation is held in physical vs. paper form. 

How many Harry Brownes do we really have around here? :)

I just added up mine in a spreadsheet, and here's what I have:

28.8% Gold
22.7% Bonds
30.1% Cash
18.5% Stocks

Of the 28.2% "Gold", 2.6% is silver bullion, 22.5% is gold bullion, and 3.6% is paper gold (SGOL).
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Lone Wolf
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Re: Putting your mouth in the money: What is your current allocation?

Post by Lone Wolf » Wed Jan 25, 2012 4:50 pm

My PP currently sits at:
24.12% Stocks
25.32% Bonds
22.62% Gold
27.95% Cash

For my children's 529, I'm unable to construct a PP.  For this I have:
50% Total Stock Market
50% Total Bond Market
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Re: Putting your mouth in the money: What is your current allocation?

Post by bigamish » Wed Jan 25, 2012 4:54 pm

Keeping in mind that I am in the accumulation phase (and recently rebalanced after hitting 35% cash):

26.4% Gold
24.4% Cash
25.5% Stocks
23.7% Bonds
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Re: Putting your mouth in the money: What is your current allocation?

Post by Alanw » Wed Jan 25, 2012 5:22 pm

My PP is less than 1 year old and I have already rebalanced once because of the gains in LTT (Rates couldn't go any lower).  I am semi-retired and use the PP cash portion for living expenses.  80% of my retirement and non-retirement funds are in the HBPP.

Gold      25.36%
Stock    26.37%
LTT      23.72%
Cash    24.54%
pp2910

Re: Putting your mouth in the money: What is your current allocation?

Post by pp2910 » Wed Jan 25, 2012 5:23 pm

IAU (Gold): 24.1%
IEF (Cash+Bonds): 48.7%
VTI (Stocks): 27.2%

Last contribution/re-balance was on 11/22 since then stocks have outperformed gold and bonds.
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Re: Putting your mouth in the money: What is your current allocation?

Post by pershing83 » Wed Jan 25, 2012 5:40 pm

My PRPFX is up 4% YTD. I could do 50% on the year? Goodness.!

OTOH my VWINX is up 1%. 60% bonds and 40% income stocks for those not familiar..

I will settle for the 12%.

Anyway, the board needs to be brought up to speed.
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Re: Putting your mouth in the money: What is your current allocation?

Post by systemskeptic » Wed Jan 25, 2012 6:24 pm

For those who have posted, thanks for sharing.  Looks like most of the above are pretty close to a strict 25/25/25/25 in the "PP" part of the portfolio.

Do you guys also maintain a VP?  If so, what do the numbers look like if they are combined into a single portfolio? 
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Re: Putting your mouth in the money: What is your current allocation?

Post by dualstow » Wed Jan 25, 2012 6:47 pm

My pp allocations are currently all in the 20%s, although long bonds hit 30% pretty recently.
I don't know the exact numbers if you include the vp, which has been around much longer, put it puts the the stock allocation much higher, like 50-60%. The pp now constitutes more than 1/4 of (vp+pp), which is more than it has ever been. Just started in late 2010.
Do you have any other mentionable asset classes that do not fall into the PP four?
I have muni funds, both state and federal.
I also own VCIT, which is Vanguard's intermediate corporate bond index etf, in my roth.
I have a skosh of Vanguard's REIT fund.
How many Harry Brownes do we really have around here?
I'm simply not smart enough to call myself a Harry Browne, but I'd like to think of myself as a loyal follower, keeping my speculative forays within the vp realm.
...what percent your gold allocation is held in physical vs. paper form.  
Right now it's 44% physical coins, but that keeps changing. If the price goes below 1600 an oz, I might dare to do a big coin order.
If it doesn't, but I have cash to add to the pp, I'll probably buy gold ETF shares on or around the same day that I buy equal amounts of the other assets.
Last edited by dualstow on Wed Jan 25, 2012 6:52 pm, edited 1 time in total.
Gold has passed 1645/oz
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Re: Putting your mouth in the money: What is your current allocation?

Post by l82start » Thu Jan 26, 2012 9:16 am

i haven't hit my first re-balance yet, cash is low due to counting emergency funds in the cash portion of the PP, and needing to make withdraws to pay bills during tough times....

cash 17.90%
gold  25.84%
ltt    31.24%
stock 25.02%
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Re: Putting your mouth in the money: What is your current allocation?

Post by systemskeptic » Thu Jan 26, 2012 10:54 am

dualstow wrote: The pp now constitutes more than 1/4 of (vp+pp), which is more than it has ever been. Just started in late 2010.
With a near 60% allocation, I take it you are pretty bullish on equities?  Given that you have been in the PP for the last couple years, what's stopping you from going past 25% in it?

I myself just switched from about 50% intermediate bonds / 50% cash to the above allocation.  The hardest part was buying the 1st gold coin, but now that I did I'm definitely glad.  To a lesser extent it wasn't easy to sell off bonds to buy stocks either (55% draw down in 2008 still fresh in the mind, eek).
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Re: Putting your mouth in the money: What is your current allocation?

Post by dragoncar » Thu Jan 26, 2012 4:45 pm

Gold: 19.3%
Stock: 23.1%
Bonds: 23.3%
Cash:  34.2%

Yes, I started with 4x25, and have been accumulating cash... almost time to rebalance, eh?

(but I'm also considering using extra cash as a down payment on a house so...)
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Re: Putting your mouth in the money: What is your current allocation?

Post by dualstow » Thu Jan 26, 2012 5:53 pm

systemskeptic wrote:
dualstow wrote: The pp now constitutes more than 1/4 of (vp+pp), which is more than it has ever been. Just started in late 2010.

With a near 60% allocation, I take it you are pretty bullish on equities?  Given that you have been in the PP for the last couple years, what's stopping you from going past 25% in it?
More like one year.
The short answer is that I would like to go to 90% pp, 10% vp. I wish I had just gotten it all done at once like Craig did, as the timing was accidentally perfect. While I have no trouble sticking to the pp plan, I'm having trouble extricating myself from the vp.

1) I used to be in 95% stocks, pre-pp. It's not that I was/am bullish on equities. I was young, into the bogleheads, and not in a great hurry to add bonds. Stocks for the long run. Part of me still feels that this isn't the worst strategy in the world, though I'm *very* grateful to have seen Craig's boglehead posts which changed everything for me.
2) Selling most of the stocks would create tons of taxes. I do sell some losers and some breakeven ones now and then. A tax neutral sale is psychologically easy for me. It's as if I just held it as cash and I'm happy to get out without a loss, and without much gain other than collected dividends.
3) A bunch of these stocks are paying really good dividends, and since they have been raised year after year, the yield on the original cost is quite high. If the *current* yield is as good as the yield I've built up over the years, sometimes I sell. Depends on the details.
4) There is no stock or muni fund that makes up more than  3 or 4% of vp + pp, so I don't mind keeping them. I enjoy the income. I'd be lying if I said I used it for living expenses, though. At least I tend to reinvest the money into the pp. And, I invest new cash into the pp.
5) I hold some stock index funds that I'm not in a hurry to sell, but they are part of the reason vp+pp = stockheavy. The dilemma is whether I should leave them alone and continue to buy gold and treasuries, or sell these funds down a bit to buy (less) gold and treasuries. Neither feels right.

I think I'm content the way things are. If stocks have a huge run-up, maybe I'll rebalance so that I have more pp and less vp. If stocks fall, the pp core will still probably do really well.

 
The hardest part was buying the 1st gold coin, but now that I did I'm definitely glad.
Same here.  
Last edited by dualstow on Thu Jan 26, 2012 5:56 pm, edited 1 time in total.
Gold has passed 1645/oz
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