Asset Allocation – January 2018
As a new year rolls around, it’s time to re-allocate across our different asset types. I try to handle this quarterly, but I’ve gotten a bit relaxed on keeping up with it this last year.
Before entering all of our asset values, I was pretty certain our allocations to equities would be high with the massive gains that the S&P has experienced this last year. I was spot-on with that assumption with domestic equities up $13,000.
Below is a look of our current allocations and our current investments (I am not recommending to purchase any of these, this is just what we currently hold. Also, we do own some crypto-currency and some gold, but I haven’t figured out how I want to allocate these yet).
The current plan to get our assets back in the desired allocations is to:
- Sell $2,500 of SCHB (Domestic Equities).
- Sell $1,700 of SCHF (International Equities).
- Buy $2,100 of SCHZ (Bonds).
- Leave the remaining $2,100 in cash.
Updated plan looks like below:
One other thing to note is that with a new year we can add $5,500 more to the IRA. The numbers above from the “Joint Brokerage” account will have $5,500 less and will be added to the Roth IRA. (Selling SCHZ in the taxable account and buying SCHZ in the retirement account).
In 2018, I’m hoping to keep up with these a lot better at the end of each quarter.
