RSS
 

Finally Decided Now Is a Good Time To Reallocate My Retirement

16 Aug

Yup, finally did it.  I’ve shifted my retirement 401k from a very conservative to aggressive allocation.

My previous allocation
20% – Money Market
45% – Bonds (Stable Value 20%, Total Bond Market 5%, TIPS 20%)
20% – Total Stock Market Index
10% – Total International Stock Market Index

My new allocation
100% – Aggressive Fund
Description of fund:
The fund does not buy securities directly; instead, it invests in four Savings Plan Funds: the Total Bond Market Fund, the Real Estate Investment Trust Index Fund, the Total Stock Market Index Fund, and the Total International Stock Market Index Fund. This gives the fund exposure to a broadly diversified group of U.S. and foreign stocks and various types of bonds. The fund’s target asset allocation between stocks and bonds is 85% stocks, 15% bonds. The current target allocation is 15% Total Bond Market Fund, 5% Real Estate Investment Trust Index Fund, 60% Total Stock Market Index Fund, and 20% Total International Stock Market Index Fund. State Street Global Advisors rebalances the fund every month to the target allocations.

So there you have it.  I’ve finally decided to turn aggressive.

 
6 Comments

Posted in General

 

Tags: ,

Leave a Reply

 

*
To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Click to hear an audio file of the anti-spam word

 
 
 

  1. LAMoneyGuy

    August 16, 2006 at 6:04 pm

    Wow, that’s a huge about face. What prompted it?

     

  2. freedumb

    August 16, 2006 at 7:04 pm

    Mainly the news coming out (cpi) and the performance of the stock market in the past couple of weeks. Also, I’m hoping feds will keep rates stable…I’ve also been fairly impressed with how the market has reacted to the recent spat with terror and the mid-east tensions. It feels like a good time to be in the market. I also like some of the posts I’ve been seeing in other pf blogs…

     

  3. freedumb

    August 16, 2006 at 7:04 pm

    I still haven’t changed my cash in non-retirement…I’m not sure what I’m going to do with that right now.

     

  4. Tim MMF

    August 18, 2006 at 12:58 am

    Wow, I hope that works out well for ya. Seems a bit risky. What’s the return been for this fund? Do you happen to know the beta?

     

  5. freedumb

    August 18, 2006 at 8:39 am

    Hey TimMMF,

    Beta 0.88 S&P Based on trailing 36 months’ returns.

    % Total Return as of 3/31/06
    5.89 YTD
    16.70 1 YR
    20.12 3 YR
    7.85 5 YR
    9.37 Since inception, 8/1/96

     

  6. Financial Freedumb and Brownie - A PF Blog » My 401k YTD Rate of Return Is 5.3%. What’s Yours?

    September 27, 2006 at 7:39 am

    [...] My 401k YTD Rate of Return Is 5.3%. What’s Yours? [freedumb:Retirement:7:39 am:0] Translate: If you follow my blog, you’ll know in July my ROR on my 401k was 0.4%.  It sucked.  Well, in August I decided it was time to reallocate my retirement funds completely.  At this time, my 401k had already recovered to a ROR of 1.9%.  I went from: [...]