Building a Sample Asset Allocation

Upcoming Event + What’s New

Before jumping into today’s questions—there are some good ones—I want to share a quick note.

I’ll be at the Annual RetireMeet on March 7 in Bellevue at the Maidenbauer Building. I’ll be there all day at the booth and will be discussing the inside story on diversification, including new thinking on rebalancing that I believe you’ll find useful.

• Christine Benz —HOW TO RETIRE

  Don McDonald — RETIREMENT EVOLUTION: FROM NONE TO FUN

  Tom Cock — RETIREMENT INCOME: THE 4% RULE & BEYOND

  Kevin Peterson — GETTING THE MOST FROM MEDICARE

  Joe Saul-Sehy — COMMON MISTAKES THAT MAKE RETIREMENT MISERABLE

  The event is available in person and online. In-person attendees receive lunch. Online attendees pay a small fee that supports nonprofits focused on financial education.

  I also spent time this week with Daryl Balls, working on updates to the quilt charts and new tables. We’re excited to share those soon, along with the next Boot Camp series, starting later this month.

  Questions of the Day

  1. How can I avoid getting scammed by a bad financial advisor? 04:03
  2. How can my parents decide when to start Social Security? 07:08
  3. How do I identify my target asset allocation if I am 41 and plan to retire at 65, taking Social Security at 70 and with a pension? 08:47
  4. Can you help me build a sample asset allocation? 11:46
  5. What should I learn first to understand asset allocation? 14:10
  6. How do target date funds fit into asset allocation? 17:42
  7. How does VTSAX fit into this strategy? 17:04
  8. My 401(k) only offers Vanguard Total Market, Mid-Cap Index, and Small-Cap Index. Can I build a good portfolio? 20:40
  9. If I’m contributing monthly, should I rebalance using contributions or make separate trades? 27:59
  10. I have a closed 401(k) with a target date 2050 fund. Is that a good core holding? 28:50

  A Final Thought

  I recently spoke with an investor who realized they didn’t need to draw from their investments at all, thanks to Social Security and a pension—even with nearly $2 million invested.

  When you don’t need the money, you get to choose your medicine—aggressive or conservative.

  We’re excited about the upcoming Boot Camp, new tables, and educational tools. If we can do a better job teaching, our hope is that you’ll do a better job investing—for yourselves and for those who count on you.

  
  

   Links Mentioned in This Episode

  Investor Education

  • ⁠Get Smart or Get Screwed ⁠

  Truth Tellers – Social Security

  • ⁠Social Security Made Simple⁠ by Mike Piper⁠Mike Piper⁠ – Oblivious Investor 
  • When to Take Social Security: Pros & Cons – Jim Dahle (White Coat Investor)⁠https://www.whitecoatinvestor.com/when-to-take-social-security-a-pro-con/⁠

  Asset Allocation & Target Date Funds

  • ⁠Two Funds for Life ⁠– Chris Pedersen
  • ⁠Sound Investing Portfolio Series⁠ (Boot Camp – prior year)
  • ⁠Ultimate Buy & Hold Strategy⁠
  • ⁠Fine-Tuning Your Asset Allocation⁠

  Event

  • ⁠Annual RetireMeet – Bellevue (March 7)⁠

  Research & Tools

  • ⁠Quilt Charts and Tables (Paul Merriman / Daryl Balls)⁠