How to Hit Your Preferential Asset Allocation When the Funds Available Are Limited

4min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

I'd prefer to have an asset allocation of 50% large cap growth, 50% small cap value. Unfortunately, I'm limited by the fund options in my 401k. Is there a better way to try to hit your desired asset allocation when the funds available are limited? What's the purpose of preferred shares in a risk parity portfolio? Are funds like SCHD or VTV a good stand in, or is PFF the best option, despite its higher expense ratio? Could high yield bond funds take PFF's place?

In this episode we answer emails from Wesley, Mark and a different Mark. And an errant comment from his Dude-ness, Alexi. We discuss how municipal bond funds might be used in risk-parity style portfolios and how not, a couple of interesting newer financial planning calculators and the planning process I actually use instead to account for liquidity issues, asset allocations in accumulation when options are limited and the ins and outs of preferred shares funds like PFF. And then we goof off. Again.

Links:

Correlation Matrix with Municipal Bond Fund: Asset Correlations (portfoliovisualizer.com)

ETF Research Center Financial Tool: ETF Research Center (etfrc.com)

Projection Labs Financial Tool: ProjectionLab - Simulate your financial future and plan for financial independence.

Support the show