Posted by Tim Stobbs on January 28, 2009
Ah Asset Allocation it always brings up nice pictures in my mind of pie charts. Yet my version of WordPress has developed a sudden desire to avoid uploading images for me. So I can’t give you one after all. Sigh.
Yet the general gist of it all was this, as of Dec 31, 2008 my overall allocation was:
22% Bonds or FIxed Income
So overall I’m actually underweight on bonds and fixed income. Normally I would like to see that at 30%, which is odd with the market drop I figured I would have been needed to add to my equity. So what happened? Well a couple of things. First off my last pension consisted of cash and equity and no bond. So that messed up things a bit. Now the new pension is a little more balanced so that should even out in the long haul. Also I’ve been adding equities to the taxable accounts and building up a bit of a cash cushion for my yearly rebalance. Normally the rebalance would have occurred on Jan 1, 2009 but I’m moving out my old pension money so I’m waiting for that to clear before doing it.
So how often do you check your overall asset allocation? Yearly, monthly, or when you think of it? When do you like to rebalance?