I’ve been doing a lot of reading on asset allocation recently. Specifically, I’ve been reading about asset allocation related to the FIRE (Financially Independent Retire Early) movement.
What is asset allocation? It is how you portion your investments among different stocks, bonds, and cash.
Your asset allocation will vary depending on your age, your tolerance for risk, and when you need access to the money.
The Best Articles About Asset Allocations
Here are the best articles I’ve read on asset allocation.
1. Boggleheads on Asset Allocation
The Boggleheads wiki page on Asset Allocation is one of the best articles there is with several different sample asset allocations in it. The Lazy Portfolios page is the next best reading following the asset allocation page.
2. Mr. Money Mustache Forum on Asset Allocation
Mr. Money Mustache is one of the most popular FIRE blogs out there. The forum has numerous articles on asset allocations – here is one that is particularly helpful.
3. Nine to Thrive on Asset Allocation
Nine to Thrive compares several different portfolios over time in this post on asset allocation.
4. The College Investor on Investing a Million Dollars
The College Investor’s post about investing $1,000,000 for FIRE is useful because, at the end, he details the real-world complications of asset allocations. This includes having numerous accounts over different platforms.
5. My Money Blog on Asset Allocation
I’ve subscribed to Jonathan’s blog since around 2006. He has long written about his own asset allocation as well as portfolio income. Portfolio income is particularly interesting because the focus is on how you can live off just the earnings in your portfolio.
My Asset Allocation Preferences
My personal asset allocation is still heavily weighted towards stocks — primarily Vanguard Total Stock Market, Vanguard Total International Stock Market, Vanguard Emerging Markets (VWO), and Vanguard REIT Index (VNQ, VGSLX).
The Bottom Line
Asset allocation should be pretty boring. Read enough to become knowledgeable, then pick your asset allocation and stick with it over the long haul. In time, you will begin to see results.