Sunday, January 3, 2021

My Asset Allocation

 



My IRA may have recently filled with the Vanguard Utilities ETF (VPU), but it is not the majority of my nest egg. Want to make that clear. I also want to repeat that I am definitely not offering investment advice on this blog. I’m just showing what I am doing. As you can see, not much of a risk taker in retirement. Things might look different if I had a job to fall back on.

These are ballpark numbers. I’m valuing the long-term TIPS based on their inflationary gains from when I bought them many years ago, and not on their current market value (which is considerably higher). One small bond matures this month (1.17% real yield), a large bond matures in 8 years (1.75% real yield), and the rest mature in about 20 years (2.13% real yield).

The savings bonds are mostly I-Bonds also earning an average weighted real yield of about 2%. There are some EE-Bonds as well, which are guaranteed to double if held 20 years. The earliest purchases in 2010 are halfway there.

The savings account is earning 0.3%, thanks to the pandemic and the relentless long-term decline in interest rates.

I’m basing the value of my home on current Zillow estimates. Subject to change during the next earthquake. I do live in the Seattle area. This downside risk to my nest egg is not trivial.

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