Tuesday, June 23, 2009

Market's Down - Perfect Time to Re-Allocate

The market gave up all gains from the past 3 months and the S&P500 is back in the red for 2009 (YTD Return -1.13%) . Yawn. It's not like I didn't see this coming. Nope, not at all.

If this is just a temporary correction, great. If not, I'm not too upset since it just gives me more opportunity to dollar cost average at a lower cost.

On Saturday, I compared my 401k target allocation vs. my current allocation. It's really not that far off, but it is a bit heavier on the bond fund than what I'd like.

I could've just requested my 401k administrator to re-allocate immediately, but I really didn't want to do that since my Bond Fund is still -0.99% off my cost-basis. Instead, I just requested my 401k administrator to stop putting money into the bond fund and the stable fund for the remainder of the year.

My future purchases will be focused solely on the international value fund, US large-cap value fund, S&P500 index fund and the small-cap fund.

Investment Fund (Classification)Current %Target%Future Purchase %
DODFX (Int'l Multi-Cap Value)18.77%20%27%
DODGX (US Large-Cap Value)15.00%18%18%
BTIIX (S&P500 Index)




NBGEX (Small-Cap Blend)



PTRAX (Intermediate Term Bond)



MLTXX (US Treasury Fund)




Hopefully, by the end of the year, I'll be right on target.


Miss M said...

I've started looking at asset allocation too! I really never set a firm target, just tried to create somewhat of a balance. It's time I create a plan and implement it. I noticed you favor value type funds, I've had terrible luck with them. My growth funds kick the butt of my value funds.

Michelle said...

You are so smart. I've been wrassling that very issue (reallocation losing basis) and your post put on that proverbial lightbulb for me. So Simple, yet three weeks of considering dumping the bond fund hadn't gotten me anywhere. Thanks!

Ms. MoneyChat said...

your attention to detail is admirable. i'm ashamed to admit this but, i don't look at my 401K as often as I should. I might take a glance (yes, glance) once a year. Note to self ... do better managing the K.