Comments on: Does choice affect asset allocation? http://www.thickenmywallet.com/blog/wp/2009/10/19/stock-asset-allocation-n/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: David http://www.thickenmywallet.com/blog/wp/2009/10/19/stock-asset-allocation-n/comment-page-1/#comment-19783 David Thu, 22 Oct 2009 03:58:47 +0000 http://www.thickenmywallet.com/blog/wp/?p=1261#comment-19783 I have read lots about asset allocation, and often wonder how this applies to me at my stage in life. I just turned 30, and I think I'm pretty open to risk. Currently both my registered & non-registered portfolio are 100% in equities (and our RESP too atm). I'm comfortable with the stocks getting hammered for several years, even welcoming it, as my regular contributions buy more stock, and I'm not planning to touch the money for 20+ years. My plan was not to start allocating bonds for at least another 10 years, (even with the RESP as we're about 16 years from the first child tapping in to it). 2 things I can think of affect this mindset. 1. Our emergency fund is in a money-market account (essentially a high interest savings account). If this is taken into consideration, then my allocation is much more conservative :) 2. The value of all our investments is relatively small (having only started saving a couple of years ago). A 30% decline is not exactly earth shattering, and I'm confident it will come back up. Any thoughts? And thanks for the book, I look forward to reading it. I have read lots about asset allocation, and often wonder how this applies to me at my stage in life. I just turned 30, and I think I’m pretty open to risk. Currently both my registered & non-registered portfolio are 100% in equities (and our RESP too atm). I’m comfortable with the stocks getting hammered for several years, even welcoming it, as my regular contributions buy more stock, and I’m not planning to touch the money for 20+ years. My plan was not to start allocating bonds for at least another 10 years, (even with the RESP as we’re about 16 years from the first child tapping in to it).

2 things I can think of affect this mindset.

1. Our emergency fund is in a money-market account (essentially a high interest savings account). If this is taken into consideration, then my allocation is much more conservative :)

2. The value of all our investments is relatively small (having only started saving a couple of years ago). A 30% decline is not exactly earth shattering, and I’m confident it will come back up.

Any thoughts?

And thanks for the book, I look forward to reading it.

]]>