Portfolio stats

Some time ago, I have merged the spreadsheets we have into one. The updates are now straight forward and the copy/paste is limited to one! That is great. It also produces some new  insights that I have wanted to see.

Availability of cash

One of the stats we wanted is the amount of liquid investments. We define these as the investments we can sell on any given weekday, penalty free and have the cash on a current account within 2/3 days. This thus excludes pension accounts, long term savings and my sleep well accounts.

We are quite pleased with the results. Currently, 50pct of our amber index is available within a week.

available201610

The funds coming available in 2043 are all pension related. 2043 is my current official pension date. I expect that to rise to 2046. Off course, this does not take into account our FIRE plan!

High level Asset Allocation

The goal here is to track the allocation of our investments at a high level. What does this mean: I would like to track 4 main asset classes

  • cash – 9,12 pct
  • insurance products – 40 pct
    • these are products with a yield just above inflation.They make me sleep well at night.
    • My personal investments have reached the EUR amount I want them to have.
    • Others contributing here: Company Pension and Long Term Fiscal Saving. No alternative here. I will keep contributing to these.
  • Funds – 34,5 pct
    • Fiscal Pension saving in Belgium can only be done via a fund or an insurance product. I choose the fund route. NO other alternative is available.
    • The other funds I have are from my pre FIRE insights. I plan to keep them
  • Stock – 16,65 pct

hlallocation201610

You might be missing real estate? Yes, We have no rentals and we do not count our family home in the assets we have.

Conclusion: We are far to defensive in our assets. This is caused by

  1. My wish to have a decent amount of sleep well investments. Part of that is historically.
  2. A part of out tax advantage contributions can only happen in sleep well accounts. Some are even outside our control: the company pension saving is defined at company level and in that kind of accounts. This has no other alternative: it will grow.
  3. the cash is set aside to be deployed when there is an opportunity. Looking at this graph means I have no issue at all to invest going forward 100 pct stock!

 

What does your allocation looks like?


12 thoughts on “Portfolio stats

  1. CIao ATL,
    Right now the portfolio is 70% stocks and 30%Bonds, right now I do not have other lines of investment like you do. Allocation of course is very important and I check it every 6 months, but my checking is more on sectors and currencies I invest in.
    ciao ciao
    Stal

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  2. Pretty interesting to see how your portfolio is spread over the various products, there clearly is a strong influence from tax deferral accounts and some piece of mind investments. As you noted already, it is pretty defensive overall and could benefit from some cash conversion into stocks. Happy Hunting I would say 🙂
    We did a asset allocation a while back, will do another one again by the end of the year. It’s pretty offensive from an investment perspective, we are down to 5% cash and about everything else is invested in one way or the other. However, we also have not included our house as an investment. But that will change as we will turn it into a rental unit down the road.

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  3. Hey ATL,

    Intresting article!

    My allocation as today is the following:
    72% stocks, 4% ready to invest cash, 10% bonds, 5% pension fund, 6% emergency cash and 3% home invest plan.

    Emergency cash is pretty low in percentage but I don’t need the money that quick so I can save up if necessary.

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  4. Nice charting atl, and I like that you have cash ready to deploy. My retirement funds are allocated 85% equities, 7.5% reits and 7.5% bonds. I also have an “fortress fund” for emergencies which is currently at 3 months of income. Looking forward to hearing about how your equity portfolios grow 🙂

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  5. hey ATL,

    nice articel
    I would say i have near 100 percent of my capital in stocks, options on stocks and cash.
    for me its not a problem to have 100% in stocks, i have enough time to survive every down market 🙂

    best regards! 🙂

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  6. Hi ATL,

    Our portfolio is a bit different coz, well, we are older. We are about 65% in equities, 25% in bonds, and 5% each in REITs and cash. I think at FIRE in two years the portfolio allocation will look essentially like this although we will add in some inflation protected securities (TIPS) into the bond mix. We don’t buy into commodities like pet rocks (gold).

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  7. Hi ATL,

    It’s all about being able to SWAN so it sounds like you have a good base on which to start building with more risky assets.
    I’m around 70:30 in stocks:bonds for the most part. I don’t include my house and I’m trying to invest as much cash as I can. But I still have issues with selling investments so I keep some long-term savings in cash.

    Best wishes,
    -DL

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  8. Amen to good sleep!

    One question occurred to me….do all your pension and other funds grow proportionately with inflation? If it is a flat fixed amount, then over the next 20 years, inflation is going to eat into assets like cash. Just a thought….

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  9. Hey ATL,

    At this very moment in time we have about:
    25% of our wealth in inaccessible pension accounts.
    45% of our wealth in cash (comprises emergency fund and IVF fund)
    30% of it is in shares.

    As time goes on, I imagine more of it will be in shares and less in cash.

    Tristan

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