This blog is all about my path to wealth so it is about time I shared the full details of how I invest. In future posts I will add more information, but for now all you need to know is that I am working to have a fully diversified collection of index funds known as a lazy portfolio. Comments and questions are welcomed and encouraged. Subscribe to my RSS and check back to learn more about my investing philosophy which I think is my best opportunity to build wealth.
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A little explaination may be needed. First, my Schwab 2040 Fund is not a part of my ideal asset allocation strategy. It is a temporary account until I have built up enough money to meet the minimum account balances required for my REIT, Emerging Markets, and Commodities funds I want to hold at Vanguard. I selected Schwab for this because it was very friendly to those with small amounts to invest (no account fees, $100 to start, and $100 per contribution). Second, I do not exactly hold the Vanguard funds I list as my 401(k) holdings. The funds I actually hold are not open to the public but track the exact same index and have a similar expense ratio to the Vanguard funds. For all intents and purposes they perform identically. Also, my allocation is slightly off in my 401(k) because I am unable to directly buy my "ideal allocation" due to purchase minimums (and other logistical problems) so I have to move around my new money to move toward the right balance. Over time as the amount of my new contributions becomes a smaller percentage of the account balance I will move closer and closer to my ideal allocation. Finally, I would do an all out rebalance of my account if it strays more than 5% from my ideal (this has not happened yet due to how I use new money to do mini-reblancing bi-weekly).
