Friday, August 11, 2006

2006 Asset Allocation Update:

My portfolio remained essentially in balance during 2005 and 2006. I direct dividend distributions in the taxable account to my treasury money market fund (which is part of my emergency reserves). These funds were reinvested in short term bonds.

As my short term bond allocation was underweighted , I shifted my Roth IRA inflation indexed bond fund allocation to the short term bond index.

Rumor has it that my second job might institute a 401-k program. Since my part-time second job income is invested (in my Roth and taxable portfolio), participation in this plan will depend on:

1.) The availability of a company matching contribution
2.) The expense loading and fund selections of the plan.