Using a spreadsheet to maintain a portfolio: Difference between revisions

From Bogleheads
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! Taxable
! Taxable
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| align="right" | $14,000
| align="right" | $14,000
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! Roth IRA
! Roth IRA
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| align="right" | $9,000
| align="right" | $9,000
| align="right" | $9,000
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! 401(k)
! 401(k)
| align="right" | $49,000
| align="right" | $49,000
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| align="right" | $19,000
| align="right" | $19,000
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! Total
! Total
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| align="right" | $1,000
| align="right" | $1,000
| align="right" | $1,000
| align="right" | $1,000
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Revision as of 20:19, 1 June 2008

Introduction

Investors should look at all of their accounts as a unified portfolio to construct a portfolio that is low cost, well diversified, and tax efficient. Those who are new to the concept are often overwhelmed by the complexity involved in maintaining such a portfolio. This page is intended to suggest one way of easing the burden.

Suggested Spreadsheet

One way to make it easy to maintain your portfolio is to use a spreadsheet like so:

Domestic
stocks
REIT International
stocks
Bonds Total
Taxable - - $14,000 - -
Roth IRA - - $9,000 - -
401(k) $49,000 - - $19,000 -
Total $49,000 $9,000 $23,000 $19,000 $100,000
Desired $48,000 $8,000 $24,000 $20,000 $100,000
Difference ($1,000) ($1,000) $1,000 $1,000 -
  • Cells in the rows for Taxable, Roth IRA, and 401(k) should be manually entered. All other cells can be automatically calculated.
  • Each cell in the Total row represents the total amount of domestic stocks, that of REIT, and so on.
  • The Desired row represents the desired amount of dollars in each asset class and can be calculated by multiplying the value of your portfolio by the percentages in your asset allocation.
  • The Difference row tells you how far off your portfolio is relative to your desired asset allocation. It can be calculated by subtracting a cell in the Total row from the corresponding cell in the Desired row.

Online Resources