My portfolio targets might appear to be conservative or risk adverse to you – but I am in my mid 50’s, already have substantial savings, and plan on retiring when I am 60 years old. I do not have 30 years left to reach my goals – and I don’t intend on losing 5 – 7 years of time getting back to even, so my goals may not match yours. I have tried to list the resources I have used to build my portfolio below – please use this as a starting off point, not a static recommendation.
Asset Diversification: | Targets |
Trading Account: | 10.00% |
U.S. Stocks: | 30.00% |
Foreign Stocks: | 10.00% |
Alternative (Market Neutral): | 10.00% |
Bonds & Fixed Income: | 35.00% |
Cash: | 5.00% |
*Buckets: | Target |
Aspirational (High Risk): | 10.00% |
Important (Market): | 40.00% |
Essential (Safety): | 50.00% |
**Role Diversification: | Target |
Return Enhancers: | 40.00% |
Risk Reducer: | 15.00% |
Income: | 35.00% |
Inflation Protection: | 10.00% |
Strategy Diversification: | Target |
Buy and Hold Portfolio (Value/Traditional): | 55.00% |
Active Tactical Asset Rebalancing (Buy Low/Sell High): | 33.00% |
Options Portfolio (Value/Alternative): | 10.00% |
Safety Fund (Safety): | 2.00% |
*Based on the book: The Aspirational Investor by Ashvin B. Chhabra
**Based on the book: The Alternative Answer by Bob Rice
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