Portfolio Targets

Stock Portfolio 2

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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