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how portfolio allocations and gains are expressed in these forums is all over the map .
you have some claiming very high equity levels , yet they only count the portion of money they want .
so they have maybe 20-25% or LESS overall in equities in a 401k or ira and sit 75% in cash instruments yet claim they are 100% equities with gains in the 20-25% area , yet the growth meter overall creeps because they are so high in fixed income and so low in growth vehicles
so including all cash on hand at the moment what is your over all allocation ? and tell us about your portfolio strategy..
right now with fuel tanks filled with the next two years spending cash we are
12% cash
51% assorted equity funds
37% assorted bond funds with a overall duration of 3.35 years so not interest rate sensitive much
that allocation consists of the models below
we have two years cash in banks and money markets
we use the fidelity insight income model which is for shorter term money , it is 75% less volatile then the s&p with 25% conservative equity funds and 75% fixed income funds
then we run the fidelity insight growth and income model , which is a balanced portfolio for intermediate term money .that uses much more aggressive equity funds .
we have our long term money in 100% equities via vti a total market fund and berkshire class b . , yes , even at 65 we can have long term money we won’t eat with for two to 3 decades if ever
and lastly an experimental portfolio that is a leveraged 60/40 that is in theory supposed to provide the power of a 60/40 with a draw down and volatility that is way less .
it is called the carolina reaper portfolio and consists of the highly volatile
20% upro. a 3x stock etf
13% TYD a 3x bond etf
67.66% dbmf a managed futures etf that goes short and long
so you have the weight of a 60/40 with the risk parity of the managed futures of short and long contracts.
it’s a concept in portfolio construction that has been studied for years but only recently easy to implement
Last edited by mathjak107; 12-23-2023 at 05:01 AM..
My total portfolio is, and has been, for many years extraordinarily simple:
All equity ETFs. Combination of SPY, SCHG, IWM, VTI with a very small and now tiny portion of international-SCHE, SCHF.
~98% equity. ~2% cash-money market.
It's extremely low cost and tax efficient. And volatile, but I'm fine with that!
my portfolios have never been tax efficient because most are in funds and not etfs .
but that can be a good thing down the road if one is making changes for retirement…
these tax efficient etfs can end up being big tax torpedoes with decades of pent up agains to deal with which can either delay making changes fully or else have to start them a lot earlier .
so they can be that proverbial double edge sword.
today in retirement i try to to make the taxable account a bit more efficient by using berkshire as a big position.
reducing volatility has been a parameter that was important to me once i retired while still maintaining an acceptable growth rate.
that is one of the reasons i am experimenting with these leveraged , risk parity portfolios
Last edited by mathjak107; 12-23-2023 at 06:21 AM..
my portfolios have never been tax efficient because most are in funds and not etfs .
but that can be a good thing down the road if one is making changes for retirement…
these tax efficient etfs can end up being big tax torpedoes with decades of pent up agains to deal with which can either delay making changes fully or else have to start them a lot earlier .
so they can be that proverbial double edge sword.
today in retirement i try to to make the taxable account a bit more efficient by using berkshire as a big position.
reducing volatility has been a parameter that was important to me once i retired while still maintaining an acceptable growth rate.
that is one of the reasons i am experimenting with these leveraged , risk parity portfolios
Problem I see with funds is every single year I get hit with capital gains tax in addition to higher ongoing fees.
I've really become immune to volatility...I really have.....sure from an optics standpoint it stinks, but markets recover and my withdraw rate is low.
Coming up on 7 years retired with my approach and even taking in account of withdrawing money my portfolio is up 65% in total. I'm elated. And the last 7 years have been anything but a smooth ride in the stock market!
yes i have and it has been good ….but it does involve more frequent changes sometimes…it is also their most volatile being 20% more volatile then the s&p .
but for one still in their accumulation stage it has been great.
My total portfolio is, and has been, for many years extraordinarily simple:
All equity ETFs. Combination of SPY, SCHG, IWM, VTI with a very small and now tiny portion of international-SCHE, SCHF.
~98% equity. ~2% cash-money market.
It's extremely low cost and tax efficient. And volatile, but I'm fine with that!
i wonder if many will post overall allocations…
it could be a bit uncomfortable for some if they missed the boat and all those trades or investments they post or talk about are really what may amount to a dabble with a good portion of growth missed on the bulk of their money if they are truthful
We have 2-2.5 years of expenses in cash300k +/-, 300k +/- in bond through Wellesley/Wellington, 150k in a single name most of which I’m forced to do , 2mm in spy/qqq and rounding errors in other equity ETFs
We have 2-2.5 years of expenses in cash300k +/-, 300k +/- in bond through Wellesley/Wellington, 150k in a single name most of which I’m forced to do , 2mm in spy/qqq and rounding errors in other equity ETFs
any reason at this stage you went with a wellesly wellington combo? that is usually a popular pre retirement- retirement combo rather then growth stage . the two together are about a 50/50
our cash also is about 250k for two years spending
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