Variable Portfolio Idea

[BearBones]

Have been experimenting with Tyler's nice charts for my new IRA, currently in cash. This is a bit of an amalgam of the PP, the Golden Butterfly, and some of the other well known portfolios on Tyler's site. Not as biased toward the early 70's. Higher CAGR than the PP and a lot less light blue squares. But still a tolerable max drawdown and years in drawdown compared to most.
What do others think?

[Mark Leavy]

This seems like a perfectly reasonable, well diversified, passive portfolio.

Nothing wrong with this at all. No reason that it couldn't be your "permanent portfolio". Harry Browne was never hard up on what exactly comprised a good conservative passive investment.

Your allocation seems like it would clearly fall into the "investment" category, and not the "speculation" category of a variable portfolio.

[BearBones]

Your allocation seems like it would clearly fall into the "investment" category, and not the "speculation" category of a variable portfolio.

Thanks. Yes, that is my intention. I think I will always keep a conservative alternative to the PP, but I really don't want it to be variable. My days for speculating, spending a lot of time on my investments and, in particular, losing a lot of money in doing so are numbered.

[dualstow]

still a tolerable max drawdown and years in drawdown compared to most.

That's what I always look at first. Looks good.

[Dieter]

Overall I like it -- I'm similar higher in stock / lower in cash in retirement accounts, and do some slice & dice.

Will have lots of 'tracking error' with the high percentage towards SCV, Emerging Market, and REIT.

Should benefit long term (as the theory goes / I hope works out), but to be aware of it when the S&P 500 is on a tear and the rest of your assets are not.....

[jason]

Seems good based on 43 years of history, but with only 10% gold, in the event of a SHTF complete meltdown much worse than 2008 (hasn't happened in the last 43 years), it may not be ideal.  If you read about the economic collapse in Iceland where the long term government bonds ended up flat (after shooting way up, way down, and then back to where they started) and the stock market dropped 88%, gold was the savior of the portfolio:
https://goo.gl/EWImRD
Having only 10% gold would have made a huge difference in Iceland.