Desert wrote:
We should start an all world fund that just buys everything. As you said, other than the original purchases, we wouldn't have to do anything. Just sit back and count those ER dollars flowing in.
Cullen has since updated (Jan this year) and simplified the global financial asset portfolio:
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"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
That's the problem with the Boglehead portfolios. How often do they get "adjusted" in response to the latest thinking about what an optimal portfolio should be? Which probably involves a healthy dose of market timing, which could also be described as selling low and buying high.
I'm purposely trying to blind myself to the flood of recommended portfolios, to keep myself from tinkering with simple 3 fund lazy portfolio I set up in my 403b. I wish Vanguard had an autorebalance feature the way TIAA CREF does, so I wouldn't have to do any monitoring other than to log in occasionally to get messages and record the balance for my asset spreadsheet.
"Democracy is two wolves and a lamb voting on what to have for lunch." -- Benjamin Franklin
sophie wrote:
That's the problem with the Boglehead portfolios. How often do they get "adjusted" in response to the latest thinking about what an optimal portfolio should be? Which probably involves a healthy dose of market timing, which could also be described as selling low and buying high.
I'm purposely trying to blind myself to the flood of recommended portfolios, to keep myself from tinkering with simple 3 fund lazy portfolio I set up in my 403b. I wish Vanguard had an autorebalance feature the way TIAA CREF does, so I wouldn't have to do any monitoring other than to log in occasionally to get messages and record the balance for my asset spreadsheet.
FWIW, Vanguard came out with a global financial asset portfolio that was virtually the same as what Cullen did, so I think we can safely say either one is a true passive global financial portfolio that never needs changing or rebalancing. So we add cash and real assets in the PP and this is our active approach vs the passive reference. I'm tempted to invest in the global financial portfolio just to be a masochist (I don't believe in market-cap weighting).
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!