Wealth Preservation

[BearBones]

12.5% stock
12.5% T-bonds
12.5% gold
62.5% T-bills

I too am favoring something like this, perhaps with less cash, taking on and a bit more risk. I really appreciate the feedback, you all.

[Pointedstick]

How about something whose worst year was still positive?



It'll do okay in inflation due to the T-bills and gold, and the longer ladder gives you a few years of slightly better performance in deflation. And tight money recessions that are crushing everyone else will be a breeze.

[Reub]

I just punched in my numbers on the B'head site in the "Three Fund Portfolio" thread. My situation is that I just recently retired at age 56 with a good federal pension (cost of living adjusted) and little debt. I answered a few questions related to risk tolerance and it recommended:

35% VTSMX (Total Stock Market Index)
15% VGTSX (Total International Index)
50% VBMFX (Total Bond)

It also stated that "Larger portfolios may benefit from adding TIPS, REIT, or a small-cap value fund in tax-deferred accounts".

I am about 80% into the PP and am considering this additional approach for the remaining funds.

[MediumTex]

I just punched in my numbers on the B'head site in the "Three Fund Portfolio" thread. My situation is that I just recently retired at age 56 with a good federal pension (cost of living adjusted) and little debt. I answered a few questions related to risk tolerance and it recommended:

35% VTSMX (Total Stock Market Index)
15% VGTSX (Total International Index)
50% VBMFX (Total Bond)

It also stated that "Larger portfolios may benefit from adding TIPS, REIT, or a small-cap value fund in tax-deferred accounts".

I am about 80% into the PP and am considering this additional approach for the remaining funds.

A 50/50 stock/bond portfolio can be a lot more volatile than people realize.

I might think about something more like a Wellesley-ish allocation of 65% bonds, 35% stocks.

Just buying Wellesley seems to work pretty well for lots of people.

[Alanw]

I just punched in my numbers on the B'head site in the "Three Fund Portfolio" thread. My situation is that I just recently retired at age 56 with a good federal pension (cost of living adjusted) and little debt. I answered a few questions related to risk tolerance and it recommended:

35% VTSMX (Total Stock Market Index)
15% VGTSX (Total International Index)
50% VBMFX (Total Bond)

It also stated that "Larger portfolios may benefit from adding TIPS, REIT, or a small-cap value fund in tax-deferred accounts".

I am about 80% into the PP and am considering this additional approach for the remaining funds.

A 50/50 stock/bond portfolio can be a lot more volatile than people realize.

I might think about something more like a Wellesley-ish allocation of 65% bonds, 35% stocks.

Just buying Wellesley seems to work pretty well for lots of people.

I have done just what MT suggested.  80% PP, 20% Wellesley just to weight the total portfolio a little towards stocks and bonds.  Wellesley has an acceptable track record for my money and a cost of only .25%.  I don't care to manage that part of my portfolio for the minimal cost involved.  However, my PP is sepatate and subject to my conservative 30/20 rebalance bands.