Gyroscopic Investing

- 30% in Vanguard Total Stock Market Index (VTSMX)

- 20% in Vanguard REIT Index (VGSIX)

- 20% in Vanguard Total International Stock (VGTSX) or (15% in VGTSX and 5% in VEIEX)

- 15% in Vanguard Inflation Protected Securities (VIPSX)

- 15% in Vanguard Long Term Treasury Index (VUSTX)

If someone could run the numbers on this portfolio, it may be worth considering??

It is a good portfolio, but has a lot of stock exposure. In 2008 it got plastered along with everyone else. The high REIT allocation was a big contributor and the TIPS in the bond portion didn't help at all.

It also would make sense to me to eliminate the TIPS entirely and replace it with gold instead if you really want hard core inflation protection.

The rest of the volatility is mainly from the stocks. So I'd lower the percentages down and hold it in some cash instead if I was nervous about things. The portfolio as it is in the basic form is 70% stocks/30% bonds and that's a pretty wild ride if the markets are doing poorly.

fishdrzig wrote: - 25% in Vanguard Total Stock Market Index (VTSMX)

- 10% in Vanguard Wellesley Income Fund (VWINX)

- 10% in Gold

- 10% in Vanguard REIT Index (VGSIX)

- 15% in Vanguard Total International Stock (VGTSX)

- 5% in Vanguard Emerging Markets Stock Index Fund(VEIEX)

- 10% in Vanguard Inflation Protected Securities (VIPSX)

- 15% in Vanguard Long Term Treasury Index (VUSTX)

If someone could run the numbers on this portfolio, it may be worth considering??

This is a modified version of the David Swenson portfolio I have been considering and was wondering what you all think of this set up.  Is there a link someone could post that I could use to back test this?  Thanks for all the input.

craigr wrote: It also would make sense to me to eliminate the TIPS entirely and replace it with gold instead if you really want hard core inflation protection.

I agree that gold is indeed superior protection from hard core inflation.

But is there a place for TIPs in a VP for combating low-level inflation? I notice fishdrzig has both gold and TIPs in his proposed variant of the Swenson portfolio.

goodasgold wrote: But is there a place for TIPs in a VP for combating low-level inflation?

There's a place for anything you want in the VP.
What about I-Bonds in the PP's cash component?