Gyroscopic Investing

I use the Charles Schwab retirement planning web app... and I haven't been sure what portfolio type to enter when planning, because I plan to be more or less 100% in the Permanent Portfolio at retirement. So I found another backtesting tool at www.portfoliovisualizer.com, then I tested the Permanent Portfolio (red) against the Schwab model portfolios to see which one it was closest to... it turns out that for 1972-2014 it exactly resembles the Schwab Moderately Conservative portfolio (blue) in terms of compound annual growth rate (CAGR), but with less risk... lower standard deviation, lower Maximum Drawdown, higher Sharpe ratio. Good to know for planning purposes.

ochotona,

What is the Schwab portfolio pieces and how does it function?  Rebalancing?  If so, when?

Nice work.

Thanks

No, this isn't the Schwab Intelligent robo-advisor... these are just the Aggressive, Moderately Aggressive, Moderate, Moderately Conservative, and Conservative model portfolios which they have part of Schwab's self-management reference materials for as long as I can remember... decades. I wanted to confirm which of these the PP was closest to, so now I know. And by PP I do mean the Classic 4 x 25% portfolio.

The retirement planning tool asks which of the five portfolios you will have before and after retirement.

This post causes me to ask if anyone is familiar with a site that determines an asset allocation based upon targeted CAGR, volatility, Sharpe ration and MaxDD.

Anyone know of one?

Thanks.