Rational Investing Portfolio question

[David1961]

I have a question about the "Rational Investing Portfolio" mentioned in the book "Work less, Live More - The Way To Semi-Retirement". In the edition of the book that I have, it lists the annual performance of this portfolio through 2006. I was wondering how this portfolio did in 2007, 2008, and so far in 2009. And how did it compare to the S&P 500 index?

[REWahoo]

David, Bob Clyatt hasn't been on the forum for a couple of months so I sent him a PM asking him to take a look at your question. Meanwhile, he did provide some information on 2008 performance here: ESR bob and Sandwich Portfolio

[ESRBob]

Thanks for your inquiry, and thanks REWahoo for pointing me to this question.

I don't have the full Rational Investing Portfolio results as they need to be calculated for me by a research firm using proprietary databases (ie. it costs me and I only do it when a new edition comes out!), but the Sandwich Portfolio, an 8-fund portfolio plus Money Market Fund is a pretty good proxy which hits all the main asset classes (though it leaves out commodities, private equity and a few other minor ones). Anyone can calculate these with the percentage asset allocation in the books and Morningstar, so it's completely transparent.

Results since the last book (which goes through 2006) are as follows:

2007 7.6%

2008 -20.3%

2009 YTD (through 6/5 close) 5.2%

This year the performance seems to be coming from the International side, probably also helped by dollar weakness. Reversal of the same factors that hosed it in 2008. Stiill as for getting through a rough patch without losing too much sleep, this portfolio seems to be working.

The asset allocation for all my Early Semi-Retirement portfolios are roughly 40% Stocks, (about half foreign), 40% Bonds (also with a good foreign allocation) and 20% Other, split between Commodities, Oil & Gas, Private Equity, Commercial Real Estate and Hedge Fund strategies (Long/Short etc).

Back to my sculpture. Just got a piece mentioned in the NY Times today which was a nice early Father's Day present.

You can also check out this video recently made of me sculpting and talking about life after ER for a local media company. (click on the link on the right with the sculptures in it)

Until the next edition comes up, I'll be in the studio. Good luck everyone in their portfolio restoration and ER plans!