Scott Burns' Personal Asset Allocation

[intercst]

From today's column

(Burns is in his early 60's and still working.)

http://www.dallasnews.com/sharedcon...umns/2004/stories/061504dnbusburns.9fbd8.html

Summarizing the arithmetic from the article Scott's asset allocation is:

27.5% Vanguard TIPS Fund
27.5% Vanguard Total Stock Market Index Fund
22.0% International stock index funds
7.0% REITs
10.0% large-cap Energy stocks
6.0% Gold Stocks
-------
100.0%

intercst

 

[dex]

Did he say how he would catagorize his portfolio - conservative to risky?
Did he say what was the objectives of the person who would use this allocation?
27.5% Vanguard TIPS Fund
27.5% Vanguard Total Stock Market Index Fund
22.0% International stock index funds
7.0% REITs
10.0% large-cap Energy stocks
6.0% Gold Stocks
-------
100.0%
It appears to be a bit on the risky side for a person of his age - unless he plans to keep working for awhile.
TIPS - conservative
Total Stock Market Index - conservative
International Stock Index - Med Risk - mostly due to exchange rate risk
REITS - med to high risk in an rising rate enviorment
Large cap Energy stocks - high risk - was this just a short term trade? They may have peaked.
Gold - High risk - Why have so much gold. It is an inflation hedge and volitle.

 

[unclemick]

Wow! Scott's portfolio reads like the 70's or 80's - ??back to the future??.

 

[Cut-Throat]

Jonathan Clements also outlined his asset allocation the Sunday Paper. 75% Stocks/25% Bonds - He's only 41 though!

50% - US stock indexes - he did not break this down by sector

25% - International Sectors

25% - Bonds

 

[unclemick]

Except for the TIPs.

 

[chickbull]

Total Stock Market in my opinion is not consevative. Maybe moderate. 3 loosing years in a row 2000,2001,2002, is not a conservative fund IMHO.

 

[Michael]

Why have so much gold.

I started reading his new book, and Scott is convinced that higher inflation is in our future. Most boomers have not saved enough for retirement, and they will pressure the politicians to support them. There is no way to do this just through higher taxes and more borrowing, so the politicians will just print money to give to them (inflation).

 

[wabmester]

I bought a bunch of gold for the first time a couple years ago.  I never really liked the idea of precious metals as an investment, but I wanted a diverse asset mix.

I consider my hoard of gold to be my doomsday stash.   If we hit a period of hyperinflation, the stock market goes to zero, all of my bonds default, and all of my real estate gets swallowed by a giant sinkhole, I'll still be able to party for a year or so before I have to start from scratch.   It's a comforting thought  

 

[John Galt]

So, wabmester, if we have a complete economic
meltdown you would literally begin your golden years

John Galt

 

[unclemick]

Heh, heh

I view gold and even worse silver as a regional disease - perhaps incurable - growing up out West I've always had a few silver and gold coins - still have a 10% in a 'patented' CO non working gold mine. My 10% of the deeded twenty acres outside of Jamestown is agood spot for a vacation cabin ??someday?? Owned vg prec. metals all thru the 70's and 80's , some Homestake - managed to sell close to the twenty year bottom - oh well - balanced index rides on. And the four attempts to reopen the mine over the last thirty years makes for amusing stories.

 

[ak4195]

Seems hedged against a rising rate/inflation scenario with a equities kicker in case things are ok.Inflation/rising rate investment invironment might be a good name for new thread-ak4195

 

[MileKing]

There is a difference between holding gold and gold equities. Gold mining stocks typically move much more (up and down) than the price of gold itself. If the price of gold increases 1%, then gold mining stocks will usually increase 3%-4%.

A 6% allocation of one's portfolio to gold stocks seems excessive to me; 3% seems more appropriate.

 

[ak4195]

heres the dates of upcoming TIPS auctions,

july8-10yr

july 27-20yr

oct 7 -10yr

oct 26-5 yr

these may be subject to revision,but should be fairly close--ak