Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
optimal portfolio mix?
Old 09-12-2013, 07:03 AM   #1
Recycles dryer sheets
robbridg's Avatar
 
Join Date: Sep 2010
Location: Allen Park
Posts: 118
optimal portfolio mix?

Has anyone tried different portfolio mixes in the 'Your Portfolio' section to try and find the most optimal mix based on history,(since 1927)? It is interesting how much your results will change based on small percentage changes to your mix.
__________________

__________________
robbridg is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-12-2013, 07:40 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by robbridg View Post
Has anyone tried different portfolio mixes in the 'Your Portfolio' section to try and find the most optimal mix based on history,(since 1927)? It is interesting how much your results will change based on small percentage changes to your mix.
Optimizer results are notoriously sensitive to small changes that don't really matter in the real world. What you are seeing is how to datamine the past to trick yourself into a sense of security. Instead of moving your equity allocation 2.5632% to jibe with optimizer results, I think you would be better off taking the general lessons of what firecalc can tell you (over 60% equity allocations have done better in the past or whatever).
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 09-12-2013, 08:00 AM   #3
Thinks s/he gets paid by the post
timo2's Avatar
 
Join Date: Jul 2011
Location: Rio Rancho
Posts: 1,438
Quote:
Originally Posted by robbridg View Post
Has anyone tried different portfolio mixes in the 'Your Portfolio' section to try and find the most optimal mix based on history,(since 1927)? It is interesting how much your results will change based on small percentage changes to your mix.
I guess I believe in the existence of an 'most optimal' portfolio mix about like I believe in the Easter Bunny. As the idiom says "You pays your money (and you takes your chances)"
__________________
"We live the lives we lead because of the thoughts we think" Michael O’Neill
timo2 is offline   Reply With Quote
Old 09-12-2013, 08:22 AM   #4
gone traveling
 
Join Date: May 2012
Location: Fairfax, VA
Posts: 211
Quote:
Originally Posted by brewer12345 View Post
Optimizer results are notoriously sensitive to small changes that don't really matter in the real world. What you are seeing is how to datamine the past to trick yourself into a sense of security. Instead of moving your equity allocation 2.5632% to jibe with optimizer results, I think you would be better off taking the general lessons of what firecalc can tell you (over 60% equity allocations have done better in the past or whatever).
Totally agree with this. I think that its probably more relevant to optimize ones spending and withdrawal strategies, than it is to optimize an EXACT asset allocation.
__________________
bo_knows is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 09:12 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.