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Construct the "perfect" portfolio!
Old 09-23-2015, 02:14 PM   #1
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Construct the "perfect" portfolio!

Hi all,

If you had it all to do over again, what would you do?

Lets assume everyone on here is 20 years old. Knowing what you know now, what would be your perfect portfolio today?

I'm only 33, but I think for me it would be this:

Taxable:
Spartan S&P 500 index
Spartan total Market
Vanguard Dividend growth

401k:
Index funds (large, mid, and small)
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Old 09-23-2015, 03:32 PM   #2
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Now during what period will that portfolio fall on?

If it's for the future, my crystal ball's currently malfunctioning. That said, I'd probably go with a modified Coffeehouse Portfolio for increased diversification. Currently, I'm in a simple 3-fund portfolio but new contributions and dividends are being used to buy LV, MB, SB, and REITs until I get to the desired allocations.
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Old 09-23-2015, 04:43 PM   #3
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If you had it all to do over again, what would you do? ...
... knowing that $10K invested in a S&P index fund in 1980 grew to $260K in 2000, then shrunk to $146K in 2002, then grew back to $298K in 2007 just to shrink back to $161K in 2009... ?

I'd be jumping in/out at the right time and become filthy rich.

As I did not have this info back then, all I would do was to maintain a balanced portfolio, although I would keep a higher equity AA than I did, plus pay more attention to the market in order to take advantage of market dips.
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Old 09-23-2015, 05:58 PM   #4
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........Lets assume everyone on here is 20 years old.............)

I already do.
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Old 09-23-2015, 06:16 PM   #5
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If you had it all to do over again, what would you do?
I would have bought that SS 396 off the lot back in 1987


money/investment wise I wouldn't change a thing - could be better could be worse, I'll take what I have and be thankful
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Old 09-26-2015, 06:34 PM   #6
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The perfect portfolio for a USA citizen or resident alien: 60% VTI + 35% BND + 5% CASH.


The perfect portfolio for a USA-NRA who uses the USD: 60% VWRD + 35% IUAG + 5% CASH.
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AA = 60/35/5. Expected CAGR = 5.7%. GSD (5y) = 7.8%. USD inflation (10 y) = 1.8%. AWR = 3.0%. TER = 0.5%. Net Port Yield = 1.7%. Term = 36 yr. FI Duration = 4.9 yr. Portfolio survival probability = 86%.
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Old 09-26-2015, 06:49 PM   #7
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I would have kept maxing out my 401K, and invest it in S&P funds. Also maxing out any HSA and IRAs, especially a Roth.

I would also start a business, and make some side money.
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Old 09-26-2015, 06:52 PM   #8
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The perfect portfolio for a USA citizen or resident alien: 60% VTI + 35% BND + 5% CASH.


The perfect portfolio for a USA-NRA who uses the USD: 60% VWRD + 35% IUAG + 5% CASH.
It's important whether these funds are in retirement accounts are not and how the relevant tax treaty and local laws treat them.
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Differently
Old 09-27-2015, 05:25 AM   #9
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Differently

I think I would've stuck with a Boglehead strategy, and maybe tweaked the allocations some. I have plenty now, but have made alot of errors in getting creative and picking individual stocks and etfs.
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Old 09-27-2015, 08:07 AM   #10
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I would have done pretty much the same as I did starting in 1987. I decided to pay into both the US and UK social security systems to secure two COLAed retirement income sources. I also decided to buy a rental property and go into retirement with zero mortgages. I put as much as I could into retirement and after tax accounts using a couch potato type portfolio and rebalancing. As soon as I could I maxed my retirement and ROTH contributions every year. I used TIAA-Traditional as part of my fixed income allocation.
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“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
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Old 09-28-2015, 10:15 PM   #11
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My perfect portfolio would be twice what i can imagine ever spending, in cash.


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Old 10-01-2015, 04:33 PM   #12
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If I truly wanted a 'set it & forget it' portfolio & it only consisted of mutual funds
I'd set it up the way I set up my 401(k) in 1995

40% Vanguard explorer
30% Vanguard index 500
20% Vanguard international growth
10% Vanguard total bond market index

And Done!
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Old 10-11-2015, 05:38 PM   #13
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Assuming the portfolio is for retirement I would do:

90% Vanguard Total World Stock fund or preferably the ETF version for the lower expenses.
10% in short term treasury fund or ETF.
Maybe increase the treasury fund a little, but no more than to 25% or so of my portfolio as I got closer to retirement age.

Nice and simple but not sure whether many without a pension could stomach the volatility that would accompany this type of portfolio.
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Construct the "perfect" portfolio!
Old 10-11-2015, 07:56 PM   #14
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Construct the "perfect" portfolio!

If I were to start all over again I would look at a variation of the Bill Bernstein "no brainier" portfolio, such as...

25% Large cap (or total mkt VTI)
25% small cap (etf SCHA includes nice exposure to microcaps)
25% international (Bernstein liked European, but I would go broader and include emerging market. VXUS would be my choice)
25% total bond market fund (or intermediate bond fund)

Although at the age of 20 or 21 I might consider an additional 5% allocation to stocks for an 80/20 AA.


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Old 10-11-2015, 09:01 PM   #15
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Let me just say that I'd hate to be 20 years old and have the pressure to perform with interest rates at a net zero and a very volatile equity market.

Of course, you'd need to max out the 401K to get all the matching employer funds--and put another 5% in there for good measure. I'd put it in a diversified mix of mutual funds. (My company paid the expenses on the 401k.)

And I'd go the max yearly on Roth IRA's in ETF's--maybe 10 different diversified funds.

And by starting out so young, time is your biggest ally.
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Old 10-12-2015, 10:48 AM   #16
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I think I would've stuck with a Boglehead strategy, and maybe tweaked the allocations some. I have plenty now, but have made alot of errors in getting creative and picking individual stocks and etfs.

Same here. Same here !!!

VTI /VXUS / cash or BND ...
Reallocate 2x per year and stop chasing the hot stocks in all but some "fun mad money" small account.
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Old 10-12-2015, 03:13 PM   #17
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Hi all,

If you had it all to do over again, what would you do?

Lets assume everyone on here is 20 years old. Knowing what you know now, what would be your perfect portfolio today?
If I were 20 again and knowing what I know now, investing would be about third or fourth on my list of priority things to do.
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Old 10-12-2015, 04:12 PM   #18
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If I were 20 again and knowing what I know now, investing would be about third or fourth on my list of priority things to do.
I know. I had a bumper sticker on my car - "Draft beer, not me!"
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Old 10-12-2015, 07:25 PM   #19
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I know. I had a bumper sticker on my car - "Draft beer, not me!"
Now that brings back memories. I went through the lottery drawings back in the day. Talk about the luck of the draw, or should I say the bouncing balls! It was pretty close to a real life or death drawing in those days. I can remember watching the drawing on TV with one of my friends (who was also in the same drawing) and I can still remember my number ~45 years later. Talk about one of life's defining moments.
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Old 10-12-2015, 08:48 PM   #20
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Originally Posted by moneymaker View Post
Hi all,

If you had it all to do over again, what would you do?

Lets assume everyone on here is 20 years old. Knowing what you know now, what would be your perfect portfolio today?

I'm only 33, but I think for me it would be this:

Taxable:
Spartan S&P 500 index
Spartan total Market
Vanguard Dividend growth

401k:
Index funds (large, mid, and small)
At age 72 looking back WITH what's available now I would max 401k into a full auto life cycle index fund. With taxable I would probably dink with rental real estate although I don't have a landlord personality.

heh heh heh -
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