I read an article from Financial Planning on maintaining a low correlation among a portfolio's asset in the distribution phase etc. It was written by Craig Israelsen, PhD, Brigham Young Universtiy. The bottom line is the results of 8 different porfolios and the best being a Seven-Asset Portfolio. Large U.S. Equity, Small U.S. Equity, Non- U.S. Equity, U.S. Int. Term Bonds, Cash, REIT, Commodities, 14.3% each. It was the best in protecting the portfolio against losses.
Since I am now 74 and will retire next year (no more earned income) I found this apprach quite compelling. The space here does not allow me to detail further the results. but perhaps you might get this article from the Jan-2008 issue. The idea of not needing a 50 or 60% bond holding was attractive and equal allocation to 7 asset classes. Perhaps some of the ETF's or Mutual funds would fill all of these classes. Would appreciate your thoughts. Here is a link to Financial Planning Magazine.
Stay Low - Financial Planning
Since I am now 74 and will retire next year (no more earned income) I found this apprach quite compelling. The space here does not allow me to detail further the results. but perhaps you might get this article from the Jan-2008 issue. The idea of not needing a 50 or 60% bond holding was attractive and equal allocation to 7 asset classes. Perhaps some of the ETF's or Mutual funds would fill all of these classes. Would appreciate your thoughts. Here is a link to Financial Planning Magazine.
Stay Low - Financial Planning
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