I recently read The Gone Fishin' Portfolio by Alexander Green (ISBN #9780470112670) and discovered that he and I have come to very similar conclusions about investing. This is not terribly surprising since he references much of the research that had already convinced me that asset allocation with occasional re-balancing is the best approach for the majority of my assets.
Now, I am considering recommending this specific book to all of my friends and family who ask me about investing, money management, etc. and then loose interest 30 seconds into any discussion on these topics. (I'm planning to say something along the lines of: I'd love to help; but, this book does a much better job than I ever could.
However, before I do this, I was hoping to solicit some other opinions about this this book (and my plan) if anyone on here has read it. Personally, I think this book strikes a good balance: Not too elementry but no real math skills needed to understand it either. And, it gives extremely specific recomendations about implementation.
For anyone interested in the Cliff Notes version, the following link contains the specific Vanguard portfolio that the book recomends for use with a Vanguard account: The Gone Fishin' Portfolio |
I found another page with results of this portfolio vs. the S&P 500 for 2000-2007:
http://www.dailywealth.com/archive/2008/apr/2008_apr_25.asp I am planning to calculate the 2008 return myself since I did not find it online; but, I have not gotten around to that yet.
While this is not a completely traditional asset allocation, it does make sense to me. And, I am probably going to move toward something similar myself using ETF's and a WellsTrade Account. (I have let my own allocation get very skewed over the last few years; lukily for me, I have been cash heavy which has definitely helped blunt the blow of the last few months.)