Hi - I'm new here and I am curious about efforts to better control risk in portfolios.
I was "lucky" to have a windfall in 1999 - Not being too sophisticated on stocks I invested and then watched as the market crashed and burned. I knew to "ride it out" and I held on for 2001 and 2002. Finally with my accounts decimated I withdrew and of course missed all the upside.
Now I am getting ready to retire ( a little early) and I have been doing my home work. I agree with asset allocation models and MPT to a large extent. I found a great portfolio model in the book "Work Less, Live More" by Bob Clyatt. His model shows a 9.5 % return and during the "bad years" barely saw a ripple. So I took some Vanguard fund examples - plugged them in and tried it. My portfolio took a bath (historically). Is his portfolio wrong? Does anyone have some example models with low risk that should earn better than a CD or am I just searching for the holy grail? (looking for 7-8% and a calm stomach)
I was "lucky" to have a windfall in 1999 - Not being too sophisticated on stocks I invested and then watched as the market crashed and burned. I knew to "ride it out" and I held on for 2001 and 2002. Finally with my accounts decimated I withdrew and of course missed all the upside.
Now I am getting ready to retire ( a little early) and I have been doing my home work. I agree with asset allocation models and MPT to a large extent. I found a great portfolio model in the book "Work Less, Live More" by Bob Clyatt. His model shows a 9.5 % return and during the "bad years" barely saw a ripple. So I took some Vanguard fund examples - plugged them in and tried it. My portfolio took a bath (historically). Is his portfolio wrong? Does anyone have some example models with low risk that should earn better than a CD or am I just searching for the holy grail? (looking for 7-8% and a calm stomach)