Hello:
I am reading Bob Clyatt's book- Work Less, Live More (2005 edition). In the book, Clyatt recommends the Rational Investing Portfolio (RIP) as a way to maximize retirement portfolio earning and minimize retirement portfolio risk.
Clyatt states that between the period of 1988 to 2004, that very few years in those 16 had negative returns using the Rational Investing Portfolio and that, even subtracting fees, the down years during that period of time would have limited the worst year to just negative 1%.
Do you know how the Rational Investing Portfolio approach faired during the financial crisis of 2008/2009? Did a 75%stock/25%bond allocation fair better than the RIP approach during the financial crisis?
In the book Clyatt says that the RIP approach has an expected return based on historical results of 9.5% and a low volatility of 7.98%. This sounds great, if it is true.
Also, Clyatt refers to Dimensional Fund Advisor (DFA) funds that are suggested to create a RIP. Do you have experience with DFA funds? If not, and you use RIP, what do you use as a substitute for DFA funds?
Thanks for your advice.
I am reading Bob Clyatt's book- Work Less, Live More (2005 edition). In the book, Clyatt recommends the Rational Investing Portfolio (RIP) as a way to maximize retirement portfolio earning and minimize retirement portfolio risk.
Clyatt states that between the period of 1988 to 2004, that very few years in those 16 had negative returns using the Rational Investing Portfolio and that, even subtracting fees, the down years during that period of time would have limited the worst year to just negative 1%.
Do you know how the Rational Investing Portfolio approach faired during the financial crisis of 2008/2009? Did a 75%stock/25%bond allocation fair better than the RIP approach during the financial crisis?
In the book Clyatt says that the RIP approach has an expected return based on historical results of 9.5% and a low volatility of 7.98%. This sounds great, if it is true.
Also, Clyatt refers to Dimensional Fund Advisor (DFA) funds that are suggested to create a RIP. Do you have experience with DFA funds? If not, and you use RIP, what do you use as a substitute for DFA funds?
Thanks for your advice.