Hello there:
I currently have the following asset allocation:
Stock
Large Cap 48%
Mid/Small Cap 16%
International 16%
Specialty 0%
Bond
Investment Grade 15%
High Yield 0%
International Bond 5%
Cash
Short Term 0%
I am considering switching to a Permanent Portfolio Asset Allocation. The allocation would be the following:
25% – Stocks (in a broad based stock index fund like the S&P 500)
25% – Long Term Treasury Bonds
25% – Gold Bullion
25% – Cash (in a Treasury Money Market Fund)
I would like to be able to retire in 4 to 9 years. I am currently 41 years old. About 59% of my asset allocation is in 401k or ROTH investments. About 41% is in after tax investments.
My overall net worth has increased since I started preparing for early retirement, I became more aggressive with this early retirement plan in the beginning of 2005. However, I think my savings rate has increased my net worth more so than my actual return on investments.
What do you think about the Permanent Portfolio asset allocation? What do you think I should consider before I make the switch to this type of asset allocation? Thank you for your advice!
I currently have the following asset allocation:
Stock
Large Cap 48%
Mid/Small Cap 16%
International 16%
Specialty 0%
Bond
Investment Grade 15%
High Yield 0%
International Bond 5%
Cash
Short Term 0%
I am considering switching to a Permanent Portfolio Asset Allocation. The allocation would be the following:
25% – Stocks (in a broad based stock index fund like the S&P 500)
25% – Long Term Treasury Bonds
25% – Gold Bullion
25% – Cash (in a Treasury Money Market Fund)
I would like to be able to retire in 4 to 9 years. I am currently 41 years old. About 59% of my asset allocation is in 401k or ROTH investments. About 41% is in after tax investments.
My overall net worth has increased since I started preparing for early retirement, I became more aggressive with this early retirement plan in the beginning of 2005. However, I think my savings rate has increased my net worth more so than my actual return on investments.
What do you think about the Permanent Portfolio asset allocation? What do you think I should consider before I make the switch to this type of asset allocation? Thank you for your advice!