I've been reading Bridgewater Associates white papers on its All-Weather Portfolio, meant to provide gains in all Market environments: Rising/No Inflation, Rising/Inflation, Falling/No Deflation, Falling/Deflation. I can emulate the All-Weather Portfolio using Vanguard Funds. Merriman's and David Swenson's Portfolios have characteristics of the Bridgewater Associates All-Weather Portfolio: the asset classes held are un-, or even (best) negatively correlated, so when some asset classes do well, others will not, and vice-versa. But overall, the portfolio goes up in value every year because of the asset classes' risk premiums over holding cash. |
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Mohamed El-Erin has moved his investments to cash because the Fed has inflated all asset classes, including bonds that yield almost nothing. he is willing to lose 2% per year in purchasing power to inflation, just to avoid upcoming capital losses in both stocks and bonds when the next correction happens. should I go to all cash (MM or short-term CDs) too? |
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I don't want to depend upon stock market growth for my Income Shortfall (IS). Instead, I want to spend only stock & bond dividends, and covert my Excess RMD (ERMD) to a balanced growth portfolio, synonymous to one who is saving for retirement, but instead, I an growing my investments for inheritance purposes. So: Rollover IRAs produce IS income, and ERMDS -> Family Trust (FT) produces inheritance. Invest each accordingly: Rollover IRAs -> Wellesley and FT -> Tax-managed Growth. |
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Am 30% stocks now, but am considering 20% but think that might be too low, so perhaps 25% (half way in between) would be good. |
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