“The best portfolio is the one that you can keep.”
Sam Marks
Co-hosts Johnny and Sam are entrepreneurs and investors who share their investment strategies and experiences to all the listeners. This episode is an overview of index fund allocation combined with personal recommendations, understanding from influential books, and insights from the experts.
On this episode, Johnny and Sam explain the basics of index funds, stocks, and asset allocation. They discuss investment strategies which helps investors balance their portfolio while minimizing risks. They also talk about fundamental considerations when starting index fund investing, basic asset allocation modeling, and portfolio building. They also present the Buy-and-Hold Portfolio of several investment authorities that will surely help you decide what asset allocation model is perfect for you.
Listen to ILAB 86 on iTunes here or subscribe on your favorite podcast app.
ILAB 86 Show Notes
Where we are:
Johnny – Thailand
Sam – U.S.A.
Links:
3 Investment Gurus Share Their Model Portfolios
The All Seasons Portfolio (Aka The Tony Robbins Portfolio)
The ultimate buy-and-hold portfolio
Paulmerriman.com/whats-wrong-vanguard-small-cap-value/
Recommended:
ArtofFX – start with just a $10,000 account (reduced from $25,000)
Fundrise – start with only $1,000 into their REIT funds (non-accredited investors OK)
RealtyShares – try it free
Books:
Discussed:
ILAB 15 – Meb Faber on Building The All Seasons Portfolio
Experts Buy and Hold Portfolios
John Thomas (Mad Hedgefund Trader)
20% domestic US stocks (SPY)
20% international stocks (IXUS)
10% emerging stock markets (EEM)
20% Real Estate Investment Trusts (VNQ)
15% long term US Treasury Bonds (TLT)
15% Treasury Inflation Protected Securities (TIP)
David Swenson
20% Domestic Stocks
20% International Equities
10% Emerging Markets
20% Real Estate Investment Trusts REITs
15% US Long Term Treasuries
15% TIPS
Ray Dalio
30% stocks S&P 500, indexes
15% intermediate term gov bonds (7-10 yr treasuries)
40% long term bonds (20-25 year treasuries)
7.5% gold
7.5% commodities
Warren Buffet
10% short term government bonds
90% in low cost S&P 500 index fund
Jack Bogle (Vanguard)
60% stocks (Vanguard index funds)
20% vanguard total bond market index fund
20% tax exempt municipal bond funds
2/3 vanguard intermediate tax exempt
1/3 vanguard limited term tax exempt fund
Charles Schwab
30% US Stocks (S&P index)
15% Real Estate Investment Trusts REITs
15% Foreign Developed Equities
15% US Treasury bonds
15% US inflation protected securities TIPS
Sam’s Initial Vanguard (Index Fund Asset Allocation in 2015)
Vanguard 500 Index Fund Admiral Shares (S&P 500) VFIAX – 15%
FTSE All World ex-US Small Cap Index Fund (VFSVX) – 15%
Vanguard Health Care Fund Admiral Shares (VGHAX) – 15%
Vanguard REIT Index Fund Admiral Shares (VGSLX) – 15%
Vanguard Inflation Protected Securities Fund Admiral shares (VAIPX) – 15%
Vanguard Total Bond Market Index Admiral Shares (VBTLX) – 15%
Vanguard Intermediate – Term Tax Exempt Fund Admiral Shares (VWIUX) – 10%
Sam’s Wealthfront (2018 Level 8 Risk Tolerance)
Johnny’s Vanguard Allocation
Johnny’s Vanguard Balance Overtime
Johnny’s Wealthfront Allocation
Time Stamps:
03:14 – What is Asset Allocation?
04:11 – Modeling portfolio
08:58 – Most basic asset allocation model
11:25 – How diversification works?
15:22 – Buy-and-Hold
17:06 – Experts buy-and-hold portfolio
21:38 – What to choose for your portfolio?
29:04 – Stocks vs. Bonds
30:26 – Definition of terms
32:43 – Tax implications
35:13 – Recommendations on how to get started
37:24 – Johnny’s wealthfront portfolio
38:05 – Sam’s wealthfront portfolio
40:11 – Wealthfront
51:23 – Sam’s investments/asset allocation
56:17 – Johnny’s investments/asset allocation
58:38 – Considerations in asset allocation model
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