Money and Investing

Model Portfolios for Asset Allocation

A few examples from my reading, as a starting point for your own investigations. Try at your own risk.

David Swensen

I first heard about him and his book Unconventional Success on NPR

• 30% Domestic Equity: Vanguard Total Stock Market Index Fund (VTSMX)
• 5% Emerging Market Equity: Vanguard Total International Stock Index Fund (VGTSX)
• 15% Foreign Developed Equity: Vanguard Emerging Markets Stock Index Fund (VEIEX)
• 20% Real Estate Investment Trusts: Vanguard REIT Index Fund (VGSIX)
• 15% U.S. Treasury Notes and Bonds: Vanguard Short-Term Treasury Fund (VFISX), Vanguard Intermediate-Term Treasury Fund (VFITX), Vanguard Long-Term Treasury Fund (VUSTX)
• 15% U.S. Treasury Inflation-Protection Securities, or TIPS: Vanguard Inflation-Protected Securities Fund (VIPSX)

Dr. Marvin Appel

From his book Investing with Exchange-Traded Funds Made Easy

The “One Desicion” Portfolio

For consevative investors:

• 20% S&P 500 Index (SPY)
• 20% Diversified REITs (ICF)
• 10% Diversified small-cap value stocks (DSV)
• 20% Diversified intermediate-term investment grade bonds (AGG)
• 30% Treasury bills (or money market or bank CDs)

For less consevative investors eliminate the cash position:

• 28.6% S&P 500 Index (SPY)
• 28.5% REITs (ICF)
• 14.3% Small-cap value stocks (DSV)
• 28.6% Intermediate-term investment grade bonds (AGG)

The “Ultimate ETF Strategy”

This one requires just a little bit of work.

• 25% Bonds ie.: iShares Lehman Aggregate Bond Fund (AGG)
• 25% REITs: iShares Cohen & Steers Realty Majors Index Fund (ICF)
• 25% in either International Stocks (EFA), the S&P 500 (SPY) or cash
• 25% in large or small cap, value or growth indexes (IWN, IWD, IWO, IWF)

Two Retirement Portfolios from Ben Stein

Two articles from Ben Stein (and Phil DeMuth) from Yahoo Finance.

First saving for retirement, the other an income portfolio for those already retired. (As always, use at your own risk!)

Savings for Retirement

• 35% Vanguard Total US Stock Market Fund (VTSMX)
• 35% Vanguard Total International Stock Market Fund(VGTSX)
• 15% Vanguard Bond Market Index Fund(VBMFX)
• 15% Vanguard Inflation Adjusted Bond Fund (VIPSX)

Income Portfolio

• 50% Wiltshire REIT index (RWR)
• 50% Dow Jones US Total Market Index ETF (DVY)

Stock Picking Challange

A work in progress: Stock Tracker Challenge

Pick your portfolio and the site tracks your performance versus the other challengers.