Gone Fishin Portfolio

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Buster65
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Gone Fishin Portfolio

Post by Buster65 » Mon Jul 09, 2012 8:45 am

The Gone Fishin Portfolio as written by Alexander Green suggests a the following allocation:

US Large Cap Stocks 15%
US Small Cap Stocks 15%
European Stocks 10%
Pacific Rim Stocks 10%
Emerging Market 10%
REITS 5%
Gold Miner Stocks 5%
Inflation Adjusted Bonds 10%
Short Term Corp Bonds 10%
High Yield Bonds 10%

I had two questions. What do Bogleheads thing of this allocation? What low cost, low expense Vanguard funds correspond to each category?

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runner9
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Re: Gone Fishin Portfolio

Post by runner9 » Mon Jul 09, 2012 8:49 am

If you search the site for "Gone Fishin" there are many previous discussions of this portfolio.

https://www.google.com/search?sitesearc ... one+Fishin

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mhc
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Re: Gone Fishin Portfolio

Post by mhc » Mon Jul 09, 2012 8:51 am

I don't think that portfolio would leave me much time to fish. :D

Here is a simpler idea: http://www.bogleheads.org/wiki/3-fund_portfolio

The Wiki page explains it all, I think.

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Taylor Larimore
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Re: Gone Fishin Portfolio

Post by Taylor Larimore » Mon Jul 09, 2012 8:59 am

archman65 wrote:The Gone Fishin Portfolio as written by Alexander Green suggests a the following allocation:

US Large Cap Stocks 15%
US Small Cap Stocks 15%
European Stocks 10%
Pacific Rim Stocks 10%
Emerging Market 10%
REITS 5%
Gold Miner Stocks 5%
Inflation Adjusted Bonds 10%
Short Term Corp Bonds 10%
High Yield Bonds 10%

What do Bogleheads thing of this allocation?
Archman:

You will have more time for "Gone Fishin" with this portfolio recommended by John Bogle:

The Three Fund Portfolio

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

retiredjg
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Re: Gone Fishin Portfolio

Post by retiredjg » Mon Jul 09, 2012 5:45 pm

archman65 wrote:The Gone Fishin Portfolio as written by Alexander Green suggests a the following allocation:

US Large Cap Stocks 15%
US Small Cap Stocks 15%
European Stocks 10%
Pacific Rim Stocks 10%
Emerging Market 10%
REITS 5%
Gold Miner Stocks 5%
Inflation Adjusted Bonds 10%
Short Term Corp Bonds 10%
High Yield Bonds 10%

I had two questions. What do Bogleheads thing of this allocation? What low cost, low expense Vanguard funds correspond to each category?
It's not poison, but I don't care for it for a number of reasons.

That allocation gives you a 70/30 stock to bond ratio and part of the bonds are a little like stocks. What if some other stock to bond ratio is better for you?

Most plans at work don't offer most of those things, so if you want that list, you have to give up your tax-deferred investing. I think it is more important to start with the choices available in your tax-deferred investment plan and build the best portfolio possible from there.

When that portfolio idea was developed, using 3 funds to cover part of the international market was probably as the best you could do. You can now get the entire market, not just part, in 1 fund. So why use those 3?

Why use 10 funds when 3 will do? Or even if you have to use different building blocks to get your 3 funds, why use 10 funds when 4 to 6 will do?

A portfolio with 10 funds will actually require some work. I don't think "Gone Fishing" is that appropriate a name, at least not with present day funds available.

yobria
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Re: Gone Fishin Portfolio

Post by yobria » Mon Jul 09, 2012 6:02 pm

Looks like cutely named, overly complex portfolio #99135245. It overweights US small cap vs Europe by something like 15/1, which doesn't seem rational. Replace those first seven funds with the Vanguard Total World Index Fund and you'll have more time for 'fishin...

livesoft
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Re: Gone Fishin Portfolio

Post by livesoft » Mon Jul 09, 2012 6:04 pm

New fund products appear all the time. It was not too long ago that the "Three-fund portfolio" as it exists today could not be achieved because the Vanguard Total Int'l Index fund was by no means "Total".

The suggested portfolios such as Gone Fishin', Coffeehouse, Ultimate-Buy-and-Hold have also had a chance to age and not take advantage of more modern fund products.

This is where the Bogleheads forum excels: Folks here know about the latest products that can achieve similar results, but with a simpler selection of funds.

So "Gone Fishin'" is a fine portfolio, but there are many fine portfolios. Some are finer than others. :)

Edit to add: archman, you asked about which Vanguard funds correspond to each category. I will say that if you cannot discover this yourself in a few minutes, then this portfolio is not for you.
Wiki This signature message sponsored by sscritic: Learn to fish.

goalie
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Re: Gone Fishin Portfolio

Post by goalie » Tue Jul 10, 2012 6:07 am

I have a portfolio very similar to this one. I do it for the rebalancing opportunities. I am mostly in 401k and IRA's, so moving money around is easy. Chip

pkcrafter
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Re: Gone Fishin Portfolio

Post by pkcrafter » Tue Jul 10, 2012 11:58 am

Gone Fishin' Portfolio
US Large Cap Stocks 15%
US Small Cap Stocks 15%
European Stocks 10%
Pacific Rim Stocks 10%
Emerging Market 10%
REITS 5%
Gold Miner Stocks 5%
Inflation Adjusted Bonds 10%
Short Term Corp Bonds 10%
High Yield Bonds 10%

Gone fishin' and read a book portfolio
Total Stock Market 30%
Small Value 7%
Total International 20%
Int. Small 5%
REITS 8%
TIPs 10%
Short Term Bond Index 20%

Gone Fishin' and took a nap portfolio
Total Stock Market - 37%
Total International - 25%
REIT - 8%
Short Term Bond Index - 30%

Gone Fishin' and got lost portfolio
LS Moderate 92%
REIT 8%
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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FlyHi
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Re: Gone Fishin Portfolio

Post by FlyHi » Tue Jul 10, 2012 12:08 pm

My "Gone Fishin Portfolio":

10% - CDs
4 % - IBonds
13% - VG Tgt Retirment Income (VTINX)
54% - VG Welleseley Adm (VWIAX
19% Yachtman Service (YACKX)

Sonce I don't fish this is my "Gone Reading Portfolio."
“If you want to feel rich, just count the things you have that money can't buy”

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