UK Investor: Living Off Your Money book - Portfolio Construction

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Topic Author
Carrbhoy
Posts: 3
Joined: Fri Oct 04, 2019 9:03 am

UK Investor: Living Off Your Money book - Portfolio Construction

Post by Carrbhoy » Fri Oct 04, 2019 9:28 am

Hi all - I've recently joined the forum and was hoping other non US investors could provide some guidance. I'm really interesting in constructing a portfolio recommended in the Living Off Your Money book. The book recommendations are more geared towards US investors and the mainly Vanguard funds suggested aren't available in the UK (as far as I'm aware) and therefore I'm looking to build the 'Triad' portfolio using similar funds available to me via Vanguard UK direct / other platforms.

I've seen the excellent thread on this book in the main forum but this specific UK investor query isn't within the scope of the thread. I'm on page 6 of 10 of the thread at the moment - fascinating analysis and insight from the various experts on the forum.

Anyone faced the same portfolio construction challenge? Any suggestions on how best to tackle this?

This feels like a bit of a long shot. Any input would be appreciated.

C

ukbogler
Posts: 68
Joined: Mon Sep 30, 2019 4:38 am

Re: UK Investor: Living Off Your Money book - Portfolio Construction

Post by ukbogler » Fri Oct 04, 2019 9:57 am

This:-

https://optimizeyourretirement.com/the-triad-portfolio/

Sounds like more work than a Boglefolio, and unless you get lucky with your choices, I doubt you'll outperform. That's the beauty of Bogling; little work, three pots, good chance of beating almost every other investment style over the long term. Or that's what it looks like when I backtest portfolios over at portfolio visualiser...

Topic Author
Carrbhoy
Posts: 3
Joined: Fri Oct 04, 2019 9:03 am

Re: UK Investor: Living Off Your Money book - Portfolio Construction

Post by Carrbhoy » Fri Oct 04, 2019 10:20 am

Hi ukbogler - thanks for coming back to me. The Triad portfolio from the book is as follows:

US Fund Asset Class
VIVAX US Large Value
NAESX / BRSIX US Micro / Small Blend
VISVX US Small Value
VGSIX REITS - US
VGXRX REITS - International
VTRIX International Large Value
VINEX / VFSVX International Small
DLS / GMISX / VFSVX International Small Value
DGS / EEMS Emerging Markets - Small
DEM / EVAL Emerging Markets - Value
VFISX Short Term Treasury Bonds
VFITX Intermediate Term Treasury Bonds
VIPSX Inflation Protected Securities (TIPS)

All of the Fund codes are US specific and I want to try and identify similar funds which I can purchase as a UK investor. I'm currently reviewing the US funds to understand the main components / returns / costs etc to then map to Vanguard UK funds and was hoping there is an easier way!

As I say, thanks for taking the time to respond and any guidance / pointers are much appreciated.

Also, what is the Boglefolio funds for a UK investor? Just new on here.....

C

TedSwippet
Posts: 2488
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: UK Investor: Living Off Your Money book - Portfolio Construction

Post by TedSwippet » Fri Oct 04, 2019 10:26 am

Welcome.
Carrbhoy wrote:
Fri Oct 04, 2019 10:20 am
Also, what is the Boglefolio funds for a UK investor? Just new on here.....
Maybe start here: UK investing - Bogleheads

Topic Author
Carrbhoy
Posts: 3
Joined: Fri Oct 04, 2019 9:03 am

Re: UK Investor: Living Off Your Money book - Portfolio Construction

Post by Carrbhoy » Fri Oct 04, 2019 10:31 am

Ah perfect - my weekend reading........thank you!

andrew99999
Posts: 513
Joined: Fri Jul 13, 2018 8:14 pm

Re: UK Investor: Living Off Your Money book - Portfolio Construction

Post by andrew99999 » Fri Oct 04, 2019 11:50 am

Carrbhoy wrote:
Fri Oct 04, 2019 10:20 am
Hi ukbogler - thanks for coming back to me. The Triad portfolio from the book is as follows:

US Fund Asset Class
VIVAX US Large Value
NAESX / BRSIX US Micro / Small Blend
VISVX US Small Value
VGSIX REITS - US
VGXRX REITS - International
VTRIX International Large Value
VINEX / VFSVX International Small
DLS / GMISX / VFSVX International Small Value
DGS / EEMS Emerging Markets - Small
DEM / EVAL Emerging Markets - Value
VFISX Short Term Treasury Bonds
VFITX Intermediate Term Treasury Bonds
VIPSX Inflation Protected Securities (TIPS)
And which ones are risk-free, core, and alternatives?

And does something not smell off when they mention 25% CAGR and then list items that don't come close to that?
PassiveInvestingAustralia.com

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