I am trying to invest my super money (no pun intended) using the strategy described in the book from Alexander Green "The Gone Fishin' Portfolio".
In his book, he explains the strategy and lists the exact managed funds to invest in to have the portfolio in place.
The gone fishing portfolio has stood the test of time and has performed well since inception in 2003.
It has returned 15.5% per year and the period goes through the GFC. It seems a good "set and forget" kind of strategy which suits me, at least when it comes to non-property investment.
Trouble is, these are all Vanguard funds in the US.
I would like to somehow translate that to equivalent funds in Australia to try and emulate his results.
His principle is as follows:
You should invest in index funds using a low cost manager. According to the author, ongoing costs can kill the returns of your portfolio very quickly.
Most importantly, the asset allocation should look like this:
Shares 60%
30% US Stocks
30% Foreign Stocks
Other 40%
REITS 5%
GOLD SHARES 5%
short term corporate Bond 10%
high yeld bonds 10%
Inflation adjusted treasuries 10%
Specific Managed Funds used to implement the portfolio in the US
US Shares
15% - Vanguard total stock market index VTSMX 0.15% expense ration
15% - Vanguard small cap index NAESX (0.22%)
International Shares
10% Vanguard European stock index fund - VEURX
10% Vanguard Pacific Stock Index Fund - VPACX 0.22%
10% Vanguard Emerging markets index funds VEIEX - 0.5%
Other 40%
5% Vanguard Precious metals and mining funds VGPMX 0.35
5% Vanguard REIT Index Funds VGXIX 0.21%
10% Vanguard Short term investment grade fund
10% Vanguard High Yield Corporate Fund - VWEHX 0.26%
10% Vanguard Inflation protected securities fund - VIPSX
Having a quick look at the Vanguard website, we cannot really find equivalent funds to these offered in the US.
What do you think would be a suitable replacement, even if not vanguard funds, that would follow this broad asset allocation?
Any thoughts on the allocation described? 15% per year seems a pretty good results to me over a decade.
In his book, he explains the strategy and lists the exact managed funds to invest in to have the portfolio in place.
The gone fishing portfolio has stood the test of time and has performed well since inception in 2003.
It has returned 15.5% per year and the period goes through the GFC. It seems a good "set and forget" kind of strategy which suits me, at least when it comes to non-property investment.
Trouble is, these are all Vanguard funds in the US.
I would like to somehow translate that to equivalent funds in Australia to try and emulate his results.
His principle is as follows:
You should invest in index funds using a low cost manager. According to the author, ongoing costs can kill the returns of your portfolio very quickly.
Most importantly, the asset allocation should look like this:
Shares 60%
30% US Stocks
30% Foreign Stocks
Other 40%
REITS 5%
GOLD SHARES 5%
short term corporate Bond 10%
high yeld bonds 10%
Inflation adjusted treasuries 10%
Specific Managed Funds used to implement the portfolio in the US
US Shares
15% - Vanguard total stock market index VTSMX 0.15% expense ration
15% - Vanguard small cap index NAESX (0.22%)
International Shares
10% Vanguard European stock index fund - VEURX
10% Vanguard Pacific Stock Index Fund - VPACX 0.22%
10% Vanguard Emerging markets index funds VEIEX - 0.5%
Other 40%
5% Vanguard Precious metals and mining funds VGPMX 0.35
5% Vanguard REIT Index Funds VGXIX 0.21%
10% Vanguard Short term investment grade fund
10% Vanguard High Yield Corporate Fund - VWEHX 0.26%
10% Vanguard Inflation protected securities fund - VIPSX
Having a quick look at the Vanguard website, we cannot really find equivalent funds to these offered in the US.
What do you think would be a suitable replacement, even if not vanguard funds, that would follow this broad asset allocation?
Any thoughts on the allocation described? 15% per year seems a pretty good results to me over a decade.