Everyone knows that they need to invest, but very few know where, when and how to do so. In an attempt to overcome the paralysis caused by too many investment options, I bring to you a list of sample investment portfolios from the “experts.” I put quotations around the term “experts” because even the most knowledgeable investors of all time will candidly admit to their inability to predict the future. Having said that, these “experts” all agree that selecting an appropriate Asset Allocation is the most important decision you’ll ever make. This decision can greatly minimize risk and maximize returns.
Please keep in mind that I do not recommend any one of the following portfolios over another. My goal was to gather several investment portfolios from “experts” in an effort to give you a better understanding of what a portfolio looks like. It’s important to note that each portfolio mentioned offers varying levels of diversification and, as a result, carries different levels of risk and reward. While I have included specific index funds for convenience, I would recommend consulting with a financial professional prior to investing.
Oblivious Investor’s Single Fund Portfolio
- 100% Vanguard Target Retirement Fund (VFIFX)
(Source: Oblivious Investor)
Warren Buffett’s Advice to his Heirs Portfolio
- 90% S&P 500 Index Fund (VFINX)
- 10% Short-Term Government Bonds (VGSH, VBISX, VIPSX)
(Source: Marketwatch)
David Swensen’s Portfolio
- 20% Domestic Stocks (VTSMX)
- 20% International Stocks (VDVIX)
- 10% Emerging Stocks (VEIEX)
- 20% REITs (VGSIX)
- 15% Long-Term Treasuries (VFITX)
- 15% TIPS (VIPSX)
(Source: Money – Master the Game)
Ray Dalio’s All Seasons Portfolio
- 30% Stocks (VTI, VEA, VWO)
- 15% Short-Term Treasury Bonds (TIP)
- 40% Long-Term Treasury Bonds (BND)
- 7.5% Gold (GLD)
- 7.5% Commodities (DJP)
(Source: Money – Master the Game)
Gone Fishin’ Portfolio
- 60% US & International Stocks (VTSMX, VEURX, VPACX, VEIEX)
- 30% High-Grade Bonds, High-Yield Bonds, TIPS (VFSTX, VWEHX, VIPSX)
- 10% Gold Mining & REITs (VGPMX, VGSIX)
(Source: Gone Fishin’ Portfolio)
Oblivious Investor’s Six Fund Portfolio
- 20% Vanguard 500 Index (VFINX, VOO)
- 10% Vanguard Small-Cap Value Index (VISVX, VBR)
- 10% Vanguard REIT Index (VGSIX, VNQ)
- 30% Vanguard Total International Stock Index (VGTSX, VXUS)
- 15% Vanguard Total Bond Market Index (VBMFX, BND)
- 15% Vanguard Inflation-Protected Securities Fund (VIPSX, TIP*)
(Source: Oblivious Investor)
Larry Swedroe’s Low Cost Investment Portfolio
- 40% Inflation Protected Securities (VIPSX)
- 15% Large-Cap Value Stocks (VIVAX)
- 15% Small-Cap Value Stocks (VISVX)
- 13% Mid-Cap and Large-Cap Value Stocks in Europe, Asia and Australia (EFV)
- 13% Small-Cap International Stocks (SCZ)
- 4% Emerging Stocks (VEIEX)
(Source: Kiplinger)
(Photo credit: Images Money)
