ProFolio

Dear ProFolio, I’m trying to build a portfolio that will generate a zero real rate of return that will buy me the same amount of goods today as it would 30 years from now. I have 25% in gold, 25% in a 5yr CD ladder, 25% in Global Bonds, 5% in Long/Short Fund, 5% in short term TIPS, and 5% each in Swiss, Singapore, Norwegian currencies. Would you recommend anything different? ----------------- Your goal is to match inflation with minimal volatility. Lets make a simplified mode

People often make financial decisions that work against their long term goals. The study of this is called behavioral finance and was pioneered by Daniel Kahneman and Amos Tversky. The investor needs to recognize irrational behaviors and seek to avoid them. Some of the irrational behaviors are: Overconfidence: People tend to believe they are better investors than they truly are and tend to attribute random events to skill. Biased Judgments: Confirmation bias is the tendenc

Dollar cost averaging is a method of purchasing individual assets or a portfolio of assets that uses fixed dollar amounts at regular intervals. The investor purchases more shares as the price is lower and less shares as the price is higher. The result is a lowering of cost basis over time compared to purchasing a fixed number of shares at regular intervals. Here is an example of how this works. Suppose you make two purchases of an asset or portfolio of assets. At the time

Tactically allocated portfolios attempt to improve on passively allocated portfolios by overweighting outperforming assets and underweighting underperforming assets. All model portfolios' results are net of ProFolio's management fee (0.5%), the custodial broker's custody/trading fee (0.25%) and tracking ETF expenses. A capital preservation portfolio looks primarily to preserve capital with a secondary objective of preserving purchasing power. Bonds tilted toward a shorter du

Tactically allocated portfolios attempt to improve on passively allocated portfolios by overweighting outperforming assets and underweighting underperforming assets. All model portfolios' results are net of ProFolio's management fee (0.5%), the custodial broker's custody/trading fee (0.25%) and tracking ETF expenses. An income portfolio seeks to produce current income and maintain purchasing power. The portfolio is constructed using domestic bonds (10-yr US Treasuries), inter