Are you diversified? You should be!
Putting all of your eggs in one basket is dangerously foolish…
Could you get lucky? Sure, but you’re more likely to go bust.
I don’t want to see anyone go bust. I want to see others succeed.
In fact, I want to see them be more successful than I am so I can learn something from them!
Modeling Portfolios
There are a lot of ways to model a retirement portfolio.
But today, I’m going to share one simple approach that anyone can do from the comfort of their own home.
- 40% could consist of long-term Bond exposure.
- 30% could consist of broader Equity exposure.
- 15% could consist of short-term Bond exposure.
- 8% could consist of GOLD exposure.
- 7% could consist of broader Commodity exposure.
This is a very conservative approach, in my view, but this asset allocation should grow well in good times too.
And according to my research, the drawdowns prove to be less volatile than the market itself over a longer period of time.
Have a Plan
Now, this isn’t the be-all and end-all… This is merely a starting point.
Of course, how you employ this will offer you very different results.
If you bought this portfolio just a few months ago at all-time highs, chances are you’ll be suffering some downside…
In fact, you would have already suffered in this recent downturn.
But if you employed this asset allocation during the pandemic selloff or during the Great Recession, you’d be sitting pretty at the moment!
Timing matters, so make a plan, and stick to it!
We know we’ll never catch the absolute bottom, and we also know we’ll never sell the absolute top.
But a solid diversified portfolio employed during a major economic downturn could be wildly rewarding if you’re willing to be patient for it to mature for you.
Welcome to the Alliance
Now, if you’re looking for a plan for the equity portion of a portfolio like that, consider checking out my Rapid Wealth Alliance research service.
We run a portfolio of approximately 20 great companies that meet our ultra conservative criteria.
We find undervalued companies with strong fundamentals and financials for long-term value investing.
Our model portfolio recently booked a gain in Natus Medical Incorporated (NTUS) for a 50%+ return, and there are more in the works.
I look forward to seeing you on the inside next Tuesday for our live weekly session!
Rules to Live By
“Shoot for the moon. Even if you miss, you’ll land among the stars.” Norman Vincent Peale
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.
