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Sound Investing

Fine Tuning Your Asset Allocation 2023

Apr 12, 2023
51:39

This podcast is the third in a series of seven podcasts that are designed to help do it yourself investors learn how to maximize their return, minimize their risk and increase their peace of mind.  It will be beneficial to listen to The Ultimate Buy and Hold  and Sound Investing Portfolios: The History of Risk and Return (link)  podcasts before listening to this podcast.
In this podcast Paul discusses why the Fine Tuning Your Asset Allocation Tables were built and how they can be used to build a portfolio that combines the appropriate equity portfolio for growth with the appropriate amount of bonds to stabilize the portfolio during severe market declines.  While the following link includes Fine Tuning Tables for  all 9 portfolios his discussion focuses on tables B1B11 and B14.
The discussion guides the listener through several very important lessons on each table:

  • The increase of return with additional percentages of equities
  • The higher short and longer term losses likely with adding more equities
  • The much higher  returns and slightly higher risks of portfolios adding value and small cap asset classes.


In the discussion Paul references Table H2 for the returns of a $10,000 investment for all 9 portfolios.
In the coming podcasts the returns of the 9 Fine Tuning Tables will be used to discover the impact of dollar cost averaging into the portfolios, as well as taking out money to live on in retirement.

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