gone fishing 2013
TRANSCRIPT
Gone Fishing Portfolio 2013
David John Marotta
Marotta Wealth Managementwww.MarottaOnMoney.com
The Importance ofAsset Allocation
The Importance ofAsset Allocation
Where in the WorldShould You Invest?
Age Short Money
US Bonds
Foreign
Bonds
US Stocks
Foreign
Stocks
Hard Assets
20 0.0% 0.0% 0.0% 40.0% 45.0% 15.0%
30 3.0% 2.5% 1.8% 35.7% 40.4% 16.6%
40 3.0% 6.7% 4.9% 31.7% 35.7% 18.0%
50 3.0% 9.0% 6.5% 39.6% 33.3% 18.6%
60 3.0% 11.3% 8.2% 27.4% 30.9% 19.2%
70 5.0% 15.8% 11.5% 22.3% 25.2% 20.2%
80 5.0% 21.7% 15.7% 17.3% 19.4% 20.9%
The Importance ofAsset Allocation
Age Short Money
US Bonds
Foreign
Bonds
US Stocks
Foreign
Stocks
Hard Assets
20 0.0% 0.0% 0.0% 40.0% 45.0% 15.0%
30 3.0% 2.5% 1.8% 35.7% 40.4% 16.6%
40 3.0% 6.7% 4.9% 31.7% 35.7% 18.0%
50 3.0% 9.0% 6.5% 39.6% 33.3% 18.6%
60 3.0% 11.3% 8.2% 27.4% 30.9% 19.2%
70 5.0% 15.8% 11.5% 22.3% 25.2% 20.2%
80 5.0% 21.7% 15.7% 17.3% 19.4% 20.9%
The Importance ofAsset Allocation
PIMCO Funds Total Return (PTTRX/PTTDX)PIMCO Emerging Markets Bonds (PEBIX/PEMDX)
80% Vanguard S&P 500 ETF (VOO)20% Vanguard Information Tech ETF (VGT)
Where in the WorldShould You Invest?
Where in the WorldShould You Invest?
Index of Economic Freedom
EWH
EWS
EWA
EWL
EWC
VWO
VWO
15% iShares MSCI Hong Kong Index (EWH)15% iShares MSCI Singapore Index (EWS)15% iShares MSCI Australia Index (EWA)15% iShares MSCI Switzerland Index (EWL)
10% iShares MSCI Canada Index (EWC)
30% Vanguard MSCI Emerging Markets (VWO)
IGE
60% iShares NAmer Natural Resources (IGE)40% Vanguard U.S. REIT (VNQ)
Age Short Money
US Bonds
Foreign
Bonds
US Stocks
Foreign
Stocks
Hard Assets
20 0.0% 0.0% 0.0% 40.0% 45.0% 15.0%
30 3.0% 2.5% 1.8% 35.7% 40.4% 16.6%
40 3.0% 6.7% 4.9% 31.7% 35.7% 18.0%
50 3.0% 9.0% 6.5% 39.6% 33.3% 18.6%
60 3.0% 11.3% 8.2% 27.4% 30.9% 19.2%
70 5.0% 15.8% 11.5% 22.3% 25.2% 20.2%
80 5.0% 21.7% 15.7% 17.3% 19.4% 20.9%
The Importance ofAsset Allocation
3% Money Market11.3% PIMCO Total Return (PTTRX/PTTDX)8.2% PIMCO Emerging Bonds (PEBIX/PEMDX)21.9% Vanguard S&P 500 ETF (VOO)5.5% Vanguard Information Tech ETF (VGT)4.6% iShares MSCI Hong Kong Index (EWH)4.6% iShares MSCI Singapore Index (EWS)4.6% iShares MSCI Australia Index (EWA)4.6% iShares MSCI Switzerland Index (EWL)3.2% iShares MSCI Canada Index (EWC)9.3% Vanguard MSCI Emerging Markets (VWO)11.5% iShares NAmer Natural Resources (IGE)7.7% Vanguard U.S. REIT (VNQ)
The Importance ofAsset Allocation
Summary
Invest in all 6 asset classes
Tilt value and small for US stocks
Tilt Foreign toward specific countries
Use index ETFs with low expense ratios
Monitor and rebalance annually
Gone Fishing Portfolio 2013
David John Marotta
Marotta Wealth Managementwww.MarottaOnMoney.com
30% Vanguard S&P 500 ETF (VOO)30% Vanguard Mid-Cap Value (VOE)20% Vanguard Small-Cap Value (VBR)20% Vanguard Information Tech ETF (VGT)