How To Build a CONSERVATIVE Portfolio in 2023
Added 2023-07-11 11:55:54 +0000 UTCWe spoke a lot about portfolio building techniques and strategies recently. We covered the 3 fund portfolio, the upgraded 3 fund version and the age based bond, stocks allocation strategies.
Some have asked me for a GENERIC blueprint of a SAFE portfolio with minimal management and some exposure to risk but still at a conservative level.
In this quick post I want to give you a conservative and easy to deploy portfolio management blueprint, which will allow you to stay invested long term in broad market, as well DCA into good companies when a chance comes around.
1. 40% goes to the S&P500 - easy and simple.
2. 20% goes to Individual stocks - value and growth mixture based on age and individual risk aversion profile.
3. 10% goes to bonds. I know it is not exciting but LONG term this is a safety net.
4. you keep 30% of cash in SHORT term liquid format - so you can deploy it when its time to DOUBLE the DCA pace based on our parameters of the 10% threshold amount.
You know I love simplicity and this model is exactly that. A conservative simple and easy to follow approach that balances long-term investing with risk management.
Remember, this portfolio blueprint is just a GENERAL concept, and it's critical for each and every one of you to tailor your own portfolio to your specific circumstances and risk tolerance.
Questions can be posted below.
Tom
