Over-dilution can be done if you are enamored by the Callan Periodic Table. As the owner of a 10 x 10 portfolio that includes commodities, gold, and emerging market exposures for a few decades, I think that I have not kept up with the combined portfolio of only domestic/foreign total stock with some bond exposure. The commodities exposure shined before I owned it (my chasing performance using Larry Swedroe's mistaken touting of PCRIX), as did the gold and emerging markets exposure in the previous century. My 10x10 also reduces exposure to large cap performance that drives the daily market reports, so my perception is that I'm often steadily under performing a simple 2x2 domestic/foreign, 60/40 stock and bond portfolio.
Now past age 70 in my slow-go years, with the adequate combo of no-COLA pension and delayed SS, I see little advantage to my overly broad diversification that some other retirees might want for smoothing their portfolio withdrawal amounts. That smoothing is at the expense of more spending after stocks have had better performing years. Yes, the grass looks greener on the other side of my portfolio's widely diverse boundaries.
Now past age 70 in my slow-go years, with the adequate combo of no-COLA pension and delayed SS, I see little advantage to my overly broad diversification that some other retirees might want for smoothing their portfolio withdrawal amounts. That smoothing is at the expense of more spending after stocks have had better performing years. Yes, the grass looks greener on the other side of my portfolio's widely diverse boundaries.
Statistics: Posted by heyyou — Wed Jul 17, 2024 11:52 am — Replies 51 — Views 2819