MONEY Master the Game
Investing
Create the portfolio mix for all economic seasons
from MONEY Master the Game: 7 Simple Steps to Financial Freedom by Anthony Robbins
How to Apply This
- Put 30% in stocks.
This may seem low, but remember that stocks are three times riskier than bonds. - Invest in long-term government bonds.
Invest 15% in intermediate-term (7-10 year Treasuries) and 40% in long-term bonds (20-25 year Treasuries). This is a large portion because it counters the volatility of the stocks and will bring a potential for higher returns in the future. - Invest in gold and commodities.
You need to have a piece of that portfolio that will do well with accelerated inflation. So, you’d want 7.5% in gold and 7.5% in commodities because there are environments where rapid inflation can hurt both stocks and bonds. - Rebalance your portfolio.
When one segment does well, you must sell a portion and return to the original allocation. This should be done at least annually. If done properly, it can actually increase your tax efficiency. Having a fiduciary implement and manage this for you would be most helpful.
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