119 of 130 people found the following review helpful
Gone Fishin' Portfolio down 23.25% - no silver bullet,
This review is from: The Gone Fishin' Portfolio: Get Wise, Get Wealthy...and Get on With Your Life (Agora Series) (Hardcover)Like so many business books, this book could be condensed into a single page. Here are some of the key bullet points:
* Save more money. i.e. stop drinking starbucks coffee everyday.
* Expect to be able to withdraw 4% of your assets annually after you retire i.e. you need $1 million to generate $40,000 a year in pre-tax income. Some people would say withdrawing 3% would be more conservative.
* Perform asset allocation across 10 Vanguard (index) funds (low cost)as follows: 15% VTSMX; 15% NAESX; 10% VEIEX; 10% VEURX; 10% VPACX; 10% VWEHX; 10% VFSTX; 10% VIPSX; 5% VGSIX; 5% VGPMX.
* This represents a 70% stock, 30% bond portfolio with heavy international slant
* Re-balance every 12-18 months
* Don't use brokers/investment advisors with their 1%+ annual fee
* Don't try to time the market
Good advice. Now how is the portfolio doing? From January 2, 2008 to August 9, 2009, it is down 23.25%. How is that doing relative to a 70% stock 30% bond portfolio (in the case of 70% VTSMX and 30% VIPSX), that would have returned -23.67%. You'd have to compare risk in the portfolio, but I suspect that you'd find that the "Going Fishin'" portfolio will deliver you a basic risk adjusted market return. Nothing fancy. We're not talking endowment fund returns.
[...] [...] [...] What readers should really care about is, if I took the [...] advice, how would I have done. And the answer is - same as any portfolio with similar risk and reasonable diversification. That's not a negative, it just does not live up to any hype.
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Showing 1-6 of 6 posts in this discussion
Initial post: Dec 10, 2008 9:50:14 AM PST
Denio Nogueira Jr. says:
Simply awesome! Grounded and honest review. This book is "more-of-the-same" kind of advice. We already read this same story in several other tomes. Thanks for your contribution.
Posted on Feb 23, 2009 9:08:48 AM PST
Rajat K. Bose says:
Thanks a lot! Readers of your review would save some money and time by not purchasing this old wine in the new bottle kind of stuff. I am particularly wary of buying books with such fancy titles they generally to dish out the well-known oft repeated stuff.
Posted on Apr 26, 2009 5:53:57 PM PDT
Trader Joe says:
And you should have mentioned some of the funds in the Portfolio are down as much as 58.59% (VGPMX)!
Posted on Apr 5, 2010 12:54:55 PM PDT
I'm wary of any book, which is most of them, that tell investors -
" Don't try to time the market"
If you can't time the market, your return on investment will be around a break-even like it was during the past decade. It's not that hard if you track GDP, CPI, Consumer Confidence and interest rates. Stock picking and balancing portfolios are of lessor importance.
Posted on May 13, 2010 9:24:42 AM PDT
Evelyn Bell says:
Excellent review.....I agree that so much long winded investment advice can be condensed to one page.....
In reply to an earlier post on Aug 4, 2011 12:57:53 PM PDT
John White says:
The market was break-even for the past decade? Only if you fail to include dividends and capital gains distributions. From Jan 2002 to March 2011, a Total US market index would have turned $10k into $15k. 50% return! How is that flat? Total International would have turned $10k into $21k. Timing the market is simply gambling since the market is like a psychopath and doesn't act rationally in accordance with GDP, CPI, etc.
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