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“7 Twelve” Portfolio October 2010 Update

By JLP | November 1, 2010

Here are the total returns for the 7 Twelve Portfolio through October 2010 (Click to see a larger version):

NOTES: This portfolio assumes $1,000,000 initial investment with a 5% income withdrawal on December 31, 2009 for a net investment of $950,000. The portfolio also does not include trading costs.

The Vanguard REIT Index ETF is up over 24% year-to-date and now makes up 9.49% of the total portfolio.

Topics: 7Twelve Portfolio, Exchange-Traded Funds, Index Funds, Investing | 3 Comments »

3 Responses to ““7 Twelve” Portfolio October 2010 Update”

  1. BG Says:
    November 1st, 2010 at 12:18 pm

    I’m surprised with the ‘Cash’ portion of the portfolio. I understand that it may be important with a portfolio if you are actively in retirement, but it doesn’t make sense (to me) for a portfolio that you are trying to grow.

    If you must have a ‘Cash’ position, then at least make it a short-term FDIC-insured CD or something that gets better returns than the money-market accounts of today.

  2. Aaron Says:
    November 1st, 2010 at 4:24 pm

    I’ve re-read the earlier posts on the 7Twelve portfolio, but I cannot figure out why you took a 5% withdrawal at the same time as the initial investment.

  3. JLP Says:
    November 1st, 2010 at 4:27 pm

    It’s a retirement hypothetical portfolio.