“7 Twelve” Portfolio October 2010 Update

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.

3 responses to “7 Twelve” Portfolio October 2010 Update

  1. 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. 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. It’s a retirement hypothetical portfolio.