The Awesome Portfolio

For the last few decades, the conventional wisdom in investing has been to put your money in low-cost index funds, let them compound over time, and ride them into retirement, where you pick up your bag of money. Often, that isn’t what happens. Over the course of an investing lifetime, there will be enormous ups and downs, big bear markets, and people will be unable to withstand the volatility and liquidate their investments at the worst possible time.

If volatility is the enemy, then the goal should be to construct a portfolio that gives you something close to the stock market index, but with a lot less volatility—that is the Awesome Portfolio. With a very simple mix of stocks, bonds, cash, gold, and real estate, you can come close to the returns of the index, while cutting one’s volatility almost in half, and dramatically reducing the drawdowns. It is the portfolio for people who want to sleep at night, and not ever have to worry about what their investments are doing.

Jared Dillian, a seasoned Wall Street veteran and financial thought leader, dives deep into the philosophy and rationale behind the Awesome Portfolio, and digs into the historical returns and the mathematics behind why the portfolio works. It’s a new way of thinking about investing for retirement, and will revolutionize the financial advisory industry.