Please critique my retirement portfolio - is this crazy?

Investing / Portfolios
1

All,

In the “Mustachian portfolios” post there are wonderful portfolios from which to get inspiration from. Unfortunately there is no universal truth and many differing opinions. This is why I would love you to critique my drafted retirement portfolio! I would like to use this for my retirement with a SWR of 3%. Do you see any flaws, do you have any criticisms, inputs? I would value them very highly.

I started by defining my AA based on broad pillars:
• 70% growth assets: this is the more volatile part of the portfolio
• 20% income assets: this is the usual bonds part - reduce volatility
• 5% defensive assets: assets that do well in a downturn
• 5% opportunity: this is more play money. Things that attract my attention or are more on the fringe (such as crypto investments)

I then subdivided them and built the following draft asset allocation. Let me know what you think!

• 70% - Vanguard All World / Total Market
• 20% - iShares Global Gov. Bond UCITS
• 5% - UBS Gold CHF hedged (to have an asset which is inversely correlates to equities and to also have some CHF specific hedging somewhere)
• 5% - Anything else. Crypto, REITs, anything I feel is interesting

What are your feelings? Am I going overboard by just having one equity fund and one bond fund?

I would highly appreciate your feedback, it will help improve the portfolio!

1 Like
2

same as usually: yours is a rock solid mustacian buy&hold portfolio. It’s well within what is reasonable, better than what most people have. The forum’s collective opinion atm prefers cash over bonds.
make sure you hammer this in your Investment plan statement and stick to it, after fine tuing it to your needs!

no, totally not. it’s lazy portfolio style - there are good reasons for it :slight_smile:
just be aware of alternatives and have some reasoning (personal preferences?) why you pick this over the alternatives.

3

Thanks nugget, that’s reassuring me.

On the cash part… we are being charged a negative interest on cash holdings, is it still reasonable to just hold cash?

I am very much of the idea “make a plan and stick to it” but this whole bond situation is making me uneasy…

4

Can’t you try a savings account ? Have a look here: https://www.moneyland.ch/en/savingsAccount/list

With Credit Agricole you should get this interest rate:

Up to CHF 10,000: 0.55% per year.
From CHF 10,000 to CHF 50,000: 0.6% per year.
From CHF 50,000 to CHF 100,000: 0.65% per year.
From CHF 100,000 to CHF 1,000,000: 0.7% per year.
From CHF 1,000,000: 0.1% per year.

5

I hate to tell you, but I have one of these accounts:
I got a letter this month telling me that they only accept money until the end of february on CA evolution accounts. They will still pay the interest afterwards but not accept any new cash.

On the other hand I would NEVER hold more than 100’000 on any bank acount in Switzerland as these funds are not protected in case of a bankrupt bank (IT DID happen to me when the Limit was 30’000 ten years ago. But that’s a different story)

AND inflation is going towards 0.7% at the moment so pretty much any real interest is negative these days no matter what nominal interest we get

3 Likes