Harry Browne's Permanent Portfolio

That is great. But what about the total compounded annual returns since 1971? I am not too concerned about the volatility. I am more interested in the long term what sort of returns can I expect..
For someone in the accumulation phase with any risk tolerance at all, I'd agree 100%, however for someone in retirement phase, it beats an allocation of 100% cash, with v. low volatility.
 
For someone in the accumulation phase with any risk tolerance at all, I'd agree 100%, however for someone in retirement phase, it beats an allocation of 100% cash, with v. low volatility.

Yes, it really depends on your risk profile and reliance on income generated. For eg. if the portfolio generates $75K and your yearly expense is $70K you are better off sticking to something less volatile which gives more certainty.

But on the other hand if your portfolio generates $120K and your yearly expense is $70K and you have couple of years worth of living expenses in a term deposit you won't be too concerned about volatility but rather focus on keep the portfolio in growth assets and let compounding work harder.

It's always better to aim to get yourself in the latter position which gives you choice.

Cheers,
Oracle.
 
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