Chapter Thirteen Mutual Fund Model Portfolios Getting Down to Brass Tacks

Turning a rough measurement into a precise one—and, by implication, turning a general principle into a specific course of action—is known as “getting down to brass tacks.” This phrase, it is said, came from an old custom whereby merchants measured a yard of fabric from the tips of their noses to the fingers at the end of their outstretched arms. Buyers who were afraid of being cheated could call for an exact measurement, and for this purpose there were rows of brass tacks, 36 inches apart, embedded in the counter.

In this chapter, I shall get down to brass tacks, moving from the principles of asset allocation discussed in Chapter 12 to the selection of the particular types of stock and bond funds that should help you align your long-term reward expectations with the level of risk you are willing to assume. While the broad asset allocation principles presented thus far are uniformly applicable to all investors—from a young person just embarking on an investment journey, to a highly conservative retiree, to a corporate pension plan—I shall now present specific examples of portfolios that reflect an array of lifestyles, ages, objectives, and financial circumstances. I want to be clear that each of the model portfolios presented in this chapter reflects allocations for an investment program, as distinct from a savings program. All investors should maintain an independent savings program consisting of liquid ...

Get Bogle On Mutual Funds: New Perspectives For The Intelligent Investor now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.