CHAPTER 3

Adopting the All-Bond Portfolio

A CASE STUDY

For many investors, the unfortunate outcome of following the accepted wisdom of having a diversified portfolio is to realize that they cannot be sure that their investment portfolio will adequately fund their financial objectives and life goals. In addition, they may not realize that they’re taking on a great deal of additional risk as compared to the All-Bond Portfolio. A client we will call Peter is a typical example. He came to us well into his career, but early enough for a change in his investments to make a difference.

A Poor-Fitting Portfolio

Peter is 40 years old and in the prime of his life. He is married to Jane, and they have two beautiful children ages 8 and 10. Jane looks after ...

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