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+--- Thread: Coffee Break Analysis (/showthread.php?tid=1686)
Coffee Break Analysis - Robandcindy2 - 07-08-2017
Good morning....
Just sipping my coffee and playing around with Portfolio Visualizer after reading an SA article warning that DGI may not be the be all-end all as interest rates rise. Using the DG50 portfolio created by SA author Mike Nadel as a foundation I added a few random picks of my own bringing the portfolio count to 61 stocks.
For round numbers I began with a $1 million dollar portfolio that withdrew 4% (inflation adjusted) annually. I was able to get PV to look back from 2001-2017.
The three portfolios:
Portfolio 1: My DGI "61" pure stock (a variation on Mike's Gold Standard DG50)
Portfolio 2: My DGI "61" adjusted to include a 30% allocation of Vanguard Total Bond Fund (VBMFX)
Portfolio 3: 100% Vanguard Wellington (VWELX) which is roughly a 65/35 allocation. I have always considered this a a no-brainer for my better half in an emergency...the fund goes back to 1929.
In fact if you substitute Vanguard Growth Index (VIGRX) or Vanguard Total Stock Market Index(VTSMX) in Portfolio 3 at 100% you end up with $200,000 and $100,000 less respectively.
So the bottom line....press on...we've got a good plan here. If you are just discovering DGI, Mike Nadel's DG50 series is a great place to start.
Cheers!
Rob
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RE: Coffee Break Analysis - DividendGarden - 07-10-2017
Thanks, Rob. Curious to know what eleven stocks you added to the base 50. Always good to see analysis like this.
RE: Coffee Break Analysis - Dividend Watcher - 07-10-2017
That's very interesting, Rob. Thanks for the link also. I'm gonna check that out when I have a little more time.