We also use third-party cookies that help us analyze and understand how you use this website. The 4% rule states that if you only withdraw 4% of your invested money each year to live on, your money will not run out for at least 30 years. I see you prefer the global market weight as your equity portion. See the full list here. Ratio, 35% VGLT ( Vanguard Long-Term Government Bond Index Fund) 0.05% Exp. This portfolio's single goal is to make money in all market conditions regardless of interest rates, deflation, what new pandemic is threatening our shores, or who the POTUS is. Dalio broke this up into four quadrants and designed a portfolio that would perform well in each. The next issue is that there are now no 3x gold ETFs available. That said, I’ll concede that it may offer a short-term diversification benefit and the metal does seem to reliably hedge against currency devaluation, making for safer withdrawal rates in retirement, so adopting the Golden Butterfly Portfolio may very well be a prudent move at or near retirement, or for a risk-averse investor who wants to cover all bases for all environments to minimize volatility and risk. It’s virtually identical, stored gold bullion, but IAU has a lower expense ratio, 0.40%, and 0.25%, respectively. All of this sounds like a tall order, but it’s pretty simple. Do any of you invest in an All-Weather / Permanent type of portfolio? Didn't want to use a cash position prescribed by the original PP? Benchmarks: All-Weather vs Golden Butterfly vs Permanent Portfolio vs US Total Stock Market, Benchmark Backtest Link (January 2007-June 2020), Clear winner for me is All-Weather with CAGR of 7.82%, worst year -3.25%, max drawdown -11.98%, Sharpe ratio 0.94, Sortino ratio 1.51, 2nd place for me is Harry Browne Permanent Portfolio due to 2nd best max drawdown, 2nd best Sharpe ratio, 2nd best Sortino ratio, Modified Benchmarks: Modified All-Weather vs Modified Golden Butterfly vs Modified Permanent Portfolio vs Nasdaq-100, Modified Benchmark Backtest Link (January 2007-June 2020), Clear winner for me is Modified All-Weather with CAGR of 10.02%, worst year -1.55%, max drawdown -12.69%, Sharpe ratio 1.18, Sortino ratio 2.06, 2nd place for me is Modified Harry Browne Permanent Portfolio due to 2nd best CAGR, - 2nd best Sharpe ratio, highest Sortino ratio 2.08, My Modified Permanent Portfolio (MPP) vs Modified All-Weather vs Modified Permanent Portfolio vs Nasdaq-100, Excluded Golden Butterfly since it was 3rd place in the 2 previous backtests, My Modified Permanent Portfolio Backtest #1 (January 2007-June 2020), My MPP is the clear winner with CAGR of 12.00%, worst year -3.58%, max drawdown -16.73%, Sharpe ratio 1.19, Sortino ratio 2.23, 2nd place for me is Modified All Weather due to 2nd best CAGR, 2nd best Sharpe ratio, My Modified Permanent Portfolio (MPP) vs Modified Golden Butterfly vs Modified Permanent Portfolio vs Nasdaq-100, Excluded All-Weather which added 2 more years to backtest, My Modified Permanent Portfolio Backtest #2 (January 2005-June 2020), My MPP is the clear winner with CAGR of 11.53%, worst year -3.58%, max drawdown -16.73%, Sharpe ratio 1.13, Sortino ratio 2.09, 2nd place for me is Modified Harry Browne Permanent Portfolio due to 2nd best CAGR, 2nd best Sharpe ratio, 2nd best Sortino ratio. Dalio chooses to be a little more market-agnostic with the All Weather Portfolio, admitting that we don’t know what the future will hold. TSMF (Total Stock Market Fund) had a mere 2% earned per year advantage over Golden Butterfly but lost 38.5% more! Here’s a link to the classic version if you’d prefer that one: This portfolio is a modified version of the Permanent Portfolio with one additional asset class. Ray Dalio created what is known as the All Weather Portfolio, which contains the exact asset allocation you need to make money in any kind of economy. But in terms of the amount of money you have to live on each year of your retirement, the difference is significant. These cookies will be stored in your browser only with your consent. Lastly, like the Swensen and Pinwheel, you could get an REIT in there. Would definitely throw some short term bonds or at least some TIPS in there similar to the true Permanent Portfolio.