The Mystery Advisers
06/09/2010 1 comments
Elizabeth O'Brien and Neil Parmar from SmartMoney report that while the Schwabs and Merrill Lynches may have greater name recognition, but many advisers still get strategic tips and tech support from lower-profile firms such as: Cetera Financial Group, National Planning Holdings, SagePoint Financial Cambridge Investment Research.
This shows that even the experts are looking elsewhere for tips. For those who aren't experts, MyPlanIQ created the SIB (Simpler Is Better) Portfolio that takes a very simple set of funds from the basic asset classes and shows the results that can be achieved.
This table shows the two sets of funds that were selected:
|
US Equity |
VTI |
SPY |
|
Developed Market Equity |
VEU |
EFA |
|
Emerging Market Equity |
VWO |
EEM |
|
REITs |
VNQ |
IYR |
|
Commodities |
DBC |
DBC |
|
Fixed Income |
BND |
AGG |
This table shows you the result from historical simulations:
|
1 Year Annualized Return |
1 Year Sharpe Ratio |
3 Year Annualized Return |
3 Year Sharpe Ratio |
5 Year Annualized Return |
5 Year Sharpe Ratio |
|
|
17% |
116% |
2% |
5% |
7% |
32% |
|
|
13% |
88% |
-2% |
-15% |
5% |
17% |
|
|
18% |
116% |
12% |
82% |
16% |
102% |
|
|
17% |
99% |
10% |
64% |
13% |
89% |
Without having to work with experts and track the latest trends, it's possible to achieve returns in excess of 10% with the right asset classes and basic funds.
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