Portfolio Overview

Doug Ramsey All Asset No Authority (AANA) Lazy Portfolio: A Simple Choice for 401(k) and Novice Investors

Investing can feel like a maze, can't it? You look at all the choices, the funds, the market noise, and you wonder what's actually worth your time. The Doug Ramsey All Asset No Authority (AANA) Lazy Portfolio is one of those ideas that sounds almost too simple to work. Yet, it's been around, quietly doing its job for those who don't want to micromanage their money. Let's talk about this portfolio, its holdings, and how it fits into something like a 401(k), an IRA, or even a taxable brokerage account. Maybe it's not perfect, but maybe it's enough?

Doug Ramsey, the mind behind this portfolio, isn't some Wall Street guru shouting predictions. He's more of a thinker, someone who's watched markets cycle through booms and busts. From what's out there, Ramsey's philosophy leans on diversification and simplicity. No chasing hot stocks, no timing the market. Just a mix of assets that, together, aim to weather whatever the economy throws at you. The AANA portfolio reflects that: spread your bets, keep it low-maintenance, and let time do the heavy lifting. It's not flashy, and neither is Ramsey. That's probably why it resonates with people who just want a plan they can stick to.

Doug Ramsey is the Chief Investment Officer at Leuthold Group, known for his rigorous research and data-driven investment insights. Doug Ramsey regularly revisits his "All Asset No Authority" (AANA) portfolio as part of Leuthold Group's annual asset allocation review. 

Why "No Authority"?

The portfolio's name, "All Asset No Authority," humorously reflects its hands-off, no-expert-required approach. The term "No Authority" suggests that the portfolio is designed to be simple and accessible, requiring no specialized knowledge to manage. Its equal allocation across the seven assets reinforces this by ensuring that no single asset class is given more emphasis than others, maintaining a balanced and straightforward structure. Ramsey designed it with simplicity in mind, making it accessible for individual investors who prefer an evenly distributed asset allocation strategy without actively managed oversight.

Doug Ramsey All Asset No Authority (AANA) Lazy Portfolio Holdings

Here's what the portfolio looks like, broken down by its pieces:

• US Large Cap (VTSAX): 14.3%
• US Small Cap (NAESX): 14.3%
• International Developed Market (VGTSX): 14.3%
• US REITs (VGSIX): 14.3%
• Long-Term Treasury (VUSTX): 14.3%
• Commodities (DBC): 14.2%
• Gold (GLD): 14.3%

This is a portfolio that doesn't put all its eggs in one basket. You've got US stocks, both large and small, international stocks, real estate through REITs, long-term Treasuries, commodities, and even gold. It's like a buffet of assets, each serving a purpose. The question is, does it cover enough ground? Well, it hits the major bases: US stocks, international stocks, and bonds. That's a good start. Then it goes further, adding small caps, REITs, commodities, and gold. No emerging markets, though. That's a gap, maybe, if you think those markets are worth the extra risk.

Let's talk about gold and long-term Treasuries, because they stand out. Gold, as folks like Harry Browne pointed out in his Permanent Portfolio, is a hedge against inflation. When prices rise, when currencies wobble, gold tends to hold its ground. It's not perfect, but it's something. Long-term Treasuries, like VUSTX, also play a role in Browne's thinking. They're a buffer during deflation or market crashes. When stocks tank, long-term bonds often rally as investors flock to safety. This mix gives the portfolio a kind of balance, a way to zig when the market zags. But equal weighting across seven assets? That's bold. It's saying no single asset class is the star. Some might call it overly cautious, others might say it's brilliantly simple.

The pros? Diversification is the big one. You're not betting the farm on tech stocks or hoping bonds never falter. If one piece struggles, others might pick up the slack. The risk level feels moderate, not too aggressive but not sleepy either. Small caps and commodities add some spice, while Treasuries and gold keep things grounded. The cons? Well, it's not optimized for growth. If the S&P 500 goes on a tear, this portfolio might lag. Gold and commodities can sit dormant for years. And managing seven funds might feel like a chore for someone who wants a true "set it and forget it" plan.

Using the AANA Portfolio in 401(k) and IRA Accounts

So, how do you make this work in a 401(k) or IRA? First, check your plan's fund lineup. Look for index funds that match these asset classes. For VTSAX, you want a total US stock market fund. For NAESX, a small-cap index. VGTSX needs an international developed market fund. And so on. If your 401(k) doesn't have exact matches, don't panic. Find diversified active funds instead. Check their expense ratios and diversification on something like Morningstar.com. Rule of thumb: for stocks, prioritize low-cost index funds. For bonds, go for core bond funds or high-quality actively managed ones, like those discussed at MyPlanIQ.

What if your 401(k) is missing something, like commodities or REITs? Map them to US stocks. It's not ideal, but it keeps things simple. Same for long-term bonds---intermediate bond funds can work if that's all you've got. In an IRA, you've got more freedom. ETFs like GLD or DBC are easy to grab at a brokerage. Just stick to the same allocation: 14.3% each, or as close as you can get.

This portfolio suits folks who want balance without too much fuss. It's not for the aggressive types chasing 15% annual returns. It's better for someone with a 10- to 20-year horizon, maybe a bit risk-averse but still wanting growth. To scale it, figure out your risk tolerance first. Use a tool like MyPlanIQ's Asset Allocation Calculator. Answer a few questions, and it'll tell you how much to put in stocks versus bonds. If you're conservative, lean heavier on VUSTX. If you're bolder, bump up the stock and commodity portions. Just don't stray too far from the equal-weight spirit.

Using the AANA Portfolio in Taxable Accounts

Taxable accounts are trickier, but this portfolio plays nice. Most of its funds, like VTSAX or VGTSX, are index funds, which are tax-efficient. They don't churn holdings, so you're not hit with constant capital gains taxes. ETFs, like GLD, are even better for this. The buy-and-hold nature of the AANA portfolio helps too. You're not trading in and out, so you defer taxes until you sell. If you want to get fancy, consider tax-loss harvesting. If DBC dips, sell it, grab a similar commodity ETF, and book the loss for tax purposes. Just don't overcomplicate it---simplicity is the point.

Final Thoughts

The Doug Ramsey AANA Lazy Portfolio isn't going to make headlines. It's not trying to. It's for people who've seen a market cycle or two, who know that chasing trends often ends in tears. Is it perfect? Probably not. The equal weighting might feel arbitrary to some, and the lack of emerging markets might bug others. But it's diversified, it's thoughtful, and it's built to last. Whether you're stuffing it in a 401(k), an IRA, or a taxable account, it's a plan you can set and mostly forget. And isn't that what most of us want, deep down? A strategy that works without needing to watch the market every day?

Asset Allocation

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Maximum Drawdown

Doug Ramsey All Asset No Authority (AANA) Lazy Portfolio Maximum Drawdown