William Bernstein Sheltered Sam 90/10 Allocation
0.01%June 04 | MyPlanIQ portfolio symbol P_78959

Portfolio Overview

William Bernstein Sheltered Sam 90/10 Allocation: A Lazy Portfolio for 401(k), IRA and Taxable Accounts

William Bernstein is not your typical Wall Street guy. He was a neurologist before turning to investing. And maybe because of that, his thinking always felt a bit different. Less about beating the market, more about surviving it. Staying power. His writing usually cuts through the noise. No hype. No gimmicks. That's partly why his portfolios, even the lesser-known ones like the Sheltered Sam 90/10 Allocation, have aged pretty well.

This one is built for tax-deferred accounts originally, but in practice, you can apply the same ideas across 401(k), IRA, and even taxable accounts. The goal is pretty simple: get broad exposure to global equities with some inflation protection, and just enough fixed income to cushion the blow. In this version, 90% of the portfolio is in stocks, which means it's for someone comfortable with volatility. Or at least willing to ride it out.

William Bernstein Sheltered Sam 90/10 Allocation Holdings

• U.S. equities (64.8%): Split between large-cap value (VTV), large-cap blend (VV), small-cap value (IJS), small-cap blend (IJR), and REITs (VNQ).
• International equities (22.5%): Developed markets (EFV, VGK, VPL) and emerging markets (EEM).
• Fixed income (10%): Short-term Treasuries (SHY) and inflation-protected securities (TIP).
• Commodities (2.7%): Broad basket via (GLTR).

This covers most of what you'd want in a retirement portfolio. U.S. equities are sliced by style and size --- you've got growth and value, large and small. REITs are in there too, which is something a lot of basic portfolios skip. International stocks are not just an afterthought --- you get both developed and emerging. Then there's a bit of ballast in short-term bonds and TIPs. And a small slice of commodities for good measure. That's a full plate.

One thing that stands out is the commodities exposure. That's not typical in lazy portfolios. But it's useful as a hedge against inflation. The idea echoes the Harry Browne Permanent Portfolio, where gold and hard assets serve as protection when paper assets struggle. Of course, this version leans much more into equities --- but that 2.7% in GLTR still matters during inflationary shocks.

Suitability and Risk

This is a high-risk portfolio. The 90% equity allocation says it all. You should only adopt something like this if you're comfortable seeing your balance swing --- and possibly drop --- in the short run. But if your time horizon is long, and you're not going to panic and sell during downturns, it could work well.

If you're not sure what your risk tolerance actually is, that's step one. Try using a tool like the MyPlanIQ Asset Allocation Calculator. It walks you through a few questions to help gauge what percentage you should realistically have in stocks vs bonds. From there, you can scale this portfolio. So if 90/10 feels too aggressive, maybe use a 70/30 version. The same ingredients, just different weights.

Using This Portfolio in a 401(k) or IRA

If you want to build this in a 401(k), start by looking for index funds that match the main asset classes: U.S. large cap, U.S. small cap, international developed, emerging markets, short-term bonds, TIPs, and if possible, REITs and commodities. You probably won't find all of these. That's okay.

Here's how to improvise:

• No small-cap value? Use a small-cap blend or even a total market fund.
• No REITs? Just absorb it into your U.S. stock exposure.
• Can't find emerging markets? Use international developed instead.
• No commodities? Just skip it, or treat that portion as additional stock risk.
• Missing TIPs? Use intermediate bond funds as a proxy for the bond portion.

For IRA accounts, especially brokerage IRAs, it's much easier. You can just buy the actual ETFs: VTV, VV, IJS, IJR, VNQ, EFV, VGK, VPL, EEM, SHY, TIP, GLTR. That's the cleanest way to implement this portfolio.

If you're limited to active funds, look at Morningstar to check their diversification and expense ratios. You don't need to be perfect. Close enough still gets you most of the benefit.

Application in Taxable Investment Accounts

This portfolio also works surprisingly well in a taxable account. Most of the ETFs used here are tax efficient. They rarely kick off capital gains distributions. As long as you're not trading in and out, your tax bill stays low.

The main exceptions are VNQ and TIP, which can generate taxable income. If you have an IRA or 401(k), consider keeping those funds there. That's called asset location --- holding the least tax-efficient stuff in tax-deferred accounts and the rest in taxable ones.

And if the market drops? You can use tax-loss harvesting. Say you hold VTV and it's down --- you could sell it and buy something like IWD for 30 days. Lock in the loss now, stay invested, and avoid wash sales. Most brokers now make this process much easier to manage.

Conclusions

The Sheltered Sam 90/10 portfolio is not flashy. It doesn't try to predict. It just quietly includes most of the core ingredients you'd want: value, size, global reach, some protection against inflation, and a simple bond cushion. The key, as always, is to stick with it through thick and thin. If you're willing to do that, this portfolio can carry you pretty far.

Asset Allocation

Historical Performance

Calculators

Rolling Returns

Maximum Drawdown

William Bernstein Sheltered Sam 90/10 Allocation Maximum Drawdown