Rick Ferri Core Four

The Rick Ferri Core Four is a portfolio proposed by Rick Ferri, an investment adviser and frequent contributor at Bogleheads.org.  His book All About Asset Allocation is a great guide for index investors of all types.

 

rick-ferri-core-four

Asset Allocation

Stocks

Domestic

  • 48% Total Stock Market

International

  • 24% World Total Stock Market ¹

Bonds

  • 20% Intermediate Term Bonds

Real Assets

  • 8% REITs ²

 

Notes

1) The calculations assume that US investors use a World Ex-US fund while investors living in other countries use a World fund including the US.

2) The data is based on USA REITs, but a broad global REIT fund is also a reasonably close alternative if no US fund is available.