Sandwich Portfolio

The Sandwich Portfolio by Bob Clyatt is an easily investable version of sophisticated allocation concepts designed to help you escape the rat race.

Asset Allocation


  • 20% Large Cap Blend
  • 8% Small Cap Blend
  • 6% International
  • 10% Int’l Small Cap Blend¹
  • 6% Emerging Markets
  • 30% Intermediate Bonds
  • 11% International Bonds
  • 4% Cash
  • 5% REITs
Asset Notes

1. Clyatt recommends a specific Vanguard international small cap growth fund that was the only international small option available at the time the book was published. Keeping with the spirit of his overall philosophy, I allocated this portion to World small cap blend. n Portfolio Charts includes 60% stocks, I allocated 12% (20% of 60) to international.

Local Interpretations

Find country-specific versions and appropriate ETFs using the Performance charts.

Author


<strong>Bob Clyatt</strong>
Bob Clyatt

Bob Clyatt is an economics major and business professional who semi-retired at 42 to become an accomplished sculptor. He talks about the Sandwich Portfolio in his book Work Less, Live More: The Way to Semi-Retirement.

Overview


The Sandwich Portfolio is based on the sophisticated market insights of Bob Clyatt, a successful business professional who earned degrees in finance and economics at Berkeley and MIT. While Clyatt’s full Rational Investing Portfolio includes lots of assets regularly accessible only to institutional investors, he describes the Sandwich Portfolio as a simplified version suitable for everyday investors. With small cap tilts, international diversification in stocks as well as bonds, an overall balanced allocation in terms of risk, and even a practical slice of cash, the Sandwich Portfolio is a thoughtful portfolio built to last.

That practical mindset is no accident. The Sandwich Portfolio is more than just an asset allocation by a stuffy economist in a tie. In fact, Clyatt left the rat race at 42 and is best known today as an award-winning artist. So his ideas are more than purely academic, and his proposed portfolio is just one component of a larger strategy with a greater purpose — to escape the work treadmill that keeps you down and empower you to pursue life on your own terms.

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Alternatives


Portfolios with a similar structure or design intent

Merriman Ultimate — Similar structure with multiple assets and additional value tilts

Pinwheel Portfolio — Shared high-level diversification philosophy

Swensen Portfolio — Same percentage of stocks and domestic bonds with more real assets

Performance


Change the home country to translate the portfolio to local assets, currency, and inflation.