The Sandwich Portfolio is recommended by Bob Clyatt, an economics major and experienced business professional who chose to semi-retire at 42 and build a more fulfilling life through wise choices and good money management. You can read about the portfolio and learn the skills necessary to plan your own escape from the rat race in his book Work Less, Live More: The Way to Semi-Retirement.
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- 20% Domestic Large Cap Blend ¹
- 8% Domestic Small Cap Blend ¹
- 6% World Total Stock Market ²
- 10% World Small Cap Blend ² ³
- 6% Emerging Markets TSM
- 5% REITs ⁵
1) Countries other than the United States are modeled with local regional data instead of pure domestic data for these assets. CAN uses USA funds, while GER & UK use EUR funds.
2) 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.
3) 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.
4) Clyatt specifically recommends 11% international bonds. I don’t have good data for this asset, but in an effort to maintain his design intent I added it to the intermediate term bond allocation.
5) 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.
Change the domestic market to translate the portfolio to different home countries