The Pinwheel Portfolio by Tyler provides broad asset diversification that builds upon the four traditional asset classes with performance-enhancing tilts.
I’m a mechanical engineer, investing researcher, spreadsheet aficionado, and the author of Portfolio Charts. The Pinwheel Portfolio is a portfolio idea born of my ongoing exploration.
Overview
Browse enough portfolios and you’ll start to notice a pattern where a large number of financial professionals all recommend the same common assets — domestic stocks, international stocks, intermediate bonds, and real estate. The Pinwheel Portfolio adopts each of those four assets in equal weights, and adds one complementary asset of each type to boost returns and minimize risk.
Domestic Stocks > Small Cap Value
International Stocks > Emerging Markets
Intermediate Bonds > Cash
Real Estate > Gold
The end result is a uniquely balanced portfolio with an intelligently modern twist on a traditional 4-asset foundation. Featuring high returns and healthy withdrawal rates, it’s a good portfolio choice for both accumulators and retirees. And it’s also an easy evolution for many investors looking to add new assets to the ones they already own.
