The Defined Duration portfolio is a highly diversified portfolio of global stocks, bonds, commodities, gold, cash and
other assets. We run a full financial plan to quantify your liabilities across specific time horizons. We then match those liabilities to specific assets in a customized portfolio. This provides you with a highly diversified "all weather" style portfolio that gives you greater certainty about your assets across specific time horizons while helping you behave better.
As a general framework the Defined Duration strategy can be thought of as existing on a bell curve with three specific buckets:
1) Nominal stability bucket
2) Growth bucket
3) Insurance bucket
The specific portfolio will be implemented using low cost and tax efficient bonds and ETFs.
The nominal stability
bucket is comprised of instruments that are designed to give you short-term principal stability and income. This could include money market funds, Treasury Bills and bond ETFs.
The growth bucket
is comprised of diversified stock ETFs, REITs, corporate bond ETFs and multi-asset ETFs.
The insurance bucket
is dynamic and changes across time to meet your insurance needs. This could include gold, options, commodities and other instruments that have low expected real returns and high potential asymmetric payoffs to help protect you from inflation and other uncertainties.