Meet a Margarita Portfolio | Personal Finance | Dallas News

Which is since my brothers and we have brought Magic, a chartered-28 feet sloop, here.

We’re here for a cheeseburger. Not only any cheeseburger, mind you, though “a Cheeseburger in Paradise.” Legend has it that a cheeseburger here is what desirous a famed Jimmy Buffett song. Many places make this claim, of course, and a discerning Google hunt reveals that many some-more will make a explain in a destiny because, well, there’s already a grill named “Cheeseburger in Paradise” in balmy Downers Grove, Ill. It’s a partnership between Buffett’s Margaritaville Holdings and Outback Steakhouse.

So trust me, Paradise will be in your area shortly and you’ll be singing,

“But times have altered for sailors these days

When I’m in pier we get what we need

Not only Havanas or bananas or daiquiris

But that American origination on that we feed

Cheeseburger in Paradise

Medium singular with mustard be nice

Heaven on earth with an onion slice

I’m only a cheeseburger in Paradise.”

And if, in a center of a prohibited day, you’ve downed your cheeseburger with a few cold ones, or maybe a margarita, how do we conduct your money? As a unsentimental matter we can’t do it a approach THE OTHER BUFFET, Warren, does it. That’s too demanding.

Fortunately, JIMMY Buffett provides inspiration. Just as we can conduct a Couch Potato portfolio if we can haze a counterpart and order by a series 2, we can conduct a Margarita Portfolio if we can make a margarita.

Although there are many abominations that don’t follow a strange recipe, a normal margarita is a best. For drinking, that recipe is one partial tequila, one partial triple sec and one partial uninformed orange juice. Trust me, we can do it by perfect force of robe once you’ve got a knack and have a suitable apparatus for squeezing limes.

In a same manner, cruise this initial Margarita Portfolio: one partial sum domestic batch index, one partial general batch index and one partial inflation-protected Treasury securities. You can do this, during really low cost, with both mutual supports and exchange-traded funds.

If we did it with Vanguard funds, for instance, we would use a Total Stock Market Index account (ticker VTSMX), Total International Stock index account (ticker VGTSX) and Inflation Protected Securities account (ticker VIPSX). Your lapse in 2003 would have been 26.56 percent and your waste in 2002 and 2001 would have been 6.48 percent and 7.80 percent, respectively. Your annualized rate of lapse over a three-year period, presumption annual rebalancing to one-third positions, would have been 2.95 percent.

This is a improved display than both a Traditional Couch Potato portfolios and in a using for a Complete Couch Potato Portfolios. (See a 2003 Couch Potato Portfolio news here.)

Is a Margarita Portfolio a winner?

We’ll have to contemplate it a while. What we know is that it is elementary and inexpensive; that it’s 2/3rds equities that creates it a good substitute for a normal offset portfolio; and that carrying both acceleration indexed bonds and unfamiliar equities means a portfolio is reduction unprotected to a problem of inflation.

Stay tuned.

Scott Burns is a syndicated columnist and a principal of a Plano-based investment organisation AssetBuilder Inc. 

Twitter: @assetbuilder

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