Club and Component Portfolios: Descriptions and Strategies
The allocations to each Component portfolio in a Club portfolio are tailored for different withdrawal and inflation scenarios.
For retirement and endowment accounts, it is important to understand the impact of portfolio withdrawals on portfolio performance and inflation-adjusted
portfolio performance. The withdrawal rate sets the initial withdrawal amount which is then increased based on the inflation rate. The inflation-adjusted portfolio value
is the portfolio value corrected for the inflation rate. Optimize portfolio allocations for various withdrawal and inflation scenarios.
Result: Achieve desired withdrawals while preserving portfolio value and managing downside risk!
The market conditions are quantified using a combination of volatility, price momentum of bonds relative to stocks,
stock valuation relative to other asset classes, and the index of leading economic indicators.
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VTI_AGG:
Consists of VTI and AGG. The allocation to AGG varies from 20% to 80% depending on market conditions.
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Blend_AGG:
Consists of ten benchmark ETFs (SPY, RSP, IVE, VXF, VTI, VIG, VYM, VNQ, VEA, VWO), and AGG.
The allocation to AGG varies from 20% to 80% depending on market conditions with equal dollar weighting for the benchmark ETFs.
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Income_AGG:
Consists of eight benchmark ETFs (VIG, VYM, DVY, SDY, VNQ, LQD, PFF, DNL), and AGG.
The allocation to AGG varies from 20% to 80% depending on market conditions with equal dollar weighting for the benchmark ETFs.
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Bond_AGG:
Consists of two benchmark ETFs (LQD, BND), and AGG.
The allocation to AGG varies from 20% to 80% depending on market conditions with equal dollar weighting for the benchmark ETFs.
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Secure:
Intended to secure capital while generating modest growth through a combination of ETFs and their associated options.
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Options_Sectors:
Intended to generate income from options strategies.
20% of the portfolio is allocated to Sector options and the balance is allocated to Cash.
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Options_Indices:
Intended to generate income from options strategies.
20% of the portfolio is allocated to Index options and the balance is allocated to Cash.
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TurboGrowth:
20% of the portfolio is allocated to Index options and the balance is allocated to VTI_AGG.
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TurboBlend:
20% of the portfolio is allocated to Index options and the balance is allocated to Blend_AGG.
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TurboIncome:
20% of the portfolio is allocated to Index options and the balance is allocated to Income_AGG.
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TurboSecure:
20% of the portfolio is allocated to Index options and the balance is allocated to Secure.
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TurboBond:
20% of the portfolio is allocated to Index options and the balance is allocated to Bond_AGG.
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BPS_Classic, BPS_Plus, BPS_Alpha, BPS_Ultra:
Intended to generate income from algorithmic options strategies.
75% of the portfolio is allocated to Bull Put Spreads and the balance is allocated to Cash.
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BCS_Classic, BCS_Plus, BCS_Alpha, BCS_Ultra:
Intended to generate income from algorithmic options strategies.
75% of the portfolio is allocated to Bear Call Spreads and the balance is allocated to Cash.
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IC_Classic, IC_Plus, IC_Alpha, IC_Ultra:
Intended to generate income from algorithmic options strategies.
75% of the portfolio is allocated to Iron Condors and the balance is allocated to Cash with all Cash in an interest-bearing account.