Thanks Bill for all your research, I loved the new book. Did you analyze how investing in Gold would impact the 4.7% safemax. My hypothesis is if you adjusted the 40% intermediate bond allocation to 20% with the remaining 20% going in a gold etf like GLDM, that safemax would improve. Historically, I believe gold has had better total returns than intermediate bonds and has less correlation to stocks. Thanks again for all your great work helping us retirees plan for a better retirement.   J.

Dear J.,

Thanks for your note and interest in my research.

I have not yet analyzed gold as part of a diversified portfolio, but that should be a next step. I share your enthusiasm for the yellow metal. It provides stability in times of uncertainty and is in great demand now by the world’s central banks. I believe every portfolio should have some exposure to gold.

The CRSP database I use for historical investment returns shows gold has returned about 5% annually over the last 100 years. This is in line with bonds, but as you mentioned has a low correlation to stocks.

Best,

Bill Bengen