Let’s say you started investing $100 per week in January 2014. That’s $435 per month.

If you had kept that money in a savings account, then you’d have $52,200 by December 2023.

But if you had invested in the All-Weather Portfolio, then you’d have $73,900 by December 2023.

The All-Weather Portfolio has been growing at an average of 7.3% every year over the past 30 years (and 5.9% over the past 10 years).

The All-Weather Portfolio grows and protects your wealth through rain or shine. It’s a safety net designed to work well in different financial situations, whether the economy is booming or facing tough times.

It does this by spreading your money across many different types of investments. This is called diversification.

Some of these investments protect your money when the economy gets tough (these are treasury bonds). Other investments help your money grow when the economy is doing well (these are stocks).

It's like packing for a vacation with clothes for all types of weather, so you're prepared no matter what.

🌧️ ☀️ 🌦️ ❄️ ⛈️

Here’s how the All-Weather Portfolio works:

• Allocate 35% of your wealth into long-term (20+ year) treasury bonds. We like TLT.

• Allocate 35% of your wealth into a “basket” of America’s top 500 companies, like Apple, Google, Amazon, and many more. This “basket” is called VOO.

• Allocate 15% of your wealth in intermediate-term (7-10 year) treasury bonds. We like IEF.

• Allocate 7.5% of your wealth into a “basket” of commodities like energy, agriculture, and metals. This basket is called DBC.

• Allocate 7.5% of your wealth into Gold. We like GLD.

The amount of money you should invest depends completely on your financial situation. Everyone’s financial situation is different and unique.

First, you should understand your income, expenses, debts, and emergency funds. Make sure your basic living expenses and financial obligations are covered first. You’ll need to get an idea of how much money you’re left with after paying all your expenses.

You can do this by taking out a sheet of paper. On the left side of that paper, list all your sources of monthly income. On the right side, list all your monthly expenses. This could be your rent, mortgage, car insurance, credit card payments, etc. Subtract the total monthly expenses from your total monthly income. This will tell you how much money you’re left with at the end of each month. This is called disposable income.

Second, you should understand your risk tolerance. This is your comfort level with the volatility and potential for loss in your investments. Some folks are more comfortable investing a higher percentage of their disposable income, while others are not.

The amount you choose to invest is completely up to you and what you’re truly comfortable with.

Consistency is key!

For this to work best, you’ll need to continuously invest a fixed amount of money over a period of time. Most folks invest on a weekly or monthly basis.

This is called Dollar-Cost Averaging. Some invest $100 per week throughout 10 years and others invest $5,000 per month throughout 20 years. How often you invest is truly up to you — just as long as it's consistent.

Dollar-cost averaging into the All-Weather Portfolio will help you avoid the stress of the ups and downs in the market. It’ll cost less in the long-run (as opposed to investing a lump sum) and will grow your wealth more steadily.

This is best explained with an example.

Let’s say you choose to invest $100 per week into the All-Weather Portfolio.

You’ll first have to set up a weekly recurring deposit of $100 from your bank’s checking/savings account into your investment account.

Then, you’ll set up automated weekly investment purchases as shown below:

• $35 automatically invested into TLT every week

• $35 automatically invested into VOO every week

• $15 automatically invested into IEF every week

• $7.50 automatically invested into DBC every week

• $7.50 automatically invested into GLD every week

To automate your investment purchases, select the brokerage you have below:

Robinhood

Fidelity

Charles Schwab

Webull

TastyTrade

You’ll have to make changes to your portfolio once a year. This is called Portfolio Rebalancing.

Portfolio rebalancing is the process of selling some of the assets in your portfolio that grew too much and buying more of the ones that didn't grow enough. You will only need to do this at the end of each year.

Asset allocation is just a fancy way of saying “how you split your money among different types of investments.”

The desired asset allocation for the All-Weather Portfolio is as follows:

• 35% into TLT

• 35% into SPY

• 15% into IEF

• 7.5% into GLD

• 7.5% into DBC

The percentages will shift throughout the year because of changes in the market. So, you’ll need to rebalance your portfolio.

Here's an example:

The desired asset allocation for TLT is 35%. But, let’s say at the end of the year TLT overperformed. Since it overperformed, the asset allocation for TLT is now 42%. So, you’ll need to sell 7% of your TLT position. But you’re not finished just yet. You’ll then need to reinvest that 7% into an underperforming asset within your portfolio.

Keep in mind that this investment strategy works best when applied for a long period of time. We recommend that all investors have a long-term investment horizon, preferably 10+ years.

It’s statistically proven that most investors with a short-term investment horizon (less than 2 years) are either unprofitable or underperform the S&P 500.

Congrats! You can finally call yourself a passive investor.

But, there’s always room for improvement. You can improve your rate of return by becoming an active investor. This involves learning how to find what any company is truly worth.

It’s easy to find the price of any company. That just takes a quick Google search. But knowing the true value of a company is something not many investors know how to do. If you can do this well, then it will put you far ahead of many other investors.

This is our specialty at Singh Stocks. Learn how to actively invest by booking a consultation with us here and checking out our success stories here. Your first consultation is on the house, free of charge.