I've punched my numbers into cFIREsim and if I use Equities = 80%, Bonds = 10% & Gold = 10% I get 1-5% better success results than Equities = 90% and Bonds = 10%.
My actual current AA is:
Stocks 80%
- USA = 50%
- CDN = 30%
- Int'l Dev = 10%
- Int'l EM = 10%
REIT = 10%
Bonds = 10%
My understanding of why gold improves the success in cFIREsim is the diversification compared to the other asset classes. Having said that with a more diverse AA than is possible in cFIREsim do you see any point in trying to get even further diversified by investing in gold or something of that nature?
If so I assume gold bricks in the basement isn't the answer.