2/01/2022

Example - New Diamond Portfolios and Shares-to-Trade Worksheet

I have been using Diamond sg131 as my main portfolio for several years.  Under the new numbering scheme and portfolio structures, the closest portfolio is Diamond|Onyx  65|35 sg265 – I now consider this my long term portfolio. 

The guidance for reducing account aggressiveness is "Box #3 Portfolio Shift: -1,” which appears in the middle of page 1.  It indicates that I should use the model portfolio one step less aggressive, which is Diamond|Onyx 50|50 (sg250).  

The guidance for Box #2 is 20%. For this account, I always have at least 2% cash in Box #2, so I increase it to 22%.  Using this information in the Shares-to-Trade worksheet linked to the pdf, I get the following:





Note that in the Shares-to-Trade worksheet, I have input my “Long-term Model Portfolio” sg number (“265.1”) and the aggressiveness adjustment “-1” into the “3 Agg Adj” field. 

The worksheet provides the appropriate portfolio sg number for my account (in this case, “250.1” in the “Use Target Weights from sg” field). I then proceed to use the target weights for sg250.1, which is one step less aggressive than my long-term model portfolio (sg265.1).

Please contact me with questions.