Can FRP have multiple portfolios

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goixiz
Posts: 13
Joined: Sun Oct 25, 2020 12:42 pm

Can FRP have multiple portfolios

Post by goixiz »

BackGround: Early retired at 53 and expect to live to 94 (healthy and low drawdown 3% (+/-.5%)
I have 3 taxable sub portfolios - cash(savings+checking) / CDs / Brokerage @ 50/50 (stocks/bonds). And my Tax deferred is at 70/30 and tax free 85/15.

How can i set up the FRP to get more granular details with not similar investing styles ?

How deos FRP calculate non invested money (cash) in taxable account ?


P.S. would be great if we can get 2 Y-axis as graph controls are added in the results graph

jimr
Posts: 661
Joined: Thu Feb 28, 2008 6:48 pm

Re: Can FRP have multiple portfolios

Post by jimr »

Unfortunately there isn't a way to break out multiple taxable portfolios with different investment styles in FRP. The best way to model this in the planner is to "translate" the three portfolios into a single portfolio and generate an appropriate return and standard deviation to use with that blended portfolio.

goixiz
Posts: 13
Joined: Sun Oct 25, 2020 12:42 pm

Re: Can FRP have multiple portfolios

Post by goixiz »

Thank you jimr
What about multiple risks (stocks/bonds/intl) to different taxable/tax def/non tax account? And
How is the return weighted for stocks/bonds/intl

jimr
Posts: 661
Joined: Thu Feb 28, 2008 6:48 pm

Re: Can FRP have multiple portfolios

Post by jimr »

You can use the top table in additional inputs to assign different return/std deviation pairs to each of the three portfolio types (taxable, deferred, tax free) for ranges of year that you choose. The entries you create in additional inputs override the settings on the main page.

goixiz
Posts: 13
Joined: Sun Oct 25, 2020 12:42 pm

Re: Can FRP have multiple portfolios

Post by goixiz »

thank you
Will the stock/bond/intl ratio be still used. i assume no because there are no options in the additional inputs for investing styles

jimr
Posts: 661
Joined: Thu Feb 28, 2008 6:48 pm

Re: Can FRP have multiple portfolios

Post by jimr »

The "stock/bond/intl" text on the main page is informational to offer example asset mixes for the sample investing styles.

Again though, these are just text labels that aren't used at all by the simulation code. Only the corresponding return and standard deviation values are passed in to the simulation.

goixiz
Posts: 13
Joined: Sun Oct 25, 2020 12:42 pm

Re: Can FRP have multiple portfolios

Post by goixiz »

Excellent / thank you

So FRP will be using the average returns of stocks / bonds / intl with std dev ... in the additional inputs (overrides the main page settings)

jimr
Posts: 661
Joined: Thu Feb 28, 2008 6:48 pm

Re: Can FRP have multiple portfolios

Post by jimr »

FRP uses whatever average return value and standard deviation value you give it.

Just in case it wasn't clear above, there's nothing in FRP's simulation logic that tries to understand anything about portfolio management concepts like asset allocation, diversification, etc.

It just uses the return/std deviation numbers passed in, either from the main input page or additional inputs.

goixiz
Posts: 13
Joined: Sun Oct 25, 2020 12:42 pm

Re: Can FRP have multiple portfolios

Post by goixiz »

got it thanks

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