Hippie Green Beret

The Path to Freedom & Unconventional Wealth

Chrome, sleek lines, and big seats. Cruise in comfort to Financial Freedom with the Cadillac Fund.

by HippieGreenBeret

The Cadillac Fund is a way to organize your portfolio to systematically capture the market in a diversified, low cost way, that benefits you, and gets you on your way to being a member of the creditor class.  The Cadillac Fund is not sold anywhere, not marketed by brokers, or a get rich quick scheme.*

The Cadillac Fund Concept is one that HippieGreenBeret built over years of reading, learning, and understanding.  It all comes down to setting up something simple, automatic, low cost, and captures the market.  Build this “fund” and sit back and relax.

Starting Over?

If I had to start over, HippieGreenBeret would build his portfolio with the Cadillac Fund concept and just let the power of compound interest cruise me to the creditor class – one of freedom – where there is a powerful symbiotic relationship between growth & passive income & time. And, looking back in time at myself, I wouldn’t worry about money so much.

Secret Ingredients

What’s in the Cadillac Fund? 

  1. Total (US) Stock Market (VTSAX / VTI)
  2. International Growth (VWIGX)
  3. Small Cap (VSMAX / VB)
  4. REIT (VGSLX / VNQ)
  5. Total Bond Market (VBTLX / BND)

And then you might (or should) ask: What about the asset allocation?

To which I might answer: Asset allocation is based upon individual comfort level**. That means you decide. Do your own research. But for me, knowing what I know now, I’d stick with Vanguard.*** A simple asset allocation for your overall portfolio might look like:

And there you have it. Where to put what (Taxable, Tax Deferred, Tax Free) is a blog for another time!

*The Cadillac Fund is not a real fund, it is a concept HippieGreenBeret recommends to track the market through diversified, low cost index funds.

**Bonds are present to “smooth the ride.” When the market drops (it’s on sale!) and everyone is panicking, sell your bonds and buy stock. When the market is up and everyone is greedy, hold what you’ve got and add to what is low. Or, if you need to build back your cash reserve, sell some stock and buy some bonds. This is a simple method to “buy low, sell high.”

***I really like Vanguard. Low fees. No funny business. And the fact that your interests and Vanguard’s align. When you buy a fund at Vanguard, you become a shareholder in the company.

Picture: https://true-driving.com/tag/cadillac/