The Four Enemies of Investing

• Inflation

• Taxes

• Your Broker

• Yourself

The Four Pitfalls of Investing

• Too Conservative

• Too Aggressive

• Market-Timing

• Poor Delegation

The Six Factors That Determine Your Portfolio’s Future Value

• The Amount You Save• The Length of Time It Compounds• Your Asset Allocation• Those Assets’ Annual Return• The Expenses You Absorb• The Taxes You Pay

Total Nominal Return IndicesJanuary 1802 – December 31, 2006

STOCKS$12.7 mil

BONDS $18,235

BILLS$5,060

GOLD$32.84

CPI$16.84

$0

$1

$10

$100

$1,000

$10,000

$100,000

$1,000,000

$10,000,000

1801 1811 1821 1831 1841 1851 1861 1871 1881 1891 1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001

Source: Jeremy Siegel

The Oxford Asset Allocation Model

Real Estate Investment

Trusts5%

Gold Shares5%

High-Yield Bonds10%

High-Grade Bonds10%

Inflation Adjusted Bonds

10%U.S. Stocks

30%

International Stocks30%

The Gone Fishin’ Portfolio

Fund Symbol Allocation

Vanguard Total Stock Market Index VTSMX 15%

Vanguard Small Cap Index NAESX 15%

Vanguard Emerging Market Index VEIEX 10%

Vanguard European Index VEURX 10%

Vanguard Pacific Index VPACX 10%

Vanguard High Yield Corporate VWEHX 10%

Vanguard Short Term Investment Grade Bonds VFSTX 10%

Vanguard Inflation Protected Securities VIPSX 10%

Vanguard REIT Index VGSIX 5%

Vanguard Precious Metals and Mining Fund VGPMX 5%

Performance

Market Beating Returns

Year Gone Fishin’ S&P 500

2000 -6.14% -9.11%

2001 -2.73% -11.89%

2002 -5.41% -22.10%

2003 32.72% 28.68%

2004 15.28% 10.88%

2005 11.93% 4.91%

2006 16.99% 15.80%

2007 9.68% 5.49%

2008 -31.70% -38.49%

The Gone Fishin’ PortfolioExchange-Traded Funds

ETF Symbol Allocation

Vanguard Total Stock Market VTI 15%

Vanguard Small-Cap VB 15%

Vanguard European VGK 10%

Vanguard Pacific VPL 10%

Vanguard Emerging Markets VWO 10%

iShares iBoxx High Yield Corporate Bond HYG 10%

Vanguard Total Bond Market BND 10%

iShares Lehman TIPs TIP 10%

Vanguard REIT VNQ 5%

Market Vectors Gold Miners GDX 5%

The Effects of Taxes

Non-Tax Managed Tax Managed

Start $250,000 $250,000

5 $350,638 $421,265

10 $491,788 $709,855

15 $689,758 $1,196,147

20 $967,421 $2,015,578

25 $1,356,858 $3,396,366

30 $1,903,064 $5,723,074