Apply the legendary Yale Endowment Model to your personal portfolio.
The most advanced tool combining Monte Carlo Simulation
and Yale Smoothing Rules for your retirement.
"A Viking's appearance, A Monk's principles" - The genius who chose the university over Wall Street greed.
In 1985, at age 31, he returned to his alma mater, Yale, rejecting Wall Street's massive paychecks. His returns fund 1/3 of Yale's budget, supporting its "Need-Blind" admission policy.
He moved beyond the traditional 60/40 portfolio, pioneering broad diversification into REITs, Emerging Markets, and Alternatives, proving that diversification is the "Only Free Lunch".
On Black Monday, stocks plunged 22% in a single day. Instead of selling stocks in panic, Swensen went to the Provost.
"We need to sell bonds and buy more stocks (Rebalancing)."
"When I left the Provost's office, there were sweat stains on the table where my hands had been. But I stuck to my principles, and Yale turned the crisis into an opportunity."
David Swensen's 3 Core Principles proven over 30 years
Constructing a defense with low-correlation assets: not just US Stocks, but REITs, Developed, and Emerging Markets.
Maintaining a high allocation to equity-like assets to generate returns that beat inflation over the long term.
A systematic approach to "Buy Low, Sell High", avoiding the emotional pitfalls of fear and greed.
"Investing is a zero-sum game, but after fees, it becomes a negative-sum game."
Visualize how fund fees and taxes eat away your long-term wealth.
A "Safety Belt" for retirees. It weights the previous year's spending to prevent a sudden drop in living standards during market crashes.
Spend_t = (Spend_t-1 × 0.7) + (Asset_t × Rate × 0.3)
Verifying not just one future, but all possibilities.
Average returns (e.g., 7%) are just averages. Reality has unpredictable 'Volatility'.
We simulate 1,000 virtual lifetimes using random variables. This calculates the 'Risk of Ruin', ensuring your assets don't run dry even in the worst-case scenarios.
"Know Thyself." Don't mimic Yale's complex assets; mimic the market with low-cost ETFs.
| Asset Class | Weight | Role | ETF |
|---|---|---|---|
| Total US Stock | 30% | Core Growth Engine | VTI |
| Developed Mkts | 15% | International Diversification | VEA |
| Emerging Mkts | 5% | High Risk / High Return | VWO |
| Real Estate (REITs) | 20% | Inflation Hedge & Cash Flow | VNQ |
| US Treasury (Inter) | 15% | Crisis Protection | IEF |
| TIPS | 15% | Inflation Protection | TIP |
Start immediately with presets based on David Swensen's principles.
Start Simulation
© 2026 Swensen Allocator Project.
Based on the principles of David Swensen (1954–2021).