The suggestions below include portfolios built from etfs and index mutual funds.
Couch potato portfolio vanguard funds.
They are is exposed to between 20 to 80 equities and 20 to 80 bonds including tips.
Year to date the.
For the past 10 years the couch potato portfolio has returned 8 56 with a standard deviation of 9 86.
The portfolio is exposed to 50 bonds and 50 equities.
It was one half vanguard 500 index investor shares ticker vfinx expense ratio 0 14 percent 15 year performance rank in morningstar s large blend category in top 28 percent of surviving funds.
The original couch potato portfolio was done with two mutual funds that required a minimum investment of 3 000 each.
If you can fog a mirror and divide by the number 2 or make a margarita he ll show you how to get better investment results and a better retirement with little or no effort.
The current version is below.
The couch potato portfolio is the invention of scott burns a personal finance columnist at the dallas morning news.
Ready to ditch debt save money and build real wealth.
The couch potato portfolio is indeed simple and offers a consistent return.
The 30 year return is 8 73 year to date the couch potato portfolio has returned 5 52.
Both options include several asset mixes.
It is a medium risk portfolio.
Conservative investors should allocate more to bonds and less to stocks while aggressive investors can do the opposite.
Last year it returned 19 48.
Looking at the 10 year period 2010 2019 the s p 500 has returned 12 97 and the couch potato portfolio 8 48.
Originally the portfolio consisted of just two funds the vanguard s p 500 index fund vfinx and the vanguard total bond index fund vtbmx.
The dividend yield is 0 89.
Scott burns couch potato and other 8 portfolios can be built with 2 10 etfs.
If you have 10 000 to invest per fund you could start with the.
Vanguard had the same experience with a new managed fund.
Rowe price offer comparable funds such as schwab s s p 500 index fund and t.
Scott burns is the creator of couch potato investing and a personal finance columnist with decades of experience.
The following model portfolios can help you get started as a couch potato investor.
20 portfolio recipes beat the couch potato portfolio on a risk adjusted basis.
Vanguard total bond market index fund.
Of course you don t have to stick to the above fund recommendations.
As of october.
Since the two choices for the most basic couch potato portfolio returned losses of 3 31 percent and 2 66.
Most brokers such as schwab and t.
That was over 15 years ago and it has beaten most balanced funds in the meantime.
The dividend yield is 1 6.
The 30 year return is 7 71.
3 mutual funds including janbx with 7 8.
They are medium risk and low risk portfolios.
For the past 10 years the scott burns margaritaville has returned 7 58 with a standard deviation of 12 22.
You should choose the one best suited to your risk profile.
However if the couch potato portfolio loses less it also gains less.
