Couch Potato Investing Portfolio

Both portfolios suffered in the same years.

Couch potato investing portfolio. The suggestions below include portfolios built from etfs and index mutual funds. The portfolio is exposed to 50 bonds and 50 equities. Couch potato portfolio results after inflation adjusted withdrawals for different time periods. Like the couch potato portfolio the first thing to notice is that everyfinishing portfolio value is greater than the original 100 000 investment.

For the past 10 years the couch potato portfolio has returned 8 56 with a standard deviation of 9 86. For example last week we talked about a portfolio recipe from taylor larimore. Couch potato investing simply refers to investing in one of these hands off portfolios with specific recipes. The couch potato portfolio can be built with 2 etfs.

The following model portfolios can help you get started as a couch potato investor. These recipes are formulas for different combinations of funds and bonds that investors can base their portfolios on. 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. Starting with a 100 000 investment and withdrawing an initial 4 000 a year that is adjusted upward for inflation each year this table shows the dollar value of the portfolio at the end of each year.

Both options include several asset mixes. Scott burns is the creator of couch potato investing and a personal finance columnist with decades of experience. Both portfolios declined in value for three years in 2000 2001 and 2002. Building the couch potato portfolio.

As it usually does. And both portfolios recovered after the financial crisis in 2008. It is a medium risk portfolio. You should choose the one best suited to your risk profile.

Let s take a look at how the couch potato model placing 50 of funds into the.