Couch Potato Portfolio Vanguard Funds

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.

Couch potato portfolio vanguard funds. 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. Model portfolios option 1 vanguard etfs. Scott burns is a popular dallas morning news financial columnist who developed his original couch potato portfolio over 15 years ago.

Since the two choices for the most basic couch potato portfolio returned losses of 3 31 percent and 2 66. 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 model portfolios include two fund options for 30 50 and 70 equities. The original basic humble couch potato portfolio consisted of two funds the vanguard index 500 fund which mimics the standard and poors 500 index and the vanguard fixed income short term government bond fund.

The plain 50 50 couch potato portfolio returned 10 37 between 1991 and 2001. The average balanced fund returned less in the same period 9 45. Vanguard had the same experience with a new managed fund. Scott burns is the creator of couch potato investing and a personal finance columnist with decades of experience.

From 1986 to 2001 the sophisticated couch potato strategy returned 12 3. The average equity index returned less in the same period 11 85. For example last week we talked about a portfolio recipe from taylor larimore. 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 couch potato portfolio is an indexing strategy that requires only annual monitoring and rebalancing but offers significant returns in the long run. The couch potato portfolio is the invention of scott burns a personal finance columnist at the dallas morning news. Couch potato investing simply refers to investing in one of these hands off portfolios with specific recipes. The original couch potato portfolio was done with two mutual funds that required a minimum investment of 3 000 each.

While vanguard wellington a.