Couch Potato Portfolio Vanguard Funds

The original couch potato portfolio was done with two mutual funds that required a minimum investment of 3 000 each.

Couch potato portfolio vanguard funds.

The suggestions below include portfolios built from etfs and index mutual funds. Both options include several asset mixes. 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. While vanguard wellington a.

The dividend yield is 1 6. 20 portfolio recipes beat the couch potato portfolio on a risk adjusted basis. Last year it returned 19 48. That was over 15 years ago and it has beaten most balanced funds in the meantime.

The 30 year return is 8 73 year to date the couch potato portfolio has returned 5 52. Most brokers such as schwab and t. Looking at the 10 year period 2010 2019 the s p 500 has returned 12 97 and the couch potato portfolio 8 48. For the past 10 years the couch potato portfolio has returned 8 56 with a standard deviation of 9 86.

You should choose the one best suited to your risk profile. For the past 10 years the scott burns margaritaville has returned 7 58 with a standard deviation of 12 22. The couch potato portfolio is indeed simple and offers a consistent return. Scott burns is the creator of couch potato investing and a personal finance columnist with decades of experience.

Vanguard had the same experience with a new managed fund. The following model portfolios can help you get started as a couch potato investor. Of course you don t have to stick to the above fund recommendations. They are medium risk and low risk portfolios.

3 mutual funds including janbx with 7 8. The portfolio is exposed to 50 bonds and 50 equities. If you have 10 000 to invest per fund you could start with the. Since the two choices for the most basic couch potato portfolio returned losses of 3 31 percent and 2 66.

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 can be built with 2 etfs. Rowe price offer comparable funds such as schwab s s p 500 index fund and t.

They are is exposed to between 20 to 80 equities and 20 to 80 bonds including tips. The dividend yield is 0 89. It is a medium risk portfolio. Ready to ditch debt save money and build real wealth.

However if the couch potato portfolio loses less it also gains less. Vanguard total bond market index fund. Scott burns couch potato and other 8 portfolios can be built with 2 10 etfs. The couch potato portfolio is the invention of scott burns a personal finance columnist at the dallas morning news.

Originally the portfolio consisted of just two funds the vanguard s p 500 index fund vfinx and the vanguard total bond index fund vtbmx. Conservative investors should allocate more to bonds and less to stocks while aggressive investors can do the opposite. Year to date the.