Couch Potato Portfolio Vanguard Funds

Originally the portfolio consisted of just two funds the vanguard s p 500 index fund vfinx and the vanguard total bond index fund vtbmx.

Couch potato portfolio vanguard funds.

The couch potato portfolio can be built with 2 etfs. Most brokers such as schwab and t. The couch potato portfolio is the invention of scott burns a personal finance columnist at the dallas morning news. If you have 10 000 to invest per fund you could start with the.

Looking at the 10 year period 2010 2019 the s p 500 has returned 12 97 and the couch potato portfolio 8 48. Vanguard had the same experience with a new managed fund. The 30 year return is 7 71. The suggestions below include portfolios built from etfs and index mutual funds.

The dividend yield is 1 6. Both options include several asset mixes. However if the couch potato portfolio loses less it also gains less. Rowe price offer comparable funds such as schwab s s p 500 index fund and t.

Of course you don t have to stick to the above fund recommendations. 20 portfolio recipes beat the couch potato portfolio on a risk adjusted basis. Vanguard total bond market index fund. 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. They are is exposed to between 20 to 80 equities and 20 to 80 bonds including tips. 3 mutual funds including janbx with 7 8. Ready to ditch debt save money and build real wealth.

Scott burns couch potato and other 8 portfolios can be built with 2 10 etfs. The dividend yield is 0 89. The portfolio is exposed to 50 bonds and 50 equities. The current version is below.

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 30 year return is 8 73 year to date the couch potato portfolio has returned 5 52. 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.

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. For the past 10 years the couch potato portfolio has returned 8 56 with a standard deviation of 9 86. Conservative investors should allocate more to bonds and less to stocks while aggressive investors can do the opposite.

While vanguard wellington a. Year to date the. As of october. Last year it returned 19 48.

However the couch potato portfolio is actually simpler. Since the two choices for the most basic couch potato portfolio returned losses of 3 31 percent and 2 66. The following model portfolios can help you get started as a couch potato investor.