U.S. Couch Potato Portfolio: [ Ссылка ]
Global Couch Potato Portfolio: [ Ссылка ]
The Couch Potato Portfolio was created by investing writer Scott Burns. Here we’ll take a look at its components, historical performance, and the best ETFs to use in its execution.
// TIMESTAMPS:
00:00 - Intro
00:19 - What Is the Couch Potato Portfolio?
05:22 - Performance
06:21 - Constructing the Couch Potato Portfolio Using ETFs
06:38 - Going Global with Stocks
07:00 - Outro
// SUMMARY:
Scott Burns created the Couch Potato Portfolio in 1991. In terms of Lazy Portfolios, the Couch Potato Portfolio is about as simple as it gets: a 50/50 mix of stocks and bonds, using only 2 funds. Burns maintains that this makes it probably the most accessible and easy-to-understand portfolio out there, stating that anyone who “can divide by 2” can understand it.
The basic premise for the 50/50 allocation is, again, simplicity, and the idea that stocks can drive returns while bonds help protect against stock crashes and lower the portfolio’s volatility. The portfolio is essentially a slightly more conservative version of a traditional 60/40 portfolio.
Interestingly, adherence to Burns’s precise prescription of funds for the Couch Potato Portfolio doesn’t seem to be required, and varies among investors. That is, you could use an S&P 500 index fund, total US stock market fund, or total world stock market fund on the equities side. On the bonds side, you could use intermediate treasuries, total bond funds, etc.
Burns submits that more important than the fund choices are the fundamental requirements of low-fee indexing, diversification, and simplicity, and states that “the single most important thing is the basic 50/50 mix of stocks and bonds.” This is consistent with Burns’s writings on investing; he aims to be “an antidote to Wall Street.” The idea is that you can sit on the couch, check and rebalance this portfolio once a year, and let it do its thing.
Since the broad index funds used are somewhat arbitrary, for the sake of this blog post and the analysis herein, I’m choosing to use Vanguard’s Total US Stock Market ETF (VTI) and the iShares U.S. Treasury Bond ETF (GOVT). One can also diversify globally in stocks by simply replacing VTI with VT, Vanguard's Total World Stock Market fund.
Read the blog post here: [ Ссылка ]
#investing #lazyportfolio #lazyportfolios
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Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: [ Ссылка ]
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