+1No, it works well. I think you will find that many of us do some version of it.
No, it works well. I think you will find that many of us do some version of it. With target date funds available today it can be easier, but my couch potato portfolio for the last 5-10 years has been principally 45% Vanguard Total Stock Market Index (domestic equities), 15% Vanguard International Stock Index (international equities) and 40% Vanguard Total Bond.
+2. Many here (self incl) have portfolios that closely resemble Scott Burns 'couch potato' approach. For someone who can't/won't be bothered to choose an asset allocation, select funds, and rebalance with some discipline - IMO the couch potato or another lazy portfolio is the next best choice and maybe even every bit as effective.
......... my couch potato portfolio for the last 5-10 years has been principally 45% Vanguard Total Stock Market Index (domestic equities), 15% Vanguard International Stock Index (international equities) and 40% Vanguard Total Bond.
With today's low interest rates I have deviated on the bond side into intermediate corporate, GNMA and high yield to reduce duration and increase yield, but if I was a couch potato I would just go Total Bond.
By how much out of curiousity? Or even better how much and how's your volatility compare (std dev if nothing else)? I slice and dice hoping I can outperform by 1-2% at most, or same returns with lower volatility.I have compared my own slice and dice (conservative) portfolio to the 3 VG - 62% Total Bond/27% Total Stock/11% Total Int'l) for quite a while and I have consistantly outperformed it. If it was even close I would have probably switched to the 3 fund AA.
I have compared my own slice and dice (conservative) portfolio to the 3 VG - 62% Total Bond/27% Total Stock/11% Total Int'l) for quite a while and I have consistantly outperformed it. If it was even close I would have probably switched to the 3 fund AA.
Thanks and congratulations, I'm duly impressed. I need to calculate how my porfolio compares to a standard Vanguard 3-fund with an equivalent AA, though I'm certain my results will not match yours. Nicely done...My portfolio has outperformed the 3 fund as follows:
2011 - +6.43% vs +3.95%
2009 - +23.68% vs +14.25%
2008 - -9.48% vs -9.65%
3yr - +11.34% vs +8.74%
5yr - +5.97% vs +3.74%
10yr - +6.79% vs +5.29%