Identify performance winners based on total return by comparing returns to the couch potato portfolio.
Couch potato portfolio performance.
From 1986 to 2001 the sophisticated couch potato strategy returned 12 3.
Scott burns is the creator of couch potato investing and a personal finance columnist with decades of experience.
Starting with a 100 000 investment and withdrawing an initial 4 000 a year that is adjusted upward for inflation each year this table shows the dollar value of the portfolio at the end of each year.
The global couch potato easily beat global balanced funds.
For the past 10 years the couch potato portfolio has returned 8 56 with a standard deviation of 9 86.
Scott burns couch potato and other 8 portfolios can be built with 2 10 etfs.
If you invested 100 in the classic couch potato.
Couch potato portfolio results after inflation adjusted withdrawals for different time periods.
Investment performance figures for the classic couch potato portfolio by annual nominal value annualized rate of return and annual return.
They are is exposed to between 20 to 80 equities and 20 to 80 bonds including tips.
The couch potato portfolio is an indexing strategy that requires only annual monitoring and rebalancing but offers significant returns in the long run.
Create a risk vs.
Your typical balanced mutual fund.
The plain 50 50 couch potato portfolio returned 10 37 between 1991 and 2001.
Last year it returned 19 48.
They are medium risk and low risk portfolios.
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 average equity index returned less in the same period 11 85.
50 00 us total stock market vti 50 00 tips vtip.
The 30 year return is 8 73.
Return scatterplot using the 10 year maximum drawdown to measure risk.
Here is how you build the couch potato portfolio.
The dividend yield is 0 89.
The average balanced fund returned less in the same period 9 45.
Couch potato portfolios invest equally in two.