It is Time to Build Wealth with Lazy Portfolios

 We all want to make time for family, friends, and even fun experiences. The problem is that we also need to invest for our future. Creating portfolios for our future can often be hard, laborsome, and difficult.



What is a lazy portfolio?

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A lazy portfolio is any portfolio that requires a collection of investments with little maintenance. Basically, it is an easy set-up portfolio that you just let go and forget about it. You set it up and let it do its thing. 

A couch potato portfolio is a portfolio that holds 50% of stocks and 50% of fixed income like bonds. At the end of the year, you take an hour to make adjustments to it. You can either sell some stocks to put more into bonds or vice versa. Your allocation is basically 50/50. So easy, you can just sit on a couch and let it do its thing. 

The 2-Fund Portfolio

Rick Ferri has made this suggestion. If you do not know Rick Ferri, that is ok. He is a famous CFA that helped come up with a few lazy portfolios.  His 2-Fund Portfolio is one that is split with a Total World Index Fund and a Total Bond Index Fund. 

The 3-Fund Portfolio:

In this 3-Fund portfolio, Larimore breaks down the stock portion of the portfolio into two funds. One that follows the U.S. total stock market, and the other that follows the Total International stock market. He does this to give more exposure to the U.S. market in general. 

88%: VTI 9%: VXUS 1%: BND There is no need to be over exposed to bonds right now. I like to have most of my money in the Total U.S. stock market index fund to have great exposure to all the companies operating in the U.S. 

The Frugal Expat 3-Fund Portfolio


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What about REITs in a Portfolio? REITs give you exposure to real estate without purchasing real estate yourself. You allow the company to do it, and they reward you with some good dividends.  If you want some exposure to a REIT, you can form a 4-Fund Portfolio.

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