Identify performance winners based on total return by comparing returns to the couch potato portfolio.
Couch potato portfolio performance.
Create a risk vs.
From 1986 to 2001 the sophisticated couch potato strategy returned 12 3.
The average equity index returned less in the same period 11 85.
Scott burns is the creator of couch potato investing and a personal finance columnist with decades of experience.
The average balanced fund returned less in the same period 9 45.
Couch potato portfolio results after inflation adjusted withdrawals for different time periods.
The plain 50 50 couch potato portfolio returned 10 37 between 1991 and 2001.
None of the products we use to build our couch potato portfolios has been around for 20 years.
Investment performance figures for the classic couch potato portfolio by annual nominal value annualized rate of return and annual return.
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 couch potato portfolio is an indexing strategy that requires only annual monitoring and rebalancing but offers significant returns in the long run.
Last year it returned 19 48.
They are is exposed to between 20 to 80 equities and 20 to 80 bonds including tips.
Investment performance figures for the global couch potato portfolio by annual nominal value 1 year return and annualized rate of return.
If you invested 100 in the classic couch potato.
Year to date the couch potato portfolio has returned 5 52.
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.
Your typical balanced mutual fund.
50 00 us total stock market vti 50 00 tips vtip.
Here is how you build the couch potato portfolio.
For the past 10 years the couch potato portfolio has returned 8 56 with a standard deviation of 9 86.
The 30 year return is 8 73.
Return scatterplot using the 10 year maximum drawdown to measure risk.
The global couch potato easily beat global balanced funds.
Couch potato portfolios invest equally in two.