Another lazy portfolio worth mimicking was created by Scott Burns, who, before he retired, was a longtime financial writer and principal at AssetBuilder, a money management firm in Plano, Texas. Burns’ Margarita Portfolio, which earned 8.2% annually over the five years ending in July 2017 and 4.89% annually in the 10-year period, calls for divvying up your money equally among the following funds:
- Vanguard Inflation-Protected Securities (VIPSX)
- Vanguard Total Stock Market Index (VTSMX)
- Vanguard Total International Stock Index (VGTSX)
Balanced Fund
Or, if you want to get ultra-simple, you could invest in just one fund. Generally, that would mean a balanced index fund or a target-date retirement fund, which would not only create a diversified portfolio for you but also rebalance that portfolio over time. For example, Vanguard’s Balanced Index Fund (VBINX) invests in a portfolio comprising 60% stocks and 40% bonds. It earned 9.54% annually in the five years ending in July and 6.49% annually over 10 years, with a worst-year performance of minus 22.21%.