Couch Potato Investing
It is a medium risk portfolio.
Couch potato investing. Welcome to canadian couch potato a blog designed for canadians who want to learn more about investing using index mutual funds and exchange traded funds. However that s what you would with an active investment strategy. Passive investing is as the name implies akin to the couch potato. You re not making changes to your portfolio frequently in reaction to movements in the market.
Weighing couch potato portfolio returns. Scott burns is the creator of couch potato investing and a personal finance columnist with decades of experience. For the past 10 years the couch potato portfolio has returned 8 56 with a standard deviation of 9 86. The couch potato portfolio can be built with 2 etfs.
Building the couch potato portfolio. Let s take a look at how the couch potato model placing 50 of funds into the. Scott burns is the creator of couch potato investing and a personal finance columnist with decades of experience. It s a buy and hold strategy with reduced decision making reduced activity and reduced costs.
Typically having a couch potato portfolio means you check in once a year and make adjustments as needed. For example last week we talked about a lazy portfolio recipe from taylor larimore. Active investing on the other hand is a progressive approach where investments are regularly considered frequently reconsidered and transaction costs mount. Couch potato investing simply refers to investing in a lazy portfolio more specifically a specific lazy portfolio recipe these recipes are formulas for different combinations of funds and bonds that investors can base their portfolios on.
Couch potato investing is a passive investment strategy. West of weird dripping springs texas. The portfolio is exposed to 50 bonds and 50 equities.