A Portfolio That's as Simple as One, Two, Three in The Wall Street Journal (subscription may be required) proposes that good investing may be as easy as buying three fund (or ETF) portfolio: A total U.S. market index, an international market index and an (international or U.S.) bond index. For those interested in additional diversification or alternative investments, a commodity ETN or real estate ETF can be use for a small percentage (~5%) of the portfolio.
There are several advantages to such an approach: low fees, easy self management, low effort and great diversification. I have been using a 4-6 ETF investment strategy since late May 2013. So far, the strategy has worked well as I have been adding funds when the market corrects.
For more on The Practice of Personal Finance, check back every Wednesday for a new segment.
This is not financial advice. Please consult a professional advisor.
Copyright © 2013 Achievement Catalyst, LLC
Wednesday, July 31, 2013
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