Asset Allocation Strategies

[gfp927z]

>>> The Bogleheads' Guide to The Three-Fund Portfolio


https://www.bogleheads.org/forum/viewtopic.php?t=88005


After a lifetime of investing since 1950 trying to "beat the market," I am convinced that a simple 3-fund (or ETF) portfolio of Total Stock Market, Total International, and Total Bond Market, properly allocated, is an ideal portfolio for most investors. The advantages are many :

* Avoids wasted time and the possibility of mistakes trying to pick the best of thousands of mutual funds and ETFs.

* No individual stock risk.

* Highest return with lowest risk. Efficient.

* Very diversified with over 20,000 worldwide securities (lower risk).

* Very low expense ratios.

* Very low (hidden) turnover costs.

* Very tax-efficient.

* The many Advantages of Simplicity.

* No adviser risk.

* No fund manager risk.

* No style drift.

* No asset bloat.

* No tracking error to cause abandonment of the strategy.

* No fund overlap.

* No front-running that reduces sub-index returns.

* Automatic rebalancing within each fund.

* Less worry. Never under-performs the market.

* Easy to maintain for the owner, spouse, caregivers and heirs.

* More free time.

* Mathematically certain to outperform most investors.

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