This video outlines six low-maintenance investment portfolio strategies, ranking them from easiest to most involved. The purpose is to provide viewers with readily understandable options for building wealth with minimal effort.
Target Date Fund Strategy (Ranked #1): Ultimate lazy investor's portfolio; automatic diversification and glide path adjusting risk over time. Downsides include non-customizable glide paths and potential investment "muscle atrophy" from lack of personal involvement.
One-Fund Total World Stock Market Portfolio (Ranked #2): Globally diversified; invests in one fund encompassing the world's stock market. Downsides include no bond exposure (higher volatility) and limited flexibility in asset allocation.
One-Fund Total US Stock Market Portfolio (Ranked #3): Simple, low-cost exposure to the entire US stock market. Downsides: no international exposure, 100% equity (high volatility).
Classic Stocks/Bonds (60/40) Portfolio (Ranked #4): Balanced approach; 60% stocks for growth, 40% bonds for stability. Flexible and customizable allocation. Downsides: Requires manual rebalancing; bond returns may be relatively low for long-term investors.
Bogleheads 3-Fund Portfolio (Ranked #5): Combines US and international stocks and bonds. Customizable allocation. Downsides: More moving parts than one- or two-fund strategies; potential for analysis paralysis.
Rick Ferri Core Four Portfolio (Ranked #6): Expands the Bogleheads 3-fund portfolio by adding real estate investment trusts (REITs). Offers greater diversification and potentially higher income. Downsides: Even more moving parts; REIT dividends are taxed at a higher rate in taxable accounts.
