Is a Three-Fund Portfolio Right for You?

The popular "three-fund portfolio" is typically made up of low-cost index funds. We share what we like about this strategy and some pitfalls to watch out for in this highlight.

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[chasingpowder]

Three fund portfolio, index funds, rebalance annually. Target date funds have higher fees and allocate too conservatively.

[crookedcarpet]

35 with 70 percent total market, 20 percent total international, 10 percent total bonds.

[benblocker]

My personal three fund is slightly different just based on what I've seen. Not my whole portfolio but a large chunk of it and annually rebalancing.

I love the base US Equity and prefer SP 500 with VOO for that
Instead of international I like growth, seems most companies that are in VOO are based internationally as well so you are already in that market at least a bit with the S&P 500 so I prefer VUG
Lastly I am not fond of bonds, not saying bad but just after thinking for a while might not have a place in mine. Instead like the stable dividend ones like SCHD.

This is just what works for me personally, since rebalancing annually might change next year

[Jpsantos]

You can just buy VT / VTWAX which is the total global stock market at market cap weights without any bonds.

[michaelswami]

Rebalancing = AKA trim the flowers and water the weeds.

[bribradt]

3 fund portfolio is basically the same as a target date fund. It works if you want a different allocation than TDF's offer, eg: more US vs internationa

[BrianSchoedel]

What’s Critical Mass? $100k, $500k, $1M+

[kw]

Your comments about a 3 fund portfolio sounded more like a cheap sell job for your services. I had a higher regard for both of you before this video. 3 fund are easy to understand and great for most people. Very disappointed.

[MovieJustin]

My portfolio is only 50k all in FXAIX. I'm 37 and just not sure if 60/40, three fund or Target is the way to go 🤦🏾‍♂️

[jbris]

3 fund?!? I just have 1 fund S&P500 index. I guess I'm gonna to die poor and alone 😅

[AK-ISTHEWAY]

3:01 "And you start squeezing the balloon inappropriately." Yeah, I do that quite a bit...

[lifeofsui]

TDF index or not are basically Boglehead 3 are based on the modern portfolio under preforms the market and is by definition to conservative and leaves the person way under preformed.

[brianckaufman]

You mention investments reaching "critical mass", but what does that mean? Do you have a video that outlines how to identify the key elements identifying when my portfolio might be at "critical mass"?

[mccarty]

Jesus why did have to make this sound so overcomplicated

[guruagency]

Hilarious...these guys trying to make it like it's so difficult to choose allocation.

[timb]

screw that buy TQQQ every week! (This is definitely investment advice)