Three-Fund Portfolio

The Three-Fund Portfolio is an investing staple on the fantastic forums at Bogleheads.org.  While the allocation percentages are not static and may vary by individual investor, the one represented here is perhaps the most popular starting point.

 

three-fund-portfolio

Asset Allocation

Stocks

Domestic

  • 40% Total Stock Market

International

  • 20% World Total Stock Market ¹

Bonds

  • 40% Intermediate Term Bonds

 

Notes

1) The calculations assume that US investors use a World Ex-US fund while investors living in other countries use a World fund including the US.