Three-Fund Portfolio

The Three-Fund Portfolio by Taylor Larimore is an investing staple on the fantastic Bogleheads forums. You can read about Taylor’s recommendations in his book The Bogleheads’ Guide to the Three-Fund Portfolio and even join the ongoing discussion.

Asset Allocation

  • 48% Total Stock Market
  • 12% International Stocks¹
  • 40% Intermediate Bonds²

Notes

1. Larimore specifically recommends international stocks equal to 20% of the equity portion of the portfolio. Since the default version here on Portfolio Charts includes 60% stocks, I allocated 12% (20% of 60) to international.

2. Larimore does not recommend a specific percentage of bonds. Instead, he suggests that you should select the percentage according to your age, goals, timeframe, and risk tolerance. I chose 40% bonds as a reasonable starting point, but you can also customize the percentage to your own needs using the My Portfolio tool.

Performance

Change the home country to translate the portfolio to local assets, currency, and inflation