Lazy portfolios are the dream of most investors.
You create an allocation and just stick to it. No switching out of one holding to another. No stock or bond selection. Just rebalance if it gets out of the targeted allocation.
I talked about this in the past as the Permanent Portfolio (Read the holy grail of investing?) and their low volatility nature.
But what I think is the attractiveness of a lazy / couch / permanent portfolio is that it is simple to execute, which is ideal for average folks holding a day job or leading a busy life.
The more complex it gets the more likely people will not stay on it.
This is where this guy comes in.
I found this post off reddit.com /r/personalfinance.
His guy tracks a few lazy portfolios, couch potato portfolio, permanent portfolio and whatever you want to call it.
He also list down the comparison versus the s&p 500 and also the annualized 5 and 10 year return.
You can take a look at it over here.
Tracking the lazy portfolio | spreadsheet here
The more I see this the more I think why we underperformed is because
- Active management when we are not good at it
- We get emotional about losses and gains
- We dwell on daily stock picking and buying stuff at the wrong time thinking we are great
- Following our advisors advice
Here you will see the portfolios doing very well in a decade that has 2 major bear markets</>
I wonder how a Singapore lazy portfolio will look like. It is likely one based on
- Sti etf
- A bond etf
- Gro Capital Ease – 3-Year Savings Plan with 2.98% Yearly Guaranteed Return - October 5, 2022
- Singapore Savings Bonds SSB November 2022 – 1-Year Yield Goes Up to 3.08% (SBNOV22 GX22110A) - October 3, 2022
- If an Investment Product Sounds Really Good to You, Ask for a Result Guarantee! - October 2, 2022