2025: A Year To Simplify

Window Flowers

Just as Hedgehunter is making a few portfolio changes, 2025 is a year for a few changes in several ITA portfolios.  Those that will remain unchanged, at least for now, are:  Copernicus, Schrodinger, and Carson.  Each of these three portfolios uses a different investing model.

• Copernicus:  Invest only in U.S. Equities.  Focus on VOO as the primary investment Exchange Traded Fund.
• Schrodinger:  This is an “Intelligent Portfolio” managed by computers at Schwab.
• Carson:  This portfolio uses the Bullish Percent Indicator model.  For more details search for BPI or follow the Carson reviews.

Changes coming to a number of other ITA portfolios will focus on two critical points.

1. Simplify the portfolio by reducing the number of ETFs.  Portfolios will hold either VOO, VT or VTI and then branch out from there.
2. Reduce taxes by minimizing the number of transactions while diversifying across a wide range of stocks and bonds.

Underlying these changes is an effort to move exclusively toward passive investing.  An example of a simplified portfolio would contain 50% in VOO and 50% in SHV or BND.  Dividends and cash additions will be used to keep the portfolio in balance.

Another example of a simplified portfolio might look like this.  VOO 50%, VEU 25%, and BND 25%.

Follow along as these changes will take place over the next three to six months.