William Bernstein’s latest e-Book, If You Can: How Millennials Can Get Rich Slowly, is all about regularly investing equal amounts of money using three mutual funds. Those funds are: U.S. Total Stock Market, International Total Stock Market, and U.S. Bond Market. Save 15% of your salary each month, and that is about it. Bernstein’s recommendations are nearly identical to Kevin Roth’s portfolio as written up in a book, How a Second Grader Beats Wall Street. I wrote about this approach and ran an analysis over on the original ITA site at this URL. Keep in mind that financial advisor, Allan Roth, helped his son set up this simple portfolio and he got a book out of the effort. Check out Kevin’s results at this Market Watch site.
While the percentages to invest in the mutual funds differ between Roth and Bernstein, the approach is the same. Keep it simple and stay disciplined.
Instead of using mutual funds, I recommend the following for the three investments.
- U.S. Total Stock Market – VTI
- International Total Stock Market – VEA or VEU if you wish to capture a portion of emerging markets. My preference is VEU if VWO is not part of the portfolio.
- U.S. Bond Market – BND
How difficult can it be to follow either the Bernstein or Roth model for investing?
You must be logged in to post a comment.