In describing the original iteration of Couch Potato Portfolio, Burns suggested an S&P 500 index fund and a short-term government bond fund. Burns himself has actually used several different recommendations of specific assets over the years, all while keeping it pretty general and still allowing you to DIY it. In fact, Burns tells of how immediately after initially he initially published the portfolio, readers called in to ask him exactly how to implement it. On the bonds side, you could use intermediate treasuries, total bond funds, etc. That is, you could use an S&P 500 index fund, total US stock market fund, or total world stock market fund on the equities side. Interestingly, adherence to Burns's precise prescription of funds for the Couch Potato Portfolio doesn't seem to be required, and varies among investors. The portfolio is essentially a slightly more conservative version of a traditional 60/40 portfolio. The basic premise for the 50/50 allocation is, again, simplicity, and the idea that stocks can drive returns while bonds help protect against stock crashes and lower the portfolio's volatility. Burns maintains that this makes it probably the most accessible and easy-to-understand portfolio out there, stating that anyone who “can divide by 2” can understand it. In terms of Lazy Portfolios, the Couch Potato Portfolio is about as simple as it gets: a 50/50 mix of stocks and bonds, using only 2 funds. Scott Burns created the Couch Potato Portfolio in 1991. Sequence of Return Risk in Retirement Explained.The 4% Rule for Retirement Withdrawal Rate – A Revisitation.The 10 Best ETFs for Retirement Portfolios in 2023.M1 Borrow Review (How M1’s Margin Loan Works).8 Reasons Why I’m Not a Dividend Income Investor.How To Beat the Market Using Leverage and Index Investing.What Is a Leveraged ETF and How Do They Work?. The 5 Best Emerging Markets ETFs (1 From Vanguard) for 2023.The Best Vanguard Dividend Funds – 4 Popular ETFs.VYM – Comparing Vanguard’s 2 Popular Dividend ETF’s The 5 Best EV ETFs – Electric Vehicles ETFs.The 8 Best Small Cap ETFs (4 From Vanguard).VTI – Vanguard S&P 500 or Total Stock Market ETF? Paul Merriman Ultimate Buy and Hold Portfolio.Factor Investing and Factor ETFs – The Ultimate Guide.How To Invest Your HSA (Health Savings Account). Portfolio Diversification – How To Diversify Your Portfolio.How To Invest in an Index Fund – The Best Index Funds.What Is the Stock Market? How It Works & How to Invest in It.Beginners Start Here – 10 Steps To Start Building Wealth.
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