The 4-Fund Portfolio – Episode #36

1 Money Market Fund + 3 Index Funds = The 4-Fund Portfolio. Extremely powerful, yet pleasantly simple, that’s what Ethan Bloch is talking about on today’s episode.

Not working? Try the QuickTime version.

Links mentioned in today’s episode:

The World’s Best Money Market Funds
Total Stock Market Index Funds
International Stock Index Funds
Total Bond Market Index Funds
IRA’s In The House!

  • ValeryTh

    I'm using that portfolio. I looked at simpler ones, and the slice & dice approach, but the 4-fund portfolio seems to strike a nice balance between simplicity and diversification. Originally I had VTSMX and VFWIX as equities, but that got TLH into VTWSX. The way things have been going, I will probably get the opportunity to TLH a couple more times. VTWSX has a slightly higher expense ratio than VFWIX, and significatly more than VTSMX, so that's something you have to consider. Its purchase fee will probably go away at some point, just as happened with VFWIX a couple months ago. In the end though, the cost issue is negligible compared to your thoughts about US/international equity ratio.

  • Thai

    I really dig the 4-Fund portfolio as well.. I'm glad you could give me an idea on the chronology of which funds to work towards from first to last - that's a welcome surprise since ppl out there who are on a shoestring budget can completely diversify a bit sooner than say an ultra-comprehensive portfolio (10+ funds, usually) with all the bells and whistles, which can require a starting investment capital of $30,000, just to buy the all funds within that portfolio. But hey, it's like you said, we're limited by our ambition, which to reiterate, the 4-fund portfolio provides a core that allows an investor to add more funds to achieve their specific level of complexity.

    Btw, I'm kinda bummed to hear you to making a cutback. I have to admit, Vimeo's quality is pretty clean, but if it came down to a website shutdown versus Hi-Definition, I'd say Fuck HD. On the other hand, if youre pressed for time, that's understandable. Any details you can provide about the bandwidth limitations and costs? Not to sound naive, but I always thought communities like Vimeo and YouTube had bandwidth caps.

  • Thai

    sorry I meant to say I thought they DIDN'T impose bandwidth caps

  • Hi Thai!

    You were correct in your assessment of me being pressed for time. I used the term bandwidth in regards to my personal time and attention, not as literal bandwidth limitations from my video providers, sorry for the confusion.

    There are no good excuses, but I want to make maintain high quality content and right now for that to happen I have to scale back a little bit.

    As I always say, THANKS a TON for your support!

    Cheers.

    Ethan

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