BiggerPockets Money Podcast Scott Builds Four Portfolios with Four Different Strategies ($40k Experiment)
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Dec 30, 2025 In a fascinating experiment, Scott constructs four distinct investment portfolios, each starting with $10,000. He explores a range of strategies, from an index fund to a risk parity approach. Delving into the rationale behind bond investments and diversification, Scott shares insights into managing assets like gold and REITs. He also discusses active management, avoiding overvalued stocks, and outlines trigger rules for portfolio adjustments. Emphasizing accountability, the hosts reflect on emotional experiences during market fluctuations.
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Buy A Low-Fee S&P 500 ETF
- Buy a broad low-fee S&P 500 ETF like VOO to get instant exposure to the largest U.S. companies.
- Scott executes a market order for $10,000 and describes the purchase as simple and fast.
Construct A Simple 60/40 Portfolio
- Build a 60/40 portfolio by allocating ~60% to a total market ETF (VTI) and ~40% to a broad bond fund (BND).
- Scott buys $6,000 VTI and $4,000 BND to mechanically create that allocation.
Risk Parity Lowers Withdrawal Risk
- Risk parity mixes uncorrelated assets (stocks, bonds, gold, managed futures, international) to lower volatility.
- Mindy built such a portfolio and it has allowed monthly withdrawals while showing lower sequence-of-returns risk.
