White Coat Investor Podcast

WCI #274: Setting Up Your Portfolio 101

Aug 4, 2022
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ANECDOTE

Two-Decade Portfolio Consistency

  • Dr. Jim Dahle and his wife set their portfolio in 2004 and barely changed it for nearly 20 years.
  • They keep a written investing policy and use it for decades with minimal tweaks.
ADVICE

Start With Goals And A Simple Allocation

  • Set clear financial goals before picking investments so allocations match purpose.
  • Develop an asset allocation, implement it with simple funds, and rebalance annually to sell high and buy low.
ADVICE

Implement With Single Broad Funds

  • Use broad, diversified index funds to implement major allocations when possible.
  • Keep one fund per asset class when it covers the exposure, like Total Stock Market for US equities.
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