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The Four Fund Portfolio as a Solid Foundation
The foundation portfolio involves four asset classes: US stocks, international stocks, total US bond ETF, and Treasury Inflation Protected Securities (TIPS). Adding TIPS to the bond portion is important as it protects against inflation, and total bond funds like B and D do not include TIPS. This four fund portfolio is considered a solid foundation for anyone, and the allocation between the two stock funds and bonds can be adjusted based on risk preference.