I like the simple
approach of the Couch Potato portfolio as I was not happy paying for high commissions and having a mix of mostly Canadian blue chip stocks and mutual funds.
Not exact matches
Your decision to pursue a
Couch Potato investment
approach does not exclude you from the benefits
of professional help.
Or visit Scott Burns» site at Dallasnews.com and see how Burns, the inventor
of the original
Couch Potato approach, has fared.
In the coming months I plan to transfer out
of mutual funds and set - up a
couch potato fund but can't decide which
approach to follow.
In the spirit
of holiday giving, Justin Bender, portfolio manager with PWL Capital in Toronto, has
approached me with an offer for Canadian
Couch Potato readers.
Applying a somewhat spicier
approach to the original three - asset - class
Couch Potato portfolio, with annual changes, resulted in average annual returns
of 10.6 %.
If that is what you're thinking
of doing, check out the
Couch Potato approach for an easy way to start.
If you deduct fees from your return assumptions, you're probably still in the ballpark
of a 4 % withdrawal rate if you use low - cost index funds and follow a disciplined
Couch Potato approach.
So instead
of articles about why stock «x» is a good buy (WHOO REITMANS BUY SOME AND THEN GO INTO THE STORES EVEN IF YOU»RE A DUDE), we get articles about why a
couch potato approach is best.
Regular readers
of MoneySense will recognize this as a classic «
Couch Potato»
approach to investing: Create a simple investible portfolio that can be held for the long term, is broadly diversified, highly tax - efficient and yet carries minimal investment management costs.
I find some
of the Fama - French research pretty persuasive (the basis
of Canadian
Couch Potato's «Uber Tuber» portfolio) but putting that
approach into action hasn't really been feasible for someone like me making modest monthly contributions.
To begin with, I suggest taking a page out
of the Global
Couch Potato approach and opting for roughly one - third in Canadian stocks, one - third in U.S. stocks, and one - third ininternational stocks.
If you've been a long - time reader
of MoneySense, you already know all about the
Couch Potato approach (check out www.moneysense.ca/couchpotato for a refresher).