How To Create A 3-Fund Portfolio
Summary
Editorial Note: Forbes may earn a commission on sales made from partner links on this page, but that doesnt affect our editors opinions or evaluations. An expense ratio refers to the annual fee charged by a fund, quoted as a percentage of assets managed. By not picking individual stocks, you’re guaranteed to earn the average market return; something the majority of professional money managers are not able to do consistently. The late Jack Bogle, founder of mutual fund giant Vanguard, suggested in The Little Book Of Common Sense Investing that younger investors hold 20% in bonds and 80% in stocks. Once you’ve established your three fund portfolio, whether it’s a part of your 401(k), IRA, or taxable investment account, you’ll want to make sure you continue to contribute regularly.
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