I invest in a hybrid between index funds and individual stocks. My dividend holdings are Canadian and Unites States companies with a history of increasing their dividends. The other portions of my portfolio are in various index funds covering asset classes such as global equity and fixed income.
That being said, I am often the first one to say to most people that a a lazy portfolio is most appropriate for them. I love owning individual stocks, especially dividend stocks, but it takes a lot of time to analyze and monitor each one of my holdings.[ad#tdg-embedded]
I am also the first one to say that most people can invest on their own and do not need a financial sales person to help them. This does not mean that they should not use financial advisors – I also recommend that people use advisors for estate, tax, banking, and legal aspects of their financial lives. Each of these professionals can use the investment structure you set up to help. For the investing portion of your finances, I strongly believe that most people do not need to use a sales person who gets compensated based on what investment products they sell you (usually for high fees) to structure a portfolio for them. This is where lazy portfolios come in.
A lazy portfolio is simply a basic portfolio structure that you set up and fill with index funds. It can be as complicated or as simple as you wish, however going simple has its advantages. In this post, I have pulled together a total of 25 different lazy portfolio suggestions that you can use – shown here are 10 of those. Links are provided to each so you can do more research. As always, don’t just blindly go and copy one of these. Dig in to the background and theory so you understand what you are getting into. Once your portfolio is set up you will only need to look at it a couple of times per year after that.
There are a number of other lazy portfolios out there. Be sure to check out The Kirk Report and MarketWatch for additional Lazy Portfolios. Thanks to them both for their work on these types of portfolios.