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Disclaimer: This is not financial advice. While I believe this is a good portfolio for most people, the type of portfolio that one should have really depends on age. Older folks might want to add more bonds to the portfolio for less volatility. This is for entertainment purposes only.
This portfolio is one that I believe is good for a lot of people.
1. S&P 500 ETF (Exchange Traded Fund) example VOO - 70%
When Warren Buffett was asked what people should invest in, he recommended straight S&P. Most active investors do not beat the S&P.
The S&P 500 is the 500 largest companies in the U.S.
2. Dividend ETF SCHD - 10%
This is an ETF from Schwab that invests into dividend stocks. I recommend reinvesting the dividends until retirement. I also prefer this ETF in a retirement account like a ROTH IRA.
3. International Company Stocks Example IXUS - 10%
I recommend this ETF because it can be good to get some exposure to companies outside the U.S. as well.
4. For the last part of the portfolio, I would put the last 10% into either individual stocks that one believes in or a split between a small cap ETF like IJR and a medium cap ETF like IJH
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