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Put Buffett's Advice Into Action With These Two ETFs

FYI: Simply allocate 90 percent of your money to the Vanguard S&P 500 ETF (VOO) and 10 percent to the iShares 1-3 Year Treasury Bond ETF (SHY).
Regards,
Ted
http://www.bloomberg.com/news/articles/2016-05-02/put-buffett-s-advice-into-action-with-these-two-etfs

Comments

  • Vanguard's 1-3 year short-term government bond fund VGSH has lower expenses than SHY (.10 vs .15) and can be bought, along with VOO, in a Vanguard brokerage account for no commission.
  • Note that 10% of Buffett's money invested bonds would generate enough income to live on while letting the equity portion accumulate. Would investing 10% of your wealth in bonds plus other sources of income (pension,etc.) generate enough income for you to live on? Does this strategy apply to you?
  • hawleyl said:

    Note that 10% of Buffett's money invested bonds would generate enough income to live on while letting the equity portion accumulate. Would investing 10% of your wealth in bonds plus other sources of income (pension,etc.) generate enough income for you to live on? Does this strategy apply to you?

    Don't forget that the S&P 500 has a dividend yield of over 2%......
    Need to include that in the income, along with the income from the bonds

    Cheers
  • Jeez, if only it were true:

    http://www.marketwatch.com/story/the-sp-500-index-is-not-your-buddy-2015-01-14

    And just graph $10k growth of SPX alone vs FPURX ytd/1/3/5/10y --- and be sure to include max, back 69y to the week I was born. I mean, seriously. And that's just FPURX.
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