Bill Schultheis' Coffeehouse Portfolios

Bill Schultheis, author of the very popular and high-regarded book titled "The Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get On With Your Life" is another proponent of the keeping it simple approach. A former broker for Smith Barney and current financial advisor for Pacific Asset Management, offers three principles of investing:

1) Don't put all your eggs in one basket. (Diversify in different asset classes.)
2) There is no such thing as a free lunch. (Capture the entire return of each basket, or asset class, through low cost index funds.)
3) Save for a rainy day. (Develop a long term financial plan).

If you take time explore Bill's website, you'll also discover a fresh perspective about investing and money and its influence over your life. In addition, Bill has provided three basic portfolios for you to consider:

Three ETF Fund Portfolio:
- 33.3% in Vanguard Total Stock Market (VTI)
- 33.3% in iShares International MSCI EAFE Value Index (EFV)
- 33.3% in iShares Lehman Aggregate Bond (AGG)

Coffeehouse Portfolio (ETFs):
- 40% in iShares Lehman Aggregate (AGG)
- 10% in iShares S&P 500 (IVV)
- 10% in iShares S&P 500/Barra Value (IVE)
- 10% in iShares MSCI EAFE (EFA)
- 10% in iShares Dow Jones US Real Estate (IYR)
- 10% in iShares Russell 2000 Value (IWN)
- 10% in iShares Morningstar Small Core (JKJ)

Coffeehouse Portfolio (Vanguard):
- 40% in Vanguard Total Bond Index (VBMFX)
- 10% in Vanguard 500 Index (VFINX)
- 10% in Vanguard Value Index (VIVAX)
- 10% in Vanguard International Stock Index (VGTSX)
- 10% in Vanguard REIT Index (VGSIX)
- 10% in Vanguard Small-Cap Value Index (VISVX)
- 10% in Vanguard Small-Cap Index (NAESX)

For more information: 1, 2, 3, 4