Burton Malkiel Mid-Fifties Portfolio
0.81%April 16 | MyPlanIQ portfolio symbol P_76682

  • Portfolio Overview
  • Asset Allocation and ETFs
  • Performance
  • Calculators
  • Rolling Returns
  • Drawdowns

Portfolio Overview


As individuals approach their 50s, retirement planning takes on greater urgency. During this decade, many investors start seriously shoring up their nest eggs to ensure a comfortable lifestyle in their golden years. Esteemed economist Burton Malkiel, author of the investing classic A Random Walk Down Wall Street, has proposed a "lazy portfolio" specifically tailored for those in their mid-50s.

The lazy portfolio concept advocates a simple, diversified buy-and-hold approach with annual rebalancing across multiple asset classes. For the 50-something set, Malkiel emphasizes exposure to both domestic and international equities, as well as resilience against inflation through strategic bond allocations.

It's noticeable that Malkiel emphasized international and emerging market stocks and had some interesting bond allocations including long term corporate bonds and inflation protected bonds. 

Asset Allocation:

  • Total Stock Allocation: 74.5%
  1. US Stocks:
    • VTI (Vanguard Total Stock Market ETF): 27%
    • VIG (Vanguard Dividend Appreciation ETF): 7%
      • VTI and VIG offer exposure to a broad range of U.S. equities, capturing both overall market performance and dividend-paying stocks for stability and income.
  2. International Stocks:
    • VEA (Vanguard FTSE Developed Markets ETF): 14%
    • VWO (Vanguard FTSE Emerging Markets ETF): 14%
      • VEA and VWO provide diversification by investing in developed and emerging market stocks outside the U.S., tapping into growth opportunities beyond domestic markets.
  3. REITs (Real Estate Investment Trusts):
    • VNQ (Vanguard Real Estate ETF): 12.5%
      • VNQ invests in real estate companies, offering exposure to the real estate market and potential dividend income, serving as a hedge against inflation.

Bond Allocation:

  • Total Bond Allocation: 20.5%
  1. Long-Term Corporate Bonds:
    • LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF): 7%
      • LQD invests in investment-grade corporate bonds with longer maturities, providing income potential with slightly higher risk compared to government bonds.
  2. International Bonds:
    • BNDX (Vanguard Total International Bond ETF): 7%
      • BNDX offers exposure to a diversified portfolio of international investment-grade bonds, enhancing diversification and potentially reducing overall portfolio risk.
  3. Inflation-Protected Bonds:
    • TIP (iShares TIPS Bond ETF): 6.5%
      • TIP invests in Treasury Inflation-Protected Securities (TIPS), which adjust for inflation, helping to preserve purchasing power and mitigate inflation risk.

Other:

  • Cash: 5%
    • Holding a portion of the portfolio in cash provides liquidity and flexibility for opportunistic investments or to cover short-term expenses without the need to liquidate other assets.

This lazy portfolio for mid-fifties investors is designed to provide a balanced mix of assets, including domestic and international stocks, real estate, and various types of bonds. The strategy aims for long-term growth while managing risk through diversification and periodic rebalancing.

This portfolio is annually rebalanced. 

Holdings:
USStocks VTI 27%
USDividendStocks VIG 7%
IntlStocks VEA 14%
EmergingMktStocks VWO 14%
REITs VNQ 12.5%
LongTermCorpBonds LQD 7%
IntlBonds BNDX 7%
InflationProtectedBonds TIP 6.5%
Cash CASH 5%

Simulated from 06/04/2013

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Asset Allocation


Symbol Category/Sector Target Weight
VTI
Vanguard Total Stock Market ETF 		US Equity 27%
VIG
Vanguard Dividend Appreciation ETF 		US Equity 7%
VEA
Vanguard FTSE Developed Markets ETF 		International Equity 14%
VWO
Vanguard FTSE Emerging Markets ETF 		International Equity 14%
VNQ
Vanguard Real Estate ETF 		Real Estate 12.5%
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF 		Corporate Bond 7%
BNDX
Vanguard Total International Bond ETF 		Fixed Income 7%
TIP
iShares TIPS Bond ETF 		Fixed Income 6.5%
CASH
CASH 		CASH 5%


Historical Performance


The return data shown below all have the same latest date: 04/16/2025.
AR inception is since 06/04/2013.
Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
Burton Malkiel Mid-Fifties Portfolio -3.29% 7.00% 3.51% 8.72% 6.02% NA NA 7.24%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) -9.99% 5.71% 7.80% 15.21% 11.50% 12.41% 9.94% 13.36%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) -2.46% 6.56% 4.41% 7.52% 5.36% 6.37% 5.86% 6.54%

Burton Malkiel Mid-Fifties Portfolio Return Calculator

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Calculators


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Rolling Returns


From 06/04/2013 to 04/16/2025, the worst annualized return of 3-year rolling returns for Burton Malkiel Mid-Fifties Portfolio is 1.18%.

From 06/04/2013 to 04/16/2025, the worst annualized return of 5-year rolling returns for Burton Malkiel Mid-Fifties Portfolio is 2.81%.

From 06/04/2013 to 04/16/2025, the worst annualized return of 10-year rolling returns for Burton Malkiel Mid-Fifties Portfolio is 5.41%.


Maximum Drawdown

Burton Malkiel Mid-Fifties Portfolio Maximum Drawdown