Jack Bogle's 3-fund portfolio is the most evidence-backed investment strategy available to individual investors. It beats 90%+ of actively managed funds over 20-year periods — and takes 30 minutes per year to maintain.
The 3-fund portfolio
- US total stock market: VTI (Vanguard) or FSKAX (Fidelity) or SWTSX (Schwab)
- International developed markets: VXUS (Vanguard) or FTIHX (Fidelity) or SWISX (Schwab)
- US bonds: BND (Vanguard) or FXNAX (Fidelity) or SCHZ (Schwab)
Suggested allocations by age
| Age | US stocks | International | Bonds |
|---|---|---|---|
| 20s | 60% | 30% | 10% |
| 30s | 55% | 25% | 20% |
| 40s | 50% | 20% | 30% |
| 50s | 40% | 20% | 40% |
| 60+ | 30% | 15% | 55% |
Where to open the account
| Broker | Account minimums | Fund expense ratios |
|---|---|---|
| Fidelity | $0 | 0% (Zero funds) |
| Vanguard | $0 (ETFs), $3,000 (mutual funds) | 0.03-0.04% |
| Schwab | $0 | 0.03-0.06% |
| M1 Finance | $100 | 0.03-0.06% |
The rebalancing schedule
Rebalance once per year (or when any allocation drifts 5%+ from target). January 1 or your birthday are common anchors. Rebalance by contributing new money to underweight categories first — avoids selling and triggering capital gains taxes.
On a $100,000 portfolio: 0.04% expense ratio (Fidelity index fund) vs 0.75% (average actively managed fund). Over 30 years at 7% returns: the index fund portfolio grows to $749,000. The active fund portfolio grows to $625,000. The 0.71% fee difference costs $124,000. Not a typo.
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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