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Burton Malkiel Mid-Fifties Portfolio
0.32%June 04 | MyPlanIQ portfolio symbol P_76682

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

Portfolio Overview


 

As people move into their 50s, retirement planning tends to shift from something abstract into something that actually matters --- you start to feel the weight of the timeline. The "plenty of time" mindset starts to fade. You're no longer just accumulating. You're thinking, maybe quietly at first, about how to protect what you've built. And how to make it last.

Burton Malkiel --- who wrote A Random Walk Down Wall Street, a popular investing book --- has a version of the lazy portfolio meant for people right in this stage of life. Late 40s, mid-50s. Somewhere in that zone where the clock starts ticking a little louder.

His take on the lazy portfolio keeps the familiar rhythm --- diversified, low-cost, no unnecessary trading --- but with a tilt that reflects the needs of this age group. That means not just U.S. equities but international and emerging markets too. It's not just a growth bet --- it's partly a hedge. And on the bond side, you see some interesting choices: long-term corporates, inflation-protected securities. These are moves meant to defend against erosion. Not flashy, but sensible.

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. 

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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


Burton Malkiel Mid-Fifties Portfolio Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
Burton Malkiel Mid-Fifties Portfolio 4.79% 11.31% 7.97% 8.54% 7.14% NA NA 7.33%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) 2.03% 14.20% 14.72% 15.60% 12.92% 14.19% 10.37% 13.36%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) 5.23% 10.75% 8.37% 7.42% 6.31% 7.36% 6.07% 6.65%
Data as of 06/04/2025, AR inception is 06/04/2013

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Burton Malkiel Mid-Fifties Portfolio Historical Return Chart


Calculators


Dollar Cost Average Calculator for Burton Malkiel Mid-Fifties Portfolio

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Retirement Spending Calculator for Burton Malkiel Mid-Fifties Portfolio

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Rolling Returns


From 06/04/2013 to 06/04/2025, the worst annualized return of 3-year rolling returns for Burton Malkiel Mid-Fifties Portfolio is 1.18%.
From 06/04/2013 to 06/04/2025, the worst annualized return of 5-year rolling returns for Burton Malkiel Mid-Fifties Portfolio is 2.81%.
From 06/04/2013 to 06/04/2025, 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