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John Bogle Late Thirties to Early Forties
0.35%June 04 | MyPlanIQ portfolio symbol P_78963

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

Portfolio Overview


Overview of the "Late Thirties to Early Forties" Lazy Portfolio

1. Background and Philosophy

The "Late Thirties to Early Forties" lazy portfolio is designed for investors in that age range who seek a balanced approach to long-term growth while managing risk. While the exact origin of this portfolio is unclear, it aligns with the principles of passive investing popularized by financial experts like John Bogle (founder of Vanguard) and modern portfolio theory. The philosophy emphasizes diversification across asset classes, low-cost index funds or ETFs, and a "set-it-and-forget-it" strategy to minimize behavioral investing mistakes.

2. Asset Allocation and Analysis

Diversification: This portfolio is well-diversified across domestic and international equities, real estate, and bonds. It includes:

  • VTI (32.5%): Exposure to the entire U.S. stock market.
  • EEM (16.25%) & EFA (16.25%): Broad exposure to emerging and developed international markets.
  • VIG (10%) & VNQ (10%): Dividend growth stocks and real estate for income and inflation hedging.
  • BIL (5%), EMB (5%), LQD (5%): Short-term Treasuries, emerging market bonds, and corporate bonds for stability.

Risk Level: Moderate to moderately aggressive. The heavy equity allocation (75%) suggests growth focus, while bonds (15%) and cash equivalents (5%) provide downside protection.

Pros:

  • Strong global diversification.
  • Low-cost ETFs minimize fees.
  • Balanced for growth and risk management.

Cons:

  • Higher volatility due to significant international exposure (EEM, EFA).
  • Limited inflation protection beyond REITs (VNQ).
  • No explicit allocation to commodities or alternatives.

3. Application for Retirement Accounts (401(k) and IRA)

This portfolio is suitable for retirement investors in their late 30s to early 40s who want a hands-off approach. Here's how to implement it in a 401(k) or IRA:

For 401(k) Plans:

  • VTI: Look for a "U.S. Total Stock Market Index Fund" (e.g., FSKAX, SWTSX).
  • EEM/EFA: Use an "International Stock Index Fund" (e.g., FSPSX, VTMGX for EFA; FPADX for EEM).
  • VIG/VNQ: Substitute with a "Dividend Growth Fund" or "REIT Fund" if available.
  • BIL/EMB/LQD: Use a "Short-Term Bond Fund," "Emerging Market Bond Fund," or "Corporate Bond Fund" if available.

If a fund is unavailable: Allocate to the closest asset class (e.g., no EMB? Increase LQD or EEM). Avoid overcomplicating---simplicity is key. Since most 401(k)s lack commodity funds, allocate that portion to equities (e.g., VTI or EFA).

For IRAs: Investors can replicate the exact ETFs listed, as IRAs typically offer broader investment options.

This portfolio is a solid choice for mid-career savers prioritizing growth while maintaining a cushion against market downturns. Regular rebalancing (e.g., annually) is recommended to maintain the target allocation.

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Asset Allocation


Symbol Category/Sector Target Weight
VTI
Vanguard Total Stock Market ETF 		US Equity 32.5%
VIG
Vanguard Dividend Appreciation ETF 		US Equity 10%
EEM
iShares MSCI Emerging Markets ETF 		International Equity 16.25%
EFA
iShares MSCI EAFE ETF 		International Equity 16.25%
VNQ
Vanguard Real Estate ETF 		Real Estate 10%
BIL
SPDR Bloomberg 1-3 Month T-Bill ETF 		Fixed Income 5%
EMB
iShares JP Morgan USD Emerging Markets Bond ETF 		Emerging Markets Bond 5%
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF 		Corporate Bond 5%


Historical Performance


John Bogle Late Thirties to Early Forties Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
John Bogle Late Thirties to Early Forties 6.04% 12.57% 9.51% 9.66% 7.96% 9.19% NA 7.05%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) 2.03% 14.20% 14.72% 15.60% 12.92% 14.19% 10.37% 10.75%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) 5.23% 10.75% 8.37% 7.42% 6.31% 7.36% 6.07% 5.70%
Data as of 06/04/2025, AR inception is 12/19/2007

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John Bogle Late Thirties to Early Forties Historical Return Chart


Calculators


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Retirement Spending Calculator for John Bogle Late Thirties to Early Forties

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Rolling Returns


From 12/19/2007 to 06/04/2025, the worst annualized return of 3-year rolling returns for John Bogle Late Thirties to Early Forties is 1.65%.
From 12/19/2007 to 06/04/2025, the worst annualized return of 5-year rolling returns for John Bogle Late Thirties to Early Forties is 3.04%.
From 12/19/2007 to 06/04/2025, the worst annualized return of 10-year rolling returns for John Bogle Late Thirties to Early Forties is 5.96%.

Maximum Drawdown

John Bogle Late Thirties to Early Forties Maximum Drawdown