Select Page

Scott Burns Margaritaville Portfolio
0.36%June 04 | MyPlanIQ portfolio symbol P_79098

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

Portfolio Overview


Overview of the Scott Burns Margaritaville Portfolio

Background and Philosophy

The Margaritaville Portfolio was created in 2004 by Scott Burns, a well-known financial columnist for the Dallas Morning News. Burns is a proponent of simple, low-cost, and diversified investment strategies. The portfolio's name is inspired by the classic margarita cocktail, which consists of equal parts tequila, triple sec, and lime juice---mirroring the portfolio's equal allocation to three core asset classes. Burns designed this lazy portfolio to provide broad diversification with minimal maintenance, making it ideal for investors seeking a hands-off approach.

Asset Allocation and Holdings

The Margaritaville Portfolio consists of three equally weighted assets:

  • VTI (Vanguard Total Stock Market ETF, 33.33%) -- Provides exposure to the entire U.S. equity market.
  • VXUS (Vanguard Total International Stock ETF, 33.33%) -- Covers developed and emerging international markets.
  • TIP (iShares TIPS Bond ETF, 33.34%) -- Offers inflation-protected U.S. Treasury bonds.

Diversification and Risk Level

This portfolio achieves strong diversification across:

  • Geographic regions (U.S. and international equities)
  • Asset classes (stocks and bonds)
  • Inflation protection (via TIPS)

The risk level is moderate, balancing growth potential (equities) with stability (bonds). However, the 33% allocation to international stocks may introduce currency and geopolitical risks.

Pros and Cons

Pros:

  • Simple and easy to maintain.
  • Low-cost (uses index ETFs).
  • Inflation protection from TIPS.
  • Broad global diversification.

Cons:

  • No exposure to commodities or real estate.
  • Higher volatility than bond-heavy portfolios.
  • International equities may underperform at times.

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

Investors can implement the Margaritaville Portfolio in their 401(k) or IRA accounts by selecting equivalent funds:

  • VTI (U.S. Total Stock Market) → Look for an S&P 500 or total U.S. stock market index fund.
  • VXUS (International Stocks) → Choose a developed/emerging markets international index fund.
  • TIP (TIPS Bonds) → Select an inflation-protected bond fund. If unavailable, use a general bond fund.

Note: If a 401(k) lacks exact matches, investors can approximate allocations by using broader categories:

  • No TIPS fund? Allocate to a general bond fund.
  • No international fund? Increase U.S. stock exposure.
  • No commodities? Allocate to stocks instead.

Rule of Thumb: 

  • For stock funds, prioritize index funds, especially low-cost index funds
  • For bond funds, prioritize core bond funds or high-quality actively managed total return bond funds  (if available).

This flexibility ensures the portfolio remains viable even with limited 401(k) fund choices.

Click here for more portfolio details and features ►

Asset Allocation


Symbol Category/Sector Target Weight
TIP
iShares TIPS Bond ETF 		Fixed Income 33.34%
VTI
Vanguard Total Stock Market ETF 		US Equity 33.33%
VXUS
Vanguard Total International Stock ETF 		International Equity 33.33%


Historical Performance


Scott Burns Margaritaville Portfolio Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
Scott Burns Margaritaville Portfolio 6.78% 11.33% 8.29% 8.71% 7.01% NA NA 7.32%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) 2.03% 14.20% 14.72% 15.60% 12.92% 14.19% 10.37% 13.70%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) 5.23% 10.75% 8.37% 7.42% 6.31% 7.36% 6.07% 6.83%
Data as of 06/04/2025, AR inception is 01/28/2011

Calculate Performance

Start date (MM/dd/yyyy)

End date   (MM/dd/yyyy)

Scott Burns Margaritaville Portfolio Historical Return Chart


Calculators


Dollar Cost Average Calculator for Scott Burns Margaritaville Portfolio

Starting Amount:
Investment Length (years):
Investment Symbol:
Regular Investment Amount ($):
DCA Frequency:
Share on

Retirement Spending Calculator for Scott Burns Margaritaville Portfolio

Starting Amount:
Period (Years):
Investment Portfolio or Fund:
Withdrawal Rate (%) :
%
Withdrawal Frequency:
Share on

Rolling Returns


From 01/28/2011 to 06/04/2025, the worst annualized return of 3-year rolling returns for Scott Burns Margaritaville Portfolio is 1.64%.
From 01/28/2011 to 06/04/2025, the worst annualized return of 5-year rolling returns for Scott Burns Margaritaville Portfolio is 2.89%.
From 01/28/2011 to 06/04/2025, the worst annualized return of 10-year rolling returns for Scott Burns Margaritaville Portfolio is 5.08%.

Maximum Drawdown

Scott Burns Margaritaville Portfolio Maximum Drawdown