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Tim Maurer Simple Money Portfolio
0.22%June 04 | MyPlanIQ portfolio symbol P_79100

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

Portfolio Overview


Tim Maurer Simple Money Portfolio Overview

Background and Philosophy

The Simple Money Portfolio was created by Tim Maurer, a wealth advisor and Director of Personal Finance for Buckingham and the BAM ALLIANCE. Maurer is a well-known financial expert, author, and speaker who advocates for simplicity, behavioral finance awareness, and evidence-based investing. His book, Simple Money: A No-Nonsense Guide to Personal Finance, emphasizes the importance of aligning financial decisions with personal values while avoiding unnecessary complexity.

The philosophy behind this lazy portfolio is rooted in a 60/40 stocks/bonds allocation, but with intentional tilts toward value and small-cap stocks to potentially enhance returns over the long term. Maurer's approach is designed to be low-maintenance, diversified, and suitable for investors who prefer a hands-off strategy while still capturing market premiums associated with value and small-cap equities.

Asset Allocation and Analysis

The portfolio consists of the following ETFs:

  • EFV (15%): iShares MSCI EAFE Value ETF -- Provides exposure to international developed market value stocks.
  • IEI (40%): iShares 3-7 Year Treasury Bond ETF -- Offers intermediate-term U.S. Treasury bond exposure for stability.
  • IVV (7.5%): iShares Core S&P 500 ETF -- Tracks the S&P 500 for large-cap U.S. equity exposure.
  • IWD (7.5%): iShares Russell 1000 Value ETF -- Focuses on U.S. large-cap value stocks.
  • IWM (7.5%): iShares Russell 2000 ETF -- Provides small-cap U.S. equity exposure.
  • IWN (7.5%): iShares Russell 2000 Value ETF -- Targets small-cap value stocks in the U.S.
  • SCZ (15%): iShares MSCI EAFE Small-Cap ETF -- Covers international small-cap stocks.

Diversification and Risk Level

This portfolio is well-diversified across:

  • Asset Classes: Equities (60%) and bonds (40%).
  • Geographies: U.S. (30%) and international (30%) stocks.
  • Market Capitalizations: Large-cap, small-cap, and value stocks.

The risk level is moderate, given the 60/40 split, but the tilts toward small-cap and value stocks introduce slightly higher volatility compared to a traditional 60/40 portfolio. The bond allocation (IEI) provides stability and reduces overall portfolio risk.

Pros and Cons

Pros:

  • Simple yet diversified across multiple factors (size, value, geography).
  • Low-cost ETFs make it cost-efficient.
  • Bond allocation provides downside protection.
  • Potential for higher returns due to small-cap and value tilts.

Cons:

  • Small-cap and value stocks can underperform in certain market conditions.
  • International exposure may add currency risk.
  • Rebalancing may be required periodically to maintain allocations.

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

Investors can implement this portfolio in their 401(k) or IRA accounts by selecting funds that closely match the ETFs listed. Here's how:

  1. Identify Equivalent Funds: Check your 401(k) plan's investment options for index funds or ETFs that match the holdings (e.g., an S&P 500 index fund for IVV, a small-cap fund for IWM).
  2. Substitute Missing Holdings: If an exact match isn't available, allocate to the nearest asset class (e.g., use a total international stock fund if SCZ or EFV isn't available).
  3. Bond Allocation: If IEI isn't available, use an intermediate-term bond fund or a total bond market fund.
  4. Rebalance Annually: Adjust allocations to maintain the target percentages.

Note: Many 401(k) plans lack specific value or small-cap international funds. In such cases, investors can substitute with broader international equity funds or allocate the missing portion to U.S. equities or bonds, depending on their risk tolerance.

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).
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Asset Allocation


Symbol Category/Sector Target Weight
EFV
iShares MSCI EAFE Value ETF 		International Equity 15%
IEI
iShares 3-7 Year Treasury Bond ETF 		Fixed Income 40%
IVV
iShares Core S&P 500 ETF 		US Equity 7.5%
IWD
iShares Russell 1000 Value ETF 		US Equity 7.5%
IWM
iShares Russell 2000 ETF 		US Equity 7.5%
IWN
iShares Russell 2000 Value ETF 		US Equity 7.5%
SCZ
iShares MSCI EAFE Small-Cap ETF 		International Equity 15%


Historical Performance


Tim Maurer Simple Money Portfolio Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
Tim Maurer Simple Money Portfolio 6.53% 10.05% 6.56% 6.57% 5.07% 6.55% NA 5.33%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) 2.03% 14.20% 14.72% 15.60% 12.92% 14.19% 10.37% 10.61%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) 5.23% 10.75% 8.37% 7.42% 6.31% 7.36% 6.07% 5.58%
Data as of 06/04/2025, AR inception is 12/12/2007

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Tim Maurer Simple Money Portfolio Historical Return Chart


Calculators


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Rolling Returns


From 12/12/2007 to 06/04/2025, the worst annualized return of 3-year rolling returns for Tim Maurer Simple Money Portfolio is -0.18%.
From 12/12/2007 to 06/04/2025, the worst annualized return of 5-year rolling returns for Tim Maurer Simple Money Portfolio is 1.01%.
From 12/12/2007 to 06/04/2025, the worst annualized return of 10-year rolling returns for Tim Maurer Simple Money Portfolio is 3.46%.

Maximum Drawdown

Tim Maurer Simple Money Portfolio Maximum Drawdown