Chapter 7: The Simple Portfolios That Work in All Weather
Portfolios are your sails and rigging: they catch the wind, balance the ship, and keep you moving in all kinds of weather.
Most people never see a real investment plan. They see opinions, predictions, and endless noise — but not an actual portfolio they can use. This chapter fixes that.
What follows are twelve simple, durable portfolios built from low‑cost ETFs. They’re designed to work across market conditions, require almost no maintenance, and give you clear expectations for income and growth — without hype or jargon.
These portfolios are the practical expression of everything you’ve learned so far. They are the bridge between budgeting, investing, and long‑term retirement planning.
Before you choose, remember the core philosophy: fit your life into your means. Pick the portfolio that matches your stage, income needs, and risk comfort — then automate contributions or withdrawals so the plan stays on course quietly in the background.
1. Why These Portfolios Exist
Most people fall into one of two camps:
- They’re stuck in paycheck‑to‑paycheck life and need a simple plan to start building wealth.
- They’ve saved money (sometimes a lot) but have no idea how to invest it safely or turn it into income.
These portfolios solve both problems.
They give you:
- A clear investment plan
- Expected income
- Expected growth
- What your money may look like in 5 and 10 years
- A simple way to choose the right portfolio for your situation
No predictions. No stock picking. No complicated strategies. Just a set of portfolios that work quietly in the background.
2. The ETFs Used in Every Portfolio
All portfolios use the same five building blocks:
| Ticker | Description | Dividend / Yield | Growth Expectation |
|---|---|---|---|
| SCHD | Dividend Equity (U.S.) | ~3.8% | ~5% dividend growth |
| VTI | Total U.S. Stock Market | ~1.1% | ~4% dividend growth |
| SCHH | U.S. Real Estate (REITs) | ~3.1% | ~2% dividend growth |
| VCIT | Intermediate-Term Corporate Bonds | ~4.6–4.8% | ~0% growth |
| VTIP | Short-Term Inflation-Protected Bonds | ~3.4–3.8% | ~0% real growth |
These five funds cover:
- U.S. stocks
- International exposure (via VTI’s global components)
- Real estate
- Corporate bonds
- Inflation protection
They’re low‑cost, diversified, and easy to automate.
Note: Keep fees low, keep behavior simple, and keep your savings rate consistent. That’s where most of the results come from.
Why These ETFs
- Low cost: you keep more of your returns.
- Diversified: broad exposure reduces single‑asset risk.
- Reliable income + growth: consistent dividends and sensible growth trends.
- Easy to automate: simple to set and forget.
3. The 12 Portfolios
Portfolio Table
With the building blocks defined, here’s how twelve portfolios come together to fit different needs and stages. Use this table as a heading and course — then adjust to your conditions.
| # | Portfolio | % Allocation | expected Income % | expected Growth % | Income Now | Expected Income in 5 Years | Expected Income in 10 Years | Expected Portfolio in 5 Years | Expected Portfolio in 10 Years | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SCHD | VTI | SCHH | VCIT | VTIP | |||||||||
| 1 | Conservative Income | 20 | 10 | 20 | 35 | 15 | 3.4 | 3.2 | $39,799.48 | $46,588.20 | $1,170,572.96 | $1,370,241.05 | |
| 2 | Conservative Inflation-Protected | 20 | 10 | 15 | 25 | 30 | 3.1 | 2.9 | $35,763.38 | $41,258.69 | $1,153,657.45 | $1,330,925.50 | |
| 3 | Conservative Bond-Heavy | 15 | 10 | 10 | 50 | 15 | 3.6 | 2.6 | $40,929.77 | $46,534.61 | $1,136,938.06 | $1,292,628.14 | |
| 4 | Conservative Dividend Focus | 30 | 10 | 15 | 30 | 15 | 3.4 | 3.5 | $40,381.33 | $47,960.36 | $1,187,686.31 | $1,410,598.76 | |
| 5 | Balanced Income | 30 | 10 | 20 | 25 | 15 | 3.3 | 3.7 | $39,573.80 | $47,457.13 | $1,199,205.97 | $1,438,094.96 | |
| 6 | Balanced Growth | 30 | 25 | 15 | 20 | 10 | 3.1 | 4.6 | $38,816.83 | $48,604.73 | $1,252,155.95 | $1,567,894.53 | |
| 7 | Balanced Equity Tilt | 25 | 35 | 10 | 20 | 10 | 2.9 | 4.9 | $36,836.25 | $46,789.98 | $1,270,215.60 | $1,613,447.66 | |
| 8 | Balanced Real-Asset Tilt | 25 | 20 | 25 | 20 | 10 | 3.2 | 4.3 | $39,497.67 | $48,752.07 | $1,234,302.31 | $1,523,502.19 | |
| 9 | Growth with Income | 25 | 45 | 10 | 15 | 5 | 2.7 | 5.7 | $35,623.67 | $47,001.71 | $1,319,395.31 | $1,740,803.99 | |
| 10 | Growth with Real Estate | 20 | 50 | 20 | 10 | 0 | 2.6 | 6.1 | $34,958.30 | $47,003.17 | $1,344,549.88 | $1,807,814.39 | |
| 11 | Aggressive Growth | 10 | 70 | 10 | 10 | 0 | 2.2 | 6.7 | $30,425.99 | $42,079.14 | $1,382,999.74 | $1,912,688.27 | |
| 12 | Ultra-Simple Growth | 20 | 80 | 0 | 0 | 0 | 1.9 | 7.6 | $27,404.06 | $39,525.40 | $1,442,319.11 | $2,080,284.40 | |
4. How to Choose the Right Portfolio
Start with the portfolio table above to find a simple, sensible starting point. Choose based on your stage, income needs, and comfort with volatility — then set your heading and stay the course.
If you’re in your 20s or 30s
Choose:
- Aggressive Growth
- Ultra-Simple Growth
- Growth with Income
Why: You have time, and growth matters more than income.
If you’re in your 40s or 50s
Choose:
- Balanced Growth
- Balanced Equity Tilt
- Balanced Real-Asset Tilt
Why: You need growth, but also stability.
Once you’ve chosen, plan a simple yearly rebalance to keep your allocations aligned.
If you’re 60+ or retired
Choose:
- Conservative Income
- Conservative Dividend Focus
- Balanced Income
Why: You need income and lower volatility.
5. How to Rebalance (Once a Year)
Rebalancing keeps your portfolio aligned with your risk level.
Once a year:
- Look at your percentages
- Compare them to the target
- Move money from overweight funds to underweight funds
That’s it.
No predictions.
No emotion.
No reacting to headlines.
This yearly check keeps your risk level steady — and sets you up to automate the rest.
6. How to Automate Everything
Automation is the secret weapon of long-term investing.
You can automate:
- 401(k) contributions
- IRA contributions
- Brokerage transfers
- Dividend reinvestment
- Rebalancing (if your platform supports it)
Automation removes emotion from the cockpit. It keeps you on course even when the water gets rough.
Set your heading, automate the flows, and let the plan work.
7. What These Portfolios Mean for You
These portfolios give you:
- A real plan
- Real numbers
- Real expectations
- Real income
- Real long-term growth
They are simple enough for a beginner, durable enough for a retiree, and powerful enough to build wealth over decades.
This is the moment where your financial plan becomes real.