Passive Investor Investment Policy Statement

A passive investor is someone who invests in index funds and/or etfs and tries to get a similar return to the general market.  This could be a new investor or one that is very experienced.

Purpose of portfolio

I want this portfolio to be available for retirement income.  I am expecting  a retirement income of $45,000 per year in today’s dollars.

Investment time horizon

17 years.

Asset allocation

I will have 60% stocks and 40% bonds.


I will rebalance my portfolio once a year at the beginning of January.

Return expectation

I’m hoping that this portfolio will return 3.2% real return (after inflation).  This is based on the assumption that the stock portion will return 4% after inflation and the bond portion will return 2% after inflation.


I will only buy a low cost index fund based on the S&P 500 for both the stock and bond portion.