Active investing is a losers game. Most day traders go broke within 90 days, and the average stock picker fails to beat the market. Unless you’re Carl Icanh or Gordon Gecko, it’s best to rely on passive index funds. In fact, today’s article reveals the ultimate “lazy portfolio” for growing wealth with as little effort as possible.

You’ll discover why less is more (when it comes to investing), how to create a fully passive path to wealth, and how to best optimize this system.

If you’re looking for an easy road to riches, read on!

What Is A Lazy Portfolio?

Lazy portfolios are a classic investment strategy first popularized by Jonh Bogle, founder of the modern index fund.

The idea is to invest in everything at once (through an index fund), rather than trying to pick single stock winners.

So how’s the system work?

You simply buy a broad asset class and hold on to it. There’s no active trading or cycling through multiple stocks.

Despite it’s simple nature, the strategy works.

In fact, it’s something very similar to what Warren Buffett did during his famous one million dollar bet against hedge fund manager Ted Seides.

Buffett stuck his money in an S&P 500 index, out-preforming the active investor.

This is a priceless lesson in the effectiveness of a broad market lazy portfolio. Investing in the whole economy almost always out-preforms complex stock picking.

Here’s What The Typical Lazy Portfolio Looks Like

The classic strategy consists of buying three funds. The Vanguard S&P 500 Index (VOO), The Vanguard Total Bond Index (BND), and the Vanguard Total World Index (VT).

You invest 33% of your account into each fund, then dollar cost average on a monthly or quarterly basis.

Doing this gives you a safe, low risk vehicle for growing your wealth.

You’re invested into the whole economy, well diversified, and collecting a steady cash-flow from dividends and general appreciation. It doesn’t get any simpler than this.

My Personal Tweaks

As a young investor, I’ve made some minor adjustments to the lazy portfolio strategy. These are my personal tweaks, and shouldn’t be taken as direct advice.

With the disclaimers out of the way, here’s my charge: Replacing the Total World Index with Vanguard’s High Dividend Yield Index (VYM). This improves your cash-flow.

With both BND and VYM, you’ve got a steady stream of dividend payments coming in. As such, you’re able to reinvest, buying new shares on a regular basis and growing your fund.

Personally, I think this improves the lazy portfolio.

Closing Thoughts

Many investors get overwhelmed by complex financial strategies or convoluted Wall Street schemes. So much so that some are too intimidated to ever invest.

Don’t make this mistake.

Personal finance isn’t as complicated as The Big Short or Black Edge.

Using the lazy portfolio method let’s you build up sizable wealth, passively. There’s no day trading, shorting stocks, or timing the market.

Instead, you’re investing in the whole market through a handful of high-quality funds.

A simple, reliable route to wealth.

P.S. Looking start your own lazy portfolio? Use the Robinhood investment app to buy assets commission-free. You’ll also get one free stock when you sign up through this referral link.