Here Are The 20 Best Income Portfolios Built with ETFs for 2023
If you're looking for income then you should look at this list of the 20 best income portfolios.
David Bach’s Automatic Millionaire Portfolio is designed by personal finance expert David Bach. It can be built with just 3 ETFs. David Bach’s Automatic Millionaire portfolio contains asset classes such as stocks, bonds, and real estate.
Here is how you build David Bach’s Automatic Millionaire portfolios with ETFs.
Portfolio data was last updated on 1st of June 2023, 06:35 ET
|Name||Year to date||Return in 2022||10 year return||CAGR since 1989 (%)||Draw Down||Expense ratio||Yield|
|David Bach’s Automatic Millionaire Portfolio||2.28||-19.62||6.81||8.79||-23.91||0.06||2.64|
Here is what the table is showing you
Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.
10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.
CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.
Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.
Yield: This is the expected dividend yield of the portfolio.
Please note that past performance is not a guarantee of future returns.
Below you can see the returns of the best portfolios that we have benchmarked.
|Name||See Portfolio||Year to date||Return in 2022||10 year return||CAGR since 1989 (%)||Draw Down|
David Bach is an American author, financial advisor, and entrepreneur who is best known for his work on personal finance and money management. He has authored several bestselling books, including “The Automatic Millionaire,” “Start Late, Finish Rich,” and “Smart Women Finish Rich.”
Bach’s philosophy on personal finance is centered around the idea that small, consistent actions can lead to significant long-term financial success. He advocates for strategies such as automating savings and investments, paying off debt, and investing in low-cost, diversified index funds.
In addition to his work as an author, Bach has also founded several companies focused on financial education and money management. He co-founded AE Wealth Management, a financial planning firm that provides investment management and financial planning services to individuals and families, and he also founded FinishRich Media, a company that produces educational content on personal finance and money management.
Bach has been a frequent guest on national television and radio shows, including The Oprah Winfrey Show, The Today Show, and CNN. He has also been featured in major publications such as The New York Times, The Wall Street Journal, and USA Today.
Overall, David Bach is a prominent figure in the world of personal finance, known for his practical and actionable advice on building wealth and achieving financial freedom.
His best-selling book is The Automatic Millionaire, A Powerful One-Step Plan to Live and Finish Rich.
In the book, he lays out a plan to get your personal finances running smoothly and automatically.
It’s a great book, especially the part about paying yourself first. David Bach has a fantastic analogy where he shows you how much of your income isn’t your income but everyone else’s! If you want to save and retire comfortably David Bach ask you to save at least an hour’s worth of pay just for you. David Bach drives home why you should always pay yourself first.
David Bach’s most recent book is The Latte Factor: Why You Don’t Have to Be Rich to Live Rich.
The Latte Factor is David Bach’s wonderful metaphor for all the small purchases we make during the day which don’t really provide lasting joy.
The book is a fictional story about a young woman who discovers her own Latte Factor and also finds a way to improve her personal finance situation.
I enjoyed reading David Bach’s Start Late, Finish Rich: A No-Fail Plan for Achieving Financial Freedom at Any Age. In that book David Book drives home the point of the Latte Factor and combines it with the power of compounding returns.
David Bach’s first book Smart Women Finish Rich is still a classic. I can’t help to be impressed that David Bach wrote this in 1998. This was well before the mass marketing of financial products targeting women which we see nowadays.
David Bach’s Perfect portfolio is what we call the Automatic Millionaire portfolio.
David Bach presents his portfolio in his fantastic book Start Late, Finish Rich: A No-Fail Plan for Achieving Financial Freedom at Any Age.
David Bach’s Perfect Pie Portfolio is a simple and diversified investment strategy that is designed to help investors achieve long-term financial goals with low fees and minimal effort. The portfolio consists of a mix of low-cost index funds that are allocated across several different asset classes, including stocks, bonds, and real estate investment trusts (REITs).
Overall, the Perfect Pie Portfolio is a simple and effective investment strategy that can provide a high level of diversification and stability for investors seeking a long-term investment approach with low fees and minimal effort.
David Bach suggests you divide your portfolio into three parts:
Another variant suggest that you slice your portfolio into 4 parts as follows:
By investing in these four funds, investors can gain broad exposure to the global stock and bond markets, as well as the real estate market, with minimal fees and low maintenance. The Perfect Pie Portfolio is designed to be a “set it and forget it” strategy that requires minimal intervention or maintenance once it is set up.
Here is how you build David Bach’s Automatic Millionaire portfolio.
This is also the exact same asset allocation as the tried and tested Talmud portfolio which is more than 2000 years old!
You can find David Bach’s website here.
You can find David Bach’s many books on Amazon.
David Bach has his own podcast which is called The David Bach Show.
Finding the right portfolio is hard. Maintaining your portfolio is also daunting.
If you want access to our high-performing portfolios then you want to take a look at the premium portfolios.
This is a paid product that gives you the 20 best-performing portfolios since 1989. The portfolios represent a great opportunity for you to get more money from your investment portfolios. The 20 portfolios are the best among the literally hundreds of other portfolios we have benchmarked since we started.
You stand to gain thousands more dollars EACH YEAR for the price of a few months of Netflix.
If you have already committed to a portfolio then maybe you need help maintaining the portfolio. In this case you will find our rebalance worksheet useful.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
David Bach recommends a blend of stocks, bonds, and real estate.
Yes, David Bach can be trusted to give sound financial advice. His focus on automating your finances is a proven technique for improving your finances.