What is the Couch Potato strategy?
The Couch Potato strategy is a technique for building a diversified, low-maintenance portfolio designed to deliver the same returns as the overall stock and bond markets, minus very small fees. The strategy can reduce a typical investor’s costs by 90% or more, while at the same time beating the vast majority of mutual funds and professionally managed accounts. The strategy — also called index investing, or passive investing — has been around for decades, though it has become far more popular in recent years, as new products and online discount brokerages have made it easier to implement. Anyone can now build and maintain their own investment portfolio using Index mutual funds and exchange-traded funds (ETFs).
