NoFreeLunch21 wrote: Mon Nov 24, 2025 6:49 pm
YangtzeCruiser wrote: Mon Nov 24, 2025 5:38 pm
What I like most about it is that it’s a chunk of our portfolio that I can’t easily mess with.
This is why I like it – for my own behavioral reasons.
Based on your handle of NoFreeLunch, I’ll point out I use two robo accounts that I entered into as an experiment back before recurring investments in partial ETF shares were available at Vanguard, Fidelity, etc. I call them my lunch money accounts due to investing the equivalent of what I would spend on lunch every day at work if I didn’t pack my own leftovers or make a sandwich to bring to work. So I agree, there is no free lunch!
This all started due to a layoff in my 50’s, and no longer being able to come home every day to eat my lunch (which I did for decades). The new job I landed involved a commute that meant lunch away from home 5 days a week. Average cost for lunch where I work is $17 compared to only about $2 – $4 for my packed leftovers or sandwich/wrap that I make. So I simply invest the difference every day. I’m in the midst of year 8 for the experiment with my two lunch money accounts. Even though they represent a very small portion of our overall portfolio, the experiment has been fun as well as makes sure our leftovers get eaten.
Robo #1 Modern Portfolio Theory ETF Account 80/20
Vanguard S&P 500 47% (VOO)
iShares Mid Cap 6% (IJR)
iShares Small Cap 3% (IJH)
iShares MCSI Total International Stock Index 24% (IXUS)
iShares Total US Bond Market Index 14% (AGG)
iShares 1-5 Year US Bond 6% (ISTB)
It’s all on automatic pilot and is out of sight, out of mind.
The other Robo is quite a bit more complex to compare various lazy portfolio strategies. For this experiment, I wanted to pit the three fund portfolio up against the Ultimate Buy & Hold Portfolio, as well as pit those two up and against growth vs. dividend stocks.
Robo #2 (5 Pies)
Pie 1: Vanguard Three Fund Portfolio 70/30
Vanguard Total Stock Market (VTI)
Vanguard Total International Stock Market Fund ETF (VXUS)
Vanguard Total Bond Market (BND)
Pie 2: Paul Merriman Ultimate Buy & Hold Portfolio 70/30
SPDR Intermediate Term Treasury (SPTI)
SPDR S&P 600 Small Cap Value (SLYV)
SPDR S&P Emerging Markets Small Cap (EWX)
iShares MSCI EAFE Value (EFV)
Wisdom Tree International Small Cap Dividend (DLS)
Vanguard Short Term Treasury (VGSH)
Vanguard S&P Small Cap 600 (VIOO)
Vanguard Russell 1000 Value (VONV)
Vanguard S&P 500 (VOO)
Vanguard Short Term Inflation Protected Securities (VTIP)
Vanguard FTSE Developed Markets Index (VEA)
Vanguard FTSE All-World ex-US Small-Cap Index (VSS)
Vanguard Global ex-U.S. Real Estate (VNQI)
Vanguard Real Estate (VNQ)
Vanguard FTSE Emerging Markets (VWO)
Pie 3: Basket of 51 individual Growth Stocks
Pie 4: Basket of 33 Individual Dividend Paying Stocks
Pie 5: Basket of 50 Individual Dividend Paying Stocks
Keeps me away from the fast food joints near where I work, or using DoorDash, UberEats, etc. to have prepared food delivered that many of my colleagues use each and every day. And it is all on automatic pilot with the money invested daily/weekly into the accounts. They use dynamic rebalancing (additional investments have the money going into the lowest performing investments in an effort to keep the AA percentages at their pre-set levels).
Behavioral wise, it keeps me away from the fast food/junk food loop!
Jeremy over at Personal Finance Club did a blog post about it a while back with this graphic…
CyclingDuo
