Week 41 Day 5: The Cost of Complexity: Why Simple Portfolios Win

Every layer of complexity -- additional funds, tactical shifts, alternative assets, rebalancing triggers -- adds potential for error without proportionally adding return. The three-fund portfolio (VTI...

Every layer of complexity -- additional funds, tactical shifts, alternative assets, rebalancing triggers -- adds potential for error without proportionally adding return. The three-fund portfolio (VTI, VXUS, BND) captures 95% of the benefit of sophisticated strategies at 5% of the cost and complexity.