The idea
A “core” allocation is the set of holdings you can keep for years. It should be diversified, low-cost, and easy to maintain — even when markets get noisy.
Calm rule: If your plan requires constant attention, it’s not a calm plan.
Simple example (illustrative)
| Component | Purpose | Examples |
|---|---|---|
| Total U.S. stock | Long-term growth | VTI / VOO |
| International stock | Diversification | VXUS |
| Bonds (optional) | Stability / ballast | BND |
How to run it
- Invest automatically on payday
- Rebalance on a schedule (1–2x/year is enough for most people)
- Do not change allocation based on headlines