BND 50% · SPY 50% CAGR +5.9%
SPY CAGR +12.0%
Shaded: major market crises Bear Market (2022)
Couch Potato Portfolio (1991 original)
BND 50% · SPY 50% · Fixed income · U.S. large cap
Scott Burns · Newspaper column (Dallas Morning News) · 1991Sources (3)
5yr · 2021.10 – 2026.10 · $10,000 lump sum · monthly rebalancing · dividends reinvested · no taxes or fees · month-end
Final Balance $13,343
Invested $10,000
Gain +$3,343
SPY alone: $17,597
Annualized return +5.9%
6.0pp behind SPY
Max drawdown · month-end -19.2%
17 months from trough to recovery
SPY -23.9%
Loss after a 1-year hold 12%
6 of 49 past windows
None when held 3+ years
SPY 12%
Performance ⌄
Performance
Over 5 years it grew 1.3x; SPY grew 1.8x over the same period.
Calendar-year returns
Of 4 complete years: 1 with a loss, 1 ahead of SPY.
Show as a table
| Year | Selected allocation | SPY | In-year low |
|---|---|---|---|
| 2025 | +12.4% | +17.7% | -3.0% |
| 2024 | +12.7% | +24.9% | -3.2% |
| 2023 | +15.6% | +26.2% | -6.5% |
| 2022 | -15.3% | -18.2% | -19.2% |
Depending on when you bought
Every month in the window taken as a start, held one, three or five years.
Observed windows overlap and are not independent samples. These shares are not probabilities of future gains.
Risk & recovery
The deepest fall was -19.2%, regained 17 months after the low. During the Bear Market (2022) it returned -16.1%, while SPY returned -19.7%.
Holdings
By asset class: bonds 50% · equities 50%. Its dividend yield over the last 12 months was 2.6%; the results reinvest dividends.
- BNDVanguard Total Bond Market Index Fund ETF Shares 50%
An ETF investing across the U.S. bond market.
- SPYState Street SPDR S&P 500 ETF Trust 50%
A U.S. large-cap equity ETF tracking the S&P 500 Index.
Where this allocation comes fromScott Burns · Newspaper column (Dallas Morning News) · 1991
Also known as: Original Couch Potato · Traditional Couch Potato
50% S&P 500 index fund and 50% US total bond market, the Couch Potato as Scott Burns first described it in 1991.
| Asset in the source | Weight | Lifolio ETF |
|---|---|---|
| S&P 500 | 50% | SPY |
| US aggregate bonds | 50% | BND |
The S&P 500 slot uses SPY, which tracks the same index as the Vanguard 500 Index Fund Burns named.
Source: scottburns.com scottburns.com scottburns.com
Lifolio is not affiliated with or endorsed by the people or organizations cited. Figures are historical simulations under Lifolio's standard conditions. Sources checked 2026-11-01.
Questions & methodology
What does the Couch Potato Portfolio (1991 original) hold?
Vanguard Total Bond Market Index Fund ETF Shares (BND): An ETF investing across the U.S. bond market. State Street SPDR S&P 500 ETF Trust (SPY): A U.S. large-cap equity ETF tracking the S&P 500 Index.
What were the return and risk of the Couch Potato Portfolio (1991 original)?
From 2021.10 to 2026.10, the annualized return was +5.9% and the largest month-end drawdown was -19.2%. The Sharpe ratio (return for the risk) is 0.24.
How did it compare with holding SPY alone?
From 2021.10 to 2026.10, the annualized return was +5.9% for these weights and +12.0% for SPY. Over the same window the largest month-end drawdown was -19.2% for these weights and -23.9% for SPY.
How far did the Couch Potato Portfolio (1991 original) fall, and how long did it take to get back?
Over the selected 5 years, the largest month-end decline was -19.2%, from a high in 2021.12 to a low in 2022.09. It regained the old high 17 months after the low.
Are dividends, taxes and exchange rates included?
Dividends are reinvested and results are in USD. Taxes, currency moves against your home currency and trading fees are not included. These results use US-listed ETFs; Korea-listed ETFs such as KODEX and TIGER can be added in the backtest.
The server calculates portfolio examples and actual user allocations with the same period, starting balance and settings. Validated metrics and their supporting charts are shown together.
Price data through: 2026.10.30