The real money model portfolio of Lewis Schiff, the founder of Armchair Millionaire.com and author of The Armchair Millionaire, saw impressive gains of 36.56% in 2003. This portfolio, launched with Schiff's retirement funds in 1998, has been updated monthly, and it's 3 index fund portfolio components have remained unchanged since it's introduction.
NEW YORK, NY(PRWEB) February 11, 2004 -- The Armchair Millionaire Model Portfolio, a real-money portfolio designed to demonstrate common-sense investing principles, saw a 36.56-percent gain in 2003. The portfolio is owned by Lewis Schiff, founder of ArmchairMillionaire.com, author of The Armchair Millionaire," and a regular contributor to CNNMoney.com.
Last year really validated the buy-and-hold strategy weve always believed in," Schiff said. By sticking with time-tested investment methods and avoiding fads, my portfolio weathered the storms of recent years with great success."
The portfolio is supervised by Pat Sweeny, an investment manager for Symmetry Partners in Glastonbury, Connecticut. We take this as convincing evidence that despite volatility in the markets and uncertainty in world events, the fundamentals of sound investing have not changed," Sweeny said. A well-designed, broadly diversified portfolio really is the best choice for investors through both up and down markets."
The Armchair Millionaire Model Portfolio, which was started in 1998 and is funded with Schiffs own money, is built on several key principles that can be used by any investor:
Buy and hold. Rather than chasing investment trends, the model portfolio has owned the same investments from its inception. Schiff plans to hold these same investments in the portfolio until at least 2015, when he projects his portfolio will hit the $1 million mark.
Dollar-cost averaging. By investing the same amount on a regular basis, a technique known as dollar-cost averaging,," investors are able to boost their portfolios performance over time. Schiff recommends that investors invest 10 percent of their after-tax income on a monthly basis.
Diversification. The model portfolio is designed to capture the returns in three broadly-diversified areas of the market: large-cap U.S. stocks (as represented by the S&P 500 Index), small-cap U.S. stocks (as represented by the Russell 2000 Index) and international stocks (as represented by the Morgan Stanley EAFE Index, an index of stocks in Europe, Australia and the Far East).
Low cost investments. Investment costs, such as the annual expense fees charged by all mutual funds, can have a significant negative impact on an investors return over time. To minimize this impact, the Model Portfolio uses only index funds, which are generally the lowest-cost mutual funds available.
Ease of implementation. Its difficult for most investors to stick with complicated, time-consuming strategies. Accordingly, the portfolio invests in just three different mutual funds. Most mutual funds allow investors to arrange to have a set amount withdrawn from their bank accounts and automatically invested on a regular basis.
The Armchair Millionaire Model Portfolio is designed for long-term investors who intend to hold their investments for at least five years. For background on the strategies used to create the portfolio, as well as details on its current performance, visit www.armchairmillionaire.com.
Media contact:
Lewis Schiff
877-833-2823
lewisschiff@armchairmillionaire.com
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