Overview and F.A.Q.
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The Money for the Rest of Us model portfolios are examples comprised of publicly traded exchange-traded funds that trade on U.S. exchanges. The holdings listed are representative examples. Other ETFs and funds with similar characteristics could be used. These models can be used as part of a strategic portfolio mix as well as an adaptive asset garden. You can learn about the different approaches to choosing an asset mix in this video.
Each model has its own page with a description of investors who might fit the model’s profile.
There are ten models. Each model has its own page with the list of holdings and a fact sheet.
Available Model Portfolios
Ultra Conservative: Neutral Target = 20% Stocks and 80% Fixed Income
Conservative: Neutral Target = 40% Stocks and 60% Fixed Income
Moderate: Neutral Target = 60% Stocks and 40% Fixed Income
Moderately Aggressive: Neutral Target = 75% Stocks and 25% Fixed Income
Aggressive: Neutral Target = 85% Stocks and 15% Fixed Income
Role-based: A multi-asset class portfolio designed to perform well under all economic regimes
Equity = 100% Stocks
Income = Equally weighted between equity REITs, preferred stocks, convertible bonds, option income, and closed-end funds.
Fixed Income = 100% Bonds
Model Portfolio Returns for Periods Ending September 30, 2025
| 3 Months | YTD | 1 Year | 3 Years | 5 Years | Since Inception | Inception Date | Maximum Drawdown | Annual Standard Deviation | |
|---|---|---|---|---|---|---|---|---|---|
| Ultra Conservative Model Portfolio | 3.0% | 8.2% | 6.2% | 8.3% | 3.2% | 3.2% | 12/31/2018 | -15.0% | 4.9% |
| Conservative Model Portfolio | 4.1% | 10.6% | 8.3% | 11.3% | 5.6% | 4.8% | 3/31/2016 | -16.2% | 6.2% |
| Moderate Model Portfolio | 5.1% | 12.9% | 10.8% | 14.1% | 8.1% | 6.6% | 3/31/2016 | -17.7% | 8.4% |
| Moderately Aggressive Model Portfolio | 6.1% | 15.0% | 12.4% | 16.4% | 9.8% | 7.8% | 3/31/2016 | -21.6% | 10.1% |
| Aggressive Model Portfolio | 6.7% | 16.5% | 13.8% | 18.2% | 11.0% | 9.7% | 12/31/2018 | -24.8% | 12.7% |
| Role-based Model Portfolio | 7.0% | 15.8% | 13.7% | 15.3% | 8.2% | 9.5% | 12/31/2018 | -17.8% | 9.4% |
| Equity Portfolio | 7.8% | 19.0% | 16.5% | 21.8% | 13.8% | 10.9% | 3/31/2016 | -34.5% | 14.9% |
| Income Portfolio | 4.4% | 9.0% | -0.5% | 9.6% | 5.4% | 3.5% | 3/31/2016 | -44.4% | 18.4% |
| Fixed Income Portfolio | 1.6% | 5.1% | 4.4% | 5.3% | 1.3% | 1.9% | 3/31/2016 | -11.5% | 2.6% |
Note: Returns for periods longer than one year are annualized. Prior to September 30, 2025, performance for the equity, fixed, and income models represents the stock, bond, and income allocation found in the MFTROU Moderate Portfolio.
Public Holdings versus Pockets of Independence
The model portfolios are diversified holdings consisting only of publicly traded securities.
For diversification purposes, investors should also hold private assets that are not tied to the financial system and provide a margin of safety that protects against unknown, unpredictable events.
Examples include holding at least six months of living expenses in cash in the form of emergency savings.
Other examples include holding gold coins or investing in private real estate such as land or a rental property.
Holding some assets outside of the financial system is a way to minimize our maximum regret, which is a strategy for preparing for a worst-case scenario—not because we expect it to happen, but just so we are prepared in case it does. This guide provides more information on managing risk and uncertainties.
Given the diversity of members in different life stages, income, and asset levels, it isn’t practical to include private investments such as real estate in the model portfolios.
Model Portfolio Changes
You can see a list of past changes to the Model Portfolio here.
Frequently Asked Questions On Model Portfolios
Q. How often will the adaptive model portfolios be changed?
A. The model portfolios will be monitored on an ongoing basis and adjusted as necessary as market conditions change to take advantage of opportunities or to reduce risk.
Q. Why are the holdings the same many of the model portfolios?
A. Each holding plays a specific role and has a specific return driver. Even though the portfolios are geared toward investors with different risk profiles, all of the portfolios participate in the diversifying benefit of having multiple return drivers. Constructing and managing portfolios with different risk profiles but similar holdings is how David managed portfolios professionally for institutions and financial planners.
Q. The expense ratios for some holdings seem high. Why weren’t the portfolios just allocated to Vanguard Index funds and ETFs?
A. Each holding in the model portfolios plays a specific role, and the fund or ETF utilized is a representative example of a holding that fits that role. Other funds and ETFs with similar characteristics could be used, although there may not be a less expensive option or one offered by Vanguard.
For example, having both hedged and unhedged exposure to global stocks reduces volatility due to currency swings and leads to more consistent performance. Vanguard does not offer a hedged global stocks ETF. iShares does but its fees are higher than Vanguard.
Similarly, there are other holdings in the model portfolios where there was no appropriate substitute from Vanguard.
Q. What are the maximum drawdowns and maximum drawdown recovery for the model portfolios?
A. Maximum drawdowns reflect the historical worst-case loss over a short-to-intermediate time frame for the model portfolios.
This is a worst-case scenario, and the expectation is the model portfolios would not incur these types of losses as the portfolios would be updated to reduce risk as market conditions deteriorated.
The maximum drawdown recovery is the number of months it would have historically taken a portfolio with a similar asset allocation as the model portfolios to return to their previous high before the maximum drawdown occurred.
Q. Why do the model portfolios contain currency-hedged options.
A. Currency fluctuations in terms of strengthening and weakening dollar can significantly impact investment terms in the short-to-intermediate term. Having both a hedged and unhedged exposure to non-U.S. stocks limits the volatility due to currency fluctuations, which can be very difficult to predict.
Important Disclosures
Model portfolio historical returns are calculated using Y-Charts.
The performance does not take into account custody or trading expenses and does not represent a live portfolio but are hypothetical examples.
Past Performance is not indicative of future results.
The Information and opinions contained Money For the Rest of Us are for educational purposes only. The Information does not consider the economic status or risk profile of any specific person.
The Information and opinions expressed should not be construed as investment/trading advice or investment recommendations and does not constitute an offer, or an invitation to make an offer, to buy and sell securities.
The Information and opinions contained on Money For the Rest of Us is for investment education and considered general communications in the form of an online financial newsletter / broadcast video and audio shown to the general public.
The model asset allocations and model portfolios on the site are hypothetical examples and not investment recommendations. Individuals who are considering applying the model asset allocations and model portfolios to their individual situations should consider their other assets, income and investments such as home equity, individual retirement plan assets, savings accounts, and interest in other qualified and non-qualified plans.
The Information on Money For the Rest of Us was obtained from various sources. Darby Creek Advisors LLC does not guarantee the accuracy or completeness of such Information provided by third parties.
Money For the Rest of Us and Darby Creek Advisors LLC assume no obligation to update this Information, or to advise on further developments relating to it.
Any return expectations provided for individual asset categories, model asset allocations or model portfolio are not intended as, and must not be regarded as, a representation, warranty or predication that an investment will achieve any particular rate of return over any particular time-period or those investors will not incur losses.
