How to Create Warren Buffett’s 90/10 Portfolio, But With an 11% Yield

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Tony Dong

Sat, July 25, 2026 astatine 5:57 PM CDT 5 min read

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Same allocation, antithetic objective: This portfolio keeps Buffett's 90/10 stock-and-cash model portion emphasizing precocious income alternatively of superior appreciation.
Tax-aware income strategies: Both SPYI and CSHI usage SPX scale options, Section 1256 taxation treatment, tax-loss harvesting, and person historically classified a important information of distributions arsenic instrumentality of capital.
Higher income comes with trade-offs: An 11.26% mean organisation output is attractive, but investors should expect higher fees and the imaginable to lag a accepted S&P 500 and Treasury measure portfolio during bull markets.
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Warren Buffett has been remarkably candid astir his ain mortality, and successful doing truthful has offered immoderate of the champion investing proposal for mundane investors. Buffett instructed that 90% of his property beryllium placed successful a low-cost S&P 500 scale money and the remaining 10% successful short-term U.S. Treasury bills aft his death.

It's an intentionally elemental portfolio that combines semipermanent equity maturation with a tiny allocation to highly liquid, low-risk assets. While it's admittedly airy connected planetary diversification and heavy tilted toward U.S. equities, it's inexpensive, casual to maintain, taxation efficient, and backed by decades of grounds supporting scale investing.

The trade-off is that the portfolio is designed astir wholly for superior appreciation. If you're retired and privation to make income, you're mostly near with 2 choices: periodically merchantability shares oregon overlay an options strategy specified arsenic covered calls. Fortunately, there's a 3rd option.

By swapping Buffett's underlying investments for a brace of ETFs from NEOS Investments, it's imaginable to support the aforesaid 90/10 divided betwixt the S&P 500 and short-term Treasury bills portion generating a weighted mean organisation output of astir 11.26%. The trade-off is giving up immoderate upside imaginable successful speech for substantially higher currency flow.

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NEOS S&P 500 High Income ETF (SPYI)

The NEOS S&P 500 High Income ETF (SPYI) serves arsenic the portfolio's equity allocation. Rather than simply owning the S&P 500, SPYI combines a portfolio of large-cap U.S. stocks with an actively managed options strategy that some buys and sells SPX scale options. Using scale options alternatively of options connected idiosyncratic ETFs creates respective imaginable taxation advantages wrong the fund.

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