This article has two objectives: 1. To be put on record, and 2. To give investors a plan that could offer better returns in 2009 than the S&P 500 index (SPY).

After posting my original article on an ETF model portfolio, several readers offered interesting comments and questions.

The recent U.S. House of Representative’s bill offering “rebates” to Americans is intended to stimulate the economy to help avert a recession. Thanks to the wonders of modern, almost instantaneous, polling, most people plan on paying down debt, defraying the winter heating bill and similar non-stimulating actions.

If the “rebates” were indeed spent on American-made consumer goods and services, there could be a positive effect on our economy. One way to direct the money to this cause is with pre-paid gift cards. My Christmas stocking contained 3 of these cards, and all will (necessarily) be spent in American stores on consumer goods. This “U.S. Economy Gift Card” should probably include a notice that although you are encouraged to spend it, note that you or your children will eventually have to pay back this “gift”.

For over 20 years as an individual investor, my goal has been to develop a relatively simple, conservative, system that would beat the total return of the S&P 500 index, year after year. Since the S&P 500 accounts for more than 92% of the total U.S stock market and is a benchmark for many stock mutual funds, it was selected as a comparison.

Interestingly, more than 75% of U.S. domestic equity funds trailed the S&P 500 index in 2007. This homemade mutual fund has had better total returns than the S&P 500 exchange traded fund (SPY) when started at the beginning of any of the past 7 years.