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"The 15-Stock Diversification Myth"

It has been shown mathematically that only a relatively small number of representative securities together have (asymptotically) almost the same risk as the index. If you were to blindly pick say 15-20 securities across industries and market capitalizations, or maybe ca. 40 across international mar...
by Taylor Larimore
Thu Dec 18, 2014 10:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 48
Views: 3664

Re: Relocating to Florida - Need some advice

LN:

An English-Spanish dictionary may be helpful. :wink:

Best wishes
Taylor
by Taylor Larimore
Thu Dec 18, 2014 9:10 pm
 
Forum: Personal Consumer Issues
Topic: Relocating to Florida - Need some advice
Replies: 23
Views: 1476

The Boglehead Forum at its best.

Bogleheads:

This thread is a good example of the Bogleheads Forum at its best. People helping people.

My co-author, Laura, deserves special merit for never giving up (I did).

Best wishes.
Taylor
by Taylor Larimore
Thu Dec 18, 2014 7:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help a newbie with AA decision....
Replies: 18
Views: 2052

"Computing How Much Life Insurance You Need"

Mrxyz:

The Bogleheads' Guide to Investing has a format (page 247): "Computing How Much Life Insurance You Need."

Best wishes.
Taylor
by Taylor Larimore
Thu Dec 18, 2014 7:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term life insurance- I don't have it. Do I need it?
Replies: 15
Views: 816

The Bogleheads Philosophy

kmedina8:

In case you missed it, this is the Bogleheads Philosophy:

https://www.bogleheads.org/wiki/Boglehe ... philosophy

Best wishes.
Taylor
by Taylor Larimore
Thu Dec 18, 2014 5:04 pm
 
Forum: Investing - Theory, News & General
Topic: 2x Leveraged ETFS
Replies: 16
Views: 1023

Ways to invest?

Allroads:

This is a truism about investing:

There is more than one road to Dublin.

Best wishes.
Taylor
by Taylor Larimore
Thu Dec 18, 2014 4:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: How can I transition to 3-funds?
Replies: 37
Views: 2140

Safe withdrawal plan?

So I guess my question boils down to this...do you calculate your withdrawal rate at the time that you make each withdrawal? Or do you calculate it based on the value at the beginning of the year and stick with that rate throughout the year, regardless of whether your portfolio may go up or down du...
by Taylor Larimore
Thu Dec 18, 2014 3:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you determine your withdrawal rate?
Replies: 13
Views: 1004

PenFed

BundyBundy:

We had two mortgages with PenFed: The first was a breeze. The second (after never missing a payment on the first) was a nightmare of delays, red-tape, confusion, and incompetence. It took approx. 6 months to close (2 years ago).

Best wishes.
Taylor
by Taylor Larimore
Thu Dec 18, 2014 3:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Where to find the cheapest mortgage?
Replies: 13
Views: 1185

Re: We made our own Will

Chabil:

This promises to be a lengthy discussion from which we can all benefit.

Thank you and best wishes.
Taylor
by Taylor Larimore
Thu Dec 18, 2014 2:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: We made our own Will
Replies: 30
Views: 2000

Anonymous usernames ?

Jim: Shortly after joining the Bogleheads, Taylor suggested I use my real name, but I was hesitant to give up my anonymity like many of you are. Once I started my website, however, using your real name gives a heck of a lot more credibility, and also allows readers to get to know me a bit. Jim: I re...
by Taylor Larimore
Thu Dec 18, 2014 2:53 pm
 
Forum: Investing - Theory, News & General
Topic: White Coat Investor in Forbes
Replies: 33
Views: 5035

Re: How can I transition to 3-funds?

His two options were very helpful. I did ask him a follow up to modify his Option 2 - would you be interested in weighing in? (Posted above your last reply in red). Is there a case to be made for using a Roth at VG for all International, some/all Bonds and 0% US Stocks - since fidelity has the same...
by Taylor Larimore
Thu Dec 18, 2014 1:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: How can I transition to 3-funds?
Replies: 37
Views: 2140

Re: How can I transition to 3-funds?

Allroads:

Carefully consider the two low-cost, very diversified, simple (but sophisticated) portfolios suggested by DSInvestor.

Either portfolio will put you on the road to investment success.

Best wishes.
Taylor
by Taylor Larimore
Thu Dec 18, 2014 11:28 am
 
Forum: Investing - Help with Personal Investments
Topic: How can I transition to 3-funds?
Replies: 37
Views: 2140

Re: How can I transition to 3-funds?

allroads: Welcome to the Bogleheads Forum! What are the lowest cost funds available in your 401K plan? Include a US stock fund, an international stock fund and a bond fund. Are you married? If so, include wife's investments. Thank you and best wishes. Taylor I use vanguard and fidelity. I am not ma...
by Taylor Larimore
Wed Dec 17, 2014 9:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: How can I transition to 3-funds?
Replies: 37
Views: 2140

Re: Looking to move inheritance from high-fee advisor

Trundel: Welcome to the Bogleheads Forum! One of the first things you should do if you inherit profitable securities is to immediately sell the securities you don't want (especially individual stocks). This is because at the grantors death all prior capital gains are cancelled. If you continued to h...
by Taylor Larimore
Wed Dec 17, 2014 9:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Looking to move inheritance from high-fee advisor
Replies: 18
Views: 1467

Re: How can I transition to 3-funds?

allroads:

Welcome to the Bogleheads Forum!

What are the lowest cost funds available in your 401K plan? Include a US stock fund, an international stock fund and a bond fund.

Are you married? If so, include wife's investments.

Thank you and best wishes.
Taylor
by Taylor Larimore
Wed Dec 17, 2014 7:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: How can I transition to 3-funds?
Replies: 37
Views: 2140

Re: Investing advice for retired MIL

MidwestMD: Based on the information you have provided, and assuming your mother-in-law is in a low income tax bracket, the very diversified, low-cost, Vanguard Target Retirement Income Fund (VTINX) could be a good choice: https://investor.vanguard.com/mutual-funds/target-retirement/#/ Best wishes. ...
by Taylor Larimore
Wed Dec 17, 2014 6:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing advice for retired MIL
Replies: 11
Views: 753

Rick Van Ness -- A Gem

Bogleheads:

Author and video expert, Rick Van Ness, is a Boglehead gem: http://www.bogleheads.org/forum/viewtopic.php?t=82369

Best wishes
Taylor
by Taylor Larimore
Wed Dec 17, 2014 6:37 pm
 
Forum: Investing - Theory, News & General
Topic: The ABCs of Common Sense Investing (rhyme time)
Replies: 7
Views: 841

Re: Investing advice for retired MIL

MidwestMD: Based on the information you have provided, and assuming your mother-in-law is in a low income tax bracket, the very diversified, low-cost, Vanguard Target Retirement Income Fund (VTINX) could be a good choice: https://investor.vanguard.com/mutual-funds/target-retirement/#/ Best wishes. T...
by Taylor Larimore
Wed Dec 17, 2014 6:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing advice for retired MIL
Replies: 11
Views: 753

Individual stocks? -- What experts say.

Continuing my journey to becoming a Boglehead, I want to know why you don't invest in individual companies? acejacksingh": We see many portfolios containing individual stocks and we have many questions about picking individual stocks. The experts below explain the simple logic of why Boglehead...
by Taylor Larimore
Wed Dec 17, 2014 5:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 48
Views: 3664

International Allocation in The Three Fund Portfolio

What is the main goal of adding international markets to a 2-fund portfolio? Ijim: Total International Stock Index Fund is included in The Three Fund Portfolio because international diversification provides the safety of diversification and the potential for higher returns. This is the recommendati...
by Taylor Larimore
Wed Dec 17, 2014 4:43 pm
 
Forum: Investing - Theory, News & General
Topic: Are 3-funds better than 2?
Replies: 17
Views: 1108

Telephone calls ?

Marcoop:

It is dangerous to rely on a telephone representative when important information is involved. Always get information that must be relied upon in writing--and keep a copy.

Best wishes.
Taylor
by Taylor Larimore
Wed Dec 17, 2014 11:15 am
 
Forum: Personal Finance (Not Investing)
Topic: Very uncomfortable phone call w/Vanguard about Beneficiaries
Replies: 37
Views: 5924

No person knows.

Tony: As ChicagoMedStudent wrote: "No person knows the answer to this." We only know that in the long-term all diversified mutual funds are expected to have a positive return. It is important to understand: Unless you know something no one else knows, the expected return is already priced ...
by Taylor Larimore
Wed Dec 17, 2014 9:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard High-Yield Corporate Bond Fund (VWEAX) ?
Replies: 15
Views: 1459

Answer to questions about The Three Fund Portfolio.

An honest questions, after reading all these books do you still think the best portfolio is a three fund portfolio or is it time for and update/revision of the three fund portfolio? Thanks Interesting question. I think the Three Fund Portfolio is tough to beat. Vanguard disagrees and recently added...
by Taylor Larimore
Tue Dec 16, 2014 9:19 pm
 
Forum: Investing - Theory, News & General
Topic: Investment books I have read.
Replies: 32
Views: 4282

Need more information

Nolan:

It will be helpful if you provide all the information in the format requested:

Asking Portfolio Questions

Thank you and best wishes.
Taylor
by Taylor Larimore
Tue Dec 16, 2014 8:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you own VTI, VB, VWO, VEA, VSS, VNQ? Allocation question
Replies: 26
Views: 2298

Re: Investment books I have read.

parsi1 wrote:
Miriam2 wrote:Taylor -
What is the investing book you have not yet read that you are looking forward to reading?


If you don't mind I like to add to this, what is the book that you already have read and don't mind reading again?

parsi and Miriam:

Answer: Mr. Bogle's next book.

Best wishes.
Taylor
by Taylor Larimore
Tue Dec 16, 2014 3:34 pm
 
Forum: Investing - Theory, News & General
Topic: Investment books I have read.
Replies: 32
Views: 4282

Re: Investment books I have read.

It is somewhat ironic that a man who has read about 300 books on investing invests in the simplest portfolio one can.I guess there is a valuable lesson to be learned there.Most people,the more they read and learn,the more they want to tinker and tilt.A little knowledge can be a dangerous thing, but...
by Taylor Larimore
Tue Dec 16, 2014 9:35 am
 
Forum: Investing - Theory, News & General
Topic: Investment books I have read.
Replies: 32
Views: 4282

"Don't look for the needle in the haystack. Buy the haystack

When looking at the Callan Periodic table, one can find area of poor returns from the previous year. A person purchasing these bottom ranked asset class's would be "buying low" (contrary to most investors). If this plan continued each year, and the investments were held for decades, would...
by Taylor Larimore
Mon Dec 15, 2014 5:20 pm
 
Forum: Investing - Theory, News & General
Topic: Is it speculation to use the Callan Periodic table?
Replies: 26
Views: 1781

Re: The Three Fund Portfolio

So does this mean that if I am only investing in my company's Traditional 401k (which does not have Vanguard) and Vanguard for my Roth IRA, there is no advantage to using the 3-fund portfolio if I am able to use Target Retirement? RhoRho: In this situation The Three Fund Portfolio has the advantage...
by Taylor Larimore
Mon Dec 15, 2014 12:19 pm
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 968
Views: 410778

Investment Gems

Do you read any material to help affirm your investment philosophy? I have read hundred's of books , newspapers, newsletters and research reports to affirm my Boglehead investment philosophy. Now I spend time on the Bogleheads Forum to help others benefit from The Boglehead Investment Philosophy. t...
by Taylor Larimore
Mon Dec 15, 2014 9:13 am
 
Forum: Investing - Theory, News & General
Topic: 3-funds, annual rebalancing, and then what??
Replies: 17
Views: 1198

Re: 3 Fund vs. Stategic Life Style

3 Fund vs. Stategic Life Style dansmail26: The Vanguard Three Fund Portfolio and the Vanguard Life Strategy Funds both contain Vanguard's three total market index funds -- so they are similar funds. * The Life Strategy Funds are normally preferred when portfolios contain only tax-advantaged account...
by Taylor Larimore
Sun Dec 14, 2014 11:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3 Fund vs. Stategic Life Style
Replies: 13
Views: 1068

Answer to questions.

new2bogle2: I will try to answer your questions: For those here who have a 3-fund portfolio and rebalance about once per year, what else do you do for the rest of the year(s)? Spend more time with family, friends, and other pleasant things. It is smart to not follow the market and the ups/downs as b...
by Taylor Larimore
Sun Dec 14, 2014 6:57 pm
 
Forum: Investing - Theory, News & General
Topic: 3-funds, annual rebalancing, and then what??
Replies: 17
Views: 1198

No one knows.

I'm thinking of allocating my 401K with 50% still going into the S&P 500 Index and the remaining 50% split between the small and mid-cap indexes. Decent plan? I'd like to capture the small and mid-cap (possible) out-performance. Workaholic: There is little question in my mind that your 401K pla...
by Taylor Larimore
Sun Dec 14, 2014 3:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: New 401K choices...need help slicing
Replies: 5
Views: 337

"The Arithmetic of Active Management"

The author suggests that in a rising interest rate environment active more often outperforms. Sometimes Investor: In rising or declining interest rate environments, the average active fund MUST underperform. Here's proof by Nobel Laureate, William Sharpe: THE ARITHMETIC OF ACTIVE MANAGEMENT . Best ...
by Taylor Larimore
Sun Dec 14, 2014 3:09 pm
 
Forum: Investing - Theory, News & General
Topic: in the past there was a period when active outperformed
Replies: 30
Views: 1570

"Predicting the Past"

Could someone smarter than me tell me what's going on here? mosu: A poster named Ozark is smarter than both of us. This is what he wrote: --------------------------------------PREDICTING THE PAST-------------------------------- If you feel you can improve your portfolio's asset allocation by runnin...
by Taylor Larimore
Sun Dec 14, 2014 9:26 am
 
Forum: Investing - Theory, News & General
Topic: Why does VSS have a negative HmL?
Replies: 8
Views: 970

"True Cost to Own"

AQ: The automobile industry has done a very successful marketing job convincing us that to get from point A to point B we should spend as much money as possible. This link to Edmonds "True Cost to Own" may help keep your expenses in check (it is not the original sales price): TRUE COST TO ...
by Taylor Larimore
Sat Dec 13, 2014 7:30 pm
 
Forum: Personal Consumer Issues
Topic: What is a move-up car after mid-size sedan?
Replies: 63
Views: 4028

"Predicting the Past"

Can anyone tell (and convince) me which fund is the best? flyingaway: No one can tell you which fund will turn out to be best because no one can predict the future . Lot's of investors try to figure out which fund or funds will beat the market by using figures from past performance or with complex ...
by Taylor Larimore
Sat Dec 13, 2014 7:18 pm
 
Forum: Investing - Theory, News & General
Topic: 10 Reasons why Merriman dislikes Total Stock Mkt
Replies: 155
Views: 17553

"Don't do something, just stand there."

Nedsaid:

I follow Jack Bogle's rules for investing--especially this one:
"Rule One: Don't do something, just stand there!"

Best wishes.
Taylor
by Taylor Larimore
Sat Dec 13, 2014 3:20 pm
 
Forum: Investing - Theory, News & General
Topic: good time to invest in a Reit Index fund?
Replies: 15
Views: 1781

Re: TIPS Mutual Funds

A related question: If you hold a Vanguard TIPS fund, do you hold the shorter fund, the longer fund, or some of each? Jeff: We moved our hodge-podge of securities from Merrill Lynch to Vanguard in 1986 and later filled-up our IRA with Total Bond Market. When Vanguard TIPS were introduce in 2000, at...
by Taylor Larimore
Sat Dec 13, 2014 3:08 pm
 
Forum: Investing - Theory, News & General
Topic: TIPS Mutual Funds
Replies: 42
Views: 2869

Simplicity is the master key to investment success.

One of the areas is diversification where I rated a 'C'. My two biggest deficiencies were lack of Small Cap Value and International REITs. leonidas: Assuming you own Total Stock Market and Total International Stock Market, you ALREADY own the market weight in Small Cap Value and International REITS...
by Taylor Larimore
Sat Dec 13, 2014 8:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Where to place International REIT?
Replies: 9
Views: 942

Life Strategy and Target Funds alternative

I might add that Mike Piper personally uses the Vanguard LifeStrategy funds, which are about as pure a one-fund implementation of the three-fund portfolio as you can get. Leeraar: Mr. Piper is a very knowledgeable investor who is on our Panel of Experts at Boglehead Conferences. I agree with Mike t...
by Taylor Larimore
Fri Dec 12, 2014 10:16 pm
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 968
Views: 410778

Mutual Funds or ETFs

eloshine wrote:Thanks Taylor,

I'd also like to ask if there is a philosophical/return difference in replacing the 3 Fund with ETFs.


eloshine:

There should be little difference whether you use three mutual funds or three ETFs when constructing The Three Fund Portfolio.

Best wishes.
Taylor
by Taylor Larimore
Fri Dec 12, 2014 9:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3 Funds Approach and/or Index Investors
Replies: 4
Views: 944

"Why does everybody recommend complex portfolios?"

Bogleheads: A reader wrote to Mike Piper, editor of The Oblivious Investor , asking: “On the Bogleheads forum I see people recommending The Three Fund Portfolio with Total Stock Market, Total International Stock, and Total Bond Market funds. But I never see something this basic anywhere else?" ...
by Taylor Larimore
Fri Dec 12, 2014 9:28 pm
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 968
Views: 410778

Help With Personal Investments

Badmash:

As BogleInvestorLondon helpfully suggests, simply copy your question and post it as a "New Topic" here:

Help With Personal Investments

Thank you and best wishes.
Taylor
by Taylor Larimore
Fri Dec 12, 2014 6:20 pm
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 968
Views: 410778

Vanguard's Concierge Services

DaChief:

Welcome to the Bogleheads Forum!
I would like to simplify and my thought process is to roll/transfer all to Vanguard:


Contact Vanguard's Concierge Service. Use this link:

Vanguard Concierge Services

Best wishes.
Taylor
by Taylor Larimore
Fri Dec 12, 2014 3:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Soon To Retire - Portfolio Advice
Replies: 11
Views: 1812

The dream of a perfect plan.

Is now DEC 2014 a good time to invest in a Reit Index Fund such as Vanguard Reit Index fund VGSTX? Or, is it at such a high it will likely just drop in the next years? Riptide: This is a post you made last month: After all the back and forth, I am still at a simple portfolio 4 core and my goal is t...
by Taylor Larimore
Fri Dec 12, 2014 2:21 pm
 
Forum: Investing - Theory, News & General
Topic: good time to invest in a Reit Index fund?
Replies: 15
Views: 1781

Re: Treat Bonds Like Stocks?

Should I simply rebalance (sell some REITs and buy some TIPS and metals) back to my original AA? joer1212: Jack Bogle answers your question: Stay the course . It is the most important wisdom I can give to you . Yes. Rebalance when your asset-allocation is significantly different (at least 5%-10%) t...
by Taylor Larimore
Fri Dec 12, 2014 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Treat Bonds Like Stocks?
Replies: 8
Views: 693

Re: Considering more conservative allocation

I plan to reach my financial independence (FI) in about 5 years with normal market performance. I am aggressive with respect to my age with 85% equities and 15% cash. Whenever I reach my FI, I will consider that I am done with playing the game and will change my allocation to be more conservative. ...
by Taylor Larimore
Fri Dec 12, 2014 1:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Considering more conservative allocation
Replies: 21
Views: 1040

Re: 3 Funds Approach and/or Index Investors

I have a question for advocates and do'ers of the 3 fund approach

eloshine:

For reference, this is The Three Fund Portfolio.

Best wishes.
Taylor
by Taylor Larimore
Fri Dec 12, 2014 12:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3 Funds Approach and/or Index Investors
Replies: 4
Views: 944

Re: Considering more conservative allocation

Is there any point in staying with 75% equity? pacodelostigres: Your "basic 3-fund" portfolio has helped you win the game of retirement funding. At this point it is more important to keep what you've got instead of taking unnecessary risk trying to get more. During the Great Depression wh...
by Taylor Larimore
Fri Dec 12, 2014 10:31 am
 
Forum: Personal Finance (Not Investing)
Topic: Considering more conservative allocation
Replies: 21
Views: 1040

question

My current portfolio: "20% TSM w/ minor tilt"

countmein:

What does "20% TSM w/minor tilt" mean?

Thank you and best wishes.
Taylor
by Taylor Larimore
Thu Dec 11, 2014 9:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Goal: 1% real. Does this portfolio work?
Replies: 14
Views: 1629
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