"100% of the revenue from sales of this book will be applied towards promoting financial literacy through bit-sized videos, short books, the Bogleheads' wiki, and other educational projects."
"The Bogleheads have endearingly named themselves after John C. Bogle, the great champion of common sense investing. Join them online. You can find answers to common questions or books that are worth reading. You can always anonymously ask the Bogleheads discussion board--a group of friendly people that are amazingly generous with helpful feedback to people with genuine questions."
"For us, there is no better mentor than legendary mutual fund industry veteran, John C. Bogle."
"Start by tuning out all the TV shows and newsletters trying to sell you something."
"A good rule-of-thumb is that you'll need 25 times what you'll draw from your savings for 30 years of retirement."
"Invest money you'll need soon very conservatively, like in a money market fund or a bank CD--definately not in the stock market."
"A time-proven strategy for saving is to pay yourself first with that 15% automatically deposited."
"Have a plan. Follow the plan, and you'll be surprised how successful you can be."
"The benefits of starting to save and invest early are simply enormous."
"Sometimes your best investment strategy begins by paying off loans."
"Concentrating your portfolio in a few stocks maximizes your change of getting rich. Unfortunately, it also maximizes your chance of becoming poor." -- Wm. Bernstein quote
"If you are having trouble choosing what level of risk is right for you, I think a good starting place is the advice to own your age in bonds."
"Once the stocks and bonds decision is made, you can move on to the decision on what types of mutual funds you'll want to own."
"Correlations can change when viewed over different time-frames."
"Building an outstanding portfolio doesn't have to be complicated at all!"
"I believe that 98 or 99 percent of people who invest should extensively diversify and not trade. That leads them to an index fund with very low costs." -- Warren Buffett quote
"It is at least very difficult, if not impossible, to succeed at market timing over the long-run."
"For a recent 25-year period, John Bogle found that the vast majority of investors earned 5% less than the overall stock market return."
"Attempting to predict the future direction of the market is only the first of the two common timing mistakes. It's also incredibly tempting to invest in the most recent, top performing categories of stocks and bonds."
"John Bogle warns, 'Don't think you know more than the market. Nobody does.'"
"Simple random luck will make some people appear more brilliant than they really are."
"How about rebalancing every birthday: Is that market timing? No. It's an example of having a plan and sticking to it."
"Spend less time studying your investments and more time studying yourself. -- Jason Zweig quote"
"Market Return - Investor's Costs = Investor's Return."
"Over a period of 10 years, a mere 15% of the actively managed funds beat the market return."
"The grim irony of investing is that we investors as a group not only don't get what we pay for. We get precisely what we don't pay for."
"Unfortunately, some 401(k) plans do not offer any index funds at all. In that case, look for the largest, most diversified funds with the lowest fees."
"You generally want to hold bonds in a retirement account and stocks in a taxable account."
"Desired mutual fund attributes are low turnover, low cost, and widely diversified."
"Never underrate either the majesty of simplicity or its proven effectiveness as a long-term strategy for productive investing. Simplicity, indeed, is the master key to financial success." -- Jack Bogle quote
"Your most important decision is your stock/bond ratio. It is essential that you own both."
"Any good-quality low-cost bond fund works fine. The type of bonds is far less important than the amount of bonds."
"Stocks are a long-term investment. There will be many bumps in the road: wars, recessions, high inflation, and stuff we haven't even thought of."
"International allocation for stocks commonly ranges from 20-50% of total stock value."
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth." -- Jack Bogle quote
"Successful investing involves doing just a few things right, and avoiding serious mistakes."
"Stay the course. Here's where it gets difficult for most of us."
"Stay the course means that once you've chosen your portfolio, only sell to rebalance and maintain your risk level. Never sell based on greed or fear."
"Within each category of mutual funds, expenses are the best predictor of future performance."
"In times of crisis a human instinct is: Don't just stand there! Do something!
The Boglehead principle is: Don't do something. Just stand there."
"For most everything in our lives, the usual advice is: Stay Informed.
The Boglehead principle is: Ignore the noise."
"The usual advice is: You get what you pay for.
The Boglehead principle is: We get to keep precisely what we don't pay for."
"For many things we do in life: There is a single best answer.
Bogleheads find this wisdom helpful: There are many roads to Dublin.
"Many of the books at the bookstore are meant to appeal to our bad instincts (greed and fear) and don't offer wise advice. I suggest you start with the books that are recommended by the Bogleheads."
"Find more simple portfolio ideas at the Bogleheads wiki: http://www.bogleheads.org/wiki/Lazy_Portfolios "
"Expected returns are not a guarantee."
"Investing is a long-term proposition so it is pointless to watch the daily flutter of the stock market."
"View rebalancing as a legitimate way to execute a buy low and sell high strategy--compared to emotion-based timing decisions."
"The fewer companies that you invest with, the simpler your life becomes when you need to choose funds, do your income taxes, rebalance, or transfer money."
" www.FinancingLife.org includes free short online videos."
"I love reading John Bogle because his writing is simple, clear, and eloquent. His logic is compelling. He truly is the champion of common sense investing."
The Common Sense Strategy--10 Simple Rules: Develop a plan; start saving now; own the appropriate amount of bonds; diversify; never time the market; use index funds; keep costs low; minimize taxes; keep it simple; stick to your plan.
Thank you Rick.
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