Search found 22425 matches

by Taylor Larimore
Tue Sep 12, 2017 9:09 am
Forum: Investing - Theory, News & General
Topic: Bond Fund Philosophy
Replies: 18
Views: 2424

Re: Bond Fund Philosophy

Kitty: Prior to Irma's arrival, Taffy and I moved from our Miami water-front condo to a safe inland Comfort Suites motel where I am typing this. We are returning to our home in a few hours. I understand that we will have electricity but no Comcast cable. This means I'll not be able to read or post o...
by Taylor Larimore
Mon Sep 11, 2017 10:06 am
Forum: Investing - Theory, News & General
Topic: Bond Fund Philosophy
Replies: 18
Views: 2424

Answer to question

How much of your portfolio can you not afford to lose?
AlbertEinstein:

I have income from a government pension, social security, two annuities and book royalties which is more than necessary to support my lifestyle. I could afford to lose my entire portfolio.

Best wishes.
Taylor
by Taylor Larimore
Mon Sep 11, 2017 9:36 am
Forum: Investing - Theory, News & General
Topic: "Fear of Finance?" AARP interview with Jack Bogle
Replies: 37
Views: 4981

Nice "mistake."

Mr Bogle mistakes economies for markets.
Albert Einstein:

Nice "mistake." The U.S. stock market has doubled the international stock market since he first recommended investing 100% in U.S. stocks in Bogle on Mutual Funds published in 1993.

Best wishes.
Taylor
by Taylor Larimore
Sat Sep 09, 2017 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Why Total Stock Market vs. Extended Market?
Replies: 18
Views: 2195

Re: Why Total Stock Market vs. Extended Market?

Mike14 wrote:
Sat Sep 09, 2017 7:41 pm
Expense ratio's aside, and assuming that funds are in tax-advantaged accounts, what's your reasoning for choosing Total Stock market over Extended market?
Mike:

A primary reason for choosing Total Stock Market over Extended Market is "Greater Diversification."

Best wishes.
Taylor
by Taylor Larimore
Sat Sep 09, 2017 12:11 pm
Forum: Investing - Theory, News & General
Topic: Yes Virginia, you can lose money in bonds
Replies: 36
Views: 4506

Re: Yes Virginia, you can lose money in bonds

Interesting picture. CULater: Yes, it is an "interesting picture," but it is very misleading for most bonds and bond funds. There are many different types of bonds and bond funds. For example, the worst annual return for Vanguard's Total Bond Market Index Fund (VBMFX) since its inception was -2.66%...
by Taylor Larimore
Sat Sep 09, 2017 11:02 am
Forum: Investing - Theory, News & General
Topic: "Top 5 Ways to Manage Your Money"
Replies: 8
Views: 3416

"Top 5 Ways to Manage Your Money"

Bogleheads: The Physician on Fire website has an article about different ways to manage our money. This is the first way (underline mine): 1. DIY (Do It Yourself): Invest in low cost stock and bond funds. Diversify. Invest early and often. Know the tax implications. Create an Investor Policy Stateme...
by Taylor Larimore
Fri Sep 08, 2017 9:05 pm
Forum: Investing - Theory, News & General
Topic: "Fear of Finance?" AARP interview with Jack Bogle
Replies: 37
Views: 4981

Allan Roth

I can't help but wonder what prompted you to join AARP at this time.
CABob:

I recently learned that my good friend and advisor, Allan Roth, CPA, CFA, is the AARP financial columnist. I learn something from anything Allan writes.

Best wishes.
Taylor
by Taylor Larimore
Fri Sep 08, 2017 7:40 am
Forum: Investing - Theory, News & General
Topic: Bitcoin in 3-fund indexed portfolio?
Replies: 165
Views: 9573

Re: Bitcoin in 3-fund indexed portfolio?

Based on my poor (and likely flawed) understanding of the actual reasons behind the 3-fund portfolio or index investing in general, I want to discuss if Bitcoin can/should be included in a broad indexed portfolio. kayanco: Try to beat the market and your quest may never end. Warren Buffett: "There ...
by Taylor Larimore
Thu Sep 07, 2017 6:51 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin in 3-fund indexed portfolio?
Replies: 165
Views: 9573

Re: Bitcoin in 3-fund indexed portfolio?

Based on my poor (and likely flawed) understanding of the actual reasons behind the 3-fund portfolio or index investing in general, I want to discuss if Bitcoin can/should be included in a broad indexed portfolio. kayanco: Try to beat the market and your quest may never end. Warren Buffett: "There ...
by Taylor Larimore
Thu Sep 07, 2017 4:18 pm
Forum: Investing - Theory, News & General
Topic: "Fear of Finance?" AARP interview with Jack Bogle
Replies: 37
Views: 4981

What Warren Buffett says about Jack Bogle

Bogleheads:
"If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle." -- Warren Buffett
Best wishes.
Taylor
by Taylor Larimore
Thu Sep 07, 2017 1:59 pm
Forum: Investing - Theory, News & General
Topic: "Fear of Finance?" AARP interview with Jack Bogle
Replies: 37
Views: 4981

"Fear of Finance?" AARP interview with Jack Bogle

Bogleheads: I recently subscribed for AARP membership. When I received my first August/September issue of the AARP magazine, imagine my delight to read a five page interview with Jack Bogle and AARP's Jack Otter. The article included a full page picture of our mentor, Jack Bogle, astride the industr...
by Taylor Larimore
Thu Sep 07, 2017 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Chase Private Client, with a small twist
Replies: 18
Views: 1353

Re: Chase Private Client, with a small twist

ved: You might comply with Chase's request (I once did it to learn Chase's carefully honed sales technique). But never forget these words from Bill Bernstein : Act as if every broker, insurance salesman, mutual fund salesperson, and financial advisor you encounter is a hardened criminal, and stick t...
by Taylor Larimore
Wed Sep 06, 2017 10:43 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Philosophy
Replies: 18
Views: 2424

Re: Bond Fund Philosophy

Bond Fund Philosophy
LittlePrince:

I am in retirement. My "Bond Fund Philosophy" is simple:

Money that I cannot afford to lose is in cash and bonds (Vanguard Total Bond Market Index Fund).

Best wishes.
Taylor
by Taylor Larimore
Wed Sep 06, 2017 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: Don't know where to start at all
Replies: 21
Views: 1674

Re: Don't know where to start at all

Anthonny and Bob: You have come to the right place, without a conflict of interest, to learn about investing. In my opinion, it is important to read a good book about investing before starting. If You Can by Wm. Bernstein is one of the best for new investors. You can read the pdf version, online at ...
by Taylor Larimore
Wed Sep 06, 2017 7:50 pm
Forum: Investing - Theory, News & General
Topic: How much weight do you put on back-testing?
Replies: 53
Views: 3224

Re: How much weight do you put on back-testing?

" I see a lot of BHs here on both sides - for and against - puting weight/importance on back-testing... thoughts?" aramv: I put very little "weight/importance on (most) back-testing." Jason Zweig, author and highly respected columnist for the Wall Street Journal, wrote: "Buying funds based purely on...
by Taylor Larimore
Wed Sep 06, 2017 7:26 pm
Forum: Investing - Theory, News & General
Topic: Do retiree BHs actually run down their portfolios?
Replies: 73
Views: 7926

Re: Do retiree BHs actually run down their portfolios?

Hi: I've been retired for 27 years and basically adopted Taylor's philosophy of spend reasonably and invest and our portfolio( 65% Equity of which about 40% is foreign and 35 % Bond funds) has grown substantially as has our net worth. I suspect we will leave a legacy for our kids. ickamp: When you ...
by Taylor Larimore
Tue Sep 05, 2017 5:21 pm
Forum: Personal Consumer Issues
Topic: Experience selling car to Carmax?
Replies: 82
Views: 59106

Re: Experience selling car to Carmax?

Bogleheads:

Our family has used Carmax twice to sell cars. Both times we left satisfied.

Best wishes.
Taylor
by Taylor Larimore
Mon Sep 04, 2017 9:09 pm
Forum: Investing - Theory, News & General
Topic: Value Factor Investing is not Value Investing
Replies: 126
Views: 8883

Re: Value Factor Investing is not Value Investing

Value Factor Investing is not Value Investing Bogleheads: Despite a confusing topic, this much is clear: 15-YEAR RETURNS (Morningstar maximum): Vanguard Growth Index (VIGAX) 9.46% before tax. 9.16% after-tax Vanguard Value Index (VVIAX) 9.12% before tax. 8.52% after-tax Why not own BOTH growth and ...
by Taylor Larimore
Mon Sep 04, 2017 8:37 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds
Replies: 5
Views: 646

Rising Rates and Bond Mutual Funds

It is well known that in times of rising interest environments (likely in the near future), bond mutual funds temporarily lose value. matthewmatt: I am not sure your statement is correct. Below are U.S. inflation figures, and Vanguard Total Bond Market returns, since Mr. Bogle introduced TBM in 198...
by Taylor Larimore
Mon Sep 04, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: What is the "safe, safe" withdrawal rate?
Replies: 38
Views: 3911

Re: What is the "safe, safe" withdrawal rate?

What is the "safe, safe" withdrawal rate? stiutz: A Single Premium Immediate Annuity (SPIA) provides the largest guaranteed life income of any investment. This is a website to get quick quotes: https://www.immediateannuities.com/b/index-10.html?gclid=CMbitJS2jNYCFY0A0wodvDAMZw Best wishes Taylor
by Taylor Larimore
Mon Sep 04, 2017 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Becoming a Landlord: My Experiences
Replies: 74
Views: 9619

Re: Becoming a Landlord: My Experiences

Any feedback or thoughts would be appreciated.
denovo:

Your opening post is outstanding and is what makes this forum the best financial forum on the internet!

Thank you and best wishes.
Taylor
by Taylor Larimore
Mon Sep 04, 2017 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Where To Park Your Emergency Fund At Vanguard?
Replies: 17
Views: 3988

Re: Where To Park Your Emergency Fund At Vanguard?

If you have want to park your emergency fund into a Vanguard fund, what do you think would be the best and safest choice? Personally, I keep my EF Vanguard Federal Money Market Fund VMFXX. I know Vanguard itself recommends the Prime Money Market Fund. Yet are there any other options consider with t...
by Taylor Larimore
Sun Sep 03, 2017 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Portfolio
Replies: 6
Views: 383

Unnecessarily Complex

My question is what is the below recommended portfolio called??
indexonlyplease:

I would call it "Unnecessarily Complex."

Best wishes
Taylor
by Taylor Larimore
Sun Sep 03, 2017 3:10 pm
Forum: Investing - Theory, News & General
Topic: Value Factor Investing is not Value Investing
Replies: 126
Views: 8883

Jack Bogle discusses "factor" and "smart beta" investing.

Bogleheads:

Our mentor, Jack Bogle, gives his opinion of "factor" investing and "smart beta" investing in this January interview for MarketWatch:

Jack Bogle tells you the secret to becoming a winning investor.

Best wishes
Taylor
by Taylor Larimore
Sun Sep 03, 2017 2:50 pm
Forum: Investing - Theory, News & General
Topic: Calculator for historic allocation mixtures
Replies: 8
Views: 787

Three Fund Portfolio historical returns with different allocations

Richard1580:

You may be interested in the historical risk and returns prepared by Barry Barnitz for different allocations of U.S.stocks, International stocks and U.S. bonds in The Three-Fund Portfolio:

Three fund portfolio 2016 update

Best wishes.
Taylor
by Taylor Larimore
Sat Sep 02, 2017 11:38 am
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4008

Two fund portfolio !!

Taylor, do have similar data for TSM? Would be nice to have for my two fund portfolio. Ricola: Owning only two good funds, I'll guess your avatar is a picture of your yacht. I do not have similar data for Total Stock Market. It should not matter. The 500 Index fund has similar returns as TSM. Best ...
by Taylor Larimore
Sat Sep 02, 2017 11:29 am
Forum: Local Chapters and Bogleheads Community
Topic: Stan died [Long time forum lurker]
Replies: 38
Views: 6005

Re: Stan was a Boglehead.

The place where I go for coffee on weekends has a cast of characters. All retired guys. My favorite, Stan, died this week. Stan was a Boglehead - a long time lurker (10 years) but never posted. Timmy: It is unfortunate that Stan, "a long time lurker (10 years) but never posted," did not share his i...
by Taylor Larimore
Sat Sep 02, 2017 11:18 am
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4008

Re: Do you know your bond portfolio's REAL 12 month total return?

Taylor, good chart. Do your numbers assume monthly payments are reinvested in the fund?
Admiral:

My total return figures are from Morningstar. They do not reflect monthly payments being reinvested. They assume a one-time investment at the beginning of each year.

Best wishes.
Taylor
by Taylor Larimore
Sat Sep 02, 2017 10:48 am
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4008

Re: Do you know your bond portfolio's REAL 12 month total return?

spdoublebass wrote: One last question if I may. Is there any other place to find the "real" return? Or maybe, is there a way to calculate this on your own from the YTD or another stat? Or is this morningstar the only place to easily see it? spdoublebass: If you look at my last post showing inflation...
by Taylor Larimore
Fri Sep 01, 2017 8:08 pm
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4008

Re: Do you know your bond portfolio's REAL 12 month total return?

Bogleheads: Below are two columns: U.S. inflation and Vanguard Total Bond Market returns, since Mr. Bogle introduced TBM in 1986: YEAR..INFLATION....RETURN 1986-------1.1%--------15.2% 1987-------4.4-----------2.8 1988-------4.4-----------7.9 1989-------4.6----------14.5 1990-------6.1-----------8.9...
by Taylor Larimore
Fri Sep 01, 2017 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: The fund that changed the investing world
Replies: 2
Views: 854

The fund that changed the investing world

Bogleheads: We almost missed it -- the anniversary of the way we invest. Yesterday was the 41st anniversary of Mr. Bogle's first index mutual fund for individual investors: His Vanguard 500 Index Fund. "I rank this Bogle invention along with the invention of the wheel, the alphabet, Gutenberg printi...
by Taylor Larimore
Fri Sep 01, 2017 2:34 pm
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4008

Vanguard Total Bond Market Index Fund

Bogleheads: It is a common mistake to judge a bond fund by its return. This is because higher return (yield) in bonds nearly always means higher risk of loss. Bonds are for safety--not higher return (use a greater percentage of stocks in your portfolio for higher return). This is one reason why Vang...
by Taylor Larimore
Fri Sep 01, 2017 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: How to analyze portfolio recommendations
Replies: 25
Views: 2746

An honest man

2 years down the road, I wanted to follow up and see where I'm at and where I could have been based on these 2 portfolios. Thought it'd be useful to show for anyone else who might come across this. Using Portfolio Visualizer's Backtest Portfolio , I calculated out the returns for each of these port...
by Taylor Larimore
Fri Sep 01, 2017 9:38 am
Forum: Investing - Theory, News & General
Topic: "The Case for Owning the U.S. Market Portfolio"
Replies: 4
Views: 643

"The Case for Owning the U.S. Market Portfolio"

Bogleheads: Morningstar is featuring an important article about the many advantages of owning the total U.S. market index fund (my favorite fund). These are excerpts: "This total market index fund should be the default option for most investors' core U.S. equity allocations." "This fund tracks the C...
by Taylor Larimore
Thu Aug 31, 2017 9:15 pm
Forum: Investing - Theory, News & General
Topic: Anyone Out There Who Has Failed To Stick To Their Long Term Investing Plan?
Replies: 35
Views: 3954

The Boglehead Philosophy

Bogleheads: I have been investing since 1950 when I was 26 years old. I've tried many ways to beat the market. Most failed (especially after taxes). In 1986 I latched-on to The Boglehead Philosophy. It has given me a worry-free and comfortable retirement: 1 Develop a workable plan 2 Invest early and...
by Taylor Larimore
Wed Aug 30, 2017 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: HSA: Which funds to invest ?
Replies: 4
Views: 466

Re: HSA: Which funds to invest ?

David:

It is impossible to answer your question without knowing your goals, time-frame, risk tolerance, personal financial situation and your other investments.

If you will use the link below we can give you informed replies:

ASKING PORTFOLIO QUESTIONS

Best wishes.
Taylor
by Taylor Larimore
Mon Aug 28, 2017 4:35 pm
Forum: Investing - Theory, News & General
Topic: Review with Me - Larry Swedroe's new book
Replies: 108
Views: 6465

Munir a novice ?

As a novice in investing, I do appreciate and benefit from this forum but get lost in many of the high-level discussions which honestly don't interest me. Munir: You are no "novice." You came to this forum over ten years ago and have made more than 2,300 posts -- most asking good questions. In my o...
by Taylor Larimore
Mon Aug 28, 2017 3:48 pm
Forum: Investing - Theory, News & General
Topic: Review with Me - Larry Swedroe's new book
Replies: 108
Views: 6465

The Importance of Low Costs

Bogleheads: When DFA, Vanguard and other fund returns are compared, it is important to understand that low cost is the most important characteristic for predicting future performance, but consider this: a. The expense ratio is only part of mutual fund costs. b. Turnover is costly--often more than th...
by Taylor Larimore
Sat Aug 26, 2017 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks On Sale - What do you buy?
Replies: 64
Views: 5894

Two questions for jbolden1517

jboldon1517: I have two questions regarding your earlier post: "After the indexing fad dies --." 1. Why do you think indexing is a " fad ?" I'm certainly having a pretty easy time finding massive pricing inefficiencies that index funds are creating and exploiting those." 2. Will you share your portf...
by Taylor Larimore
Sat Aug 26, 2017 2:24 pm
Forum: Investing - Theory, News & General
Topic: Review with Me - Larry Swedroe's new book
Replies: 108
Views: 6465

Two books to review

True to my word, I went to Amazon.com and bought Your Complete Guide to Factor-Based Investing by Andrew L. Berkin and Larry E. Swedroe. It arrived yesterday, and I started on it last night. So far, so good. I have been skipping around through the book. Please join me in reviewing the book. It will...
by Taylor Larimore
Sat Aug 26, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks On Sale - What do you buy?
Replies: 64
Views: 5894

Re: Stocks On Sale - What do you buy?

Taylor, another great post. If I make it to 93 years of age, I hope I will be as sharp as you are. Same here. I need many years experience to get to that point of sharpness though, and I very much appreciate Mr. Larimore's continuous input when he could just spend all his free time out on the Bisca...
by Taylor Larimore
Fri Aug 25, 2017 7:49 pm
Forum: Investing - Theory, News & General
Topic: "Your Financial Life Is Complicated; Your Portfolio Shouldn't Be"
Replies: 8
Views: 1716

Re: "Your Financial Life Is Complicated; Your Portfolio Shouldn't Be"

POSITA wrote:
Fri Aug 25, 2017 3:45 pm
Thanks for posting these Taylor. I have been steadily simplifying my portfolio since discovering Bogleheads a few years ago. It's changed my (financial) life.
POSITA:

Welcome to the Bogleheads Forum!

Best wishes.
Taylor
by Taylor Larimore
Fri Aug 25, 2017 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks On Sale - What do you buy?
Replies: 64
Views: 5894

Dividends and Risky Bonds

jbolden1517: Sorry, but I disagree with two of your opinions (in black). I'll respond in blue. "Good stocks are about the relative cost for the stream future dividends. Good companies are about whether those future dividends are growing or not and how fast." Berkshire Hathaway, Amazon and other non-...
by Taylor Larimore
Fri Aug 25, 2017 2:16 pm
Forum: Investing - Theory, News & General
Topic: "Your Financial Life Is Complicated; Your Portfolio Shouldn't Be"
Replies: 8
Views: 1716

"Your Financial Life Is Complicated; Your Portfolio Shouldn't Be"

Bogleheads: Few people know more about personal finance than Morningstar's Director of Personal Finance, Christine Benz. Christine is also a member of our Panel of Expert s at Boglehead Conferences. Her latest Morningstar article is about my favorite topic; Simplicity . These are excerpts: "It hasn'...
by Taylor Larimore
Wed Aug 23, 2017 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks On Sale - What do you buy?
Replies: 64
Views: 5894

TSM

TSM is essentially a large growth index flyersrule: This may be true. It is also true that TSM (Total Stock Market) holds 3613 diversified stocks of the largest and most successful corporations in the United States. It is also true that TSM is efficient , meaning that that no other US stock portfol...
by Taylor Larimore
Wed Aug 23, 2017 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement is Coming - Do my 3-Fund portfolios make any sense?
Replies: 20
Views: 2140

Re: Retirement is Coming - Do my 3-Fund portfolios make any sense?

Thank you Watty - this is very insightful In response to your question, His Social Security would increase from 2,300 to $3,000 per month if SS was delayed until age 70. riDINGti: Watty has given you very valuable advice about waiting. Also, a spouse may be entitled to one-half the Social Security ...
by Taylor Larimore
Wed Aug 23, 2017 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement is Coming - Do my 3-Fund portfolios make any sense?
Replies: 20
Views: 2140

3 comments

riDINGti » Welcome to the Bogleheads Forum! I'll make three comments: * Taxable bond funds do not belong in taxable accounts because nearly all their return is taxable at (high) income tax rates. I would sell your Fidelity U.S. Bond Index in your taxable account and put the proceeds into the other t...
by Taylor Larimore
Wed Aug 23, 2017 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks On Sale - What do you buy?
Replies: 64
Views: 5894

The Three-Fund Portfolio

I always read in countless posts and forums that... "When the markets go down, things are on sale and I buy more". Its been a interest of mine to see what the people are generally buying when they say this. What do you guys typically buy? TSM or Index funds or individual equities? What is your go t...
by Taylor Larimore
Wed Aug 23, 2017 5:16 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3943
Views: 1035369

Another point of view

True but it might take a very long time. After 1929 crash Dow didn't recover until 1950s ... zenon: According to "Outperforming the Market" by author John Merrill, if you had invested $1,000,000 in September 1929 at the top of the bull market, you would have $921,000 nominal and $1,142,000 real (af...