Search found 29238 matches

by Taylor Larimore
Sun Mar 17, 2024 11:23 am
Forum: Investing - Theory, News & General
Topic: Anybody heard stories of well "prepared" retirees running out of money?
Replies: 87
Views: 9950

Re: Anybody heard stories of well "prepared" retirees running out of money?

"Prepared" can be subject to all interpretations... that can lead to disasters. I was thinking more someone who were NOT involved in heavy stuff (addictions, healthcare or got stolen), was not poor to begin with, nor cases in which their company pension went kaput. I know about VPW, SWR..., I don't really need more details about them (I understand their benefits). The reason why I ask is because I saw quite a few sources mentioning that 2.7% or 3.3% is now the new 4%, including Morningstar in 2021 but possibly amended that later. I can understand the flexibility of probabilities, but I wonder if there are actual & recent real-life cases proving their point , or if it a strategy to get more $ from investors. This might include...
by Taylor Larimore
Sat Mar 16, 2024 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: The best game-changing financial advice you ever received (or "discovered")
Replies: 120
Views: 11075

Re: The best game-changing financial advice you ever received (or "discovered")

Bogleheads:

Without a doubt the best game-changing financial advice I ever received was simplicity and the superiority of total market index funds (low-cost, maximum diversification, tax-efficient).

I subsequently used this knowledge to develop The Three-Fund Portfolio.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The odds of outpacing an all-market index fund are, well, terrible." -- "There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite."
by Taylor Larimore
Thu Mar 14, 2024 7:28 pm
Forum: Investing - Theory, News & General
Topic: Integrity
Replies: 12
Views: 1698

Integrity

Bogleheads:

My 70 year old son thought he might benefit by using hearing-aids. He went to a Costco store in Miami and took their hearing test.

After reviewing the result, the Costco hearing-aid specialist informed him that his hearing was too good to buy hearing aids.

It is refreshing to learn there are places where integrity is more important than profit.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The most important things in life and in business can’t be measured."
by Taylor Larimore
Wed Mar 13, 2024 6:57 pm
Forum: Personal Investments
Topic: VFIAX,VIMAX,VSMAX vs VTSAX
Replies: 5
Views: 695

Re: VFIAX,VIMAX,VSMAX vs VTSAX

I currently have the following funds as part of my Rollover IRA: VFIAX – Vanguard 500 Index Admiral (34%), VIMAX – Vanguard Mid Cap Index Admiral (10%), and VSMAX – Vanguard Small Cap Index (4%), make up 48% of the account. Is there any benefit in rolling these funds into VTSAX – Vanguard Total Stock Market Index Fund Admiral shares instead or just leave it alone? natethegreat: In my opinion it is usually unnecessary (and counter-productive) to hold more than one stock fund (a low-cost, tax-efficient, total U.S. stock index fund) in the stock portion of a U.S. portfolio. Strive for simplicity--not complexity. Best wishes. Taylor Jack Bogle's Words of Wisdom: "Deep down, I remain absolutely confident that the vast majority of American ...
by Taylor Larimore
Wed Mar 13, 2024 11:26 am
Forum: Personal Investments
Topic: Newbie 2-Fund portfolio question
Replies: 6
Views: 450

Re: Newbie 2-Fund portfolio question

Nadir wrote: Wed Mar 13, 2024 10:59 am In the continuum of possibilities, I decide a 2-fund portfolio suits my needs in retirement.
I choose 60% VOO - Vanguard S&P 500 ETF and 40% VBILX - Vanguard Intermediate-Term Bond Index Fund Admiral Shares.
What pitfalls to consider with this?
Nadir:

In my opinion, you could do a lot worse than your proposed "2-fund portfolio." Nevertheless, you might do a little better with the many benefits of The Three-Fund Portfolio.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite."
by Taylor Larimore
Mon Mar 11, 2024 7:36 pm
Forum: Personal Investments
Topic: Value Investing
Replies: 4
Views: 656

Re: Value Investing

Seems there has been more chatter lately about the CAPE ratio being too high now and the S&P 500 being either flat or having very low returns over the next decade. Some suggest to add more value funds to your portfolio to help boost returns a bit. Any thoughts on this theory? I am just entering retirement and have about 50% in an S&P 500 index fund in my taxable account. Thinking of reducing that to maybe 30% and adding either VTV (Vanguard Value ETF) or IUSV (iShares Core S&P US Value ETF) (or any other fund you might think would fit the bill). Already have small amount (5-10%) of SCHD (Schwab Dividend Equity) in my IRA so do have some value exposure already. Is the current high CAPE ratio real enough to make me change my port...
by Taylor Larimore
Mon Mar 11, 2024 5:53 pm
Forum: Investing - Theory, News & General
Topic: Vectors -- March edition
Replies: 1
Views: 407

Vectors -- March edition

Bogleheads: One of my favorite financial newsletters writers is George Sista. These are extracts from his March edition of "Vectors" : "Making wholesale changes to your portfolio's allocation based on forecasts or market timing recommendations is likely to be a costly mistake." "Selling stocks after a significant decline is the ultimate unforced error in personal finance. It is the most common, most dangerous, and most predictable mistake made by individual investors." "It’s harder than you would think to predict which will be the winners and losers. And those who tell you they know the answer are usually either self-delusional or snake-oil salesmen.” "Broad diversification is more important than find...
by Taylor Larimore
Sat Mar 09, 2024 7:52 pm
Forum: Personal Investments
Topic: Retirement Investment Advice
Replies: 31
Views: 3126

Re: Retirement Investment Advice

kv4052:

Welcome to the Bogleheads Forum!

Consider the many benefits of The Three-Fund Portfolio.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan." -- "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk." [/
b]
by Taylor Larimore
Sat Mar 09, 2024 11:57 am
Forum: Personal Investments
Topic: Should bond index funds still be part of our asset allocation?
Replies: 16
Views: 1476

Re: Should bond index funds still be part of our asset allocation?

Hi All, Is the Boglehead conventional wisdom still to have bond index funds as part of our asset allocation? Been seeing a lot of negativity lately regarding bond index funds and how volatility is not that much less than stock index funds. Just wanted to take others temperature on this. Thanks! Stactim: We purchased Vanguard Total Bond Market Index Fund in 1986 and I own it today. It has helped us weather many years in which the stock market has plunged as much as -37%. I remember The Great Depression when the Dow lost -89%. You can see, in the Table below, how Total Bond interacts with stocks during both good and bad years: Past rate of inflation (CPU) and annual fund returns in The Three-Fund Portfolio: YEAR--INFLATION--BOND INDEX--S&...
by Taylor Larimore
Wed Mar 06, 2024 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Need Copy of 2004 National Life Group Fixed Indexed Annuity Contract
Replies: 22
Views: 1656

Re: Need Copy of 2004 National Life Group Fixed Indexed Annuity Contract

Stinky:

If you ever start a company to analyze life insurance policies--I'll be your customer.

Best wishes.

Taylor
Jack Bogle's Words of Wisdom: "The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the entire field of investing."
by Taylor Larimore
Wed Mar 06, 2024 7:36 pm
Forum: Personal Investments
Topic: Are factors dead?
Replies: 84
Views: 10770

Re: Are factors dead?

Bogleheads:

When I am undecided where to invest, I do what experts recommend (not fund salesmen):

What Experts Say About Total Market Index Funds.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "I do not believe in Factor funds."
by Taylor Larimore
Tue Mar 05, 2024 7:46 pm
Forum: Personal Investments
Topic: To buy BND or not now ??
Replies: 63
Views: 8504

Re: To buy BND or not now ??

Bogleheads: Pat and I bought Vanguard Total Bond Market Index Fund (VBTLX) in 1986. My wife died in 2013 and I still own our same bond fund (in my Three-Fund Portfolio). Bonds are very complicated and most bond sales are made by bond professional's. They have made Vanguard Total Bond Market Index Fund the largest bond fund in the world (for good reasons like maximum diversification and very low-cost). In 2008 when the S&P 500 Index Fund plunged -37.0% our Total Bond Fund gained +5.2%. VBTLX did its job of helping us sleep better at night. Best wishes. Taylor Jack Bogle's Words of Wisdom: "Deep down, I remain absolutely confident that the vast majority of American families will be well served by owning their equity holding in an all...
by Taylor Larimore
Tue Mar 05, 2024 9:14 am
Forum: Personal Investments
Topic: A New Grad’s Factor-Based Portfolio Review
Replies: 21
Views: 1871

Re: A New Grad’s Factor-Based Portfolio Review

rentechjanitor:

I have not memorized the ticker symbols and too lazy to look them up.

My favorite portfolio is The Three-Fund Portfolio. You can read its many benefits here:

The Three Fund Portfolio

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite."
by Taylor Larimore
Sat Mar 02, 2024 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: When did your Net Worth surpass your lifetime earnings?
Replies: 93
Views: 11639

Re: When did your Net Worth surpass your lifetime earnings?

kbritcoal:

My net worth never did surpass my lifetime earnings.

Being of sound mind, I spent my money.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Not everything that counts can be counted, and not everything that can be counted counts.”
by Taylor Larimore
Sat Mar 02, 2024 4:18 pm
Forum: Personal Investments
Topic: Relevance of the Three Fund Portfolio
Replies: 30
Views: 3513

Re: Relevance of the Three Fund Portfolio

TheRoundHeadedKid wrote: Mon Feb 19, 2024 5:42 pm I am not a fan of the Three Fund Portfolio. It isn't diversified enough. Plus, you have to arbitrary/guess decide how to allocate the three funds. I don't have such issues with my strategy of all 86 Vanguard ETFs equally invested.
TheRoundHeadedKid:

Last I looked, The Three-Fund Portfolio contained over 15,000 worldwide stocks. How much "diversification" is enough?

How do you know your all-important stock/bond allocation?

Thank you.
Taylor
Jack Bogle's words of Wisdom: "There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite."
by Taylor Larimore
Wed Feb 28, 2024 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: A confident Boglehead in his 60s pondering managing a portfolio in their 80s and beyond?
Replies: 42
Views: 5529

Re: A confident Boglehead in his 60s pondering managing a portfolio in their 80s and beyond?

Old Guy wrote: Wed Feb 28, 2024 8:01 pm Last year at 80, I moved to let Fidelity manage my investments, which had been in their zero cost funds. They moved me out of those funds, and even with the costs associated I did better than with the zero cost funds. I also moved our last pre-tax IRAs to them.
Old Guy:

Would you mind listing your new Fidelity portfolio? Fidelity Zero cost funds are excellent (simple, low-cost, tax-efficient). I find it difficult to believe there are better Fidelity funds--except for Fidelity.

Taylor
Jack Bogle's Words of Wisdom: "You get to keep exactly what you don't pay for."
by Taylor Larimore
Wed Feb 28, 2024 7:43 pm
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 16924

Re: Retirees apparently tend to maintain assets - lessons for BH investors?

Bogleheads: I've lived over 100 years and we never worried about running out of money or saving too much. Our answer was two Single Premium Immediate Annuities (SPIA's) purchased in our late 70s. Best wishes. Taylor Jack Bogle's Words of Wisdom: "Depending on the particular circumstances, annuities are a good idea, but only annuities available at very low cost and commensurately high return." Taylor.. I always enjoy your posts (and your books). May I ask something about your SPIA decision making? 1. Did you purchase them each in the same year? and why did you do it in that fashion? We purchased our first AVIVA (now ATHENE) lifetime, 10 year certain annuity on August 28, 2006 with a premium of $116,720.48. My wife was skeptical. a...
by Taylor Larimore
Tue Feb 27, 2024 5:06 pm
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 16924

Re: Retirees apparently tend to maintain assets - lessons for BH investors?

Bogleheads:

I've lived over 100 years and we never worried about running out of money or saving too much. Our answer was two Single Premium Immediate Annuities (SPIA's) purchased in our late 70s.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Depending on the particular circumstances, annuities are a good idea, but only annuities available at very low cost and commensurately high return."
by Taylor Larimore
Tue Feb 27, 2024 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Cancer Diagnosis Hubby
Replies: 36
Views: 4535

Re: Cancer Diagnosis Hubby

joelly:

You have made over 500 contributing posts to this forum. You know that we will do all we can to help you.

Perhaps this will give you encouragement:

In 2005 I was diagnosed with throat cancer. The operation took away my voice (I now use an electronic assist). Since then I have had five additional cancers--and beaten all of them and with little or no pain.

I recently turned 100 years old.

Have hope. We love you.

Taylor
Jack Bogle's Words of Wisdom: "The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the entire field of investing."
by Taylor Larimore
Mon Feb 26, 2024 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of health care in retirement
Replies: 71
Views: 17234

Re: Cost of health care in retirement

Bogleheads:

Today I had my monthly nivolumab (OPDIVO) infusion (to prevent my earlier cancers from spreading).

In a few weeks, as in the past, I will receive a monthly University of Miami hospital bill for about $100,000.

Fortunately, my Medicare and Federal Blue Cross will pay the hospital bill in full.

Life is like a box of chocolates--you never know what you are going to get -- but I am VERY glad I had a good hospital policy.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the entire field of investing."
by Taylor Larimore
Sun Feb 25, 2024 5:47 pm
Forum: Investing - Theory, News & General
Topic: How to balance VTSAX?
Replies: 22
Views: 3001

Re: How to balance VTSAX?

Over the last few years VTSAX has been considered by Morningstar to be a Large Blend fund, but last year that has shifted to a Large Growth. Is there a suggested fund that could be added to turn VTSAX into a more balanced fund within a tax advantage account? Some of the best options I found through VG are the following: VVIAX, VEIRX, VHYAX Does one appear to be a better option than the others? A fund outside of VG could be used too if there are any other recommendations. And for simplicity sake, assume there is $100 in the VTSAX now. What is the best way to split this $100 between VTSAX and the Value Fund of choice to roughly achieve something closer to balanced ? tomwood: One of the benefits of VTSAX (Vanguard Total Stock Market Index Fun...
by Taylor Larimore
Sat Feb 24, 2024 8:15 pm
Forum: Personal Investments
Topic: Creating a Boglehead Portfolio with an SCV (small cap value) tilt
Replies: 29
Views: 2577

Re: Creating a Boglehead Portfolio with an SCV (small cap value) tilt

taxinthecat:

I apologize for not answering your questions directly. I think you should take a look at the many benefits of The Three-Fund Portfolio.

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan." -- "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk."
by Taylor Larimore
Sat Feb 24, 2024 1:22 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3895
Views: 2424225

Re: The Three-Fund Portfolio

Bogleheads:

New Video analysis The Three-Fund Portfolio:

Time to Ditch The Three-Fund Portfolio?

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk."
by Taylor Larimore
Wed Feb 21, 2024 8:58 pm
Forum: Personal Investments
Topic: 3 Fund Book
Replies: 9
Views: 912

Re: 3 Fund Book

Hi Mr Larimore, I’m very grateful for your reply. Thank you for taking the time. I do have the links you cited highlighted. On a personal note, I read with interest that you were a veteran of the Ardennes Offensive (Battle of the Bulge). Could I ask you what outfit you were with and sincere thanks for your service. Best, John O’Donnel PS I will be buying copies for my 3 adult children. John: Yes, I was a veteran of the Ardennes Offensive during World War II. I was a paratrooper with the 101st Airborne Division. Thank you for giving copies of The Three-Fund Portfolio book to your adult children. All royalties will go directly to " The John C. Bogle Center for Financial Literacy. Best wishes. Taylor Jack Bogle's Words of Wisdom: "I...
by Taylor Larimore
Wed Feb 21, 2024 7:09 pm
Forum: Personal Investments
Topic: 3 Fund Book
Replies: 9
Views: 912

Re: 3 Fund Book

Just finished reading Taylor Latimore’s excellent “Guide to 3 fund portfolio”. I still had 2 questions after finishing: 1. Is there a recommended AA among the funds by age? 2. I am 67 years old and will be retired by 70. Current retirement assets with fee-only advisor total fees 1% AUM. Thank you. JJODOD jjodod: I am very pleased that you enjoyed The Bogleheads' Guide to The Three-Fund Portfolio. I will try to answer your questions: 1. Is there a recommended AA among the funds by age? My answer: Although age is an important consideration, we need to also need to consider our goals, time frame, risk tolerance, and personal financial situation. Vanguard has a free Asset Allocation Tool to help you make your AA decision. You will find the lin...
by Taylor Larimore
Tue Feb 20, 2024 11:17 am
Forum: Personal Investments
Topic: How to invest $1M
Replies: 10
Views: 2188

Re: How to invest $1M

Bbogler:

Welcome to the Bogleheads Forum!

Take a look at The Three-Fund Portfolio. This web page also contains Vanguard's Asset-Allocation Tool which will answer your question about asset-allocation.

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan."
by Taylor Larimore
Mon Feb 19, 2024 7:08 pm
Forum: Personal Investments
Topic: Seeking Portfolio Guidance (just dropped financial planner)
Replies: 18
Views: 1876

Re: Seeking Portfolio Guidance (just dropped financial planner)

HankHillFan:

Take a look at the many benefits of:

The Three-Fund Portfolio

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The odds of outpacing an all-market index fund are, well, terrible."
by Taylor Larimore
Fri Feb 16, 2024 7:26 pm
Forum: Personal Investments
Topic: Help from those who tilt to SCV requested
Replies: 5
Views: 758

Re: Help from those who tilt to SCV requested

Lviotto:

This is an indirect reply, but I think you should consider the many benefits of The Three Fund Portfolio

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan." -- "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk."
by Taylor Larimore
Fri Feb 16, 2024 2:34 pm
Forum: Personal Consumer Issues
Topic: Miami Beach Hotel for one night
Replies: 10
Views: 1245

Re: Miami Beach Hotel for one night

We are in Costa Rica, and it occurred to us that flying home to Boston in one day is too hard on us. We wouldn’t get home until midnight, and this is just too hard on our 70+ year old bodies. I think it was Leo Tolstoy who said that the biggest surprise in a man’s life is old age. I can vouch for that So, we just arranged to fly into Miami, stay overnight and fly to Boston the following afternoon. I don’t know Miami at all, but we will have an afternoon and evening there, and I’d like to make the most of it. But, I have no idea where to stay. I’m looking at Google Hotels and Trip Advisor, and it’s overwhelming. I think it would be fun to stay on Miami Beach or South Beach where all the action I read about takes place. Contemporary hotel on...
by Taylor Larimore
Thu Feb 15, 2024 5:26 pm
Forum: Investing - Theory, News & General
Topic: Christine Benz
Replies: 24
Views: 4992

Christine Benz

Bogleheads:

Christine Benz, director of personal finance and retirement planning for Morningstar, has written thousands of articles and has probably helped more people achieve financial success than anyone on the planet.

I am happy to share with you this photograph taken at my recent 100th birthday party in Miami:

https://twitter.com/christine_benz/stat ... 9168913614

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The most important things in life and in business can't be measured."
by Taylor Larimore
Thu Feb 15, 2024 5:03 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562174

Re: Post your Financial Milestone Announcements Here

Bogleheads:

I believe it is a mistake to measure our financial success by the amount of money we have saved.

During my recent 100th birthday celebration in Miami, one of the guests took the microphone and asked me: "What does it feel like to be a millionaire?" My truthful answer was: "I am not a millionaire."

One way to become a millionaire is to invest prudently and save most of our income.

I chose to spend and give away most of my income. I am richer for it.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The most important things in life and in business can't be measured."
by Taylor Larimore
Thu Feb 15, 2024 1:57 pm
Forum: Personal Investments
Topic: Asset Allocation for Early Career Physician: What Would You Do If You Could Do It Again?
Replies: 65
Views: 5142

Re: Asset Allocation for Early Career Physician: What Would You Do If You Could Do It Again?

familythriftmd:
"Waiting for Mr. Larimore to chime in."
I agree with the respondents who recommended The Three-Fund Portfolio with its many benefits.

I just hit 100 years old. The Three-Fund Portfolio helped me get here.

Taylor
Jack Bogle's Words of Wisdom:"There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite."
by Taylor Larimore
Wed Feb 14, 2024 7:55 pm
Forum: Personal Investments
Topic: Portfolio with fidelity funds
Replies: 5
Views: 748

Re: Portfolio with fidelity funds

fecabral:

Welcome to the Bogleheads Forum!

Try not to clutter your portfolio with unnecessary funds.

Consider the many benefits of the simple Three-Fund Portfolio.

Happy Valentines Day!

Taylor
Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan."
by Taylor Larimore
Wed Feb 14, 2024 7:34 pm
Forum: Personal Consumer Issues
Topic: Happy Valentine’s Day! What’s your love song?
Replies: 88
Views: 4452

Re: Happy Valentine’s Day! What’s your love song?

Bogleheads:

This was our love song for a marriage that lasted 62 years:

"And I Love You So" by Perry Como.

Happy Valentines Day!

Taylor
Jack Bogle's Words of Wisdom: "The most important things in life and in business can't be measured."
by Taylor Larimore
Wed Feb 14, 2024 7:14 pm
Forum: Personal Investments
Topic: Fund advice
Replies: 10
Views: 1042

Re: Fund advice

My retirement portfolio consists of the following Vanguard index funds: Total Stock, Total International Stock, Total Bond and Money Market. Would adding a value fund be a good idea? And if yes should I go with Total Value Index or Small Cap Value Index? I know that the Total Market Index gives me some exposure to value companies. I am 73 and retired. Many thanks, Jeff Jeff: You now enjoy the same simple, low-cost, tax-efficient portfolio that has given us a worry-free retirement for more than 40 years. You don't need more value or small-cap index stocks which are already in your Total Stock Market Index fund. Strive for simplicity--not complexity. Best wishes. Taylor Jack Bogle's Words of Wisdom: "Selecting funds that will significan...
by Taylor Larimore
Wed Feb 14, 2024 12:21 pm
Forum: Investing - Theory, News & General
Topic: SCV tilt research data
Replies: 63
Views: 4749

Re: SCV tilt research data

Bogleheads:

The Financial Industry has a long history of encouraging investors to believe that we can beat the market by using their more expensive products and services.

Before succumbing to the financial industry's marketing machine, I believe it is a good idea to learn

What Experts Say About Total Market Index Funds

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "In my view, owning the market and holding it forever is the ultimate strategy for winners."
by Taylor Larimore
Tue Feb 13, 2024 12:55 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3895
Views: 2424225

Re: The Three-Fund Portfolio

JiggsJazzCar wrote: Tue Feb 13, 2024 11:57 am There is a new video about the 3 fund portfolio that was released today.
Pretty good overview!
https://www.youtube.com/watch?v=Wm2E2bgLtMQ
JiggsJazzCar:

Thank you for sharing this excellent video featuring The Three-Fund Portfolio and its many benefits.

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite."
by Taylor Larimore
Mon Feb 12, 2024 7:39 pm
Forum: Investing - Theory, News & General
Topic: SCV tilt research data
Replies: 63
Views: 4749

Re: SCV tilt research data

Is anyone aware of credible critiques of the small-cap value analysis offered by Paul Merriman and Richard Buck (e.g., in their publication "We're Talking Millions")? They contend that despite volatility and potential underperformance over shorter time periods, a significant and sustained tilt toward SCV has resulted in superior returns over any rolling 40-year period between 1970 and at least 2019. Extending even further back, they state, "Over the past 92 years, small-company value has been a great addition to any equity portfolio." Does anyone have references to analyses that dispute their data or contentions? Mr. Merriman is a very nice man and has been a long-time advocate of small-cap value stocks. Unfortunately, ...
by Taylor Larimore
Mon Feb 12, 2024 6:40 pm
Forum: Personal Investments
Topic: Should my 21-year old nephew fire his financial advisor?
Replies: 99
Views: 10668

Re: Should my 21-year old nephew fire his financial advisor?

Herrick55 wrote: Thanks for your comments and Happy Birthday Taylor. I just returned from visiting my 92 year-old father who is a Korean War Veteran (he served in the Navy on the USS Helena). I am very proud of him. Hweeixk55: Please tell your father that I appreciate his contributions to the war effort while he was in the Navy. It may interest you to know that I taught a 10-year old boy named Keith Davids to sail. Keith became an excellent sailor and I recommended him for entry into the U.S. Naval Academy. Keith is now the highest-ranking SEAL admiral in the Navy. His wife (also an admiral) was recently appointed Superintendent of the U.S. Naval Academy. Best wishes. Taylor Jack Bogle's Words of Wisdom: "The most important things in l...
by Taylor Larimore
Mon Feb 12, 2024 3:01 pm
Forum: Personal Investments
Topic: VBTLX for shorter term needs [Vanguard Total Bond Market Index Fund]
Replies: 29
Views: 3262

Re: VBTLX for shorter term needs [Vanguard Total Bond Market Index Fund]

type1.5fun:

I have a background in bonds. I was a director of the Dade County (Miami) Housing Authority which issues bonds. In my opinion, we spend too much time agonizing over "What is the best bond fund?" Most will do the job of providing safety in a portfolio.

For good reasons, TBM is the largest bond fund in the world (most bonds are bought and sold by professional investors who know what they are doing). Personally, we have owned Vanguard Total Bond Market Index Fund since 1986 and I am very happy with it.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “For those that want to keep things simple, total bond is a great option.”
by Taylor Larimore
Mon Feb 12, 2024 2:33 pm
Forum: Personal Investments
Topic: Should my 21-year old nephew fire his financial advisor?
Replies: 99
Views: 10668

Re: Should my 21-year old nephew fire his financial advisor?

herrick: My sister asked for my advice this morning on whether or not she should fire the financial advisor and put her son's money in Vanguard (he already has $500 in a Vanguard brokerage account VOO). She recently called the advisor to inquire why a 21-year old would have such a conservative asset allocation and he replied that a recession is coming . The financial advisor (?) is a market timer. Read what experts say about "market timing": https://www.bogleheads.org/wiki/Taylor_Larimore%27s_market_timing_quotes Best wishes. Taylor Jack Bogle's Words of Wisdom : "I do not know of anybody who has done market timing successfully. I don't even know anybody who knows anybody who has done it successfully and consistently."
by Taylor Larimore
Mon Feb 12, 2024 1:59 pm
Forum: Personal Investments
Topic: Should my 21-year old nephew fire his financial advisor?
Replies: 99
Views: 10668

Re: Should my 21-year old nephew fire his financial advisor?

Torino wrote:
The financial advisor clearly has no training or qualifications in financial planning and is just putting your nephew's money in many complicated funds to just sound smart - with no rhyme or reason.
It appears to me that the advisor selected what was a winning fund with the biggest load--an easy sell but horrible advice.

Taylor
Jack Bogle's Words of Wisdom: “Before costs, beating the market is a zero-sum game. After costs, it is a loser’s game.”
by Taylor Larimore
Sat Feb 10, 2024 8:17 pm
Forum: Personal Investments
Topic: Should my 21-year old nephew fire his financial advisor?
Replies: 99
Views: 10668

Re: Should my 21-year old nephew fire his financial advisor?

Herrick55:

I checked with Morningstar to learn the cost of your nephew's largest fund (AMECX). It has the highest front load of ALL American bond funds -- 5.75%. Vanguard funds have no front load.

AMECX also has an expense ratio of .58% compared with Vanguard Total Bond Market Index Fund of .050% (more than 10 times higher).

It is clear to me that your nephew's "advisor" wants to enrich himself more than he wants to help your nephew.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "You get to keep exactly what you don't pay for."
by Taylor Larimore
Sat Feb 10, 2024 7:33 pm
Forum: Investing - Theory, News & General
Topic: "Vectors"
Replies: 9
Views: 1842

"Vectors"

Bogleheads: I am somewhat of a newsletter junkie. It dates back 50 years ago when the Miami Library subscribed to several dozen financial newsletters. I would go down to the library every month to read the latest newsletters--and the 5 inch thick Morningstar Mutual Funds. In my opinion, currently one of the best financial newsletters is Vectors by George Sisti. Mr. Sisti is a former airline pilot turned financial advisor. This is a link to his latest issue of Vector s: Vectors Comments appreciated. Best wishes. Taylor Jack Bogle's Words of Wisdom: "The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the ent...
by Taylor Larimore
Fri Feb 09, 2024 5:38 pm
Forum: Personal Investments
Topic: New Boglehead firing my advisor & portfolio review
Replies: 10
Views: 1747

Re: New Boglehead firing my advisor & portfolio review

firefly443:

Welcome to the Bogleheads Forum!

Consider the many benefits of The Three-Fund Portfolio.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan."
by Taylor Larimore
Fri Feb 09, 2024 5:02 pm
Forum: Investing - Theory, News & General
Topic: Why can't asset allocations also be passively managed by following the markets?
Replies: 51
Views: 3571

Re: Why can't asset allocations also be passively managed by following the markets?

I'm sold on the reasons for choosing passive market-cap weighted index funds over actively managed funds, but struggle all the time with choosing an asset allocation. Choosing an AA is a subjective decision making process with subjective inputs full of second-guessing myself. Passive indexing principles are highly recommended within markets to take all the guesswork out of it, but they're seldom recommended across markets and that is a head scratcher for me. Why wouldn't most people also want to choose their asset allocation between stocks and bonds (and other assets) passively, based on the total market cap of the respective markets? Presumably the market pricing mechanisms work just as well at determining the fair value of all of it toge...
by Taylor Larimore
Fri Feb 09, 2024 2:34 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562174

Re: Post your Financial Milestone Announcements Here

Bogleheads:

A few days ago I reached my 100th birthday Milestone using The Three-Fund Portfolio for financial security (plus two SPIAs).

I would like to take this opportunity to thank my Boglehead friends for your kindness.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan."
by Taylor Larimore
Thu Feb 08, 2024 11:14 am
Forum: Personal Investments
Topic: Seeking advise to adjust my AA to 80/20 & organize portfolio funds. [portfolio review]
Replies: 11
Views: 1441

Re: Seeking advise to adjust my AA to 80/20 & organize portfolio funds. [portfolio review]

Hello All, We are looking to move our AA to 80/20 or 75/25. Not sure. Will welcome advise & suggestions. Right now at 92/8. Emergency Funds: Yes, 6 Months in Vanguard MM @ 5.5% Debt: Mortgage 190,000 @ 3.5% Tax Filing Status: Married Filing Jointly Tax Rate: 22% Federal, 6.35% State ( In between jobs right now ). State of Residence: CT Age: Her: 52, His: 55 Desired Asset allocation: 80% stocks / 20% bonds or 75 / 25. Not sure? right now at 92/8. Desired International allocation: Unsure? Recommendations? Please provide an approximate size of your total portfolio $1.7M Current retirement assets Taxable Vanguard 50.72% or 854,284 45% VOO Vanguard S&P 500 etf .03 3.92% VWILX Vanguard international growth .31 1.66% VTMGX Vanguard develo...
by Taylor Larimore
Thu Feb 08, 2024 11:03 am
Forum: Investing - Theory, News & General
Topic: Why No Love For BND?
Replies: 183
Views: 16301

Re: Why No Love For BND?

Bogleheads:

The title of this topic, "Why No Love for BND?" is VERY misleading.

Investors have made BND the largest bond ETF on the planet.

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "Deep down, I remain absolutely confident that the vast majority of American families will be well served by owning their equity holdings in an all-U.S. stock -market index portfolio and holding their bonds in an all-U.S. bond-market index portfolio."
by Taylor Larimore
Thu Feb 08, 2024 9:54 am
Forum: US Chapters
Topic: Are any BH's not wealthy?
Replies: 165
Views: 25630

Re: Are any BH's not wealthy?

Bogleheads:

At my 100th birthday party attended by 90 people, someone asked: "What does it feel like to be a millionaire?"

I truthfully replied, "I have never been a "millionaire."

I did not explain that I have given away more than a million dollars to heirs and charity.

Taylor
Jack Bogle's Words of Wisdom: "Not everything that counts can be counted, and not everything that can be counted counts.”