NOOB trying to learn (yes im a tad late age 52)

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goixiz
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Joined: Wed May 22, 2019 6:40 am

NOOB trying to learn (yes im a tad late age 52)

Post by goixiz » Fri May 24, 2019 6:25 am

I want to (but unsure) follow the simple 3 FUNDS investing strategy
I with very minimal to zero knwoledge as i have always used financial advisors and starting to learn and want to be independent when making investment decisions.

If my wife has $30k (50% in Roth account) at age 57 [not needing to withdraw these funds till much later as i will take care of her till that time]
What 3funds would you recommend she should be investing in ?

Thanks in advance

Topic Author
goixiz
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Joined: Wed May 22, 2019 6:40 am

Re: The Three-Fund Portfolio

Post by goixiz » Fri May 24, 2019 6:47 am

[Merged into here from: The Three-Fund Portfolio --admin LadyGeek]

Does it matter which funds to get if its in a ROTH or personal investment account ? if trying to follow the 3FP (3 fund portfolio)

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augryphon
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Re: NOOB trying to learn (yes im a tad late age 52)

Post by augryphon » Fri May 24, 2019 8:03 am

The Bogleheads Wiki is a great place to start:

https://www.bogleheads.org/wiki/Three-fund_portfolio

dbr
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Re: The Three-Fund Portfolio

Post by dbr » Fri May 24, 2019 8:39 am

goixiz wrote:
Fri May 24, 2019 6:47 am
Does it matter which funds to get if its in a ROTH or personal investment account ? if trying to follow the 3FP (3 fund portfolio)
Tax efficient fund placement matters: https://www.bogleheads.org/wiki/Tax-eff ... _placement

There are numerous threads discussing this topic as sometimes there are exceptions in any particular case depending on an individual tax situation. Often it is suggested assets with greatest expected return go in a Roth while generally most tax costly assets should go in any kind of tax deferred/tax exempt account. Sometimes the taxable account should use tax exempt bonds. Also I bonds are a route to tax deferred income.

Greg in Idaho
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Re: NOOB trying to learn (yes im a tad late age 52)

Post by Greg in Idaho » Fri May 24, 2019 8:51 am

This^^^

And reading all around in the wiki is a great place to learn...that can take you a very long way on its own...

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LadyGeek
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Re: NOOB trying to learn (yes im a tad late age 52)

Post by LadyGeek » Fri May 24, 2019 10:41 am

goixiz, Welcome! In order to give appropriate advice, it's best to keep all the information in one spot. I merged your question (and replies) back into the original thread. If you have any questions, ask them here.

On an administrative note, ROTH is not an acronym. It's the name of a US senator. See the wiki: Roth IRA
Named after US Senator William Roth, Roth IRAs were established by the Taxpayer Relief Act of 1997.
This thread is now in the Personal Investments forum (portfolio help).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

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ruralavalon
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Re: NOOB trying to learn (yes im a tad late age 52)

Post by ruralavalon » Fri May 24, 2019 11:12 am

Welcome to the forum :) .

Age 52 isn't too late to make a positive difference by using broadly diversified, low expense funds in a reasonable investing plan.

goixiz wrote:
Fri May 24, 2019 6:25 am
I want to (but unsure) follow the simple 3 FUNDS investing strategy
I with very minimal to zero knwoledge as i have always used financial advisors and starting to learn and want to be independent when making investment decisions.

If my wife has $30k (50% in Roth account) at age 57 [not needing to withdraw these funds till much later as i will take care of her till that time]
What 3funds would you recommend she should be investing in ?

Thanks in advance
goixiz wrote:
Fri May 24, 2019 6:47 am
[Merged into here from: The Three-Fund Portfolio --admin LadyGeek]

Does it matter which funds to get if its in a ROTH or personal investment account ? if trying to follow the 3FP (3 fund portfolio)
It depends on what fund company the account(s) are with. If the account(s) are at Vanguard the funds to use, and my suggestion for allocation, would be:
1) 45%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%;
2) 15%, Vanguard Total Stock Stock Index Fund Admiral Shares (VTIAX) ER 0.11%; and
3) 40%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%.

Some additional information is needed.

What accounts does she have, where are they located, how much is in each account, and what investments is she currently using in each account? Please give fund names, tickers and expense ratios.

It's often better to coordinate investments among all accounts of a married couple.

What accounts do you have, where are they located, how much is in each, and what investments are you using in each? Please give fund names, tickers and expense ratios.

How much (in dollars) is being contributed annually to each account?

What is your tax bracket, both federal and state? What is your tax filing status?

Please see this for information needed and format: "Asking Portfolio Questions". Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

bizkitgto
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Re: NOOB trying to learn (yes im a tad late age 52)

Post by bizkitgto » Sat May 25, 2019 1:07 am

I've looked into this a lot, I think the 3 Fund Boglehead portfolio is the best. Simplicity rules and fees matter! Your AA will depend on your own risk tolerance. Some say hold your age in bonds, others stick with classic 60/40 (stocks/bonds), and others don't hold any bonds. For what it's worth I am 20% BND, 50% VTI and 30% VXUS...rebalance annually (or during market drawdowns).

When I asked Taylor Larimore (go read some of his recent posts) what his asset allocation is, he told me:
Last I looked it was about 25% Vanguard Total Bond Market Index Fund and 75% Total Stock Market Index Fund (my income supports my modest lifestyle).
This is a great read: viewtopic.php?f=10&t=194149
Keep it simple: 20% BND, 50% VTI and 30% VXUS

22twain
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Re: NOOB trying to learn (yes im a tad late age 52)

Post by 22twain » Sat May 25, 2019 6:09 am

bizkitgto wrote:
Sat May 25, 2019 1:07 am
When I asked Taylor Larimore (go read some of his recent posts) what his asset allocation is, he told me:
Last I looked it was about 25% Vanguard Total Bond Market Index Fund and 75% Total Stock Market Index Fund (my income supports my modest lifestyle).
Keep in mind that Taylor is 95. :wink:

viewtopic.php?t=270837
My investing princiPLEs do not include absolutely preserving princiPAL.

272 Sheep
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Re: NOOB trying to learn (yes im a tad late age 52)

Post by 272 Sheep » Sat May 25, 2019 9:28 pm

Its never too late and never too late to learn.
Additionally, I have found what has worked for me, is reading a few good books by good people to give yourself knowledge, perspective
which will build confidence.
https://www.bogleheads.org/RecommendedReading.php

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