To stay a Boglehead, I have to leave Bogleheads.org

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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bonaire27
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To stay a Boglehead, I have to leave Bogleheads.org

Post by bonaire27 » Wed Jun 18, 2014 8:46 am

How’s that for an ironic title? I found this site a few months ago and have used the expertise of the posters to get my investing house in order. I have completely simplified into a few index funds. The trouble is that I keep reading the site every single day. It is bad for me. I find myself questioning my ‘stay the course’ path that I have set more myself. Should I tilt? Is this a good time to buy emerging markets? Yes. No. Wait! Maybe? The list goes on and on. Everybody is so knowledgeable that I am easily swayed. And then somebody like Taylor or Steve_14 or some others chime in and state to keep it simple. I take a breath and relax. Then I tune in the next day and read the next strategy about lowering my bond exposure. And I question my strategy all over again. I can’t rely on myself to stay the course if I keep reading the site all the time. I admire the ability of so many of you who can visit and post on this site so often, but still tune out the noise and stay the course.

I’ll take the simple approach to investing in just a few index funds. So time for me to back off…back way off. Maybe I'll go fishing. To stay a Boglehead, I have to stop visiting the Boglehead world. Oh, the irony. :oops:

There may be a lesson in here for other newbies (or not). If you find yourself switching your strategy seemingly with every new post. Get out! :?

**of course, I’ll still visit periodically, but hopefully it gets less and less over time. Time to taper off of the site. :sharebeer

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rob
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by rob » Wed Jun 18, 2014 8:54 am

Good for you that you know what it's going to take you to stay the course..... There are browser plugins that will disable access to certain sites for x periods - so install one and forget about it :D
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

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swimirvine
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by swimirvine » Wed Jun 18, 2014 8:59 am

“The enemy of a good plan is the dream of a perfect plan.”
― Carl von Clausewitz
The way I invest my money is not the right way to invest, it's the right way for ME to invest.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by The Wizard » Wed Jun 18, 2014 9:04 am

The investment universe does evolve, but slowly.
So after just a few months, a newbie can get his portfolio pretty much they way it should be.
Beyond that, there are dozens of other money-spending topics that can be explored.
And, of course, there's always the option of using what you've learned to help NEW newbies...
Attempted new signature...

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by LateStarter1975 » Wed Jun 18, 2014 9:04 am

You can choose what to read...at least that's what I do. I agree with you that you can get confused, for newbies like us, when we read so many knowledgeable posts here about new strategies. I've resolved to first check the title and if it's something that will not deter me from tinkering with my meager portfolio, I don't open the thread. There are so many topics on life and money that do not involve portfolio management and I get a lot of education from such posts. So, like you, I understand how you can easily be swayed to keep tinkering with your portfolio when you read this site often. However unlike you, I have mastered how to make the best of this wonderful site without allowing it to tinker often with my portfolio. I have made my AA, selected my funds and I'm staying the course.
Debt is dangerous...simple is beautiful

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Leif
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Leif » Wed Jun 18, 2014 9:20 am

Maybe a hiatus would be good. Collect some investment books, read them, then collect your thoughts. I did A LOT of reading before coming to the Diehards and later the Bogleheads. Right now you are in a dangerous place. If you're not steady a strong market wind will blow you over.
Last edited by Leif on Wed Jun 18, 2014 9:21 am, edited 1 time in total.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by bloom2708 » Wed Jun 18, 2014 9:20 am

I tend to read more about cars, hobbies, vacations, etc.

If I see an interesting investing thread I read it, evaluate, possibly even execute a change in my mind. Then I don't do it.

Thinking about adding REIT? Nope. TIPS? Nope. Buy Apple? Nope.

No plans to stop visiting/reading. But I do admit I don't have Facebook, Twitter or Cable.
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by bcjb » Wed Jun 18, 2014 9:51 am

I ignore the threads that don't apply or that I know will make me doubt my asset allocation -- slice & dice, PE10/valuation anxiety,... But there's so much good information here.

Also, as The Wizard says, why not stay and help out the 'new newbies'?

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bonaire27
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by bonaire27 » Wed Jun 18, 2014 10:05 am

bcjb wrote:I ignore the threads that don't apply or that I know will make me doubt my asset allocation -- slice & dice, PE10/valuation anxiety,... But there's so much good information here.

Also, as The Wizard says, why not stay and help out the 'new newbies'?
I have to make sure I can help myself before helping anybody else. Its the old oxygen mask on an airplane analogy. Once I have my discipline mastered, I'll chime back in to help the newbies. :D

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bertilak
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by bertilak » Wed Jun 18, 2014 10:12 am

bonaire27 wrote:
bcjb wrote:I ignore the threads that don't apply or that I know will make me doubt my asset allocation -- slice & dice, PE10/valuation anxiety,... But there's so much good information here.

Also, as The Wizard says, why not stay and help out the 'new newbies'?
I have to make sure I can help myself before helping anybody else. Its the old oxygen mask on an airplane analogy. Once I have my discipline mastered, I'll chime back in to help the newbies. :D
Stay and help us proselytize the "Majesty of Simplicity!" You will not be alone. On the contrary you will have Taylor Larimore in your corner.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet

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Toons
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Toons » Wed Jun 18, 2014 10:19 am

swimirvine wrote:“The enemy of a good plan is the dream of a perfect plan.”
― Carl von Clausewitz

Excellent,,,I been reading and re-reading this quote for many many years,Nothing in life is "perfect".
Thanks for posting :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by pkcrafter » Wed Jun 18, 2014 10:30 am

bonaire, thanks for this post. What you are experiencing is noise. Yes, even on the Bogleheads' forum. The Boglehead method of investing is ideally suited for average investors like you and me, but some can't seem to follow Taylor's unflappable advice and they have to tinker with increasing returns. Once investors start to do that, they increase their chances of not getting what the Bogleheads method provides--their fair share. The straight Boglehead approach strongly recommended by Taylor is suitable for 80-90% of investors. The remaining 10-20% can probably handle more complex investing strategies, but those 10-20% are making 80% of the noise.

Your post not only is an admission that the noise bothers you, it is also a great help for other new Bogleheads who are also getting confused. You maybe you are making the leap from new Boglehead to Boglehead supporter to new readers. Stay the course :sharebeer

http://www.bogleheads.org/blog/the-thin-green-line/



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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by azanon » Wed Jun 18, 2014 10:36 am

I actually think you make a great point. I'm not sure I'd even advise this forum for anyone except advanced or "investing adults", similar to the group that Bernstein is referring to in his short book series. For the typical investor, who is going to be prone to doing more harm than good to their portfolio, particular the emotional/persuasive types, are probably better off not coming here, working up a solid IPS, and sticking to it. Or their better off going to Vanguard's primary website, and using their tools or advisers.

When I get asked for investing advise, I typically recommend a few choice investment books. I don't send them here for the very reason you're pointing out. That isn't a knock against this excellent forum. I would just be fearful of the very kind of persuasion that you're talking about.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by asif408 » Wed Jun 18, 2014 10:38 am

bonaire27,

I think I need to start doing the same thing. I'm still learning, but feel like I finally have my investing basics covered and am comfortable with my asset allocation. I know it's not perfect, but I also know that no else's is either. It took me several months of reading books, reading the message boards here, and listening to podcasts to come to this point.

I think I am nearing the time to just back off and stay the course (and maybe get out to the golf course more)! I do plan to still visit and post to help newbies, because it wasn't that long ago that I was a clueless newbie. I'm sure I'll come across financial questions and issues here and there that I can't solve by myself, so I'll never go away completely. Just hopefully be a less frequent visitor, but still try to contribute to the fundamental Boglehead philosophy.

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Lifut
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Lifut » Wed Jun 18, 2014 10:43 am

I agree with this to the extent that I could have typed it up. Other than the fact that I view the site daily...

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by SamB » Wed Jun 18, 2014 10:47 am

You obviously have not read enough, and you don't have enough experience. Eventually you get saturated, and you also eventually realize that your asset allocation is a small part of your financial risk. If you are worried that 30 years from now you would have suffered because of some tweak in your asset allocation then you are worried about the wrong thing.

I have been at this for 35 years, and if I had to identify what was really important, I could count those things on one hand and have fingers left over. Of course you can make finance and economics a hobby, but your ability to predict the future, especially to the third or fourth decimal place is pure folly.

twindad57
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by twindad57 » Wed Jun 18, 2014 10:56 am

Great post!

I often feel the same way as a relative newbie here. While Taylor (and others) offer a straightforward approach, if you already have an existing portfolio it may not be easy to get to that simplified state even if you want to. As a result, it takes an iterative approach or a compromise. This can get overwhelming and frustrating when presented with so much good, thoughtful information.

One thing that might help is to write out an investment policy statement. I am in the process of doing just that, in part to create a roadmap for my family, but also to act as a filter when I read this forum.

I do applaud you for being self-aware and doing something about it. That's a good lesson for all investors!

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by yukonjack » Wed Jun 18, 2014 11:04 am

I'm not sure that I would quit the site entirely. Maybe cut back how often you visit the site and be more selective with the posts that you read. For me personally, I like to read many posts to get a consensus and follow the plan I'm comfortable with. I think the best start is to read many of the recommended books on the wiki. That way you will gain confidence in your ability to make tough financial decisions. Take a break, read lots of books and come back to the site. It really is one of the very best out there. Good luck.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by pennstater2005 » Wed Jun 18, 2014 11:13 am

Good post. I can see where you're coming from. Write an IPS and stick to it. Doesn't have to be a long one either unless that suits you. You're correct about the noise, although for the most part the noise here at bogleheads is less damaging than outside noise. Good luck.
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by sscritic » Wed Jun 18, 2014 11:16 am

bonaire27 wrote: I have to make sure I can help myself before helping anybody else. Its the old oxygen mask on an airplane analogy. Once I have my discipline mastered, I'll chime back in to help the newbies. :D
Do you really know nothing about cars, having your father coach you in soccer, what's on tv, what community property is, etc.?

You must know something. Maybe you don't.
Maybe I'll go fishing.
Is fishing something you know nothing about?

MathWizard
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by MathWizard » Wed Jun 18, 2014 11:21 am

You've helped other out already in your posts.
If you need to tune out the noise from the discussions part of this site,
I would definitely do so. In the discussions, things can get muddled.

I'd suggest bookmarking the wiki though. There is a lot of
material there that has been hashed out, and is in good shape.

As an example, the table on marginal tax rates in

http://www.bogleheads.org/wiki/Taxation ... y_benefits

makes it much easier to understand this topic.

http://www.bogleheads.org/wiki/Roth_IRA ... gency_fund

is another issue that comes up often and the basics are covered well.

I wish you well.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Call_Me_Op » Wed Jun 18, 2014 11:22 am

bonaire27 wrote:How’s that for an ironic title? I found this site a few months ago and have used the expertise of the posters to get my investing house in order. I have completely simplified into a few index funds. The trouble is that I keep reading the site every single day. It is bad for me. I find myself questioning my ‘stay the course’ path that I have set more myself.
It sounds like you do not have great confidence in the AA you have chosen. I enjoy reading all of the differing opinions here. It is a form of "kicking the tires" on my portfolio. Never be afraid to question or to be questioned.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Roy » Wed Jun 18, 2014 11:27 am

bonaire27 wrote:
I’ll take the simple approach to investing in just a few index funds. So time for me to back off…back way off. Maybe I'll go fishing. To stay a Boglehead, I have to stop visiting the Boglehead world. Oh, the irony. :oops:
Best post ever.

Good luck, Bonaire.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Ever Ready » Wed Jun 18, 2014 11:37 am

This is not an uncommon situation. Index investing can be pretty boring, too.

One approach, recommended by Jack Bogle in "The Little Book of Common Sense Investing"
is to use up to 5% of your assets as a "Funny Money" account, to try out other types of investments.
Invest in exotic asset sub-classes, actively traded funds, single stocks, even commodities.
You could do this to see how they work out, or just for entertainment.
This could satisfy our "animal spirits", without seriously imp[acting your portfolio return.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by sunnywindy » Wed Jun 18, 2014 12:00 pm

Read Rick Ferri's books (or his blog)...You get your Boglehead.org fix, but don't feel inspired to mess with your asset allocation.
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by DaufuskieNate » Wed Jun 18, 2014 12:08 pm

bonaire27 wrote:Oh, the irony. :oops:
The irony indeed. The path to becoming a Boglehead seems to require intelligence, engagement, critical review, and an open mind to new ideas. Oh, and a lot of reading and research. Then, once your AA and IPS are in place, the path becomes one of "staying the course." It even seems that the true masters rarely check their portfolios and spend only a few minutes a year in re-balancing activities. I find myself wishing that I could do this. Its as if a different part of the brain has to kick in once all the analysis is done and the critical decisions have been made.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by renata » Wed Jun 18, 2014 12:13 pm

We have followed the excellent advice of Bogleheads and the outcome had been amazing!!! In only one and half year period. I read this amazing forum every day (except when we travel) and fear it would't be available for some reason. It's my first choice when I need to research any topic. And it has never failed. Thank you Bogleheads you are amazing. I hope one day I'll become more knowledgeable to help "newbies" with some useful input. I keep learning and staying the course.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by triggerfish10 » Wed Jun 18, 2014 12:25 pm

Bonaire, I am so very glad that you started this thread, since I too have begun to feel the same way. Fortunately for me it was not too difficult to transform my portfolio into more of the type championed by the very knowledgeable posters on this site, but I also acknowledge that I am easy to sway, and find myself questioning whether or not I have put an appropriate plan into place when I read about tilting, over/underweighting, etc. Heck, just the other day I started a food related thread just so I could contribute...something. Maybe I'll see you on the lake sometime.
"A quiet and modest life brings more joy than a pursuit of success bound with constant unrest" - Albert Einstein

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bogleblitz
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by bogleblitz » Wed Jun 18, 2014 12:32 pm

I experience the exact same feeling the first half year here. I change my portfolio so many times and got a letter from fidelity 401k saying that I'm banned from trading certain mutual fund for 1 year.

I kept visiting this site and kept learning. Eventually I'm no longer swayed by the reits, small caps, gold, private equities, 100% stock threads.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by VictoriaF » Wed Jun 18, 2014 12:36 pm

It's true that understanding and implementing a Bogleheads investment strategy is easy. You buy a single fund (such as Vanguard's Target fund) or 2-3 index funds (stocks, bonds, and possibly international stocks), and you have done most of the work. However, there are many other aspects of investing that require further attention. For example:
- How to treat accounts where the choice of funds is not yours, e.g., 401(k)?
- When and how to rebalance?
- Better options in fixed income that are always changing, e.g., bank municipal bonds and bank CDs
- Decumulation strategies
- Social Security strategies
- Wills, inheritances
- some others

Furthermore:
- Tax law is changing and some strategies are changing in response.
- New types of securities become available.
- I Bond and TIPS rates are changing and the Bogleheads are on top of the latest news.

Apart from purely financial information, the Bogleheads are a community. We discuss consumer purchases and some other consumer choices, e.g., electronics, computer security, travel, education, etc.

And so, yes, it's possible to get a 3-fund portfolio and delete Bogleheads from the bookmarks. But the added value of other discussions is fairly significant. At least, it is in my opinion.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

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bonaire27
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by bonaire27 » Wed Jun 18, 2014 12:53 pm

Victoria,

I agree with everything you have said. I just need to step away until I learn to quit tinkering. Once I accomplish that, I will likely return, but less frequently, because of all of the reasons you listed. And as others have suggested, I need to avoid topics that may influence my "stay the course" strategy. Goodbye tilting posts.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by acegolfer » Wed Jun 18, 2014 12:54 pm

bonaire27 wrote:The trouble is that I keep reading the site every single day. It is bad for me. I find myself questioning my ‘stay the course’ path that I have set more myself. Should I tilt? Is this a good time to buy emerging markets? Yes. No. Wait! Maybe? The list goes on and on.
Here's a remedy.

Visit other websites such as http://www.city-data.com/forum/investing/ Its community advocates active management over indexing. Then you will probably want to come back to BH.
Last edited by acegolfer on Wed Jun 18, 2014 12:57 pm, edited 1 time in total.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by nisiprius » Wed Jun 18, 2014 12:55 pm

bonaire27, ain't it the truth? I honestly feel that I was a better investor in the days before the Internet, when I didn't read the Wall Street Journal, when the only information I got about my investments was a quarterly statement, and my idea of intense investing research was to borrow a Moody's handbook from the library.

It's very very very tough. Jack Bogle says "stay the course" but then he also comes out and says that he doesn't think Total Bond, or the index it tracks, has enough corporates in it. You can't literally invest exactly the same way you invested thirty years. I think the big thing is to ignore the ebbs and flows of fashion trends that have about the time scale of clothing fashions or bestselling books... the periods of six months to a year when "everyone" is saying to Do Something.

I think one really does have to resist the temptation to try to implement even things that sound like really good ideas.

A long-term investing plan that gets updated annually isn't a long-term plan.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Silence Dogood » Wed Jun 18, 2014 1:05 pm

bonaire27, I feel your pain. I don't visit the site as often as I use to. I have all of my investments in one fund, a Vanguard Target Retirement fund. I try to avoid any posts about tilting, bitcoins, gold, or other investment strategies. I like to keep things simple.

The posts that I tend to enjoy the most are about consumer purchases/computer security/travel/college decisions/reminders to stay the course.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Bustoff » Wed Jun 18, 2014 1:12 pm

bonaire27,
Thanks for the reminder.
For me this forum can be like walking into a gourmet all-you-can-eat buffet. Everything looks good!

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Abe » Wed Jun 18, 2014 1:14 pm

Bogleheads follow a few simple investment principles. Once you get the basics down, what else is there to learn? Having said that, I find myself continuing to come back to this site. I think part of it is because I can't discuss my financial situation with people I know, but I can here because I'm ananymous. Also, I can identify with other posters. And it's good to be able to help others. Most of the questions asked on this site could be answered: "It depends." Maybe that's part of the reason for coming back. Everybodys situation is different, so it's not always the same old boring thing.
Slow and steady wins the race.

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Fallible » Wed Jun 18, 2014 1:24 pm

bonaire27 wrote:...
I’ll take the simple approach to investing in just a few index funds. So time for me to back off…back way off. Maybe I'll go fishing. To stay a Boglehead, I have to stop visiting the Boglehead world. Oh, the irony. :oops:
...
OP, I see words of wisdom from you here and only seeming irony. Leaving or cutting down on visits to the forum is, for you, exercising the discipline to stay the course and that's pure Bogleheadism.

Good luck with the fish. :beer
John Bogle on his often bumpy road to low-cost indexing: "When a door closes, if you look long enough and hard enough, if you're strong enough, you'll find a window that opens."

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Levett » Wed Jun 18, 2014 1:27 pm

I don't read this site for "advice."

I read it because I enjoy observing how some people approach a problem.

It's the minds at work that provide the pleasure. 8-)

Lev

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by IlliniDave » Wed Jun 18, 2014 1:38 pm

bonaire27 wrote:How’s that for an ironic title? I found this site a few months ago and have used the expertise of the posters to get my investing house in order. I have completely simplified into a few index funds. The trouble is that I keep reading the site every single day. It is bad for me. I find myself questioning my ‘stay the course’ path that I have set more myself. Should I tilt? Is this a good time to buy emerging markets? Yes. No. Wait! Maybe? The list goes on and on. Everybody is so knowledgeable that I am easily swayed. And then somebody like Taylor or Steve_14 or some others chime in and state to keep it simple. I take a breath and relax. Then I tune in the next day and read the next strategy about lowering my bond exposure. And I question my strategy all over again. I can’t rely on myself to stay the course if I keep reading the site all the time. I admire the ability of so many of you who can visit and post on this site so often, but still tune out the noise and stay the course.

I’ll take the simple approach to investing in just a few index funds. So time for me to back off…back way off. Maybe I'll go fishing. To stay a Boglehead, I have to stop visiting the Boglehead world. Oh, the irony. :oops:

There may be a lesson in here for other newbies (or not). If you find yourself switching your strategy seemingly with every new post. Get out! :?

**of course, I’ll still visit periodically, but hopefully it gets less and less over time. Time to taper off of the site. :sharebeer
I understand and have contemplated the same more than once. Good luck to you!
Don't do something. Just stand there!

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Abe
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Abe » Wed Jun 18, 2014 1:44 pm

Levett wrote:I don't read this site for "advice."

I read it because I enjoy observing how some people approach a problem.

It's the minds at work that provide the pleasure. 8-)

Lev
Good point. :beer
Slow and steady wins the race.

target2030
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by target2030 » Wed Jun 18, 2014 1:51 pm

On the contrary, spending a little time on bogleheads.org on an almost daily basis helps keep me disciplined. This is considering the temptation (to buy individual stocks) engendered by my friends talking all the time about their hot picks and how they have realized huge gains in small time periods.

fmzip
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by fmzip » Wed Jun 18, 2014 2:21 pm

I too feel a bit of the same as a noob here.

I pulled the plug on my financial adviser a few weeks ago and transitioned everything to Vanguard. All my funds are almost available to invest, I have my AA all set and I still wonder if it's right etc, etc......

I was hoping for a 10% correction to make things easier but I read something today that said it's time in the market that matters, no need to try to time the market. That is some very solid advice.

I think that it is also good advice to read Rick's blog instead for awhile. I followed his AA advice since it made sense to me.

I too have a friend that tells me about his scores with AAPL and BAC. He has close to $1M of his $3M portfolio in these two stocks. He's been a gambler all his life and has done very well for a very, very long long time (20+ years). I will say this he has guts and it has paid off for "now" but I do see his greed is causing him to get much more riskier.I myself couldn't stomach that but I surely am envious of his portfolio versus mine. At 48 I want to reach the finish line in ten years. I keep telling myself all I need is a 4% average return per year over this next decade and I am there.....
nisiprius wrote: It's very very very tough. Jack Bogle says "stay the course" but then he also comes out and says that he doesn't think Total Bond, or the index it tracks, has enough corporates in it. You can't literally invest exactly the same way you invested thirty years ago. I think the big thing is to ignore the ebbs and flows of fashion trends that have about the time scale of clothing fashions or bestselling books... the periods of six months to a year when "everyone" is saying to Do Something.
The hard part for me as a noob is understanding what is or may be a required change in fundamentals and what isn't just as you pointed out above. I'd like to think I can turn a blind eye and let my investments run on autopilot but is it realistic to do so? If I was 25 again, I think it would be much easier in some regards, being 48, time isn't as much on my side as it once was.

stlrick
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by stlrick » Wed Jun 18, 2014 5:22 pm

Toons wrote:
swimirvine wrote:“The enemy of a good plan is the dream of a perfect plan.”
― Carl von Clausewitz

Excellent,,,I been reading and re-reading this quote for many many years,Nothing in life is "perfect".
Thanks for posting :happy
I believe that this aphorism usually is attributed to Voltaire, from his poem "La Begueule" (1772): "Le mieux est l'ennemi du bien" (The best is the enemy of the good).

Voltaire died in 1778 and Carol von Clausewitz was born in 1780, so there is no ambiguity about priority.

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schuyler74
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by schuyler74 » Wed Jun 18, 2014 5:28 pm

A year ago, I decided to go to a "Core Four" (TSM, TISM, Bonds, REITs) and rejected tilting. Last week, after reading various threads, I almost decided to start tilting. But then other threads show that investors tend to lose returns due to jumping in to a trend too late. So then I decided I must be wanting to tilt now not because it's actually good to tilt, but instead because tilting would have performed well the past few years. So I decided to make no changes.

So... I'm not sure if reading all these threads is a good idea or bad idea. I'm still tempted to make adjustments due to recency bias.

The Wizard
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by The Wizard » Wed Jun 18, 2014 5:37 pm

Start worrying about how to handle your finances when you are retired.
That'll keep you busy for AT LEAST the next decade...
Attempted new signature...

Caduceus
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Caduceus » Wed Jun 18, 2014 5:50 pm

I think what a lot of people do is just post questions here when they need help rather than read most (or even just some) of the posts over here. That could work too!

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Peculiar_Investor
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Peculiar_Investor » Wed Jun 18, 2014 6:21 pm

Anyone looking for other ways to contribute could spend some time helping to improve the wiki. How about proofreading some pages to see if things are a) easily understandable and b) flows together well? Find a typo or two, or some grammar/spelling mistakes. Take a look a Recent changes in the article area of the wiki, or for the more adventurous, how about a Random page. If you spot ways to improve an article, use the Article Feedback Tool at the bottom of each article to offer your suggestions. Or better yet, become an editor and make the changes yourself.
Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

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avenger
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by avenger » Wed Jun 18, 2014 6:51 pm

swimirvine wrote:“The enemy of a good plan is the dream of a perfect plan.”
― Carl von Clausewitz
This quote is referenced in my IPS.

cheers ... -Mark
cheers ... -Mark | "Our life is frittered away with detail. Simplify. Simplify." -Henry David Thoreau | [3 fund portfolio: VTI, VXUS, SV fund (yield 3.01%)]

Stonebr
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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by Stonebr » Wed Jun 18, 2014 6:59 pm

What I've learned is to simply do what Taylor Larimore and Jack Bogle recommend. It's taken a long time for their lessons to sink in -- simplicity, patience, and accepting my "fair share" of market returns.
"have more than thou showest, | speak less than thou knowest" -- The Fool in King Lear

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Re: To stay a Boglehead, I have to leave Bogleheads.org

Post by rnitz » Wed Jun 18, 2014 7:38 pm

Thanks for your post, Bonaire. I would encourage you to continue reading bogleheads.org, if only for you to get a fraction the pleasure I get from it everyday. The learning experience is absolutely wonderful.

As to how to stay the course, I would recommend two things: first of all (as previously mentioned) write an IPS (Investment Policy Statement) - it doesn't matter if it's right or wrong, just put it on paper (pixels?). You've probably already done much of it with your statement "I’ll take the simple approach to investing in just a few index funds." There are examples in the Wiki. Don't make any changes to your portfolio without first pulling out your IPS, reading it again, and changing it (if necessary).

Second, I'd recommend a technique that has served me well since I've been using it. When I want to make a change (to a holding, an allocation, whatever) I do the analysis, compare the alternatives, make my decision, and then...

wait one year before implementing.

Very few significant decisions will be impaired by waiting a year (once you have the basics of a plan). However virtually all market timing based gut reactions will be destroyed by waiting a year. TIPS are hot - I've got to get into them! No, gold is the best diversifier! Better yet, commodities (or CCFs)! No, no, REITS are the diversifier! Int'l doesn't matter (Bogle said so). No, Bernstein said I've got to to be 50/50 Int'l... etc. etc. (apologies to those named, I know I'm exaggerating). Especially if you're young (under 35) a year is just a blink, and the delay will have virtually no appreciable effect (absent market timing effects, which you shouldn't be using anyway).

In this post alone, you've provided valuable information and input to many. Please stay.

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