YDNAL wrote: VictoriaF wrote: YDNAL wrote:
The Boglehead philosophy isn't about "having fun"
with it, or about "goals, fantasy."
The philosophy is an activity of thought meant to guide action all of the time. "The most effective number to focus on"
Previously, YDNAL wrote:10 Principles
of the Bogleheads investment philosophy......
You treat this thread as the "Bogleheads Doctrine." For me, it's a guide for prioritizing
Bogleheads' principles. Nonsense is in the eyes of the beholder. (emphasis added)
Negative... no doctrine, instead an activity of thought meant to guide action all of the time (as stated).
That said, it makes NO SENSE to "prioritize"
looking at expense ratios down to the fourth decimal place (0.0010 vs. 0.0005, for instance) while at the same time *unnecessarily* paying 25% (or whatever) in taxes on earnings, or to attempt timing the market when we know odds of consistent success are against us.
VictoriaF » Fri Jan 23, 2015 2:18 pm wrote:I voted for:
1. Keep investing costs low
2. Stay the course
3. Other (please specify)
Lastly, a philosophy is not "10 long-term goals [that] will remain a fantasy; if you focus on achieving three things (or fewer), you are much more likely to get there."
VictoriaF » Fri Jan 23, 2015 8:59 pm wrote:Ten, eleven, or whatever is the right number of the Bogleheads principles, provide a comprehensive view of one's personal financial management. Perhaps, things like adequate insurance and estate planning belong here, too.
However, the most effective number to focus on is THREE. If you have a list of 10 items on your daily to-do list, you may not complete any of them by the end of the day; if you have three items you will have all of them done. If you have 10 long-term goals, they will remain a fantasy; if you focus on achieving three things (or fewer), you are much more likely to get there.
1. Keeping expenses low is
the cornerstone of the Bogleheads philosophy.
- Implementation of low-cost index funds is Jack Bogle's main contribution to personal finance.
- "Low cost" is not the same as the "lowest cost."
2. For most Boglehead newcomers, the best first step is to leave their advisers and high-expense funds and move their money to Vanguard.
- If the immediate transfer to Vanguard is not prudent due to capital gains or termination fines, start putting new money to Vanguard.
- For a new investor, investing in Vanguard should come first and optimizing taxes can be addressed later.
3. Goals are not equivalent to philosophy. However
, this poll combines the elements of both:
- For an experienced Boglehead, it's an expression of his views on the key features of the community.
- For a new Boglehead, it's a guide to getting started.
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