Jack Bogle - Two Fund Portfolio

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Alchemist
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Re: Jack Bogle - Two Fund Portfolio

Post by Alchemist »

bck63 wrote: Tue Jul 21, 2020 8:06 pm I would rather be less diversified. It gives me more of a sense of ownership of the companies. When things get volatile, I can go to a list of S&P 500 companies, pick one and read about it, and tell myself "you own that. Don't panic." Owning 500 companies seems more real to me than owning 3,500. It just works for me.

I own a portion of 500 of the biggest and best companies in the world. Who wouldn't want to own such an investment?

In reality, the returns have been virtually identical since the creation of the total market index fund. Yes, small caps may again outperform in the future and that's fine. I'll take what I get.
I like this perspective. I hold Total Market for a similar behavioral reason. I am not tempted to buy individual stocks of companies I think might be 'hot' in the future because...well..I already own them!

Tesla rising? Own it. Zoom zooming to the stars? Own that already too. Small or Mid caps having a great run? Got them too.

Now of course this is meaningless in the real world as you point out, S&P 500 and TSM returns are basically identical. But TSM helps me stay the course and S&P 500 helps you stay the course. Glad they are both available for rock bottom costs from many providers thanks to the efforts of Jack Bogle.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

bck63 wrote: Tue Jul 21, 2020 8:06 pm
abuss368 wrote: Tue Jul 21, 2020 6:38 pm
bck63 wrote: Tue Jul 21, 2020 5:51 pm
abuss368 wrote: Mon Jul 20, 2020 5:31 pm Jack Bogle always said total market indexing is the gold standard. Anything else is a dilution of that standard.
I do prefer the S&P 500 over total market for several reasons. It helps me stay the course.
Interesting. Please share how the S&P 500 helps you stay the course.
I would rather be less diversified. It gives me more of a sense of ownership of the companies. When things get volatile, I can go to a list of S&P 500 companies, pick one and read about it, and tell myself "you own that. Don't panic." Owning 500 companies seems more real to me than owning 3,500. It just works for me.

I own a portion of 500 of the biggest and best companies in the world. Who wouldn't want to own such an investment?

In reality, the returns have been virtually identical since the creation of the total market index fund. Yes, small caps may again outperform in the future and that's fine. I'll take what I get.
Thanks and that makes a lot of sense. Staying the course in all markets is the key. I am learning and appreciating that more and more along our investment journey.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

bck63 wrote: Tue Jul 21, 2020 8:06 pm
abuss368 wrote: Tue Jul 21, 2020 6:38 pm
bck63 wrote: Tue Jul 21, 2020 5:51 pm
abuss368 wrote: Mon Jul 20, 2020 5:31 pm Jack Bogle always said total market indexing is the gold standard. Anything else is a dilution of that standard.
I do prefer the S&P 500 over total market for several reasons. It helps me stay the course.
Interesting. Please share how the S&P 500 helps you stay the course.
I would rather be less diversified. It gives me more of a sense of ownership of the companies. When things get volatile, I can go to a list of S&P 500 companies, pick one and read about it, and tell myself "you own that. Don't panic." Owning 500 companies seems more real to me than owning 3,500. It just works for me.

I own a portion of 500 of the biggest and best companies in the world. Who wouldn't want to own such an investment?

In reality, the returns have been virtually identical since the creation of the total market index fund. Yes, small caps may again outperform in the future and that's fine. I'll take what I get.
So essentially do you invest in a Two Fund Portfolio?
John C. Bogle: “Simplicity is the master key to financial success."
bck63
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Re: Jack Bogle - Two Fund Portfolio

Post by bck63 »

abuss368 wrote: Wed Jul 22, 2020 7:28 am
bck63 wrote: Tue Jul 21, 2020 8:06 pm
abuss368 wrote: Tue Jul 21, 2020 6:38 pm
bck63 wrote: Tue Jul 21, 2020 5:51 pm
abuss368 wrote: Mon Jul 20, 2020 5:31 pm Jack Bogle always said total market indexing is the gold standard. Anything else is a dilution of that standard.
I do prefer the S&P 500 over total market for several reasons. It helps me stay the course.
Interesting. Please share how the S&P 500 helps you stay the course.
I would rather be less diversified. It gives me more of a sense of ownership of the companies. When things get volatile, I can go to a list of S&P 500 companies, pick one and read about it, and tell myself "you own that. Don't panic." Owning 500 companies seems more real to me than owning 3,500. It just works for me.

I own a portion of 500 of the biggest and best companies in the world. Who wouldn't want to own such an investment?

In reality, the returns have been virtually identical since the creation of the total market index fund. Yes, small caps may again outperform in the future and that's fine. I'll take what I get.
So essentially do you invest in a Two Fund Portfolio?
About 95%, yes. I do own some LifeStrategy Income Fund at Vanguard, and a conservative asset allocation etf at Fidelity as part of my cash management account there. Those are funds that I may spend in the somewhat near future (maybe 3-5 years?). But other than that, it's S&P 500 and total bond market for me (with some munis in taxable)!

PS this is such a great thread. Thanks so much.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

bck63 wrote: Wed Jul 22, 2020 8:27 am
abuss368 wrote: Wed Jul 22, 2020 7:28 am
So essentially do you invest in a Two Fund Portfolio?
About 95%, yes. I do own some LifeStrategy Income Fund at Vanguard, and a conservative asset allocation etf at Fidelity as part of my cash management account there. Those are funds that I may spend in the somewhat near future (maybe 3-5 years?). But other than that, it's S&P 500 and total bond market for me (with some munis in taxable)!

PS this is such a great thread. Thanks so much.
Hi bck63 -

I am glad you are benfiting from the simplicity o the Two Fund Portfolio. I would consider combining the LifeStrategy fund and the conservative asset allocation fund to simplify even more (if you do not spend them in the future).

I am happy that you have enjoyed this thread. I have found a lot of very good thoughts and information on this thread. The goal of course is to continue to build and evolve the thread to help all investors.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by columbia »

bck63 wrote: Tue Jul 21, 2020 8:06 pm
abuss368 wrote: Tue Jul 21, 2020 6:38 pm
bck63 wrote: Tue Jul 21, 2020 5:51 pm
abuss368 wrote: Mon Jul 20, 2020 5:31 pm Jack Bogle always said total market indexing is the gold standard. Anything else is a dilution of that standard.
I do prefer the S&P 500 over total market for several reasons. It helps me stay the course.
Interesting. Please share how the S&P 500 helps you stay the course.
I would rather be less diversified. It gives me more of a sense of ownership of the companies. When things get volatile, I can go to a list of S&P 500 companies, pick one and read about it, and tell myself "you own that. Don't panic." Owning 500 companies seems more real to me than owning 3,500. It just works for me.

I own a portion of 500 of the biggest and best companies in the world. Who wouldn't want to own such an investment?

In reality, the returns have been virtually identical since the creation of the total market index fund. Yes, small caps may again outperform in the future and that's fine. I'll take what I get.

:beer Psychology is not a small component of success.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

columbia wrote: Wed Jul 22, 2020 12:11 pm
bck63 wrote: Tue Jul 21, 2020 8:06 pm
abuss368 wrote: Tue Jul 21, 2020 6:38 pm
bck63 wrote: Tue Jul 21, 2020 5:51 pm
abuss368 wrote: Mon Jul 20, 2020 5:31 pm Jack Bogle always said total market indexing is the gold standard. Anything else is a dilution of that standard.
I do prefer the S&P 500 over total market for several reasons. It helps me stay the course.
Interesting. Please share how the S&P 500 helps you stay the course.
I would rather be less diversified. It gives me more of a sense of ownership of the companies. When things get volatile, I can go to a list of S&P 500 companies, pick one and read about it, and tell myself "you own that. Don't panic." Owning 500 companies seems more real to me than owning 3,500. It just works for me.

I own a portion of 500 of the biggest and best companies in the world. Who wouldn't want to own such an investment?

In reality, the returns have been virtually identical since the creation of the total market index fund. Yes, small caps may again outperform in the future and that's fine. I'll take what I get.

:beer Psychology is not a small component of success.
Agree. The S&P 500 fund is an excellent choice and one that can be held forever.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Alchemist wrote: Wed Jul 22, 2020 7:16 am
bck63 wrote: Tue Jul 21, 2020 8:06 pm I would rather be less diversified. It gives me more of a sense of ownership of the companies. When things get volatile, I can go to a list of S&P 500 companies, pick one and read about it, and tell myself "you own that. Don't panic." Owning 500 companies seems more real to me than owning 3,500. It just works for me.

I own a portion of 500 of the biggest and best companies in the world. Who wouldn't want to own such an investment?

In reality, the returns have been virtually identical since the creation of the total market index fund. Yes, small caps may again outperform in the future and that's fine. I'll take what I get.
I like this perspective. I hold Total Market for a similar behavioral reason. I am not tempted to buy individual stocks of companies I think might be 'hot' in the future because...well..I already own them!

Tesla rising? Own it. Zoom zooming to the stars? Own that already too. Small or Mid caps having a great run? Got them too.

Now of course this is meaningless in the real world as you point out, S&P 500 and TSM returns are basically identical. But TSM helps me stay the course and S&P 500 helps you stay the course. Glad they are both available for rock bottom costs from many providers thanks to the efforts of Jack Bogle.
I feel the same way! Which is why I have the added complexity of holding a completion index in my 401k along with S&P500 (there is no total market index fund :-(). VTSAX in my Roth + Taxable though :sharebeer !
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Bogleheads -

An excellent article (that was shared with me) in Barron's from our mentor Jack Bogle - discussing the Two Fund Portfolio and how simplicity is the best approach: https://www.barrons.com/articles/jack-b ... 1556894514
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by ruralavalon »

abuss368 wrote: Thu Jul 23, 2020 7:29 am Bogleheads -

An excellent article (that was shared with me) in Barron's from our mentor Jack Bogle - discussing the Two Fund Portfolio and how simplicity is the best approach: https://www.barrons.com/articles/jack-b ... 1556894514
That is a nice little article, thank you for the link.
Jack Bogle wrote:A very general rule of thumb is that your bond allocation should equal your age minus 10 (i.e., a 40-year old investor would own approximately 30% bonds, 70% stocks).
Jack Bogle wrote:The Vanguard Total Stock Market Index fund (ticker: VTSAX) and its Total Bond Market cousin (VBTLX) represent the purest form of common-sense investing, and the simplest way to implement these rules.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
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Re: Jack Bogle - Two Fund Portfolio

Post by marklearnsbogle »

abuss368 wrote: Thu Jul 23, 2020 7:29 am Bogleheads -

An excellent article (that was shared with me) in Barron's from our mentor Jack Bogle - discussing the Two Fund Portfolio and how simplicity is the best approach: https://www.barrons.com/articles/jack-b ... 1556894514
Thanks, Tony, this article, like the wisdom itself, is succinct, direct, and simple. Simplicity trumps complexity. Even the statement says everything need to know. Love it!
"Nothing is simpler than owning the stock market and holding it forever, and that’s essentially the idea behind the index fund.” - Bogle.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

marklearnsbogle wrote: Thu Jul 23, 2020 10:03 am
abuss368 wrote: Thu Jul 23, 2020 7:29 am Bogleheads -

An excellent article (that was shared with me) in Barron's from our mentor Jack Bogle - discussing the Two Fund Portfolio and how simplicity is the best approach: https://www.barrons.com/articles/jack-b ... 1556894514
Thanks, Tony, this article, like the wisdom itself, is succinct, direct, and simple. Simplicity trumps complexity. Even the statement says everything need to know. Love it!
Thanks Mark! I am glad you enjoyed it and enjoyed Mr. Bogle's timeless and trusted advice.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Do any Bogleheads have any other articles or interviews to share with Jack Bogle or Warren Buffett discussing simplicity and the Two Fund Portfolio’s?
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by Atticus713 »

Hi Abuss368,
As newcomers to the two-fund portfolio, I took a quote from the article you linked as my new Boglehead signature (see below). We’re not quite there yet but this signature will be our goal and guide.
Thanks!
Atticus713
“Simplicity is the master key to financial success” J.C. Bogle | Total U.S. Stock (or S&P 500) Index + Total U.S. Bond Index | Age-10 in Bonds | Rebalance Annually | Stay the Course
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Re: Jack Bogle - Two Fund Portfolio

Post by Brianmcg321 »

abuss368 wrote: Sun Jul 26, 2020 11:23 am Do any Bogleheads have any other articles or interviews to share with Jack Bogle or Warren Buffett discussing simplicity and the Two Fund Portfolio’s?

Jack
https://youtu.be/MLgn_kVKjCE
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Re: Jack Bogle - Two Fund Portfolio

Post by 000 »

Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
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Re: Jack Bogle - Two Fund Portfolio

Post by jason2459 »

000 wrote: Wed Jul 29, 2020 10:23 pm Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
Nope. Stay the course. Will the market crash? Some day. Will it recover? Most likely. Do I actually know anything? Nope. Does anyone? Nope.
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Re: Jack Bogle - Two Fund Portfolio

Post by tibbitts »

000 wrote: Wed Jul 29, 2020 10:23 pm Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
Not really, since I'm unfortunately (at the moment, at least) under-exposed to US Tech stocks.
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Re: Jack Bogle - Two Fund Portfolio

Post by 000 »

tibbitts wrote: Wed Jul 29, 2020 11:19 pm
000 wrote: Wed Jul 29, 2020 10:23 pm Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
Not really, since I'm unfortunately (at the moment, at least) under-exposed to US Tech stocks.
Can you elaborate?
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Re: Jack Bogle - Two Fund Portfolio

Post by jason2459 »

000 wrote: Wed Jul 29, 2020 11:22 pm
tibbitts wrote: Wed Jul 29, 2020 11:19 pm
000 wrote: Wed Jul 29, 2020 10:23 pm Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
Not really, since I'm unfortunately (at the moment, at least) under-exposed to US Tech stocks.
Can you elaborate?
I'm curious too as the total stock or sp500 is fairly heavy on the tech side due to market cap weighting.
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Re: Jack Bogle - Two Fund Portfolio

Post by Alchemist »

000 wrote: Wed Jul 29, 2020 10:23 pm Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
PE for companies like Apple and Google are lower than they were in 2018. No I am not that worried. Could they pull back a bit at some point? Of course, but this is not 1999. The tech giants leading the post-March rally are doing so because they are among the only companies still posting healthy profits as their business model is resilient to the economic impacts of a pandemic.
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Re: Jack Bogle - Two Fund Portfolio

Post by lostdog »

000 wrote: Wed Jul 29, 2020 10:23 pm Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
And the US dollar plunging.
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Re: Jack Bogle - Two Fund Portfolio

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000 wrote: Wed Jul 29, 2020 10:23 pm Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
No, I am not having any second thoughts. I Keep adding every week to FXIAX (Fidelity 500 Index) representing over 500 companies with hundreds of millions of employees around the globe in virtually every country working very hard every day for their shareholders with all the protections of shareholder rights as a U.S. citizen. I am very happy with my plan and portfolio. I focus on my career and family and do not let such trivial things interfere with my life.
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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore »

Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
ooo:

Frankly, I pay little attention to the vagaries of the stock and bond markets. That's one of the advantages of holding broad market index funds -- you never worry about below-average returns.

The Three-Fund Portfolio

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Selecting funds that will significantly exceed market returns, a search in which hope springs eternal and in which past performance has proven of virtually no predictive value, is a loser’s game.”
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Taylor Larimore wrote: Thu Jul 30, 2020 8:17 am
Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
ooo:

Frankly, I pay little attention to the vagaries of the stock and bond markets. That's one of the advantages of holding broad market index funds -- you never worry about below-average returns.

The Three-Fund Portfolio

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Selecting funds that will significantly exceed market returns, a search in which hope springs eternal and in which past performance has proven of virtually no predictive value, is a loser’s game.”
Thanks Taylor! As we have simplified over the years we have experienced exactly what you are saying. Total market funds are the gold standard of indexing as Mr. Bogle would always say.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by 000 »

Taylor Larimore wrote: Thu Jul 30, 2020 8:17 am
Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
ooo:

Frankly, I pay little attention to the vagaries of the stock and bond markets. That's one of the advantages of holding broad market index funds -- you never worry about below-average returns.

The Three-Fund Portfolio

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Selecting funds that will significantly exceed market returns, a search in which hope springs eternal and in which past performance has proven of virtually no predictive value, is a loser’s game.”
The two funders here are doing the opposite of what you suggest. They are making an active decision to hold only the US index, when international diversification is available at very low cost.
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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore »

000 wrote: Thu Jul 30, 2020 4:00 pm
Taylor Larimore wrote: Thu Jul 30, 2020 8:17 am
Anyone having second thoughts due to the continued euphoria we are seeing in US Tech stocks?
ooo:

Frankly, I pay little attention to the vagaries of the stock and bond markets. That's one of the advantages of holding broad market index funds -- you never worry about below-average returns.

The Three-Fund Portfolio

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Selecting funds that will significantly exceed market returns, a search in which hope springs eternal and in which past performance has proven of virtually no predictive value, is a loser’s game.”
The two funders here are doing the opposite of what you suggest. They are making an active decision to hold only the US index, when international diversification is available at very low cost.
Bogleheads:

The only difference between the two-funders and three-funders is that the three-funders own 20% of their equity in a total international stock fund (this is 10% in a 50% stock/50% bond portfolio). BOTH portfolios are very low-cost, very diversified and very tax-efficient.

There is more than one road to Dublin.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Selecting funds that will significantly exceed market returns, a search in which hope springs eternal and in which past performance has proven of virtually no predictive value, is a loser’s game.”
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

An excellent article with Jack Bogle: "My New Winning Portfolio Strategy".

https://finance.yahoo.com/news/jack-bog ... 27705.html
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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore »

Abuss368:

More evidence that it is better to own the market rather than try to beat it.

Thank you and best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Absolutely no one knows what the stock market is going to do tomorrow, let alone next year. Nor which sector, style or region will lead and which will lag. Given this absolute uncertainty, the most logical strategy is to invest as broadly as possible."
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Jack Bogle - Two Fund Portfolio

Post by columbia »

abuss368 wrote: Thu Jul 30, 2020 8:48 pm An excellent article with Jack Bogle: "My New Winning Portfolio Strategy".

https://finance.yahoo.com/news/jack-bog ... 27705.html
"No matter how great a country is, putting zero outside your own country is the wrong answer on both a risk and return basis," said McCarthy by email. "Having a minority portion in international over the decades will decrease your risk and increase your returns."
That's a fairly bold statement.
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Re: Jack Bogle - Two Fund Portfolio

Post by krayzie index »

Hey abuss368,

I took your advice from my Voya 401k post. I setup the two fund using these options. I rebalanced and reallocted all funds from TDF and this feels easy and simple.

I went with a 90/10.

90% S&P ($0.13 cents per $1,000)
10% State Street Bond Market Index ($0.20 cents per $1,000)

I couldn't get past the fee of $0.70 cents per $1,000 on the Target Fund 2050.

I will move to higher bond allocation as I get closer to retirement (30 years old)

Thanks for showing me this thread.

:sharebeer
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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore »

krayzie index wrote: Mon Aug 03, 2020 2:16 pm Hey abuss368,

I took your advice from my Voya 401k post. I setup the two fund using these options. I rebalanced and reallocted all funds from TDF and this feels easy and simple.

I went with a 90/10.

90% S&P ($0.13 cents per $1,000)
10% State Street Bond Market Index ($0.20 cents per $1,000)

I couldn't get past the fee of $0.70 cents per $1,000 on the Target Fund 2050.

I will move to higher bond allocation as I get closer to retirement (30 years old)
krayzie index:

A portfolio should expect to decline one-half its stock allocation.

Assuming you can "stay-the-course" when your portfolio falls 50% (or even more), you are on your way to investment success.

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-U.S. stock-market index portfolio and holding their bonds in an all-U.S. bond-market portfolio."
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

krayzie index wrote: Mon Aug 03, 2020 2:16 pm Hey abuss368,

I took your advice from my Voya 401k post. I setup the two fund using these options. I rebalanced and reallocted all funds from TDF and this feels easy and simple.

I went with a 90/10.

90% S&P ($0.13 cents per $1,000)
10% State Street Bond Market Index ($0.20 cents per $1,000)

I couldn't get past the fee of $0.70 cents per $1,000 on the Target Fund 2050.

I will move to higher bond allocation as I get closer to retirement (30 years old)

Thanks for showing me this thread.

:sharebeer
I am glad you have embraced simplicity. The Two Fund Portfolio as recommended by Jack Bogle and Warren Buffett offer a lot of advantages.

Don’t forget asset allocation is the most important decision and investor will make. It is based on goals, timeframe, and tolerance for risk.

Please stop back with any additional questions you may have. And don’t forget to keep spreading the word! Simplicity wins!
John C. Bogle: “Simplicity is the master key to financial success."
Carol88888
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Re: Jack Bogle - Two Fund Portfolio

Post by Carol88888 »

I read these posts with some regret. I have 5 ETFs and although I have good reasons for all of them, I do feel that simpler is better.

Still, I am glad that I found this board and got into index funds which now make up 75% of my portfolio which used to be individual stocks.

But there's that little part of me that still remains that wants to outsmart the market and that accounts for the 10% I have in momentum. (The other 15% is in Vanguard's high dividend ETF so I can live off the dividends without selling anything.)

Will I beat the market? Ask me in 25 years. Somehow, I doubt it.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Carol88888 wrote: Tue Aug 04, 2020 3:53 pm I read these posts with some regret. I have 5 ETFs and although I have good reasons for all of them, I do feel that simpler is better.

Still, I am glad that I found this board and got into index funds which now make up 75% of my portfolio which used to be individual stocks.

But there's that little part of me that still remains that wants to outsmart the market and that accounts for the 10% I have in momentum. (The other 15% is in Vanguard's high dividend ETF so I can live off the dividends without selling anything.)

Will I beat the market? Ask me in 25 years. Somehow, I doubt it.
After a lifetime investment journey to date I have definitely learned that simplicity is always the best strategy. I have been nothing but disappointed with International stock and bond funds for a very very long time indeed.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Bogleheads -

Taylor has often shared the attached research from John Norstad "Three Proofs that Total Stock Market is Efficient".

Link: https://web.archive.org/web/20170628202 ... proofs.pdf

This is an interesting study that applies to the Two Fund Portfolio.

Thank you Taylor!
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Morningstar: Where Are the Liquid Alternative Shareholders’ Yachts?
"The past decade has been one of the best for a simple 60/40 portfolio of U.S. stocks and bonds. Any attempt to diversify beyond that, even with non-U.S. stocks or bonds, likely detracted from returns over the past 10 years."

Link: https://www.morningstar.com/articles/99 ... ers-yachts

Thank you Taylor for sharing!
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

I have read additional posts on the forum that were very positive about the Two Fund Portfolio in terms of some Bogleheads considering this strategy.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

An excellent interview between Jack Bogle and Christine Benz discussing the expected lower returns of stocks and bond:

https://www.youtube.com/watch?v=KF1RodFhFwc
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Bogleheads -

Here is an excellent article from Jack Bogle which may have never been published before. Mr. Bogle discusses his favorite Two Fund Portfolio of Total Stock and Total Bond.

https://www.marketwatch.com/articles/ja ... quote_news
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

abuss368 wrote: Thu Aug 27, 2020 8:50 pm Bogleheads -

Here is an excellent article from Jack Bogle which may have never been published before. Mr. Bogle discusses his favorite Two Fund Portfolio of Total Stock and Total Bond.

https://www.marketwatch.com/articles/ja ... quote_news
I love the last paragraph:

There may be a better strategy than simply buying and holding these two funds. But I am absolutely certain that the number of strategies that are worse is infinite. Just remember: In investing, simplicity trumps complexity. Trust your own common sense.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

anon_investor wrote: Thu Aug 27, 2020 8:53 pm
abuss368 wrote: Thu Aug 27, 2020 8:50 pm Bogleheads -

Here is an excellent article from Jack Bogle which may have never been published before. Mr. Bogle discusses his favorite Two Fund Portfolio of Total Stock and Total Bond.

https://www.marketwatch.com/articles/ja ... quote_news
I love the last paragraph:

There may be a better strategy than simply buying and holding these two funds. But I am absolutely certain that the number of strategies that are worse is infinite. Just remember: In investing, simplicity trumps complexity. Trust your own common sense.
Investors would be wise to listen to the advice of our mentor, Jack Bogle.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by Rowan Oak »

abuss368 wrote: Thu Aug 27, 2020 8:50 pm Bogleheads -

Here is an excellent article from Jack Bogle which may have never been published before. Mr. Bogle discusses his favorite Two Fund Portfolio of Total Stock and Total Bond.

https://www.marketwatch.com/articles/ja ... quote_news
Thanks for posting a link to this. So great he wrote this knowing it would go against the very thing the magazine sells.
Successful investing doesn’t require sophistication and complexity; all that’s necessary is a healthy dose of common sense. Unfortunately, you’re unlikely to hear this truism from Wall Street’s financial-service firms, at least publicly. Instead, you’ll hear how complicated investing is, and how their advice, their managers, their research, and their expertise are necessary to help you reach your savings goals.

But the irony is that the cost of their services detracts, dollar-for-dollar, from the investment returns that you’re seeking to maximize. Before expenses, all investors as a group will earn a return precisely equal to that of the total stock market. As a group, we’re all average. But after the costs of investing—mutual fund fees, trading commissions, sales loads, taxes, and so on—are deducted, all investors as a group will lag behind the market’s return by the amount of the expenses they’ve incurred.

In reality, investing needn’t be complicated at all. Your own common sense can set you on the road to financial success. Here are four simple steps to help get you started:
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Rowan Oak wrote: Thu Aug 27, 2020 11:05 pm
abuss368 wrote: Thu Aug 27, 2020 8:50 pm Bogleheads -

Here is an excellent article from Jack Bogle which may have never been published before. Mr. Bogle discusses his favorite Two Fund Portfolio of Total Stock and Total Bond.

https://www.marketwatch.com/articles/ja ... quote_news
Thanks for posting a link to this. So great he wrote this knowing it would go against the very thing the magazine sells.
Successful investing doesn’t require sophistication and complexity; all that’s necessary is a healthy dose of common sense. Unfortunately, you’re unlikely to hear this truism from Wall Street’s financial-service firms, at least publicly. Instead, you’ll hear how complicated investing is, and how their advice, their managers, their research, and their expertise are necessary to help you reach your savings goals.

But the irony is that the cost of their services detracts, dollar-for-dollar, from the investment returns that you’re seeking to maximize. Before expenses, all investors as a group will earn a return precisely equal to that of the total stock market. As a group, we’re all average. But after the costs of investing—mutual fund fees, trading commissions, sales loads, taxes, and so on—are deducted, all investors as a group will lag behind the market’s return by the amount of the expenses they’ve incurred.

In reality, investing needn’t be complicated at all. Your own common sense can set you on the road to financial success. Here are four simple steps to help get you started:
I agree and the performance results support Mr. Bogle. However, Mr. Bogle also said who knows what the future holds. Maybe it will be different for international and US.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore »

abuss368:

I don't know how you accomplished an unsubscribe link to Barron's. I wish every new investor (and old one's too) could read this wonderful article by Jack Bogle!

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Selecting funds that will significantly exceed market returns, a search in which hope springs eternal and in which past performance has proven of virtually no predictive value, is a loser’s game.”
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Taylor Larimore wrote: Fri Aug 28, 2020 11:25 am abuss368:

I don't know how you accomplished an unsubscribe link to Barron's. I wish every new investor (and old one's too) could read this wonderful article by Jack Bogle!

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Selecting funds that will significantly exceed market returns, a search in which hope springs eternal and in which past performance has proven of virtually no predictive value, is a loser’s game.”
Many thanks sir! :beer
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

I have great respect and admiration for Jack Bogle and have learned more from him than I could teach anybody in a lifetime, but "Trust your own common sense" doesn't seem like good investment advice, at least on the surface.

Any insight on what he may have meant and in what context? For most people, common sense in investing tells them to follow past performance, jump on bandwagons, and do something, whereas Jack's advice is not to follow past performance, don't chase winners, set a workable plan and stick to it while just standing there, not doing something.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

An excellent article about Mr. Bogle’s thoughts on ETFs, International Stocks, and International Bonds:

https://www.thestreet.com/retirement/ir ... s-13326091
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Re: Jack Bogle - Two Fund Portfolio

Post by Ferdinand2014 »

abuss368 wrote: Mon Sep 07, 2020 10:14 pm An excellent article about Mr. Bogle’s thoughts on ETFs, International Stocks, and International Bonds:

https://www.thestreet.com/retirement/ir ... s-13326091
Good reminder article. Thank you for posting.
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Re: Jack Bogle - Two Fund Portfolio

Post by anthonyphamy »

abuss368 wrote: Mon Sep 07, 2020 10:14 pm An excellent article about Mr. Bogle’s thoughts on ETFs, International Stocks, and International Bonds:

https://www.thestreet.com/retirement/ir ... s-13326091
Great read. Thank you for sharing. Because of you and this thread, I am very close to a 2-fund portfolio (very little VTIAX left in my portfolio). Interesting side note how Warren Buffett invested in Japan recently.
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