Jack Bogle - Two Fund Portfolio

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

anthonyphamy wrote: Mon Sep 07, 2020 10:49 pm
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.
Thanks and happy you like the simplicity.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

anthonyphamy wrote: Mon Sep 07, 2020 10:49 pm
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.
If you hold VTSAX, you did too since you would own Berkshire Hathaway and thus their recent investment in Japan. As Bogle has said many times the US investor gets sufficient international exposure via S&P500 companies!
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Re: Jack Bogle - Two Fund Portfolio

Post by anthonyphamy »

anon_investor wrote: Mon Sep 07, 2020 11:01 pm
anthonyphamy wrote: Mon Sep 07, 2020 10:49 pm
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.
If you hold VTSAX, you did too since you would own Berkshire Hathaway and thus their recent investment in Japan. As Bogle has said many times the US investor gets sufficient international exposure via S&P500 companies!
Great point! Thanks for reminding me!
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Great Link

Post by Taylor Larimore »

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
abuss368:

Thank you for the link. Excellent!

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: Great Link

Post by abuss368 »

Taylor Larimore wrote: Tue Sep 08, 2020 9:28 am
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
abuss368:

Thank you for the link. Excellent!

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."
Thanks Taylor. I am finding some very good interviews and articles with Mr. Bogle that I have not previously read. I will continue to post any informative and educational items which would benefit Bogleheads.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: "Not even close"

Post by Mel Lindauer »

mrspock wrote: Mon Jul 20, 2020 7:30 pm
Taylor Larimore wrote: Mon Jul 20, 2020 7:15 pm
Warren Buffett's Words of Wisdom: “If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle.”
Sounds like a good “go fund me” campaign. We can lobby to have placed outside the NYSE somewhere or outside Vanguard HQ. It would fast become a pilgrimage for every index investor to get a photo in front of it :) .

EDIT: Turns out there already is one at Vanguard HQ, behold....

Image
Actually, in Jason Zweig's Money Magazine story on our second Bogleheads Conference with Jack Bogle in Philly in 2001, we appeared with Jack in front of that very statue.
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Re: "Not even close"

Post by abuss368 »

Mel Lindauer wrote: Tue Sep 08, 2020 4:34 pm
mrspock wrote: Mon Jul 20, 2020 7:30 pm
Taylor Larimore wrote: Mon Jul 20, 2020 7:15 pm
Warren Buffett's Words of Wisdom: “If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle.”
Sounds like a good “go fund me” campaign. We can lobby to have placed outside the NYSE somewhere or outside Vanguard HQ. It would fast become a pilgrimage for every index investor to get a photo in front of it :) .

EDIT: Turns out there already is one at Vanguard HQ, behold....

Image
Actually, in Jason Zweig's Money Magazine story on our second Bogleheads Conference with Jack Bogle in Philly in 2001, we appeared with Jack in front of that very statue.
Thank you so much for sharing the picture and the story of the Bogleheads conference. I would love to see that picture and perhaps it could be posted to this thread.
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Re: Jack Bogle - Two Fund Portfolio

Post by Mel Lindauer »

Try this link. This is just a small portion of the pic that appeared in Money Magazine. That's Jack, Taylor and Pat Larimore and part of my face.

https://www.flickr.com/photos/diehards/ ... 724665012/
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Re: Jack Bogle - Two Fund Portfolio

Post by columbia »

The VT crowd might stoke out if they see that statue. ;)
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

anon_investor wrote: Mon Sep 07, 2020 11:01 pm
If you hold VTSAX, you did too since you would own Berkshire Hathaway and thus their recent investment in Japan. As Bogle has said many times the US investor gets sufficient international exposure via S&P500 companies!
That is a fair point. I feel better with Warren Buffett making the capital allocation decisions. I did find it interesting that Berkshire Hathaway is investing in Japan. They must see value at a fair price. Berkshire has invested in China, Brazil, and the Middle East before if I recall.

Still there is international exposure to investing in Total Stock Market and the S&P 500.
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Re: Jack Bogle - Two Fund Portfolio

Post by BoneSpec »

Moved my VTIAX to VTSAX, then what was in MM to add to my VIMAX, simply for simplicity and ease of mind.
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Re: Jack Bogle - Two Fund Portfolio

Post by Ferdinand2014 »

BoneSpec wrote: Thu Sep 10, 2020 6:10 am Moved my VTIAX to VTSAX, then what was in MM to add to my VIMAX, simply for simplicity and ease of mind.
So that means you are tilting to mid caps vs the total market?
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

BoneSpec wrote: Thu Sep 10, 2020 6:10 am Moved my VTIAX to VTSAX, then what was in MM to add to my VIMAX, simply for simplicity and ease of mind.
Total Stock Market includes the market weight of all companies - large, mid, and small. You could probably further consolidate and simplify by combining the mid cap fund with Total Stock.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

The dividend for Total Stock for the 3rd quarter 2020 has been announced at 0.3259 per share.
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Re: Jack Bogle - Two Fund Portfolio

Post by AlwaysLearningMore »

JoMoney wrote: Sat Jan 05, 2019 8:39 pm
KJVanguard wrote: Sat Jan 05, 2019 8:34 pm
JoMoney wrote: Sat Jan 05, 2019 8:30 pm...I've never held Emerging Markets (they would never pass the sleep well at night test for me).
I think we have just identified a new sleep disorder. :D

I'd say get a sleeping pill and invest in the entire world.
Taking drugs to sleep would bother me even more than buying whatever it is people think they're getting when they buy 'Emerging Market' stocks.
Sleeping pill or anti-anxiety pill? Given the longstanding underperformance of EM, an antidepressant might be in order :(
Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) vs Vanguard Total Stock Market
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Re: Jack Bogle - Two Fund Portfolio

Post by AlwaysLearningMore »

Taylor Larimore wrote: Thu Nov 14, 2019 9:11 pm Bogleheads:

When I was writing The Bogleheads' Guide to the Three-Fund Portfolio, I asked Mr. Bogle if he would write the Forward. He immediately replied "of course." I was thrilled.

I sent Jack an advance copy of the book which included my recommendation for an international fund. He called me back to say an international fund was not necessary. It was a dilemma for me because I personally believe international stocks add important diversification.

I settled by recommending that international stocks should be 20% of equity (Jack's recommendation: "if you must").

Best wishes.
Taylor
Jack Bogle's Words of Wisdom from his Forward in The Bogleheads' Three-Fund Portfolio: "Since 1994 (when Jack wrote his first book suggesting international stocks are unnecessary) the U.S. S&P 500 Index was to rise by 743%, while the EAFE Index of non-U.S. stocks rose by 237%."
Mr. Larimore, as The Bogleheads' Guide to the Three-Fund Portfolio was published on July 3, 2018, once can almost hear Mr. Bogle's soothing baritone voice as he recounts the performance of Vanguard Total Stock Market Index Fund vs Vanguard Total International Stock Index Fund since the publication of your book.

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

AlwaysLearningMore wrote: Thu Sep 24, 2020 2:59 pm
Taylor Larimore wrote: Thu Nov 14, 2019 9:11 pm Bogleheads:

When I was writing The Bogleheads' Guide to the Three-Fund Portfolio, I asked Mr. Bogle if he would write the Forward. He immediately replied "of course." I was thrilled.

I sent Jack an advance copy of the book which included my recommendation for an international fund. He called me back to say an international fund was not necessary. It was a dilemma for me because I personally believe international stocks add important diversification.

I settled by recommending that international stocks should be 20% of equity (Jack's recommendation: "if you must").

Best wishes.
Taylor
Jack Bogle's Words of Wisdom from his Forward in The Bogleheads' Three-Fund Portfolio: "Since 1994 (when Jack wrote his first book suggesting international stocks are unnecessary) the U.S. S&P 500 Index was to rise by 743%, while the EAFE Index of non-U.S. stocks rose by 237%."
Mr. Larimore, as The Bogleheads' Guide to the Three-Fund Portfolio was published on July 3, 2018, once can almost hear Mr. Bogle's soothing baritone voice as he recounts the performance of Vanguard Total Stock Market Index Fund vs Vanguard Total International Stock Index Fund since the publication of your book.

Image
Got to love Mr. Bogle! He knows more about investing than any of us ever will.

I did not realize that since 2018 the difference between Total Stock and Total International was that much.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

I think the importance of "needing" international stocks in a portfolio is perhaps being overstated somewhat.

In analyzing various portfolios at portfolio visualizer I assumed the following:
* Start - 2000
* End - 2010
* "The Lost Decade of the US" or so it has been said
* $1,000,000 million portfolio
* withdrawal 3% or $30,000 a year
* Looked at combinations of Total Stock, Total International Stock, US High Dividend, and US REIT. The last two are popular with "Random Walk Down Wall Street".
* No bonds for this analysis.
* I used "asset allocations" and not funds or etfs. For US High Dividend I used US Large Value.

RESULTS

Portfolio #1
Total Stock - 60%
Total International - 40%
Result: Start - $1,000,000. End - $737,000. CAPR - (2.74%) and Standard Deviation - 17.37

Portfolio #2
Total Stock - 60%
US High Dividend - 20%
US REIT - 20%
Result: Start - $1,000,000. End - $1,003,000. CAPR - 0.03% and Standard Deviation - 16.70

Portfolio #3
Total Stock - 100%
Result: Start - $1,000,000. End - $657,000. CAPR - (3.75%) and Standard Deviation - 16.86

Portfolio #4
Total International Stock - 100%
Result: Start - $1,000,000. End - $843,000. CAPR - (1.54%) and Standard Deviation - 19.36

Take Away
* So international did a little better. I actually thought it would be much better so I was surprised at the overall difference.
* Adding the US High Yield and REITs made all the difference. Those funds provide dividend income of which a retiree can live from.


*** Expand the timeframe to 1994 - 2020 ***

RESULTS

Portfolio #1
Total Stock - 60%
Total International - 40%
Result: Start - $1,000,000. End - $4,679,000. CAPR - 5.96% and Standard Deviation - 15.21

Portfolio #2
Total Stock - 60%
US High Dividend - 20%
US REIT - 20%
Result: Start - $1,000,000. End - $7,873,000. CAPR - 8.05% and Standard Deviation - 14.63

Portfolio #3
Total Stock - 100%
Result: Start - $1,000,000. End - $8,130,000. CAPR - 8.18% and Standard Deviation - 15.25

Portfolio #4
Total International Stock - 100%
Result: Start - $1,000,000. End - $1,530,000. CAPR - 1.61% and Standard Deviation - 16.75

Take Away
* So international did just plain horrible. Period. 26 years. How much longer must an investor wait?
* Jack Bogle is spot on with his thoughts on international stocks and bonds.
* Adding the US High Yield and REITs resulted in a very close performance to simply Total Stock Market.

*** In my opinion it is becoming clearer that the only right portfolio is what works for you as an individual. What can you stay with. Not what an article or someone using a screen name on the internet tells you what is wrong or missing. ***

The most important aspect is to:
* Build cash over time
* Keep buying investments
* Keep costs real low
* Hold enough insurance
* Keep taxes low
* Pay down / off debt
* Spend less than you make
* Always look for ways to save and invest more each year
* Own index funds
* Invest and work hard in your job and career

THE REST IS DANCING ON THE HEAD OF A PIN AN WILL MAKE NO IMPACT!

Has anyone read "Bogle on Mutual Funds"? I looked just now at the model portfolios Mr. Bogle has in accumulation, distribution etc. He shows growth & value (which is a Total Market fund), a "specialty / sector" fund, and a equity income (or higher yield dividend fund). No international. Interesting and Mr. Bogle's recommendation would have served investors very well.
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Re: Jack Bogle - Two Fund Portfolio

Post by 000 »

abuss368 wrote: Thu Sep 24, 2020 7:19 pm *** In my opinion it is becoming clearer that the only right portfolio is what works for you as an individual. What can you stay with. Not what an article or someone using a screen name on the internet tells you what is wrong or missing. ***

The most important aspect is to:
* Build cash over time
* Keep buying investments
* Keep costs real low
* Hold enough insurance
* Keep taxes low
* Pay down / off debt
* Spend less than you make
* Always look for ways to save and invest more each year
* Own index funds
* Invest and work hard in your job and career
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

000 wrote: Thu Sep 24, 2020 7:24 pm
abuss368 wrote: Thu Sep 24, 2020 7:19 pm *** In my opinion it is becoming clearer that the only right portfolio is what works for you as an individual. What can you stay with. Not what an article or someone using a screen name on the internet tells you what is wrong or missing. ***

The most important aspect is to:
* Build cash over time
* Keep buying investments
* Keep costs real low
* Hold enough insurance
* Keep taxes low
* Pay down / off debt
* Spend less than you make
* Always look for ways to save and invest more each year
* Own index funds
* Invest and work hard in your job and career
+1000
Thanks! The rest of this "stuff" is a complete waste of time and does not matter if one can not get that list right! US or International won't mean anything or matter.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Consider the following analysis results using Portfolio Visualizer:

Assumptions
Retire - 1976
Portfolio - $40,000
Annual withdrawal - $2,500

Results

Portfolio #1
Total Stock - 100%
Result - $392,000 - CAPR - 6.80% - StDev - 15.36

Portfolio #2
Total Stock - 60%
Total International Stock - 40%
Result - $273,000 - CAPR - 5.70% - StDev - 15.11

Ouch! Portfolio #2 diversified because the advisor said so. An internet website said so. The literature said so. Now they are much older and may be considering cutting expenses and perhaps getting a part time job.

I am going to continue to follow the wise and timeless advice of Jack Bogle. International is simply not making the grade.

The Jack Bogle and Warren Buffett Two Fund Portfolio works!
Last edited by abuss368 on Fri Sep 25, 2020 12:02 pm, edited 1 time in total.
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Re: Jack Bogle - Two Fund Portfolio

Post by 7eight9 »

abuss368 wrote: Fri Sep 25, 2020 11:51 am In reviewing the results from Portfolio Visualizer the result is completely different:

Assumptions
Retire - 1976
Portfolio - $40,000
Annual withdrawal - $2,500

Results

Portfolio #1
Total Stock - 100%
Result - $392,000 - CAPR - 6.80% - StDev - 15.36

Portfolio #2
Total Stock - 60%
Total International Stock - 40%
Result - $273,000 - CAPR - 5.70% - StDev - 15.11

Ouch! Portfolio #2 diversified because the advisor said so. An internet website said so. The literature said so. Now they are much older and may be considering cutting expenses and perhaps getting a part time job.

I am going to continue to follow the wise and timeless advice of Jack Bogle. International is simply not making the grade.

The Jack Bogle and Warren Buffett Two Fund Portfolio works!
I suspect that most people who retired in 1976 are, to put it colloquially, pushing up daisies. I doubt many of them are looking for part-time jobs.
I guess it all could be much worse. | They could be warming up my hearse.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

7eight9 wrote: Fri Sep 25, 2020 11:58 am
abuss368 wrote: Fri Sep 25, 2020 11:51 am In reviewing the results from Portfolio Visualizer the result is completely different:

Assumptions
Retire - 1976
Portfolio - $40,000
Annual withdrawal - $2,500

Results

Portfolio #1
Total Stock - 100%
Result - $392,000 - CAPR - 6.80% - StDev - 15.36

Portfolio #2
Total Stock - 60%
Total International Stock - 40%
Result - $273,000 - CAPR - 5.70% - StDev - 15.11

Ouch! Portfolio #2 diversified because the advisor said so. An internet website said so. The literature said so. Now they are much older and may be considering cutting expenses and perhaps getting a part time job.

I am going to continue to follow the wise and timeless advice of Jack Bogle. International is simply not making the grade.

The Jack Bogle and Warren Buffett Two Fund Portfolio works!
I suspect that most people who retired in 1976 are, to put it colloquially, pushing up daisies. I doubt many of them are looking for part-time jobs.
Perhaps. Then again a small amount of retirees could have retired early!
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

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abuss368 wrote: Fri Sep 25, 2020 12:03 pm
7eight9 wrote: Fri Sep 25, 2020 11:58 am
abuss368 wrote: Fri Sep 25, 2020 11:51 am In reviewing the results from Portfolio Visualizer the result is completely different:

Assumptions
Retire - 1976
Portfolio - $40,000
Annual withdrawal - $2,500

Results

Portfolio #1
Total Stock - 100%
Result - $392,000 - CAPR - 6.80% - StDev - 15.36

Portfolio #2
Total Stock - 60%
Total International Stock - 40%
Result - $273,000 - CAPR - 5.70% - StDev - 15.11

Ouch! Portfolio #2 diversified because the advisor said so. An internet website said so. The literature said so. Now they are much older and may be considering cutting expenses and perhaps getting a part time job.

I am going to continue to follow the wise and timeless advice of Jack Bogle. International is simply not making the grade.

The Jack Bogle and Warren Buffett Two Fund Portfolio works!
I suspect that most people who retired in 1976 are, to put it colloquially, pushing up daisies. I doubt many of them are looking for part-time jobs.
Perhaps. Then again a small amount of retirees could have retired early!
And if they were still alone don’t you think they’d need more than $2500 annually from there portfolio in 2020?

They way you worded it makes no sense. You say ouch because, but that portfolio still had 100x the annual withdrawal needed set out in your original statement. It got the job done isn’t that the point?
I'm trying to think, but nothing happens
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

That is a fair point to consider!
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Re: Jack Bogle - Two Fund Portfolio

Post by Tejfyy »

I've been here for just over a year perusing the threads, learning a great deal, marveling at the range and depth of the exchanges, the knowledge and emotion. At the end of the day, I'm very satisfied with my two fund portfolio. It suits my personality and life philosophy.
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Re: Jack Bogle - Two Fund Portfolio

Post by soccerbogle »

I do not literally own only two funds, as my employer retirement account is not at Vanguard.

But, I do own only US stocks and US bonds, so essentially, I am in the 2 fund portfolio. The inherent international exposure from the US total market is sufficient for me.

I am still a newer boglehead and have learned a lot on this message board. This thread introduced me to Intermediate Tax Exempt Bonds... so I am trading my VBTLX for VWIUX in my taxable account. The bonds are intended to be able to be used prior to retirement. I am in my 30s so I own no bonds in my retirement account yet.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

soccerbogle wrote: Tue Sep 29, 2020 12:48 pm I do not literally own only two funds, as my employer retirement account is not at Vanguard.

But, I do own only US stocks and US bonds, so essentially, I am in the 2 fund portfolio. The inherent international exposure from the US total market is sufficient for me.

I am still a newer boglehead and have learned a lot on this message board. This thread introduced me to Intermediate Tax Exempt Bonds... so I am trading my VBTLX for VWIUX in my taxable account. The bonds are intended to be able to be used prior to retirement. I am in my 30s so I own no bonds in my retirement account yet.
Welcome to the forum! You have selected an excellent portfolio as support by Jack Bogle and Warren Buffet. Based on your individual tax situation, holding tax exempt bonds in a taxable account may make sense.

Please do not hesitate to stop back and ask any additional questions or concerns regarding the Two Fund Portfolio on this thread.

Together we will learn much.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

A picture of Jack Bogle honored at the New York Stock Exchange:


Image
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Re: Jack Bogle - Two Fund Portfolio

Post by 1789 »

abuss368 wrote: Sun Oct 11, 2020 12:12 am A picture of Jack Bogle honored at the New York Stock Exchange:


Image
They should put a note in front of this:

Jack Bogle: The most hated person by Wall Street :twisted:
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

1789 wrote: Sun Oct 11, 2020 1:01 am
abuss368 wrote: Sun Oct 11, 2020 12:12 am A picture of Jack Bogle honored at the New York Stock Exchange:


Image
They should put a note in front of this:

Jack Bogle: The most hated person by Wall Street :twisted:
Or perhaps Jack Bogle: Changed the World!
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!

During periods of market trauma and volatility it is import to remember what works best over the long term:

* Keep costs low
* Own Index Funds
* Keep taxes low
* Don’t trade
* Don’t worry about day to day or month to month fluctuations
* Keep buying and investing

Most important: TUNE OUT THE NOISE!
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 »

soccerbogle wrote: Tue Sep 29, 2020 12:48 pm I do not literally own only two funds, as my employer retirement account is not at Vanguard.

But, I do own only US stocks and US bonds, so essentially, I am in the 2 fund portfolio. The inherent international exposure from the US total market is sufficient for me.

I am still a newer boglehead and have learned a lot on this message board. This thread introduced me to Intermediate Tax Exempt Bonds... so I am trading my VBTLX for VWIUX in my taxable account. The bonds are intended to be able to be used prior to retirement. I am in my 30s so I own no bonds in my retirement account yet.
You may want to look at Series I US Savings Bonds (commonly referred to as I Bonds):
https://www.bogleheads.org/wiki/I_savings_bonds
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

anon_investor wrote: Tue Nov 03, 2020 4:54 pm
soccerbogle wrote: Tue Sep 29, 2020 12:48 pm I do not literally own only two funds, as my employer retirement account is not at Vanguard.

But, I do own only US stocks and US bonds, so essentially, I am in the 2 fund portfolio. The inherent international exposure from the US total market is sufficient for me.

I am still a newer boglehead and have learned a lot on this message board. This thread introduced me to Intermediate Tax Exempt Bonds... so I am trading my VBTLX for VWIUX in my taxable account. The bonds are intended to be able to be used prior to retirement. I am in my 30s so I own no bonds in my retirement account yet.
You may want to look at Series I US Savings Bonds (commonly referred to as I Bonds):
https://www.bogleheads.org/wiki/I_savings_bonds
I would agree that any short or intermediate term investment grade bond fund that is low cost and diversified will provide both safety and income to a portfolio.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

How many investors have simplified and transition to the Jack Bogle and Warren Buffett Two Fund Portfolio this year or plan to in the year ahead?
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by DSBH »

MFJ, both 62 and retired, recently transitioned from (1) a 3-fund to a 2-fund portfolio to make the Roth conversion plan for the next 20 years (we're generally optimistic people) simpler and (2) a 60/40 to a 50/50 AA.
John C. Bogle: "Never confuse genius with luck and a bull market".
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

abuss368 wrote: Sun Nov 22, 2020 2:46 pm How many investors have simplified and transition to the Jack Bogle and Warren Buffett Two Fund Portfolio this year or plan to in the year ahead?
I actually never had a 3-fund port, started with 2 and intend to stay this way.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

DSBH wrote: Wed Nov 25, 2020 7:43 pm MFJ, both 62 and retired, recently transitioned from (1) a 3-fund to a 2-fund portfolio to make the Roth conversion plan for the next 20 years (we're generally optimistic people) simpler and (2) a 60/40 to a 50/50 AA.
I think you have an excellent portfolio. Jack Bogle called this the “acres of diamonds” in his book. If you have not already done so I highly recommend his books.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by Big Dog »

abuss368 wrote: Sun Nov 22, 2020 2:46 pm How many investors have simplified and transition to the Jack Bogle and Warren Buffett Two Fund Portfolio this year or plan to in the year ahead?
Since I retired in 2018, I've been selling individual stocks (handed down from wife's grandma) to pay expenses so slowly but surely, evolving into a 2-fund portfolio. (no international) That said, bought some BRK back in teh dark ages, so that will be something I leave to the kids (unless the step-up basis changes while I'm still kicking).

Does 2-funds (Total Market + Bond) + a few shares of BRK still count as a two-fund portfolio guy?
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Re: Jack Bogle - Two Fund Portfolio

Post by DSBH »

abuss368 wrote: Wed Nov 25, 2020 7:51 pm I think you have an excellent portfolio. Jack Bogle called this the “acres of diamonds” in his book. If you have not already done so I highly recommend his books.
Will look into it. Forgot to mention that for the Taxable account (72/25 AA) I used VG Intermediate Tax Exempt instead of Total Bond.
John C. Bogle: "Never confuse genius with luck and a bull market".
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

DSBH wrote: Wed Nov 25, 2020 8:03 pm
abuss368 wrote: Wed Nov 25, 2020 7:51 pm I think you have an excellent portfolio. Jack Bogle called this the “acres of diamonds” in his book. If you have not already done so I highly recommend his books.
Will look into it. Forgot to mention that for the Taxable account (72/25 AA) I used VG Intermediate Tax Exempt instead of Total Bond.
That works. I have done the same for a long time.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by Brianmcg321 »

abuss368 wrote: Sun Nov 22, 2020 2:46 pm How many investors have simplified and transition to the Jack Bogle and Warren Buffett Two Fund Portfolio this year or plan to in the year ahead?
I'm currently one fund. VTSAX. Except in my 401k where I have combined the 500 and extended market indexes.

When I get closer to retirement (10 years) I will either go to the two fund or put most of it in the Balanced Index.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Brianmcg321 wrote: Wed Nov 25, 2020 9:45 pm
abuss368 wrote: Sun Nov 22, 2020 2:46 pm How many investors have simplified and transition to the Jack Bogle and Warren Buffett Two Fund Portfolio this year or plan to in the year ahead?
I'm currently one fund. VTSAX. Except in my 401k where I have combined the 500 and extended market indexes.

When I get closer to retirement (10 years) I will either go to the two fund or put most of it in the Balanced Index.
That is an excellent portfolio. For many years our employer plan only offered one low cost option: an S&P 500 fund. I simply put everything into that one fund and did not bother with any extended market fund or other options. That worked very well.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 »

Big Dog wrote: Wed Nov 25, 2020 8:02 pm
abuss368 wrote: Sun Nov 22, 2020 2:46 pm How many investors have simplified and transition to the Jack Bogle and Warren Buffett Two Fund Portfolio this year or plan to in the year ahead?
Since I retired in 2018, I've been selling individual stocks (handed down from wife's grandma) to pay expenses so slowly but surely, evolving into a 2-fund portfolio. (no international) That said, bought some BRK back in teh dark ages, so that will be something I leave to the kids (unless the step-up basis changes while I'm still kicking).

Does 2-funds (Total Market + Bond) + a few shares of BRK still count as a two-fund portfolio guy?
You have an excellent portfolio. While I would not want any individual stocks, even Berkshire Hathaway, that company funds like a closet index fund. Not sure what would happen if Warren Buffett decides not to come into the office tomorrow.
John C. Bogle: “Simplicity is the master key to financial success."
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