A Boglehead explains the simplest way to manage your money

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Grasshopper
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A Boglehead explains the simplest way to manage your money

Post by Grasshopper » Tue Sep 11, 2018 5:58 am

Taylor Larimore is a big advocate of keeping investing simple — simple enough to be handled with just three mutual funds. He says it means he doesn’t need to spend more than about an hour a year managing his money.

https://www.marketwatch.com/story/a-bog ... 2018-09-11

MikeG62
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Re: A Boglehead explains the simplest way to manage your money

Post by MikeG62 » Tue Sep 11, 2018 7:52 am

Taylor is a true voice of reason when it comes to investing. It is impossible to argue with his half-century of investing experience. We are lucky to have him as a contributing member of our forums.
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CULater
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Taylor at Marketwatch, with a nice picture

Post by CULater » Tue Sep 11, 2018 9:07 am

[Thread merged into here, see below. --admin LadyGeek]

Here's a nice interview with Mr. Larimore with a nice pic of the handsome gentlemen for those of us who haven't seen him before.

https://www.marketwatch.com/story/a-bog ... 2018-09-11
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

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munemaker
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Re: Taylor at Marketwatch, with a nice picture

Post by munemaker » Tue Sep 11, 2018 9:15 am

CULater wrote:
Tue Sep 11, 2018 9:07 am
Here's a nice interview with Mr. Larimore with a nice pic of the handsome gentlemen for those of us who haven't seen him before.

https://www.marketwatch.com/story/a-bog ... 2018-09-11
Nice article and photo, but I couldn't follow the math on the blackboard.

Howard Donnelly
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Re: Taylor at Marketwatch, with a nice picture

Post by Howard Donnelly » Tue Sep 11, 2018 9:15 am

Excellent! Thank you for posting the article.

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nedsaid
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Re: Taylor at Marketwatch, with a nice picture

Post by nedsaid » Tue Sep 11, 2018 9:19 am

Thank you for posting the article. Good to see Taylor receive some recognition.
A fool and his money are good for business.

2015
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Re: A Boglehead explains the simplest way to manage your money

Post by 2015 » Tue Sep 11, 2018 9:24 am

Transitioning to the 3 fund was one of the best things I've ever done financially. Anything beyond the most simple elements possible creates complexity and complexity by its nature creates friction. Friction in any system, but particularly in investing, creates the potentiality for all kinds of issues and problems.

JBTX
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Re: Taylor at Marketwatch, with a nice picture

Post by JBTX » Tue Sep 11, 2018 9:29 am

Congrats on the book's success and the well deserved recognition!

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jazman12
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Re: Taylor at Marketwatch, with a nice picture

Post by jazman12 » Tue Sep 11, 2018 9:34 am

I wish I look that good at 75!
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JupiterJones
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Re: A Boglehead explains the simplest way to manage your money

Post by JupiterJones » Tue Sep 11, 2018 12:33 pm

Great article. Thanks for posting the link!
Stay on target...

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Re: A Boglehead explains the simplest way to manage your money

Post by zengolf2011 » Tue Sep 11, 2018 1:32 pm

I started investing 30 years ago with the "help" of a financial adviser (read: salesman) who was no help to me at all, but helped himself a lot. With a small bit of reasoning and research, plus a large dose of luck, I eventually stumbled into variants of the 3-fund portfolio. My only regret is that I didn't find this website, its wiki, and Taylor's wisdom until a few years ago. Thanks to all of you who have made this website so helpful and given me the support to stay the course since then.

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LadyGeek
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Re: A Boglehead explains the simplest way to manage your money

Post by LadyGeek » Tue Sep 11, 2018 3:33 pm

I merged CULater's thread into here.

As for the article, Opinion: A Boglehead explains the simplest way to manage your money , the caption for the picture under the article's title says "Not this way..."

The editors are having fun, as those equations are for particle physics. More likely, no one caught that. :)
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aspirit
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Re: Taylor at Marketwatch, with a nice picture

Post by aspirit » Tue Sep 11, 2018 6:12 pm

jazman12 wrote:
Tue Sep 11, 2018 9:34 am
I wish I look that good at 75!
Sailing is truly a fountain of youth...
You and I both!
The boards finance maven Taylor Larimore has certainly triumphed over quite a few obstacles in his life living through the -'29crash and its aftermath-, -Bastogne-, '70-'80s w/10%-13% unexpected inflation some years, '87's Black Monday, both 02/09 crashes, etc.) afaik.
Thats quite a historic timeline of crashes. I recall MassMuni's paying 12% in the early 80s. Unfortunately they were callable. I'd suggest both his living well, sleeping well & living near the sea helps also.
Nothing like the smell of the sea air in the morning!

Thanks for imparting with your wealth of experience & wisdom sir!
Time & tides wait for no one. A man has to know his limitations.

columbia
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Re: A Boglehead explains the simplest way to manage your money

Post by columbia » Tue Sep 11, 2018 7:41 pm

The important issue is how much is one actually benefitting from a complex portfolio. History clearly indicates: not much.

uberdoc
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Re: A Boglehead explains the simplest way to manage your money

Post by uberdoc » Tue Sep 11, 2018 8:12 pm

I am always confused with this:
If I have more than 3 funds in an attempt to create an overall 3 fund portfolio, is it still a 3 fund portfolio? I have only large cap index fund in 401K and I use mid/small cap in Roth to approximate total US stock index. Then I use different index tracking funds for tax loss harvesting purpose. Is there any downside to it?

dachshunddad
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Re: A Boglehead explains the simplest way to manage your money

Post by dachshunddad » Tue Sep 11, 2018 8:39 pm

With great minds on this thread, I'll throw in a question for advice.

I do favor the simplicity and am working towards that. How does tax loss harvesting play into that? Does a lazy portfolio in taxable account just buy and hold, vs trying to TLH each year?

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LadyGeek
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Re: A Boglehead explains the simplest way to manage your money

Post by LadyGeek » Tue Sep 11, 2018 10:05 pm

Earl Lemongrab has presented an alternative perspective. The discussion was getting derailed, so I moved the discussion into a new thread.

See: [A Boglehead explains the simplest way to manage your money - alternative viewpoint]
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Re: A Boglehead explains the simplest way to manage your money

Post by LadyGeek » Tue Sep 11, 2018 10:10 pm

uberdoc wrote:
Tue Sep 11, 2018 8:12 pm
I am always confused with this:
If I have more than 3 funds in an attempt to create an overall 3 fund portfolio, is it still a 3 fund portfolio? I have only large cap index fund in 401K and I use mid/small cap in Roth to approximate total US stock index. Then I use different index tracking funds for tax loss harvesting purpose. Is there any downside to it?
The intent of the 3-fund portfolio is to approximate the Total Stock Market. You do the best you can with what you have. As long as you are comfortable managing those fund, I don't see anything wrong with this.

I'm not sure what you mean by "tax loss harvesting purpose". There is no tax loss harvesting inside a tax-deferred account, i.e. your 401(k) and Roth.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

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mlebuf
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Re: A Boglehead explains the simplest way to manage your money

Post by mlebuf » Wed Sep 12, 2018 12:03 am

Hi Taylor,

Congratulations on the great write-up in MarketWatch! As many of us, including myself learned the hard way, many/most of the complexities of investing are created to protect the livelihoods of so-called, "investment experts." Thanks to Jack Bogle, the Bogleheads and many others who helped spread the word, many of us are richer for learning the simple basics and are keeping more of our hard earned money in our own pockets.
Best wishes, | Michael | | Invest your time actively and your money passively.

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