November "Bogleheads On Investing" podcast with guest Jonathan Clements
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November "Bogleheads On Investing" podcast with guest Jonathan Clements
Episode #3: Bogleheads On Investing" with guest Jonathan Clements is now available. Check with iTunes or other podcast providers, or click below:
Episode 003: Bogleheads On Investing with Jonathan Clements, hosted by Rick Ferri
Jonathan Clements is the founder and editor of HumbleDollar. During Jonathan's long career as a financial writer he has worked for Euromoney, Forbes, and The Wall Street Journal. He is also the author of eight personal finance books. His latest book is From Here to Financial Happiness.
This interesting interview dives into Jonathan's career, his books, the FIRE movement, how money can buy you happiness, investment fees and why he was an early advocate for low-cost index funds. The podcast is approximately 55 minutes long.
Enjoy,
Rick Ferri
Episode 003: Bogleheads On Investing with Jonathan Clements, hosted by Rick Ferri
Jonathan Clements is the founder and editor of HumbleDollar. During Jonathan's long career as a financial writer he has worked for Euromoney, Forbes, and The Wall Street Journal. He is also the author of eight personal finance books. His latest book is From Here to Financial Happiness.
This interesting interview dives into Jonathan's career, his books, the FIRE movement, how money can buy you happiness, investment fees and why he was an early advocate for low-cost index funds. The podcast is approximately 55 minutes long.
Enjoy,
Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Another great podcast, Rick. Well done; keep 'em coming.
Best regards,
Mel
Best regards,
Mel
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Perfect. Thank you.
Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Great listen. Thanks for bringing up the FIRE movement and the two fund portfolio.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Great podcast, Rick - thanks for sharing and thanks to Jonathan for his time.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Well done Rick. I have listened/read Jonathan a few times before. You explored the back stories of his experiences nicely.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Did J. Clements recommended 50% of international allocation? Did I get that right?
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Jonathan said he personally has 50% of his equity allocation in international and it has been this way for a long time.
Rick Ferri
Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
My dog and I enjoyed listening to the podcast during our walk this morning. Thanks, Rick.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Wow! Rick do you allocate 50% to international?Rick Ferri wrote: ↑Thu Nov 08, 2018 12:31 pm Jonathan said he personally has 50% of his equity allocation in international and it has been this way for a long time.
Rick Ferri
John C. Bogle: “Simplicity is the master key to financial success."
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
No. But to each is own. No way to tell if this is safer or better than 30% international or 0% international.abuss368 wrote: ↑Thu Nov 08, 2018 3:38 pmWow! Rick do you allocate 50% to international?Rick Ferri wrote: ↑Thu Nov 08, 2018 12:31 pm Jonathan said he personally has 50% of his equity allocation in international and it has been this way for a long time.
Rick Ferri
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Where does your recommendation fall along the spectrum then, Rick? Range is fine too, but curious as to where you land.Rick Ferri wrote: ↑Thu Nov 08, 2018 4:18 pmNo. But to each is own. No way to tell if this is safer or better than 30% international or 0% international.abuss368 wrote: ↑Thu Nov 08, 2018 3:38 pmWow! Rick do you allocate 50% to international?Rick Ferri wrote: ↑Thu Nov 08, 2018 12:31 pm Jonathan said he personally has 50% of his equity allocation in international and it has been this way for a long time.
Rick Ferri
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute" - William Feather
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
I've always used 30% international equity and 70% US equity as my middle-of-the-road allocation (for US investors). That split has historically worked well in the long-term.
Rick Ferri
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Thanks Rick - like the signature comment. Couldn't be more true on the whole life cycle.Rick Ferri wrote: ↑Thu Nov 08, 2018 4:33 pm I've always used 30% international equity and 70% US equity as my middle-of-the-road allocation (for US investors). That split has historically worked well in the long-term.
Rick Ferri
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute" - William Feather
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
I noticed he likes one brokerage and one bank/credit union idea.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
iamblessed wrote: ↑Fri Nov 09, 2018 7:15 am I noticed he likes one brokerage and one bank/credit union idea.
Yes. I like that also. Keep it simple. Sometimes it's not possible because of circumstances, but it should be what we work toward.
Rick Ferri
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
I am not quiet there but am working on it.Rick Ferri wrote: ↑Fri Nov 09, 2018 10:04 amiamblessed wrote: ↑Fri Nov 09, 2018 7:15 am I noticed he likes one brokerage and one bank/credit union idea.
Yes. I like that also. Keep it simple. Sometimes it's not possible because of circumstances, but it should be what we work toward.
Rick Ferri
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
looking forward to this one. Great job so far Rick.Rick Ferri wrote: ↑Thu Nov 08, 2018 4:33 pm I've always used 30% international equity and 70% US equity as my middle-of-the-road allocation (for US investors). That split has historically worked well in the long-term.
Rick Ferri
I'm wondering why folks are so surprised by a 50% allocation of one's equity portion to international. Owning a two fund portfolio of total world stock market index fund and total bond market index fund would have about 50% of one's equity portion in international. Even VG's target date retirement funds have 40% of the equity portion in international now which is not that far off from 50%.
So it doesn't seem so surpising to me. Merriman, and I believe at times Swedroe has said an allocation of half one's equities internationally made sense to diversify against one's human capital or maybe it was employment which is priced in in U.S. dollars.
I personally have 30% of my equity holdings in international, based on past results regarding the efficient frontier (future resuls may vary):
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Rick hello!Rick Ferri wrote: ↑Thu Nov 08, 2018 4:33 pm I've always used 30% international equity and 70% US equity as my middle-of-the-road allocation (for US investors). That split has historically worked well in the long-term.
Rick Ferri
If you think the ratio of 70 US / 30 INT is optimal for a citizen of the USA, What distribution of US/INT would you recommend to a citizen of a developing country!? (the currency of my country has been constantly falling against the dollar for a long time)
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
I don't know what optimal will be until I read it in the history books. That being said, I do believe for US investors that having a 30%-40% international allocation provides greater industry diversification than US stocks alone.V.T wrote: ↑Sun Jan 30, 2022 11:45 pmRick hello!Rick Ferri wrote: ↑Thu Nov 08, 2018 4:33 pm I've always used 30% international equity and 70% US equity as my middle-of-the-road allocation (for US investors). That split has historically worked well in the long-term.
Rick Ferri
If you think the ratio of 70 US / 30 INT is optimal for a citizen of the USA, What distribution of US/INT would you recommend to a citizen of a developing country!? (the currency of my country has been constantly falling against the dollar for a long time)
Rick
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
Rick hello and thank you for the answer!Rick Ferri wrote: ↑Mon Jan 31, 2022 1:17 pmI don't know what optimal will be until I read it in the history books. That being said, I do believe for US investors that having a 30%-40% international allocation provides greater industry diversification than US stocks alone.V.T wrote: ↑Sun Jan 30, 2022 11:45 pmRick hello!Rick Ferri wrote: ↑Thu Nov 08, 2018 4:33 pm I've always used 30% international equity and 70% US equity as my middle-of-the-road allocation (for US investors). That split has historically worked well in the long-term.
Rick Ferri
If you think the ratio of 70 US / 30 INT is optimal for a citizen of the USA, What distribution of US/INT would you recommend to a citizen of a developing country!? (the currency of my country has been constantly falling against the dollar for a long time)
Rick
I'm trying to figure out one question: if 30-40% of international capital gives the greatest diversification for a US resident (approaching Total World Stock), then for a citizen of a developing country (Russia 0.3% of Total World Stock) can this portfolio be considered optimal (diversified)???
A lot of people will say about two key points:
1) Domestic bias - I would not like to increase my country's share in the porphyry due to the long economic lag of my country due to the actions of the leadership, poor judicial system, lack of democracy);
2) Currency risk - after studying your books and various articles, I realized that on the long horizon, the currency risk is burning down with two-way traffic, especially since the currency of my country has been falling against almost all currencies of developed countries for more than 100 years.
Rick I am very interested in your opinion on this issue, help me wake it up, thank you in advance!!!
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements
1) Domestic bias - People in every country are biased to their own stock market and currency. It doesn't matter what country they live in.
2) Currency risk - The US dollar is holding its own in a world where every government bond is devaluing their currency.
2) Currency risk - The US dollar is holding its own in a world where every government bond is devaluing their currency.
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.