Best of Bogleheads - your #1 takeaway

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LilyFleur
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Best of Bogleheads - your #1 takeaway

Post by LilyFleur » Tue Aug 27, 2019 12:55 pm

What is the single most useful piece of knowledge that you have learned here at Bogleheads? Please share in a communication style that will help our newbies...

For me, I learned about RMDs in enough time to do some Roth conversions and eliminate potential higher tax bills in the future.
https://www.schwab.com/public/schwab/in ... lators/rmd

Thanks to this wonderful community and your educational help to so many of us!

ionball
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Re: Best of Bogleheads - your #1 takeaway

Post by ionball » Tue Aug 27, 2019 1:08 pm

The elegance of simplicity.

dbr
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Re: Best of Bogleheads - your #1 takeaway

Post by dbr » Tue Aug 27, 2019 1:13 pm

Number one takeaway is probably that investing in low cost, total market index funds is good enough.

Probably a most valuable piece of information that is often not communicated well here is how variable and uncertain investment results are including how difficult it is to predict future results.

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TierArtz
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Re: Best of Bogleheads - your #1 takeaway

Post by TierArtz » Tue Aug 27, 2019 1:17 pm

How to select the location of investments across multiple accounts (consider your portfolio as a whole) and tax-efficient fund placement: https://www.bogleheads.org/wiki/Tax-eff ... _placement

H-Town
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Re: Best of Bogleheads - your #1 takeaway

Post by H-Town » Tue Aug 27, 2019 1:26 pm

It's almost impossible to change people's mind.

runner3081
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Re: Best of Bogleheads - your #1 takeaway

Post by runner3081 » Tue Aug 27, 2019 2:07 pm

You have failed in life if you do not drive a:
Tesla, Camry, Corolla or Miata.

...also, there are a lot of people who make significantly high salaries.

ohai
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Re: Best of Bogleheads - your #1 takeaway

Post by ohai » Tue Aug 27, 2019 2:20 pm

It's not worth thinking more than 5 minutes about 99% of things.

columbia
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Re: Best of Bogleheads - your #1 takeaway

Post by columbia » Tue Aug 27, 2019 2:27 pm

The best portfolio for me is the one I can stick with.

Conch55
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Re: Best of Bogleheads - your #1 takeaway

Post by Conch55 » Tue Aug 27, 2019 2:29 pm

Stay the course. Also, nobody knows nothing. Index funds, but I already knew that one.

mptfan
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Re: Best of Bogleheads - your #1 takeaway

Post by mptfan » Tue Aug 27, 2019 2:29 pm

Stop watching financial news, 99% of it is noise. Oh, and anyone who claims to know what the market is going to do in the future is either a fool, or trying to sell you something, or both.
Last edited by mptfan on Tue Aug 27, 2019 2:33 pm, edited 1 time in total.

chw
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Re: Best of Bogleheads - your #1 takeaway

Post by chw » Tue Aug 27, 2019 2:32 pm

ionball wrote:
Tue Aug 27, 2019 1:08 pm
The elegance of simplicity.
+1. As time goes on, and various strategies and models are tested, the simple portfolio of 3-4 funds will work beautifully for most investors.

Grt2bOutdoors
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Re: Best of Bogleheads - your #1 takeaway

Post by Grt2bOutdoors » Tue Aug 27, 2019 2:36 pm

The fastest way to a million dollars is by keeping expenses low and to have a high savings rate.

The second fastest way to a million dollars is to take advantage of RBDs. RBDs or really bad days are days where prices have fallen at or close to 5%.

Oh, and there is this $5,000 watch thread.... :D
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Big Dog
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Re: Best of Bogleheads - your #1 takeaway

Post by Big Dog » Tue Aug 27, 2019 2:39 pm

Best of BH?

Taylor Larimore. :sharebeer :sharebeer

[Edited to correct spelling -- mod oldcomputerguy]

HomeStretch
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Re: Best of Bogleheads - your #1 takeaway

Post by HomeStretch » Tue Aug 27, 2019 2:39 pm

That successful DIY investing by the average person is possible.

muffins14
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Re: Best of Bogleheads - your #1 takeaway

Post by muffins14 » Tue Aug 27, 2019 2:40 pm

Becoming informed of the existence of the mega-backdoor Roth

new2bogle
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Re: Best of Bogleheads - your #1 takeaway

Post by new2bogle » Tue Aug 27, 2019 2:41 pm

ionball wrote:
Tue Aug 27, 2019 1:08 pm
The elegance of simplicity.
+1 because it applies to more than just investments.

new2bogle
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Re: Best of Bogleheads - your #1 takeaway

Post by new2bogle » Tue Aug 27, 2019 2:42 pm

muffins14 wrote:
Tue Aug 27, 2019 2:40 pm
Becoming informed of the existence of the mega-backdoor Roth
Ok this one too - thanks Bogleheads for informing me of such a great feature of the tax code!!

Dottie57
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Re: Best of Bogleheads - your #1 takeaway

Post by Dottie57 » Tue Aug 27, 2019 2:43 pm

ionball wrote:
Tue Aug 27, 2019 1:08 pm
The elegance of simplicity.
+1

Simple 3 fund portfolio works well.

AA is important as we age especially those of us not totally FI In any market - I need SS to do well.

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TomatoTomahto
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Re: Best of Bogleheads - your #1 takeaway

Post by TomatoTomahto » Tue Aug 27, 2019 2:44 pm

TierArtz wrote:
Tue Aug 27, 2019 1:17 pm
How to select the location of investments across multiple accounts (consider your portfolio as a whole) and tax-efficient fund placement: https://www.bogleheads.org/wiki/Tax-eff ... _placement
+1
and backdoor Roth and RMD tax torpedo and that nobody goes to jail for listing 4 #1 takeaways.
Okay, I get it; I won't be political or controversial. The Earth is flat.

asif408
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Re: Best of Bogleheads - your #1 takeaway

Post by asif408 » Tue Aug 27, 2019 2:53 pm

I agree with the simplicity viewpoints. The way I word it to others is that I should be able to count a large majority (e.g., 95%) of my investment positions on one hand. Otherwise, it's way too complicated. So right now I have US, developed ex-US, and emerging markets funds, and 1 or 2 sector funds.

It could be even simpler, but I surely wouldn't want it to be more complicated that this. Unfortunately, I started out more complicated than I needed to, but at least I eventually learned.

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Stinky
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Re: Best of Bogleheads - your #1 takeaway

Post by Stinky » Tue Aug 27, 2019 2:54 pm

The "Stocks are Soaring" and "Stocks in Free Fall" threads. Especially when stocks are actually "soaring" or "free falling".

They illustrate how wound up people can be watching the markets day by day or minute by minute, tempered by the "stay the course" philosophy held by most Bogleheads.
It's a GREAT day to be alive - Travis Tritt

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ray.james
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Re: Best of Bogleheads - your #1 takeaway

Post by ray.james » Tue Aug 27, 2019 2:59 pm

The power of compounding.
Bonus: tax advantaged saving, tax efficient placement.

After few years: The power of Simplicity
When in doubt, http://www.bogleheads.org/forum/viewtopic.php?f=1&t=79939

Day9
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Re: Best of Bogleheads - your #1 takeaway

Post by Day9 » Tue Aug 27, 2019 2:59 pm

The Boglehead investment philosophy has 10 points. The first point is "Develop a workable plan". "The Bogleheads approach to developing a workable financial plan is to establishing [sic] a sound financial lifestyle."


https://www.bogleheads.org/wiki/Boglehe ... philosophy
I'm just a fan of the person I got my user name from

PhilosophyAndrew
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Re: Best of Bogleheads - your #1 takeaway

Post by PhilosophyAndrew » Tue Aug 27, 2019 3:01 pm

My top takeaway:

I will stay the course for life investing in a diversified three-fund portfolio of low-cost index funds in accordance with my simple, one-paragraph written investment plan.

Andy.
Last edited by PhilosophyAndrew on Tue Aug 27, 2019 3:04 pm, edited 1 time in total.

bgatze
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Re: Best of Bogleheads - your #1 takeaway

Post by bgatze » Tue Aug 27, 2019 3:02 pm

still very new here so I know my answer would be vastly different in a number of years but so far....

Stick to your plan. Do no deviate based off market conditions.

I was with EJ and had a simple IRA through work with outrageous fee'; finding this forum changed my financial future. Age 34 now and wish I was lucky enough to find this 15 years ago; if I only knew then what I know now.
“Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.” | ― Margaret Mead

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prudent
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Re: Best of Bogleheads - your #1 takeaway

Post by prudent » Tue Aug 27, 2019 3:06 pm

Following the Bogleheads' philosophy gets the job done. There is no need to watch CNBC, react to headlines, make it any more complicated, or care what anyone else is doing. It's simple, easy to understand and easy to implement.

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WoodSpinner
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Re: Best of Bogleheads - your #1 takeaway

Post by WoodSpinner » Tue Aug 27, 2019 3:23 pm

Convincing me to undertake a plan for significant Roth Conversions before RMDs hit at 70. Indebted to #Celia and so many others for convincing me of the wisdom to pay the Tax now, rather than later.

WoodSpinner

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SimpleGift
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Re: Best of Bogleheads - your #1 takeaway

Post by SimpleGift » Tue Aug 27, 2019 3:26 pm

LilyFleur wrote:
Tue Aug 27, 2019 12:55 pm
What is the single most useful piece of knowledge that you have learned here at Bogleheads?
That it's possible to find and hone one's personal investing style amid all the conflicting beliefs and opinions.

Do-it-yourself investing is not particularly easy and requires a great deal of individual responsibility and discipline. Sifting through all the myriad ideas presented on this Forum, deciding for oneself what resonates with one's personal situation, what applies and what doesn't — this is the lasting value of the Forum in my mind.

book lover
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Re: Best of Bogleheads - your #1 takeaway

Post by book lover » Tue Aug 27, 2019 3:34 pm

Taylor's Gems.

UpperNwGuy
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Re: Best of Bogleheads - your #1 takeaway

Post by UpperNwGuy » Tue Aug 27, 2019 3:38 pm

The Three Fund Portfolio.

megabad
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Re: Best of Bogleheads - your #1 takeaway

Post by megabad » Tue Aug 27, 2019 3:47 pm

book lover wrote:
Tue Aug 27, 2019 3:34 pm
Taylor's Gems.
For those who need a link to a bunch of them:

https://www.bogleheads.org/wiki/Taylor_ ... ing_quotes

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steve roy
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Re: Best of Bogleheads - your #1 takeaway

Post by steve roy » Tue Aug 27, 2019 4:09 pm

Get a diversified asset allocation that suits you and stick with it. All else —tilts, non tilts — are small potatoes.

IowaFarmWife
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Re: Best of Bogleheads - your #1 takeaway

Post by IowaFarmWife » Tue Aug 27, 2019 4:15 pm

I've learned a lot from this forum over the past two years, but the things that stick out in my mind are:
1) invest early and often
2) a simple portfolio is fine (you only need a few funds)
3) don't stock pick
4) you don't need to spend money on a lot of "stuff" to make you happy
5) invest in low cost EFTs or mutual funds
6) I can do this myself, I don't have to use a financial advisor
7) fund placement counts (i.e. taxable, tax advantaged, etc.)
“The quickest way to double your money is to fold it in half and put it in your back pocket.” —Will Rogers

h82goslw
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Re: Best of Bogleheads - your #1 takeaway

Post by h82goslw » Tue Aug 27, 2019 4:27 pm

There are many great things, but for me?

When there is an 800 point drop in the Dow I shrug and forget about it. I will forever be thankful for this website and all the great things I’ve learned. Thank you BHs

mptfan
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Re: Best of Bogleheads - your #1 takeaway

Post by mptfan » Tue Aug 27, 2019 4:33 pm

IowaFarmWife wrote:
Tue Aug 27, 2019 4:15 pm
I've learned a lot from this forum over the past two years, but the things that stick out in my mind are:
...
4) you don't need to spend money on a lot of "stuff" to make you happy
That's interesting because in my experience in most cases a person either gets that or they don't, it is hard to "learn" that by just reading. Kudos to you for learning something that most people are unable to learn on their own.

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1789
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Re: Best of Bogleheads - your #1 takeaway

Post by 1789 » Tue Aug 27, 2019 4:39 pm

I learned that i need to start reading again on index investing. So i read the latest edition of “A Random Walk Down Wall Street” .

Thank you Bogleheads
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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Re: Best of Bogleheads - your #1 takeaway

Post by Hydromod » Tue Aug 27, 2019 4:51 pm

I found this place about 6 months ago with a slightly overcomplicated 403b and knowing nothing. I now have a more adequate 403b that I understand, and a small Roth account inspired by Hedgefundie's adventure.

I read "A Random Walk on Wall Street" this week and found that I had already picked up all of the same information here.

My two main takeaways are (i) portfolio simplicity using indexing and (ii) a small amount of leveraged risk parity for juice.

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Re: Best of Bogleheads - your #1 takeaway

Post by Fallible » Tue Aug 27, 2019 5:03 pm

LilyFleur wrote:
Tue Aug 27, 2019 12:55 pm
What is the single most useful piece of knowledge that you have learned here at Bogleheads? Please share in a communication style that will help our newbies... ...
Pretty hard to stay at a single piece of knowledge, especially for newbies, so I'll sort of get around that with the "Bogleheads' Philosophy" and its all-inclusive principles. Once learned, understood, and practiced, they are the basics to return to when the going gets tough.
John Bogle on his often bumpy road to low-cost indexing: "When a door closes, if you look long enough and hard enough, if you're strong enough, you'll find a window that opens."

rocketfast
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Re: Best of Bogleheads - your #1 takeaway

Post by rocketfast » Tue Aug 27, 2019 5:06 pm

Slicing and dicing would always make me nervous and I would always double guess myself on what to buy and what not to buy and ending up with small investments and lots of cash. Rebalancing would result in tax consequences.

My biggest takeaway is how psychologically easy it is to invest large sums of money with 3 fund portfolio. If not for this, I would surely have missed the long bull market. I hardly blink when making 6 figure dollar buys with this approach.

My second biggest take away was tax loss harvesting.

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Re: Best of Bogleheads - your #1 takeaway

Post by HawkeyePierce » Tue Aug 27, 2019 5:10 pm

The impact of fees.

I don't recall exactly how I stumbled onto this website but I know it was when I started my first "real" job after college and was handed a thick stack of indecipherable 401k information. I already had a Roth IRA set up by a former college roommate turned financial advisor but started doing my own research into this 401k thing.

Somehow I landed on the wiki here and read just about everything in it. That was the first time I actually looked at the fees I was paying to my former roommate—12b1, front load, AUM, high ER mutual funds, you name it. Fortunately I was only 22 at this point and there was only a couple thousand bucks in that IRA so the damage was minimal. I moved it to Vanguard soon after.

That led to my second "light bulb" moment on investing: never invest with anyone you know personally. Obviously that roommate and I had a falling out when I moved my assets. Now my investments are with big faceless corporations and I prefer it that way. Nobody at Fidelity got upset when I rolled a 401k over to Vanguard and nobody at Vanguard got mad when I moved a Roth IRA over to M1. It's just business.

Dave55
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Re: Best of Bogleheads - your #1 takeaway

Post by Dave55 » Tue Aug 27, 2019 5:37 pm

The simplicity of the 3 fund portfolio.

Dave

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FIREchief
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Re: Best of Bogleheads - your #1 takeaway

Post by FIREchief » Tue Aug 27, 2019 5:46 pm

The best place to obtain investing guidance is a free internet forum. The worst place to obtain investing guidance is from a guy in a fancy suit, in a fancy office with walls plastered with credentials.

This is the polar opposite of obtaining health care, legal advice and many other such services.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

dbr
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Re: Best of Bogleheads - your #1 takeaway

Post by dbr » Tue Aug 27, 2019 6:18 pm

FIREchief wrote:
Tue Aug 27, 2019 5:46 pm
The best place to obtain investing guidance is a free internet forum. The worst place to obtain investing guidance is from a guy in a fancy suit, in a fancy office with walls plastered with credentials.

This is the polar opposite of obtaining health care, legal advice and many other such services.
We should probably start accumulating votes for the suggestions we like best, but this forum does not offer a "like" function. If it did I would add a "like" to the above. I might even like it more than my own offering.

Longtermgrowth
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Re: Best of Bogleheads - your #1 takeaway

Post by Longtermgrowth » Tue Aug 27, 2019 6:23 pm

Hard to pick a top thing: Diversify, keep costs low, stick to your plan.

Many more good people out there than I would have imagined, and most of them seem to be right here on this forum :sharebeer

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MillennialFinance19
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Re: Best of Bogleheads - your #1 takeaway

Post by MillennialFinance19 » Tue Aug 27, 2019 6:25 pm

Maintain a high savings rate. This alone can overpower other poor decisions.

DippityDoo
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Re: Best of Bogleheads - your #1 takeaway

Post by DippityDoo » Tue Aug 27, 2019 6:26 pm

Investing ain't rocket science. The Bogleheads' Guide to Investing gave me confidence to ditch Edward Jones and self-manage my portfolio. I will always be grateful for that book :happy

123
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Re: Best of Bogleheads - your #1 takeaway

Post by 123 » Tue Aug 27, 2019 6:39 pm

The enemy of a good plan is the search for a perfect plan.
The closest helping hand is at the end of your own arm.

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AerialWombat
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Re: Best of Bogleheads - your #1 takeaway

Post by AerialWombat » Tue Aug 27, 2019 6:40 pm

columbia wrote:
Tue Aug 27, 2019 2:27 pm
The best portfolio for me is the one I can stick with.
+4
“Life doesn’t come with a warranty.” -Michael LeBoeuf

Cycle
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Re: Best of Bogleheads - your #1 takeaway

Post by Cycle » Tue Aug 27, 2019 6:41 pm

short-term, backdoor roth. Long term, simple portfolio (defined in a revision controlled IPS) to help stay the course.
Never look back unless you are planning to go that way

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yangtui
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Re: Best of Bogleheads - your #1 takeaway

Post by yangtui » Tue Aug 27, 2019 6:46 pm

humility and simplicity. it is important to recognize how little it is possible for you to know, then act accordingly.

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