3 fund people how are you feeling?

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Cody
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3 fund people how are you feeling?

Post by Cody » Sun Sep 01, 2019 9:07 am

I have a 3 fund portfolio myself.

I am wondering what you are thinking about your choice with the current state of economic things? (what ever that means to you).

Are you simply ignoring the chatter? Thinking of tilting some? Doing something else? Are you examining the logic of your portfolio construction?

Thanks

BogleBoogie
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Re: 3 fund people how are you feeling?

Post by BogleBoogie » Sun Sep 01, 2019 9:11 am

Feeling great. While I suppose I peek at balance and general market movement, I haven't paid attention enough to even re-think 3 fund portfolio (maybe I'm missing something). However, I suppose one of the reasons to have a 3 fund is to be able to tune out noise and weather ups and downs.

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Re: 3 fund people how are you feeling?

Post by ThankYouJack » Sun Sep 01, 2019 9:22 am

Feeling great...but feeling like I have one too many funds ;)

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Re: 3 fund people how are you feeling?

Post by livesoft » Sun Sep 01, 2019 9:24 am

My portfolio has a small-cap, value, and momentum tilt overlaid on top of a 3-fund total market weighted portfolio. It is doing much better than expected, but I still wish there was lots more volatility because I eat volatility for breakfast and I am feeling malnourished.
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Re: 3 fund people how are you feeling?

Post by Sandtrap » Sun Sep 01, 2019 9:29 am

Hybrid 3 fund with REIT Index and a few other indexes for underlying funds.
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Re: 3 fund people how are you feeling?

Post by FrugalInvestor » Sun Sep 01, 2019 9:33 am

I feel great! When things go up I have them. When things go down I have other things that offset them, at least partially. I know that I'm never going to hit the jackpot but I also know that in the long-term I'm always going to get what I deserve and do better than the large majority of investors. On top of that my investments are simple to manage and because they're strategically placed (taxable vs. tax deferred) also very tax efficient.

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Re: 3 fund people how are you feeling?

Post by ridebikeseveryday » Sun Sep 01, 2019 9:38 am

Same as I have for the last several years: wondering if I should switch intermediate term muni bonds for total bond fund. Everything I read says it "doesn't matter", but presumably the risk profiles are different, and I've not seen any analysis of that.

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Re: 3 fund people how are you feeling?

Post by UpperNwGuy » Sun Sep 01, 2019 9:42 am

I am mostly happy with my 60/40 three-fund portfolio. The one thing that annoys me is the poor performance of Total International. It's why I am keeping it at 20 percent of equities and not raising it to market capitalization.

I have no plans to adjust my 60/40 allocation because of market uncertainty. As far as I'm concerned, I chose 60/40 because I knew that the market might become uncertain. If I had thought the market would always be growing, I would have chosen 80/20.

I'm also planning to stick with intermediate-term bonds. I see no reason to change.

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Re: 3 fund people how are you feeling?

Post by MathIsMyWayr » Sun Sep 01, 2019 9:43 am

I do not have exactly 3 funds, but quite close. For retirement accounts, I have chosen funds to resemble 3 funds as closely as practical. I don't believe my financial acumen has gotten any better since then.

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Re: 3 fund people how are you feeling?

Post by yangtui » Sun Sep 01, 2019 9:51 am

I am feeling fantastic. Just got a new job. As soon as I found out I quit my previous one to travel worry free for three weeks. When my new role starts I will continue to max out all tax advantaged space. Do you know something we do not know that should be making us nervous? Chatter is usually nonsense. I remember what the chattering class was chatting about leading up to 08/09, it was pretty stupid and extremely wrong. It is important to have a balanced portfolio and chill. The vast majority of the time you do not see the nasty stuff until it smacks you right in the face.
:D :D :D

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Re: 3 fund people how are you feeling?

Post by MotoTrojan » Sun Sep 01, 2019 9:57 am

livesoft wrote:
Sun Sep 01, 2019 9:24 am
My portfolio has a small-cap, value, and momentum tilt overlaid on top of a 3-fund total market weighted portfolio. It is doing much better than expected, but I still wish there was lots more volatility because I eat volatility for breakfast and I am feeling malnourished.
Your market-timing-light would be an interesting addition to hedgefundie’s excellent adventure portfolio.

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Re: 3 fund people how are you feeling?

Post by Call_Me_Op » Sun Sep 01, 2019 10:02 am

Honestly, people make too much of an issue over whether they have a 3-fund, 4-fund, 2-fund, 1-fund, or 8-fund portfolio. What is of primary importance is your ratio of stocks to fixed-income. After that, keep costs low and stay the course.
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Re: 3 fund people how are you feeling?

Post by ruralavalon » Sun Sep 01, 2019 10:51 am

Cody wrote:
Sun Sep 01, 2019 9:07 am
I have a 3 fund portfolio myself.

I am wondering what you are thinking about your choice with the current state of economic things? (what ever that means to you).

Are you simply ignoring the chatter? Thinking of tilting some? Doing something else? Are you examining the logic of your portfolio construction?

Thanks
Actually have 4 funds, the extra is small-cap value at 25% of domestic stocks.

I am fine with our choices, but am thinking of un-tilting just to simplify more (both age 74).

I just ignore the chatter, other than to occasionally comment (trying to add some perspective) on the "free fall" thread.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Re: 3 fund people how are you feeling?

Post by midareff » Sun Sep 01, 2019 10:54 am

Cody wrote:
Sun Sep 01, 2019 9:07 am
I have a 3 fund portfolio myself.

I am wondering what you are thinking about your choice with the current state of economic things? (what ever that means to you).

Are you simply ignoring the chatter? Thinking of tilting some? Doing something else? Are you examining the logic of your portfolio construction?

Thanks
I've been trying to catch up on all the doin' nothin' I have supposed to have been doing since I retired in early 2012. This seems to be an ideal time to catch up on all the doin' nothin' that I have been expected to do. FWIW, I'm not exactly a three funder. I am in my taxable account, a 5 funder in my IRA and a 2 funder in my Roth. I guess if I average it out I'm a 3.33 funder.

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Re: 3 fund people how are you feeling?

Post by owenmia » Sun Sep 01, 2019 11:13 am

I feel like this is the optimal way to go. I dont believe getting a broker and trying to beat the market is wise.

I still have minor doubts like should I be 20% or 25% international but I think I am in as good a place as I can be.

I am glad I found the Bogleheads and that I am not with a broker betting on sector funds.
Last edited by owenmia on Sun Sep 01, 2019 11:24 am, edited 1 time in total.

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Stinky
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Re: 3 fund people how are you feeling?

Post by Stinky » Sun Sep 01, 2019 11:24 am

Except for the lagging performance of my Total International fund, i feel great.
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JoMoney
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Re: 3 fund people how are you feeling?

Post by JoMoney » Sun Sep 01, 2019 11:32 am

I use an S&P 500 fund and some short-term government bond/money markets, so I guess I'm a tilter relative to the 3 fund.
When I look at the performance of my Vanguard S&P 500 fund relative the S&P 500 index, my fund has actually done better than what I expected (performance has been closer than the ER costs would have implied).
I expect that if I don't futz with it, and continue to make regular contributions over time, and when I get to withdrawal stage spread the withdrawal over time, my "average" returns will be about what the average market returns were over my investing time period.
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Re: 3 fund people how are you feeling?

Post by KingRiggs » Sun Sep 01, 2019 11:51 am

I check my portfolio balances at the end of every month when I make my 401k contribution and the bond fund kicks out its dividend.

I'm feeling fine because my Total International fund was on sale! :wink:
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Taylor Larimore
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Re: 3 fund people how are you feeling? -- Great!

Post by Taylor Larimore » Sun Sep 01, 2019 12:06 pm

Cody:
I will try to answer your questions:
I have a 3 fund portfolio myself.
Congratulations!
I am wondering what you are thinking about your choice with the current state of economic things? (what ever that means to you).
One of the best things about The Three-Fund Portfolio is that we waste no time on "economic things." We simply stay-the-course, knowing that it is nearly impossible to "beat the market" over a lifetime of investing.
Are you simply ignoring the chatter?
Yes.
Thinking of tilting some?

No.
Doing something else?
No.
Are you examining the logic of your portfolio construction?
Yes. After my long personal experience and careful study, I proposed The Three-Fund Portfolio about 20 years ago. It is recommended by 5 Nobel Laureates, Jack Bogle and Investment Experts.
Read below:The Three-Fund Portfolio is the way to go:
Mark Balasa, CPA, CFP: "That three-pronged approach is going to beat the vast majority of the individual stock and bond portfolio that most people have at brokerage firms. There is a certain elegance in the simplicity of it."

Christine Benz, Morningstar Director of Personal Finance: "The Bogleheads' Three-Fund Portfolio is the ultimate in elegant minimalism."

Bill Bernstein, author of The Four Pillars of Investing: "Does this (three fund) portfolio seem overly simplistic, even amateurish? Get over it. Over the next few decades, the overwhelming majority of all professional investors will not be able to beat it."

Jack Bogle, "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk." -- "The odds of outpacing an all-market index fund are, well, terrible."

Benjamin Buffett, Boglehead: "I enjoy analyzing portfolios against the three fund portfolio, mostly it's enjoyable to see the three fund consistently curb stomp almost all competitors."

Jonathan Burton, MarketWatch: "There are plenty of ways to complicate investing, and plenty of people who stand to make money from you as a result. So just think of a three-fund strategy as something you won't have to think about too much."

Jonathan Clements, author and Wall Street Journal columnist: "Using broad-based index funds to match the market is, I believe, brilliant in its simplicity." -- "You can build a great portfolio with just three index funds: a U.S. total stock market fund, an international fund that buys both developed and emerging stock markets, and a high-quality U.S. bond fund.

Dr. Breathe Easy Finance: "The 3-fund investment portfolio strategy combines all the top professional advice, strategies, diversification, and combines them all into one simplified easy way to manage your portfolio."

Laura Dugu, co-author of The Bogleheads' Guide to Retirement Planning: "With only these three funds in your investment portfolio you can benefit from low costs and broad diversification and still have a portfolio that is easy to manage."

Rick Ferri, author of six investment books: "The older I get, the more I believe the 3-fund portfolio is an excellent choice for most people. It's simple, cheap, easy to maintain, and has no tracking error that would cause emotional abandonment to the strategy."

Forbes: "The 3-Fund Portfolio is beautiful in its simplicity and effectiveness, and is a great way to manage your own portfolio."

Kiplinger's Retirement Report: "You'll beat most investors with just three funds that cover the vast majority of global stock and bond markets: Vanguard Total Stock Market; Vanguard Total International Stock Index and Vanguard Total Bond Market Index."

Prof. Burton Malkiel, author of Random Walk Down Wall Street: "I recommend a total-market index fund--one that follows the entire U.S. stock market. And I recommend the same approach for the U.S. bond market and international stocks."

Money 101: "If you don’t want to leave your stock and bond allocations up to someone else, you can build a low cost portfolio that own most of the global market with just three funds. A “total stock market” index fund will hold over 3000 stocks, ranging from small companies to established corporate giants. Round that out with an international index fund to cover foreign holdings, and bond index fund."

Portfolio Einstein: "The Three-fund is simple, effective and elegant."

Anna Pryor Wall Street Journal writer: "A simple portfolio of 3 funds. It may sound counter-intuitive, but for the average individual investor, less is actually more."

Allan Roth, CPA, CFP, AARP columnist, adviser and author of "How a Second Grader Beat Wall Street": "The beauty of a 3-fund portfolio is that it automatically builds the global portfolio without having to worry about standard deviations, correlations, Sharpe ratios, and the like. -- Over the years, I’ve benchmarked hundreds of portfolios against the equivalent weighted three-fund portfolio and can count on one hand the number of portfolios I’ve seen that bested this benchmark."

Bill Schultheis, author of The Coffee House Investor: "You don't need to have eight funds. You can do it with two or three and have a great portfolio."

William Sharpe, Nobel Laureate: "You may think your opinion is superior, but it pays to be humble, investing in the market rather than trying to beat it."

Dan Solin, author of The Smartest Portfolio You'll Ever Own: "You can get as simple or as complicated as you'd like. You can keep it very simple by owning just three mutual funds that invests in domestic stocks, foreign stocks, and bonds. That's precisely what I recommend in my model portfolios."

Prof. Meir Statman, author of What Investors Really Want: "It makes sense to have those three funds. What makes it hard is that it seems too simple to actually be a winner."

Stein & DeMuth, authors of The Affluent Investor: "Buying and holding a few broad market index funds is perhaps the most important move ordinary investors can make to supercharge their portfolios."

Kent Thune, CFP, editor of The Financial Philosopher: "In keeping with the virtues of passive investing, combined with Bogle’s haystack philosophy, we can capture the entire market of securities with Vanguard index funds, investing in just three broad categories: U.S. stocks, foreign stocks and bonds."

"The Wall Street Physician": I am a huge advocate of low-cost index funds. The best portfolio for most investors is a three-fund portfolio."

Walter Updegrave, author and senior editor of Money magazine: "Simply invest in the following three funds (or their ETF equivalents): a total U.S. stock market fund, a total international stock market fund and a total U.S bond market fund. Do that, and you'll gain exposure to virtually every type of publicly traded stock in the world (large and small, growth and value, domestic and foreign, all industries and sectors), as well as the entire U.S. investment-grade taxable bond market (short- to long-term maturities, corporate, Treasuries and mortgage-backed issues)."

John Woerth, Vanguard Director of Public Relations: "We would agree that this three-fund approach offers most investors a prudent, well-balanced, diversified portfolio at a low cost."

Warren Buffett, famed investor: "There seems to be some perverse human characteristic that likes to make easy things difficult."
Best wishes
Taylor
Jack Bogle's Words of Wisdom: "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk." -- "The odds of outpacing an all-market index fund are, well, terrible."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: 3 fund people how are you feeling?

Post by goodenyou » Sun Sep 01, 2019 1:02 pm

I am a 3-Funder for the most part. (Close to 60% TSM plus S&P 500 Index). 40% "Bonds" (TBM and Intermediate Tax-Free@20%) and Prime Money Market and SVF @20%. With poor choices in 401(k), I have to modify things a bit.
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Re: 3 fund people how are you feeling?

Post by kacang » Sun Sep 01, 2019 2:09 pm

Almost a 3-funder at AA of 60/40 for stock/bond, just some company stock that we are paring down over time. It is good enough and boring enough, that we can tune out the noise and sleep well. If we want fun/excitement, we have hobbies and a play account.

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Re: 3 fund people how are you feeling?

Post by abuss368 » Sun Sep 01, 2019 2:13 pm

The Three Fund Portfolio is an excellent strategy.

Simple and effective.
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Re: 3 fund people how are you feeling?

Post by abuss368 » Sun Sep 01, 2019 2:14 pm

The Three Fund Portfolio is an excellent strategy.

Simple and effective.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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Re: 3 fund people how are you feeling?

Post by Tyler Aspect » Sun Sep 01, 2019 2:32 pm

It is working well. I am at 50% stock / 50% bond. Stock is 80% US, 20% international.
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Re: 3 fund people how are you feeling?

Post by bogglizer » Sun Sep 01, 2019 2:36 pm

I have a 3-fund portfolio. Sometimes it goes up. Sometimes it goes down. Once a year I rebalance it, just so feel engaged. Doing anything more is second guessing the entire concept. Keep your hands off, and just let it do its thing.

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Re: 3 fund people how are you feeling?

Post by nisiprius » Sun Sep 01, 2019 3:24 pm

(Shrug) Retired, bond-heavy... so not too bad at the moment, due to that unnerving rise in bonds. I'm not strictly or literally in a three-fund portfolio, the biggest departure being that about half of my bond allocation is the Vanguard TIPS fund. Vanguard is showing about a 5% for the last one year and about the same for the last three.

Yeah, I expect to give back most of the weird bond run-up, and I expect both a bear market and a recession sometime within the next few years, but I don't think those feelings are actionable so I'm just continuing to do nothing (but withdraw RMD's).
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Re: 3 fund people how are you feeling?

Post by l1am » Sun Sep 01, 2019 4:57 pm

85/15, sometimes feel slightly nervous which indicates I may be overweighted. But I've got 25 years to retirement (or at least until I can withdraw from 401k/roths). They're the default 90/10 for target date funds, so the strategy is probably fine.

My taxable is ~80/20 though, and I'll probably contribute a bit more to bonds to hit 70/30 there in case I retire sooner.

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Re: 3 fund people how are you feeling?

Post by cashboy » Sun Sep 01, 2019 7:15 pm

i have a 3 fund portfolio and am feeling fine; thanks for asking! :D my feet were hurting a little today, but it might be the shoes...

AA is 50/50.

did a lot of research before deciding where I wanted to be, so not changing anything; staying the course.
Last edited by cashboy on Sun Sep 01, 2019 7:20 pm, edited 5 times in total.
Three-Fund Portfolio: FSPSX - FXAIX - FXNAX (with slight tilt of CDs - CASH - Canned Beans - Rice - Bottled Water)

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Taylor Larimore
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Feeling Good.

Post by Taylor Larimore » Sun Sep 01, 2019 7:16 pm

Cody:

I took a look today at Morningstar's 3-year returns for the U.S. Market (12.43%) vs. U.S. Small-Value (2.69%).

http://news.morningstar.com/index/indexReturn.html

Yes. I'm feeling good. :sharebeer

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk." -- "The odds of outpacing an all-market index fund are, well, terrible."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: Feeling Good.

Post by abuss368 » Sun Sep 01, 2019 7:29 pm

Taylor Larimore wrote:
Sun Sep 01, 2019 7:16 pm
Cody:

I took a look today at Morningstar's 3-year returns for the U.S. Market (12.43%) vs. U.S. Small-Value (2.69%).

http://news.morningstar.com/index/indexReturn.html

Yes. I'm feeling good. :sharebeer

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk." -- "The odds of outpacing an all-market index fund are, well, terrible."
Great news Taylor! As Mr. Bogle always said “own the haystack”.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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Re: 3 fund people how are you feeling?

Post by BarbBrooklyn » Sun Sep 01, 2019 7:35 pm

I retired Dec 1. I have a 4 fund Vanguard portfolio ( a bit in a corporate bond fund) and about half my retirement assets in a NYC pension fund. Overall, I'm 42/58, on a glide path to 50/50.

Things are good.

Figure out your AA and stick to it. Stay the course.
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Re: 3 fund people how are you feeling?

Post by grettman » Sun Sep 01, 2019 8:10 pm

I am feeling well.

I don’t know why some people are getting nervous.

Headlines seem to be the same today as they have been the last 11 years.

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Re: 3 fund people how are you feeling?

Post by Rowan Oak » Sun Sep 01, 2019 8:14 pm

Cody wrote:
Sun Sep 01, 2019 9:07 am
I am wondering what you are thinking about your choice with the current state of economic things? (what ever that means to you).
I own the The Three-Fund Portfolio so I don't have to worry about the "current state of economic things".
Cody wrote:
Sun Sep 01, 2019 9:07 am
Are you simply ignoring the chatter?
Yes.
Cody wrote:
Sun Sep 01, 2019 9:07 am
Thinking of tilting some? Doing something else? Are you examining the logic of your portfolio construction?
No. Instead I focus on reasons I chose the The Three-Fund Portfolio:

* Avoids wasted time, confusion and the possibility of mistakes trying to pick the best of thousands of mutual funds and ETFs.
* Very diversified with over 15,000 worldwide securities (lower risk).
* Very low expense ratios.
* Very low (hidden) turnover costs.
* Very tax-efficient.
* The many Advantages of Simplicity.
* Fewer but larger funds results in earlier eligibility for low-cost Admiral shares.
* No adviser risk.
* No fund manager risk.
* No style drift.
* No asset bloat.
* No tracking error to cause abandonment of the strategy.
* No fund overlap.
* No front-running that reduces sub-index returns.
* Automatic rebalancing within each fund.
* Less worry. Never under-performs the market.
* Easy to maintain for the owner, spouse, caregivers and heirs.
* More free time.
* Mathematically certain to out-perform most investors.
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Cody
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Re: 3 fund people how are you feeling?

Post by Cody » Mon Sep 02, 2019 8:10 am

So for a 3 or 4 fund portfolio the phrase "positioning yourself" (as in "positioning yourself for a possible recession") means what?

Does that phrase have much less meaning for a 3-4 funder than for those who are more active?

If so why?

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Re: 3 fund people how are you feeling?

Post by FrugalInvestor » Mon Sep 02, 2019 8:55 am

Cody wrote:
Mon Sep 02, 2019 8:10 am
So for a 3 or 4 fund portfolio the phrase "positioning yourself" (as in "positioning yourself for a possible recession") means what?
Doing nothing (different). Following your plan.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

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Re: 3 fund people how are you feeling?

Post by cashboy » Mon Sep 02, 2019 10:37 am

Cody wrote:
Mon Sep 02, 2019 8:10 am
So for a 3 or 4 fund portfolio the phrase "positioning yourself" (as in "positioning yourself for a possible recession") means what?

Does that phrase have much less meaning for a 3-4 funder than for those who are more active?

If so why?
for me, the 3 fund portfolio is 'part of' my IPS, and the IPS is used for 'positioning myself' when it comes to investing (AA, etc.). as such, having thought long and hard about my IPS (risk tolerance, goals, etc.), i am already 'positioned' for something like a recession without having to take action.

https://www.bogleheads.org/wiki/Investm ... _statement
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Re: 3 fund people how are you feeling?

Post by cockersx3 » Mon Sep 02, 2019 10:50 am

I use the 3-fund portfolio, sort of. Our taxable funds are at Vanguard and our tax-deferred funds at with our employer plans at Fidelity (and some other places for my wife's employer that do not offer Vanguard funds), so for some accounts we have to use the Fidelity versions of VTSAX and VTIAX because of that.

No, not worried and have not made changes. I am currently 70 / 30 equities and around 33% of those equities are international. If the market pushes my AA down to 65% or above 75% I'll rebalance, but have not crossed that threshold - so not doing anything but buy after every paycheck.

The only thing I've considered is maybe backing down on international, since I feel like returns have been "meh" for years. But then I look at how expensive the US market is, and I question whether this is realy a great time to rebalance INTO domestic given the prices. So in the end, I've just decided to do nothing and stay the course. :D

yogesh
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Re: 3 fund people how are you feeling?

Post by yogesh » Mon Sep 02, 2019 11:17 am

3 funds running well for past 5+ years and easy for wifey to maintain with no manual repeating tasks per year or ever!
FDIC [Checking/Emergency] + VTMFX [Taxable] + VFORX [Tax-deferred]
Emergency: FDIC | Taxable: VTMFX | Retirement: TR2040

bikechuck
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Re: 3 fund people how are you feeling?

Post by bikechuck » Mon Sep 02, 2019 11:24 am

I am primarily three fund other than some things such as TIAA Traditional ( a guaranteed fund paying 4% that is a good bond substitute) and TIAA Real Estate that I own through historical accident that I am keeping for the foreseeable future.

Currently I am 46% stock (20 % of which is international), 5% real estate with the remainder in bond index funds and/or guaranteed funds. I am happy with this but after reading opinions from Rick Ferri and others that I respect I am wondering if I should dial my equities back to 35 or 40%. So many people have written that 30% equities is a sweet spot for most retirees and I am retired at the ripe young age of 66.

I also realize that there is no right or wrong answer to this allocation dilemma.

ThankYouJack
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Re: 3 fund people how are you feeling?

Post by ThankYouJack » Mon Sep 02, 2019 11:41 am

livesoft wrote:
Sun Sep 01, 2019 9:24 am
It is doing much better than expected, but I still wish there was lots more volatility because I eat volatility for breakfast and I am feeling malnourished.
How so and do you track and compare your results to if there was no volatility?

bikechuck
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Re: 3 fund people how are you feeling?

Post by bikechuck » Mon Sep 02, 2019 11:44 am

yogesh wrote:
Mon Sep 02, 2019 11:17 am
3 funds running well for past 5+ years and easy for wifey to maintain with no manual repeating tasks per year or ever!
FDIC [Checking/Emergency] + VTMFX [Taxable] + VFORX [Tax-deferred]
What are VTMFX and VFORX ?

livesoft
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Re: 3 fund people how are you feeling?

Post by livesoft » Mon Sep 02, 2019 11:57 am

ThankYouJack wrote:
Mon Sep 02, 2019 11:41 am
livesoft wrote:
Sun Sep 01, 2019 9:24 am
It is doing much better than expected, but I still wish there was lots more volatility because I eat volatility for breakfast and I am feeling malnourished.
How so and do you track and compare your results to if there was no volatility?
One can compare any portfolio performance to benchmark funds performance as long as one uses the XIRR() algorithm. Software like the free MS Money will use the XIRR() to compute portfolio performance.
Wiki This signature message sponsored by sscritic: Learn to fish.

casun
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Re: 3 fund people how are you feeling?

Post by casun » Mon Sep 02, 2019 12:35 pm

feeling just fine.

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c.coyle
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Re: 3 fund people how are you feeling?

Post by c.coyle » Mon Sep 02, 2019 1:24 pm

65 y.o. three funder here, see my sig. In my 1st year of retirement and feeling fine.

Haven't had to hit my retirement portfolio yet, because wife is working through 12/31. I'll take SS at 66.
VTSAX - 50%, VBTLX - 50%

tibbitts
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Re: 3 fund people how are you feeling?

Post by tibbitts » Mon Sep 02, 2019 2:04 pm

Cody wrote:
Sun Sep 01, 2019 9:07 am
I have a 3 fund portfolio myself.

I am wondering what you are thinking about your choice with the current state of economic things? (what ever that means to you).

Are you simply ignoring the chatter? Thinking of tilting some? Doing something else? Are you examining the logic of your portfolio construction?

Thanks
I don't have a 3-fund, but I'm not sure what the chatter is. It's not nearly as negative as at some times in the past. More postive then the end of the '70 when Japan was going to take over the world. More positive than after the tech wreck. More positive than at the depths of 2008/9. My guess is that the chatter is wrong and that investing results going forward will be worse than they turned out at any of those times, when it turned out of course that the worst was already over (usually when the chatter is the most negative.)

If I did have a 3-fund I wouldn't do anything different because I think results will be equally poor in all asset classes it represents. Some will be perform worse than others but I have no conviction as to which ones will do better or worse.

GumSprings
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Re: 3 fund people how are you feeling?

Post by GumSprings » Mon Sep 02, 2019 4:52 pm

Feeling very comfortable. If the market goes up I will benefit. If it goes down I am buying on sale. Either way I'm happy.
Striving for Simplicity

Dead Man Walking
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Re: 3 fund people how are you feeling?

Post by Dead Man Walking » Mon Sep 02, 2019 5:13 pm

Call_Me_Op wrote:
Sun Sep 01, 2019 10:02 am
Honestly, people make too much of an issue over whether they have a 3-fund, 4-fund, 2-fund, 1-fund, or 8-fund portfolio. What is of primary importance is your ratio of stocks to fixed-income. After that, keep costs low and stay the course.
+1 Of course, basic arithmetic skills and common sense are necessary.

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LadyGeek
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Re: 3 fund people how are you feeling?

Post by LadyGeek » Mon Sep 02, 2019 5:37 pm

This thread is now in the Investing - Theory, News & General forum (general discussion).

GumSprings, Welcome!
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jibantik
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Re: 3 fund people how are you feeling?

Post by jibantik » Mon Sep 02, 2019 5:45 pm

PSA: if you aren't holding market cap you are tilted.

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Taylor Larimore
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"Strip all the baloney out of it."

Post by Taylor Larimore » Mon Sep 02, 2019 5:56 pm

Call_Me_Op wrote:
Honestly, people make too much of an issue over whether they have a 3-fund, 4-fund, 2-fund, 1-fund, or 8-fund portfolio. What is of primary importance is your ratio of stocks to fixed-income. After that, keep costs low and stay the course.
Call_Me_Op:

Let's not forget the value of "Simplicity." Read my link below.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “This business is all about simplicity and low cost. -- In investing, strip all the baloney out of it."
"Simplicity is the master key to financial success." -- Jack Bogle

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