LeslieSmiley wrote: ↑Tue Jun 09, 2020 9:02 am
...it has nothing to do with passion and empathy, i subscribe to BH investing "principle" because it makes sense and the principle is backed up by historical data. i don't subscribe to ramsey's principle because it has many flaws in regards to the purpose of investing. helping people to get out of high interest debt is certainly good and i give him credit for that. but hailing it as the most important factor to achieve financial independence is simply flawed.
The Boglehead community can bash all it wants. Yet, there are plenty of Bogleheads who do pay an AUM fee, may hold funds in some of their retirement accounts with higher ER fees due to what is offered (or not offered) within those plans and maybe even participate in a more disturbing trend which is...
The amount of threads seen here at Bogleheads during Q4 of 2018 as well as Q1 and Q2 of 2020 of market timing, selling and bailing out due to fear, "I can't take it anymore!", "I can't sleep at night!", "Help! I panic sold and now I want to get back into the market...", etc... exploded.
We could even go back to the last presidential election cycle to read similar threads. Who cares what the ER fee is if one is trading in and out as a self-anointed Boglehead and underperforming a low cost index fund due to all of that panic selling, panic buying, fear, etc...? I wonder how many on threads like these participated in such behavior?
The stay calm
and stay the course
threads were like crickets from mid-February and through the first months of the pandemic.
, but all the other threads were of the voluminous variety. Obviously, not every Boglehead was participating in threads such as those, nor were they selling. However, pointing out the behavior which we know usually leads to one turning into an average investor (below market returns shown in the color orange below) was taking place on these forums as a result.
Example of what happens when you bail and miss some of the best days (which usually occur near some of the worst days in a cluster and this time was no different)...
I don't recall Ramsey or Hogan encouraging their minions to panic sell, bail out, etc... as they certainly have focused and remained on message of consistent investing and staying the course. Ramsey was ranting through it all about how on sale
the market was and to take advantage of it rather than give into it. I had the chance to tune into it quite a bit the past few months - especially during my bike rides to catch a portion of the shows.
That's all obviously a different subject than the ER fees and asset allocation of a typical Ramsey investor compared to a Boglehead, but just saying "those who live in glass houses should not throw stones"
For those who did stay the course, always keep their fees low, and are consistent with their Boglehead portfolio contributions and AA - kudos!
It appears due to the volume of non-Boglehead behavior on the Boglehead.org forums, that there might be more instructive criticism that could take place right here at the home
message forums rather than directing it at DR and his followers.