Bogleheads walked the talk; be proud.

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
TheoLeo
Posts: 280
Joined: Mon Apr 02, 2018 11:39 am

Re: Bogleheads walked the talk; be proud.

Post by TheoLeo »

[Coronavirus comment removed by moderator oldcomputerguy] We surely will get a second chance soon to test our asset allocations :D

This time i have plan i can stick with and dont really care about how the markets will react to the next lockdowns.
nanameg
Posts: 434
Joined: Fri Mar 20, 2020 10:57 am

Re: Bogleheads walked the talk; be proud.

Post by nanameg »

TheoLeo wrote: Sat Jun 20, 2020 6:15 pm [Coronavirus comment removed by moderator oldcomputerguy] We surely will get a second chance soon to test our asset allocations :D

This time i have plan i can stick with and dont really care about how the markets will react to the next lockdowns.
YES!
CardioMD
Posts: 172
Joined: Thu Feb 06, 2020 11:40 am

Re: Bogleheads walked the talk; be proud.

Post by CardioMD »

TheoLeo wrote: Sat Jun 20, 2020 6:15 pm [Coronavirus comment removed by moderator oldcomputerguy] We surely will get a second chance soon to test our asset allocations :D

This time i have plan i can stick with and dont really care about how the markets will react to the next lockdowns.
My plan was and will be again buy FXAIX in the way down, the way up, and everywhere in between.
“The stock market is a giant distraction from the business of investing.” -Jack Bogle
an_asker
Posts: 2970
Joined: Thu Jun 27, 2013 2:15 pm

Re: Bogleheads walked the talk; be proud.

Post by an_asker »

CardioMD wrote: Sat Jun 20, 2020 6:26 pm
TheoLeo wrote: Sat Jun 20, 2020 6:15 pm [Coronavirus comment removed by moderator oldcomputerguy] We surely will get a second chance soon to test our asset allocations :D

This time i have plan i can stick with and dont really care about how the markets will react to the next lockdowns.
My plan was and will be again buy FXAIX in the way down, the way up, and everywhere in between.
Doesn't this mean that you are not at your complete AA (wrt stocks) right now?
CardioMD
Posts: 172
Joined: Thu Feb 06, 2020 11:40 am

Re: Bogleheads walked the talk; be proud.

Post by CardioMD »

an_asker wrote: Sat Jun 20, 2020 6:29 pm
CardioMD wrote: Sat Jun 20, 2020 6:26 pm
TheoLeo wrote: Sat Jun 20, 2020 6:15 pm [Coronavirus comment removed by moderator oldcomputerguy] We surely will get a second chance soon to test our asset allocations :D

This time i have plan i can stick with and dont really care about how the markets will react to the next lockdowns.
My plan was and will be again buy FXAIX in the way down, the way up, and everywhere in between.
Doesn't this mean that you are not at your complete AA (wrt stocks) right now?
100% FXAIX
“The stock market is a giant distraction from the business of investing.” -Jack Bogle
an_asker
Posts: 2970
Joined: Thu Jun 27, 2013 2:15 pm

Re: Bogleheads walked the talk; be proud.

Post by an_asker »

CardioMD wrote: Sat Jun 20, 2020 7:04 pm
an_asker wrote: Sat Jun 20, 2020 6:29 pm
CardioMD wrote: Sat Jun 20, 2020 6:26 pm
TheoLeo wrote: Sat Jun 20, 2020 6:15 pm [Coronavirus comment removed by moderator oldcomputerguy] We surely will get a second chance soon to test our asset allocations :D

This time i have plan i can stick with and dont really care about how the markets will react to the next lockdowns.
My plan was and will be again buy FXAIX in the way down, the way up, and everywhere in between.
Doesn't this mean that you are not at your complete AA (wrt stocks) right now?
100% FXAIX
Maybe I'm misunderstanding what you wrote. If your Asset Allocation is 100% FXAIX, how did you have money to buy all the way down and now all the way back up? Unless what you are saying is that you've been buying all this while with current income (only)... and not with saved up money.
User avatar
Mel Lindauer
Moderator
Posts: 31367
Joined: Mon Feb 19, 2007 8:49 pm
Location: Daytona Beach Shores, Florida
Contact:

Re: Bogleheads walked the talk; be proud.

Post by Mel Lindauer »

an_asker wrote: Sat Jun 20, 2020 7:54 pm
CardioMD wrote: Sat Jun 20, 2020 7:04 pm
an_asker wrote: Sat Jun 20, 2020 6:29 pm
CardioMD wrote: Sat Jun 20, 2020 6:26 pm
TheoLeo wrote: Sat Jun 20, 2020 6:15 pm [Coronavirus comment removed by moderator oldcomputerguy] We surely will get a second chance soon to test our asset allocations :D

This time i have plan i can stick with and dont really care about how the markets will react to the next lockdowns.
My plan was and will be again buy FXAIX in the way down, the way up, and everywhere in between.
Doesn't this mean that you are not at your complete AA (wrt stocks) right now?
100% FXAIX
Maybe I'm misunderstanding what you wrote. If your Asset Allocation is 100% FXAIX, how did you have money to buy all the way down and now all the way back up? Unless what you are saying is that you've been buying all this while with current income (only)... and not with saved up money.
It's very possible the buying is being.done with 401k or similar regular retirement plan contributions.
Best Regards - Mel | | Semper Fi
CardioMD
Posts: 172
Joined: Thu Feb 06, 2020 11:40 am

Re: Bogleheads walked the talk; be proud.

Post by CardioMD »

an_asker wrote: Sat Jun 20, 2020 7:54 pm
CardioMD wrote: Sat Jun 20, 2020 7:04 pm
an_asker wrote: Sat Jun 20, 2020 6:29 pm
CardioMD wrote: Sat Jun 20, 2020 6:26 pm
TheoLeo wrote: Sat Jun 20, 2020 6:15 pm [Coronavirus comment removed by moderator oldcomputerguy] We surely will get a second chance soon to test our asset allocations :D

This time i have plan i can stick with and dont really care about how the markets will react to the next lockdowns.
My plan was and will be again buy FXAIX in the way down, the way up, and everywhere in between.
Doesn't this mean that you are not at your complete AA (wrt stocks) right now?
100% FXAIX
Maybe I'm misunderstanding what you wrote. If your Asset Allocation is 100% FXAIX, how did you have money to buy all the way down and now all the way back up? Unless what you are saying is that you've been buying all this while with current income (only)... and not with saved up money.
Yes, that is correct. I have an income and after all bills are paid the rest gets invested.
“The stock market is a giant distraction from the business of investing.” -Jack Bogle
an_asker
Posts: 2970
Joined: Thu Jun 27, 2013 2:15 pm

Re: Bogleheads walked the talk; be proud.

Post by an_asker »

CardioMD wrote: Sat Jun 20, 2020 8:12 pm
an_asker wrote: Sat Jun 20, 2020 7:54 pm
CardioMD wrote: Sat Jun 20, 2020 7:04 pm
an_asker wrote: Sat Jun 20, 2020 6:29 pm
CardioMD wrote: Sat Jun 20, 2020 6:26 pm

My plan was and will be again buy FXAIX in the way down, the way up, and everywhere in between.
Doesn't this mean that you are not at your complete AA (wrt stocks) right now?
100% FXAIX
Maybe I'm misunderstanding what you wrote. If your Asset Allocation is 100% FXAIX, how did you have money to buy all the way down and now all the way back up? Unless what you are saying is that you've been buying all this while with current income (only)... and not with saved up money.
Yes, that is correct. I have an income and after all bills are paid the rest gets invested.
Got it :-)

We're in the same boat (or ship) then, lol!!
UpperNwGuy
Posts: 4567
Joined: Sun Oct 08, 2017 7:16 pm

Re: Bogleheads walked the talk; be proud.

Post by UpperNwGuy »

A person could do a lot worse than buying FXAIX.
Normchad
Posts: 1783
Joined: Thu Mar 03, 2011 7:20 am

Re: Bogleheads walked the talk; be proud.

Post by Normchad »

I’m a big VTSAX and VSMGX holder. I didn’t change anything in March, and I don’t plan to now. I will still make my monthly buys, etc.

And I’m a turbo idiot, so I know I don’t know anything......

But, I feel sure another tanking/recovery is coming, and I will feel like a chump afterwards, that I didn’t do something to capitalize on it.....

To be clear, I’m staying the course. But also certain I will feel like a chump sometime soon.....
YRT70
Posts: 801
Joined: Sat Apr 27, 2019 8:51 am

Re: Bogleheads walked the talk; be proud.

Post by YRT70 »

According to the article 91.7% of Vanguard's clients didn't take action between Feb. 19 and March 20.

I wonder how many took action after that and what the percentage was among Bogleheads.
nanameg
Posts: 434
Joined: Fri Mar 20, 2020 10:57 am

Re: Bogleheads walked the talk; be proud.

Post by nanameg »

YRT70 wrote: Sun Jun 21, 2020 1:01 am According to the article 91.7% of Vanguard's clients didn't take action between Feb. 19 and March 20.

I wonder how many took action after that and what the percentage was among Bogleheads.
I bailed but I hadn’t been a boglehead long enough to count as one
User avatar
Clever_Username
Posts: 1759
Joined: Sun Jul 15, 2012 12:24 am
Location: Southern California

Re: Bogleheads walked the talk; be proud.

Post by Clever_Username »

Hmmm... I took action shortly after March 20, but that was to re-balance into stocks. It appears I had good timing, but that wasn't why I did it.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.
YRT70
Posts: 801
Joined: Sat Apr 27, 2019 8:51 am

Re: Bogleheads walked the talk; be proud.

Post by YRT70 »

nanameg wrote: Sun Jun 21, 2020 6:35 am
YRT70 wrote: Sun Jun 21, 2020 1:01 am According to the article 91.7% of Vanguard's clients didn't take action between Feb. 19 and March 20.

I wonder how many took action after that and what the percentage was among Bogleheads.
I bailed but I hadn’t been a boglehead long enough to count as one
I also sold some of my holdings during the crash. I rebought my way back in, some of it for a lower price, some of it for a higher price. The end result is probably break even and a boatload of stress.
nanameg
Posts: 434
Joined: Fri Mar 20, 2020 10:57 am

Re: Bogleheads walked the talk; be proud.

Post by nanameg »

YRT70 wrote: Sun Jun 21, 2020 9:31 am
nanameg wrote: Sun Jun 21, 2020 6:35 am
YRT70 wrote: Sun Jun 21, 2020 1:01 am According to the article 91.7% of Vanguard's clients didn't take action between Feb. 19 and March 20.

I wonder how many took action after that and what the percentage was among Bogleheads.
I bailed but I hadn’t been a boglehead long enough to count as one
I also sold some of my holdings during the crash. I rebought my way back in, some of it for a lower price, some of it for a higher price. The end result is probably break even and a boatload of stress.
Yes ..I’m still in recovery from the stress ..and I’m sure there’s more coming but now I feel more prepared for it.

I was very naive to the risk of holding stock.
User avatar
grabiner
Advisory Board
Posts: 28732
Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD

Re: Bogleheads walked the talk; be proud.

Post by grabiner »

YRT70 wrote: Sun Jun 21, 2020 1:01 am According to the article 91.7% of Vanguard's clients didn't take action between Feb. 19 and March 20.

I wonder how many took action after that and what the percentage was among Bogleheads.
I took only one action during that period at Vanguard, which looked to Vanguard like a sell but wasn't. I sold stock to harvest a capital loss, and withdrew the money in cash to pay off my mortgage. However, I moved an equal amount from bonds to stock in my employer plan, so I kept the same dollar amount in stock.

I also rebalanced at the market bottom, but this was done entirely in my employer plan (which is where all my bonds are), so Vanguard doesn't know about it.

I took two later actions at Vanguard. I harvested a loss in April, putting most of the money back into another ETF, while using the last bit to finish the mortgage payoff. And in May, I had enough new money to invest (with no mortgage payment draining my back account) that I bought back into stock.
Wiki David Grabiner
02nz
Posts: 6084
Joined: Wed Feb 21, 2018 3:17 pm

Re: Bogleheads walked the talk; be proud.

Post by 02nz »

Staying the course also means not chasing performance and avoiding recency bias when it comes to your asset allocation: viewtopic.php?p=5320546
:wink:
whereskyle
Posts: 1293
Joined: Wed Jan 29, 2020 10:29 am

Re: Bogleheads walked the talk; be proud.

Post by whereskyle »

CardioMD wrote: Sat Jun 20, 2020 6:26 pm
TheoLeo wrote: Sat Jun 20, 2020 6:15 pm [Coronavirus comment removed by moderator oldcomputerguy] We surely will get a second chance soon to test our asset allocations :D

This time i have plan i can stick with and dont really care about how the markets will react to the next lockdowns.
My plan was and will be again buy FXAIX in the way down, the way up, and everywhere in between.
:sharebeer
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
Robot Monster
Posts: 1805
Joined: Sun May 05, 2019 11:23 am
Location: New York

Re: Bogleheads walked the talk; be proud.

Post by Robot Monster »

I would have surely liquidated my stock holdings completely had not it been for the Boglehead influence on me. So in all sincerity I'm deeply grateful to not just the philosophy itself, but the influence of this very community.
“There are no answers, only choices.” ― Stanislav Lem, Solaris
User avatar
dwickenh
Posts: 2051
Joined: Sun Jan 04, 2015 9:45 pm
Location: Illinois

Re: Bogleheads walked the talk; be proud.

Post by dwickenh »

Clever_Username wrote: Sun Jun 21, 2020 6:58 am Hmmm... I took action shortly after March 20, but that was to re-balance into stocks. It appears I had good timing, but that wasn't why I did it.
I got lucky also as I rebalanced into VTSAX on March 24th. It was only due to following my IPS stating 5% bands.

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett
User avatar
grabiner
Advisory Board
Posts: 28732
Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD

Re: Bogleheads walked the talk; be proud.

Post by grabiner »

dwickenh wrote: Sun Jun 21, 2020 11:23 am I got lucky also as I rebalanced into VTSAX on March 24th. It was only due to following my IPS stating 5% bands.
Same thing here. I use the 5/25 rule for major asset classes, and my target bond allocation is 12%, so when it hit 15% right at the market bottom, I needed to rebalance. It hasn't gone back below 9% yet to trigger a rebalance the other way.
Wiki David Grabiner
User avatar
calvin+hobbes
Posts: 216
Joined: Thu Jan 16, 2020 9:37 pm

Re: Bogleheads walked the talk; be proud.

Post by calvin+hobbes »

I tax loss harvested equities (Into similar equities) 3x in Late Feb and March. Wonder if they count me in the 90+% that held.
User avatar
Topic Author
J G Bankerton
Posts: 2182
Joined: Thu Sep 14, 2017 3:30 pm

Re: Bogleheads walked the talk; be proud.

Post by J G Bankerton »

02nz wrote: Sun Jun 21, 2020 11:05 am Staying the course also means not chasing performance and avoiding recency bias when it comes to your asset allocation: viewtopic.php?p=5320546
:wink:
I checked with Vanguard and they made the implicit explicit. What I did was explicitly prudent. :mrgreen:

Making the implicit explicit: A framework for the active-passive decision.
Enjoy the read; my head still hurts. :confused

My only mistake was not looking for more Vanguard funds after I saw several of Vanguard's managed large cap growth funds were closed.

I will be switching to VWUAX in 56 days when I won't have to pay a load to sell TRBCX. If it's Vanguard it must be good.
calvin+hobbes wrote: Sun Jun 21, 2020 2:26 pm I tax loss harvested equities (Into similar equities) 3x in Late Feb and March. Wonder if they count me in the 90+% that held.
I use VTI and VOO for my TLH and am not out of the market for more than 15 seconds.
User avatar
oldcomputerguy
Moderator
Posts: 9867
Joined: Sun Nov 22, 2015 6:50 am
Location: In the middle of five acres of woods in East Tennessee

Re: Bogleheads walked the talk; be proud.

Post by oldcomputerguy »

I removed a post about coronavirus that had no financial or investing component. As a reminder, please see Please read before posting on coronavirus/COVID-19.
User avatar
calvin+hobbes
Posts: 216
Joined: Thu Jan 16, 2020 9:37 pm

Re: Bogleheads walked the talk; be proud.

Post by calvin+hobbes »

J G Bankerton wrote: Sun Jun 21, 2020 2:38 pm
calvin+hobbes wrote: Sun Jun 21, 2020 2:26 pm I tax loss harvested equities (Into similar equities) 3x in Late Feb and March. Wonder if they count me in the 90+% that held.
I use VTI and VOO for my TLH and am not out of the market for more than 15 seconds.
As did I, and I am curious how Vanguard’s analysis accounted for this since the transaction involved selling of equities. I happened to exchange VTSAX for VFIAX but what if I exchanged it for a target date fund that had some bonds? Seems like there would be some grey areas.
User avatar
Topic Author
J G Bankerton
Posts: 2182
Joined: Thu Sep 14, 2017 3:30 pm

Re: Bogleheads walked the talk; be proud.

Post by J G Bankerton »

calvin+hobbes wrote: Sun Jun 21, 2020 4:01 pm As did I, and I am curious how Vanguard’s analysis accounted for this since the transaction involved selling of equities. I happened to exchange VTSAX for VFIAX but what if I exchanged it for a target date fund that had some bonds? Seems like there would be some grey areas.
The IRS say to avoid a wash sale the securities involved have to be substantially different. VTI and VOO are close, only a few bases points different over the years but they are different enough to pass the IRS definition. I go by what Vanguard does with the sale. Vanguard has put losses back on purchases I made if they say it was a wash sale. I never had losses put back when trading VTI and VOO; I have done this for years and the IRS has not disallowed it.

With the big flash crashes we had in December 2018 and earlier this year I have harvested enough losses to last many years if I only take the $3,000 a year regular income deduction. The best part is those realized losses are now just paper losses; my unrealized gains more than off set the realized losses.

I don't make the rules I only play the game. :greedy
User avatar
grabiner
Advisory Board
Posts: 28732
Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD

Re: Bogleheads walked the talk; be proud.

Post by grabiner »

J G Bankerton wrote: Sun Jun 21, 2020 4:20 pm
calvin+hobbes wrote: Sun Jun 21, 2020 4:01 pm As did I, and I am curious how Vanguard’s analysis accounted for this since the transaction involved selling of equities. I happened to exchange VTSAX for VFIAX but what if I exchanged it for a target date fund that had some bonds? Seems like there would be some grey areas.
The IRS say to avoid a wash sale the securities involved have to be substantially different. VTI and VOO are close, only a few bases points different over the years but they are different enough to pass the IRS definition. I go by what Vanguard does with the sale. Vanguard has put losses back on purchases I made if they say it was a wash sale. I never had losses put back when trading VTI and VOO; I have done this for years and the IRS has not disallowed it.
Brokerages are only required to report wash sales on identical securities in the same account. Vanguard won't flag if you sell VTI in your taxable account and buy it in your IRA, or your spouse buys it in an IRA (and Vanguard may not even know who your spouse is), or you buy VTSAX (the mutual fund class of the same fund); all of these are unambiguously wash sales. It is your tax advisor's responsibility to identify any other wash sales, which occur when you sell and buy "substantially identical" securities.
Wiki David Grabiner
User avatar
Harry Livermore
Posts: 614
Joined: Thu Apr 04, 2019 5:32 am

Re: Bogleheads walked the talk; be proud.

Post by Harry Livermore »

I was so comfortable with our AA that the downturn did not bother me at all; and I had dry powder ready to go... the thing that scared me was the vaporization of my income due to the stay at home orders... that was an unexpected and frightening twist. So I did not (to my regret now) use the dry powder to buy on the cheap. I held on to it tightly, thinking that it might be needed to pay the mortgage.
But my portfolio AA? Perfect. Couldn't have been happier. It made it easy to stay the course.
Cheers
User avatar
calvin+hobbes
Posts: 216
Joined: Thu Jan 16, 2020 9:37 pm

Re: Bogleheads walked the talk; be proud.

Post by calvin+hobbes »

J G Bankerton wrote: Sun Jun 21, 2020 4:20 pm
calvin+hobbes wrote: Sun Jun 21, 2020 4:01 pm As did I, and I am curious how Vanguard’s analysis accounted for this since the transaction involved selling of equities. I happened to exchange VTSAX for VFIAX but what if I exchanged it for a target date fund that had some bonds? Seems like there would be some grey areas.
The IRS say to avoid a wash sale the securities involved have to be substantially different. VTI and VOO are close, only a few bases points different over the years but they are different enough to pass the IRS definition. I go by what Vanguard does with the sale. Vanguard has put losses back on purchases I made if they say it was a wash sale. I never had losses put back when trading VTI and VOO; I have done this for years and the IRS has not disallowed it.

With the big flash crashes we had in December 2018 and earlier this year I have harvested enough losses to last many years if I only take the $3,000 a year regular income deduction. The best part is those realized losses are now just paper losses; my unrealized gains more than off set the realized losses.

I don't make the rules I only play the game. :greedy
I agree with your interpretation of TLH between TSM and the S&P 500 funds but that is unrelated to my question.

Vanguard says 91.7% of their investors did not move out of equities. I tax loss harvested so technically sold equities at a loss while simultaneously purchasing other equities at the same value. Are they accounting for me in the 91.7% or the 8.3%?
User avatar
Topic Author
J G Bankerton
Posts: 2182
Joined: Thu Sep 14, 2017 3:30 pm

Re: Bogleheads walked the talk; be proud.

Post by J G Bankerton »

grabiner wrote: Sun Jun 21, 2020 6:16 pm It is your tax advisor's responsibility to identify any other wash sales, which occur when you sell and buy "substantially identical" securities.
My tax advisor says because VTI holds 3,600 stocks that is substantially different than VOO's 500 stocks.
If one is his own tax advisor does he have a fool for a client? :confused
calvin+hobbes wrote: Sun Jun 21, 2020 6:53 pm Vanguard says 91.7% of their investors did not move out of equities. I tax loss harvested so technically sold equities at a loss while simultaneously purchasing other equities at the same value. Are they accounting for me in the 91.7% or the 8.3%?
I assume they meant we didn't contribute to the record inflows of cash. That cash came from the sale of stock I assume as $685 billion would be too much to have hidden under the mattress. My swapping VTI for VOO would still be shown as stock holdings, not a flight to cash.
chuckb84
Posts: 474
Joined: Wed Oct 21, 2015 10:41 am
Location: New Mexico

Re: Bogleheads walked the talk; be proud.

Post by chuckb84 »

We hit a rebalance band when the market tanked, so I used VBTLX to buy VTSAX. Then, rather to my surprise, we hit a rebalance point again, on the way, so sold VTSAX to buy VBTLX. The net effect is that I bought low and sold high!

If was interesting persuading DW to buy stocks in a market that was crashing :). It's different when you're retired and that money is literally what you live on (well, part of what we live on...)
JimmyJammy
Posts: 252
Joined: Sat Oct 26, 2013 1:08 pm

Re: Bogleheads walked the talk; be proud.

Post by JimmyJammy »

The only thing I panic sold was MUB (national munis) and I really regret that. Extraordinary government action saved things quickly, all around.

I also shorted the market which netted me a little extra coin.
User avatar
rob
Posts: 3437
Joined: Mon Feb 19, 2007 6:49 pm
Location: Here

Re: Bogleheads walked the talk; be proud.

Post by rob »

J G Bankerton wrote: Sun Jun 21, 2020 4:20 pmThe IRS say to avoid a wash sale the securities involved have to be substantially different.
It's substantially identical to be classified a wash... Subtle but different. As far as I know there is still no authoritative ruling on what that means for mutual funds.... Here is some discussion from Kay that I trust....
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien
Silence Dogood
Posts: 1447
Joined: Tue Feb 01, 2011 9:22 pm

Re: Bogleheads walked the talk; be proud.

Post by Silence Dogood »

YRT70 wrote: Sun Jun 21, 2020 1:01 am According to the article 91.7% of Vanguard's clients didn't take action between Feb. 19 and March 20.
I don't think I even logged on to my account.
User avatar
Topic Author
J G Bankerton
Posts: 2182
Joined: Thu Sep 14, 2017 3:30 pm

Re: Bogleheads walked the talk; be proud.

Post by J G Bankerton »

Silence Dogood wrote: Wed Jun 24, 2020 12:35 pm
YRT70 wrote: Sun Jun 21, 2020 1:01 am According to the article 91.7% of Vanguard's clients didn't take action between Feb. 19 and March 20.
I don't think I even logged on to my account.
What do they mean by action? I assume more than 8.3% of Vanguard's clients made a contribution during the month.
Silence Dogood
Posts: 1447
Joined: Tue Feb 01, 2011 9:22 pm

Re: Bogleheads walked the talk; be proud.

Post by Silence Dogood »

J G Bankerton wrote: Wed Jun 24, 2020 1:05 pm
Silence Dogood wrote: Wed Jun 24, 2020 12:35 pm
YRT70 wrote: Sun Jun 21, 2020 1:01 am According to the article 91.7% of Vanguard's clients didn't take action between Feb. 19 and March 20.
I don't think I even logged on to my account.
What do they mean by action? I assume more than 8.3% of Vanguard's clients made a contribution during the month.
Good question - I don't know.

I have a Roth IRA with Vanguard but I had already maxed out my 2020 contribution (on January 2nd).

I contributed to my 401(k) during that time frame but my 401(k) is not with Vanguard.
User avatar
Topic Author
J G Bankerton
Posts: 2182
Joined: Thu Sep 14, 2017 3:30 pm

Re: Bogleheads walked the talk; be proud.

Post by J G Bankerton »

Silence Dogood wrote: Wed Jun 24, 2020 1:39 pm
J G Bankerton wrote: Wed Jun 24, 2020 1:05 pm
Silence Dogood wrote: Wed Jun 24, 2020 12:35 pm
YRT70 wrote: Sun Jun 21, 2020 1:01 am According to the article 91.7% of Vanguard's clients didn't take action between Feb. 19 and March 20.
I don't think I even logged on to my account.
What do they mean by action? I assume more than 8.3% of Vanguard's clients made a contribution during the month.
Good question - I don't know.

I have a Roth IRA with Vanguard but I had already maxed out my 2020 contribution (on January 2nd).

I contributed to my 401(k) during that time frame but my 401(k) is not with Vanguard.
I sold a bountiful harvest in VTI but bought the same amount in VOO 15 seconds later to harvest tax losses. I assume many Bogleheads took advantage of the harvest too. I consider that staying the course. Vanguard should consider that as taking no action where action is a panic rush to cash.

I would consider someone not making their usual monthly stock buy taking action more that someone who TLH.
User avatar
Portfolio7
Posts: 934
Joined: Tue Aug 02, 2016 3:53 am

Re: Bogleheads walked the talk; be proud.

Post by Portfolio7 »

Good reminder. Also, it's never too late to improve!

In 2000-2 I buried my head in the sand and just kept buying. I guess that's Boglehead in result, if not necessarily in intent.
In 2008 I sold equities before and during the decline. Turned out fine as I bought back in 2009, but bad process.
In 2020 I stayed the course, and when rebalance bands triggered, I rebalanced. The timing was serendipitous, but that should be beside the point. I also continued to buy stocks through the decline up to now.

It's good to finally get the process right.
"An investment in knowledge pays the best interest" - Benjamin Franklin
Post Reply