Loved reading your article at the link that Taylor posted. As I was reading about it, I was thinking about some of the complexity that public institutions take with their investments - not to mention some of the complexity we have going on in our taxable and inherited IRA accounts.Allan Roth wrote: ↑Sat May 15, 2021 5:32 pmA Jack Bogle Total Market free lunch is based on arithmetic. When you add one or two extra digits to expense ratios, you go against arithmetic. Read the very short and simple paper below. A low cost total stock market portfolio must beat the average active dollar invested in US stocks.
For instance, I always review our state pension's annual report out of interest due to my wife's upcoming pension and my curiosity of wanting to know how the pension fund is performing. Although it is performing close to - albeit slightly below - their chosen benchmark (TUCS with over $1B in assets), no surprise due to fees, active management, alternatives, and the rest of the mixed bag investments the fund invests in, when compared to our streamlined and low cost 2nd Grader's/Three Funder in our 403b/457b/401k's made up of Vanguard Index Funds as well as our own children's IRA's and 401k's - the pension fund seems to be chasing a lot of complexity and performance without being rewarded for it. Perhaps I am wrong in that assessment, but suffice it to say our state raised the contribution requirements from both members and employers to keep it afloat and make up for any prior shortfall.
For those interested, here is a link to some of the versions of the Second Grader Portfolio:
https://www.portfolioeinstein.com/allan ... portfolio/
https://www.aarp.org/money/investing/in ... -hard.html
Market Watch Lazy Portfolios (note that the 2nd Grader in this link has a lower allocation to bonds which is a more aggressive positioning and hence has higher returns shown in the list compared to the other Lazy Portfolios shown):
https://www.marketwatch.com/lazyportfolio%20
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