"3 Easy Ways To Simplify Your Portfolio In 2022"

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Taylor Larimore
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"3 Easy Ways To Simplify Your Portfolio In 2022"

Post by Taylor Larimore »

Bogleheads:

Most authorities agree that simple portfolios are the best portfolios. Morningstar's Susan Dziubinski has written an article to help us simplify our own portfolio. These are her three primary suggestions:

1: Swap your actively managed funds for index products.

2: Opt for broad all-market equity funds instead of a collection of style-specific equity products.

3: Delegate some/all of your asset allocation to a target-date or balanced fund.

Note: Ms Dziubinski recommends the three all-market funds in The Three-Fund Portfolio.

You can read her full article in the link below:

Three Easy Ways To Simplify Your Portfolio In 2022

Happy New Year!
Taylor
Jack Bogle's Words of Wisdom: "We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: "3 Easy Ways To Simplify Your Portfolio In 2022"

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Re: "3 Easy Ways To Simplify Your Portfolio In 2022"

Post by abuss368 »

Taylor Larimore wrote: Mon Jan 03, 2022 8:38 pm Bogleheads:

Most authorities agree that simple portfolios are the best portfolios. Morningstar's Susan Dziubinski has written an article to help us simplify our own portfolio. These are her three primary suggestions:

1: Swap your actively managed funds for index products.

2: Opt for broad all-market equity funds instead of a collection of style-specific equity products.

3: Delegate some/all of your asset allocation to a target-date or balanced fund.

Note: Ms Dziubinski recommends the three all-market funds in The Three-Fund Portfolio.

You can read her full article in the link below:

Three Easy Ways To Simplify Your Portfolio In 2022

Happy New Year!
Taylor
Jack Bogle's Words of Wisdom: "We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
Excellent Advice Taylor. Investors would be wise to consider the many benefits of simplicity.

Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Re: "3 Easy Ways To Simplify Your Portfolio In 2022"

Post by oldbarn70 »

Taylor, could you explain why I want to invest in Total Bonds right now? I can’t seem to grasp how the bond market works, being only invested in stocks in the last 20 years with my 401K. Right now my hard earned portfolio is about $500k and I’m losing sleep wondering what to do. I’ve been bouncing around a lot in the last year or two. Currently in VCSAX, VEIRX, VDIGX, VTSAX, and VDADX - TOO CONFUSING!! - thinking about the three fund. I’m now 51 and have a good 10 years before I start withdrawing. Thanks!!
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Taylor Larimore
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Re: "3 Easy Ways To Simplify Your Portfolio In 2022"

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oldbarn70 wrote: Fri Jan 14, 2022 6:30 am Taylor, could you explain why I want to invest in Total Bonds right now? I can’t seem to grasp how the bond market works, being only invested in stocks in the last 20 years with my 401K. Right now my hard earned portfolio is about $500k and I’m losing sleep wondering what to do. I’ve been bouncing around a lot in the last year or two. Currently in VCSAX, VEIRX, VDIGX, VTSAX, and VDADX - TOO CONFUSING!! - thinking about the three fund. I’m now 51 and have a good 10 years before I start withdrawing. Thanks!!
oldbarn70:

You "want to invest in Total Bonds right now" because stocks are risky. Forget "right now." stocks have always been risky in the sense that they go up and they go down.and will continue to do so. The problem is that no one knows when.

The solution to your worry is to stop reading usless forecasts and develop an appropriate asset-allocation plan between stocks and bonds and then stay-the-course.

If you will link to my Three-Fund Portfolio topic, on the first page you will see (under the first line) "Asset-Allocation." Use that link to decide an appropriate allocation that you can live with and stop worrying.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Choose a balance of stocks and bonds according to your unique circumstances--your investment objective, your time horizon, your level of comfort with risk, and your financial resources."
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: "3 Easy Ways To Simplify Your Portfolio In 2022"

Post by impatientInv »

oldbarn70 wrote: Fri Jan 14, 2022 6:30 am Taylor, could you explain why I want to invest in Total Bonds right now? I can’t seem to grasp how the bond market works, being only invested in stocks in the last 20 years with my 401K. Right now my hard earned portfolio is about $500k and I’m losing sleep wondering what to do. I’ve been bouncing around a lot in the last year or two. Currently in VCSAX, VEIRX, VDIGX, VTSAX, and VDADX - TOO CONFUSING!! - thinking about the three fund. I’m now 51 and have a good 10 years before I start withdrawing. Thanks!!
Many people split bonds between BND(VBTLX) and TIPs (VTIP/VTAPX, SCHP).
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