The Three-Fund Portfolio

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GaryA505
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Re: The Three-Fund Portfolio

Post by GaryA505 » Thu Dec 05, 2019 2:24 pm

ALinLI wrote:
Thu Dec 05, 2019 1:40 pm
Hi Gary,

Two things here i learned , money is fungible and its all 1 account meaning think of your IRA and taxable accounts as sub-accounts under your 1 main account.

So say you have stocks in your IRA and were forced to liquidate 100k in stocks due to an RMD but you really want to keep your asset allocation same. I would buy 100k in stocks in my taxable and then sell the 100k in bonds in my taxable. Net your total Stock position has not changed and have sold bonds as you wished.
This is why that doesn't work well. Let's say my IRA is all bonds, and taxable is all index stocks (the most tax-efficient placement). Now, let's say bonds are taking a beating (or just flat) but stocks are up, and my AA is already off target. I have to take the RMD from the IRA (let's call the amount of the RMD X). OK, so I sell X of bonds in the IRA so I can take the RMD (I have no choice on this). I sell the same amount X of stocks in the taxable and buy X of bonds in taxable. Now my AA is about the same as before I took the RMD. So I this has the following problems:

1. I don't want bonds in taxable as it's not tax-efficient.

2. Since in this scenario stocks are up, selling stocks and buying bonds in taxable will result in a taxable event, even if don't take a withdrawal. Any tax-efficiency advantage that I may have had by having the IRA in all bonds and the taxable in all stock is probably small compared to the amount of this taxable event.

3. Selling X of stocks in the taxable and buying X of bonds in taxable doesn't take the AA more off target, but it doesn't bring it back on target either. To get it back on target I'd have sell even more stock in taxable resulting in an even larger taxable event.

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Re: The Three-Fund Portfolio

Post by abuss368 » Thu Dec 05, 2019 8:11 pm

GaryA505 wrote:
Thu Dec 05, 2019 1:21 pm
I just want to point out a problem with the BH portfolio in retirement when you are in retirement, withdrawing for income and subject to the RMD on your IRA. Let's say you have a $500,000 IRA, all bond fund, and $500,000 in taxable, all stock fund, and your desired AA is 50/50:

IRA: Total Bond Market (VBTLX, BND, AGG, whatever)
Taxable: Total Stock Market (VTSAX, VT, VTI, whatever)

So, lets say the bond market takes a beating but stocks are doing well, so you'd rather take your withdrawal for income out of the taxable only. OK, but you still have an RMD that you have to take out of the IRA and lock in the bond losses so you're screwed!
You have Jack Bogle's Two Fund Portfolio of Total Stock and Total Bond. It is important to look at the overall portfolio when determining asset allocation.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: The Three-Fund Portfolio

Post by Triple digit golfer » Thu Dec 05, 2019 8:39 pm

GaryA505 wrote:
Thu Dec 05, 2019 2:24 pm
ALinLI wrote:
Thu Dec 05, 2019 1:40 pm
Hi Gary,

Two things here i learned , money is fungible and its all 1 account meaning think of your IRA and taxable accounts as sub-accounts under your 1 main account.

So say you have stocks in your IRA and were forced to liquidate 100k in stocks due to an RMD but you really want to keep your asset allocation same. I would buy 100k in stocks in my taxable and then sell the 100k in bonds in my taxable. Net your total Stock position has not changed and have sold bonds as you wished.
This is why that doesn't work well. Let's say my IRA is all bonds, and taxable is all index stocks (the most tax-efficient placement). Now, let's say bonds are taking a beating (or just flat) but stocks are up, and my AA is already off target. I have to take the RMD from the IRA (let's call the amount of the RMD X). OK, so I sell X of bonds in the IRA so I can take the RMD (I have no choice on this). I sell the same amount X of stocks in the taxable and buy X of bonds in taxable. Now my AA is about the same as before I took the RMD. So I this has the following problems:

1. I don't want bonds in taxable as it's not tax-efficient.

2. Since in this scenario stocks are up, selling stocks and buying bonds in taxable will result in a taxable event, even if don't take a withdrawal. Any tax-efficiency advantage that I may have had by having the IRA in all bonds and the taxable in all stock is probably small compared to the amount of this taxable event.

3. Selling X of stocks in the taxable and buying X of bonds in taxable doesn't take the AA more off target, but it doesn't bring it back on target either. To get it back on target I'd have sell even more stock in taxable resulting in an even larger taxable event.
How is this a Boglehead portfolio problem? What's a better alternative? I see your concern, but what's the best way to invest your $500k in each account while maintaining 50/50 AA and avoiding this potential issue?

It seems unlikely anybody would be in this situation. All equities in one account, all bonds in another. In most cases there is an overlap of some asset type.

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Re: The Three-Fund Portfolio

Post by rossington » Thu Dec 05, 2019 9:00 pm

GaryA505 wrote:
Thu Dec 05, 2019 1:21 pm
I just want to point out a problem with the BH portfolio in retirement when you are in retirement, withdrawing for income and subject to the RMD on your IRA. Let's say you have a $500,000 IRA, all bond fund, and $500,000 in taxable, all stock fund, and your desired AA is 50/50:

IRA: Total Bond Market (VBTLX, BND, AGG, whatever)
Taxable: Total Stock Market (VTSAX, VT, VTI, whatever)

So, lets say the bond market takes a beating but stocks are doing well, so you'd rather take your withdrawal for income out of the taxable only. OK, but you still have an RMD that you have to take out of the IRA and lock in the bond losses so you're screwed!
You won't get "screwed". Backtest VBTLX since its inception in 2001 and you will see. Also don't forget the only taxes you will owe on selling VTSAX in taxable are capital gains...and you can pick your share lots to minimize this.
"Success is going from failure to failure without loss of enthusiasm." Winston Churchill.

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Re: The Three-Fund Portfolio

Post by abuss368 » Thu Dec 05, 2019 9:01 pm

rossington wrote:
Thu Dec 05, 2019 9:00 pm
GaryA505 wrote:
Thu Dec 05, 2019 1:21 pm
I just want to point out a problem with the BH portfolio in retirement when you are in retirement, withdrawing for income and subject to the RMD on your IRA. Let's say you have a $500,000 IRA, all bond fund, and $500,000 in taxable, all stock fund, and your desired AA is 50/50:

IRA: Total Bond Market (VBTLX, BND, AGG, whatever)
Taxable: Total Stock Market (VTSAX, VT, VTI, whatever)

So, lets say the bond market takes a beating but stocks are doing well, so you'd rather take your withdrawal for income out of the taxable only. OK, but you still have an RMD that you have to take out of the IRA and lock in the bond losses so you're screwed!
You won't get "screwed". Backtest VBTLX since its inception in 2001 and you will see. Also don't forget the only taxes you will owe on selling VTSAX in taxable are capital gains...and you can pick your share lots to minimize this.
Simplicity at its best.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

GaryA505
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Re: The Three-Fund Portfolio

Post by GaryA505 » Fri Dec 06, 2019 7:54 pm

Triple digit golfer wrote:
Thu Dec 05, 2019 8:39 pm
GaryA505 wrote:
Thu Dec 05, 2019 2:24 pm
ALinLI wrote:
Thu Dec 05, 2019 1:40 pm
Hi Gary,

Two things here i learned , money is fungible and its all 1 account meaning think of your IRA and taxable accounts as sub-accounts under your 1 main account.

So say you have stocks in your IRA and were forced to liquidate 100k in stocks due to an RMD but you really want to keep your asset allocation same. I would buy 100k in stocks in my taxable and then sell the 100k in bonds in my taxable. Net your total Stock position has not changed and have sold bonds as you wished.
This is why that doesn't work well. Let's say my IRA is all bonds, and taxable is all index stocks (the most tax-efficient placement). Now, let's say bonds are taking a beating (or just flat) but stocks are up, and my AA is already off target. I have to take the RMD from the IRA (let's call the amount of the RMD X). OK, so I sell X of bonds in the IRA so I can take the RMD (I have no choice on this). I sell the same amount X of stocks in the taxable and buy X of bonds in taxable. Now my AA is about the same as before I took the RMD. So I this has the following problems:

1. I don't want bonds in taxable as it's not tax-efficient.

2. Since in this scenario stocks are up, selling stocks and buying bonds in taxable will result in a taxable event, even if don't take a withdrawal. Any tax-efficiency advantage that I may have had by having the IRA in all bonds and the taxable in all stock is probably small compared to the amount of this taxable event.

3. Selling X of stocks in the taxable and buying X of bonds in taxable doesn't take the AA more off target, but it doesn't bring it back on target either. To get it back on target I'd have sell even more stock in taxable resulting in an even larger taxable event.
How is this a Boglehead portfolio problem? What's a better alternative? I see your concern, but what's the best way to invest your $500k in each account while maintaining 50/50 AA and avoiding this potential issue?

It seems unlikely anybody would be in this situation. All equities in one account, all bonds in another. In most cases there is an overlap of some asset type.
The text I bolded in your post is exactly the question.

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Re: The Three-Fund Portfolio

Post by OffGridder » Tue Dec 10, 2019 12:20 pm

ALinLI wrote:
Thu Dec 05, 2019 1:40 pm
Hi Gary,

Two things here i learned , money is fungible and its all 1 account meaning think of your IRA and taxable accounts as sub-accounts under your 1 main account.

So say you have stocks in your IRA and were forced to liquidate 100k in stocks due to an RMD but you really want to keep your asset allocation same. I would buy 100k in stocks in my taxable and then sell the 100k in bonds in my taxable. Net your total Stock position has not changed and have sold bonds as you wished.
Everyone's specific situation is different. I am a simple 3 funder. My taxable account is all in equities. My traditional IRA is all in bonds. My Roth is a mix of both equities and bonds. All rebalancing is done in my Roth account.
"Goodness is the only investment that never fails." | H.D. Thoreau

GaryA505
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Re: The Three-Fund Portfolio

Post by GaryA505 » Tue Dec 10, 2019 12:27 pm

OffGridder wrote:
Tue Dec 10, 2019 12:20 pm
ALinLI wrote:
Thu Dec 05, 2019 1:40 pm
Hi Gary,

Two things here i learned , money is fungible and its all 1 account meaning think of your IRA and taxable accounts as sub-accounts under your 1 main account.

So say you have stocks in your IRA and were forced to liquidate 100k in stocks due to an RMD but you really want to keep your asset allocation same. I would buy 100k in stocks in my taxable and then sell the 100k in bonds in my taxable. Net your total Stock position has not changed and have sold bonds as you wished.
Everyone's specific situation is different. I am a simple 3 funder. My taxable account is all in equities. My traditional IRA is all in bonds. My Roth is a mix of both equities and bonds. All rebalancing is done in my Roth account.
OK, but what happens when you're taking RMDs from the IRA (all bonds) and bonds are in a down year because interest rates increased?

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Taylor Larimore
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The Three-Fund Portfolio bond allocation?

Post by Taylor Larimore » Tue Dec 10, 2019 1:19 pm

OK, but what happens when you're taking RMDs from the IRA (all bonds) and bonds are in a down year because interest rates increased?
Gary:

This is a very unlikely event. Vanguard Total Bond Market Index Fund's worst annual loss was -2.66% in 1994 (it gained +16% in 1995). If bonds fill your IRA, and you need additional bonds to meet your desired asset-allocation, add taxable or tax-exempt bonds (depending on your tax-bracket) to your taxable account.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Deep down, I remain absolutely confident that the vast majority of American families will be well served by owning their equity holding in an all-U.S. stock-market index portfolio and holding their bonds in an all-U.S. bond-market index portfolio."
"Simplicity is the master key to financial success." -- Jack Bogle

GaryA505
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Re: The Three-Fund Portfolio

Post by GaryA505 » Tue Dec 10, 2019 2:41 pm

1. I believe that the largest 12-month loss for bonds was -13.9% in 1974.
2. Vanguard calculated that the 1-yr loss in the event of a 3% increase in rates would be -12.9%.
3. Past performance should not be used to predict future performance.

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Re: The Three-Fund Portfolio

Post by abuss368 » Tue Dec 10, 2019 3:16 pm

GaryA505 wrote:
Tue Dec 10, 2019 2:41 pm
1. I believe that the largest 12-month loss for bonds was -13.9% in 1974.
2. Vanguard calculated that the 1-yr loss in the event of a 3% increase in rates would be -12.9%.
3. Past performance should not be used to predict future performance.
If that unlikely event occurred I would stay the course and rebalance by investing more!
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

GaryA505
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Re: The Three-Fund Portfolio

Post by GaryA505 » Tue Dec 10, 2019 4:19 pm

abuss368 wrote:
Tue Dec 10, 2019 3:16 pm
GaryA505 wrote:
Tue Dec 10, 2019 2:41 pm
1. I believe that the largest 12-month loss for bonds was -13.9% in 1974.
2. Vanguard calculated that the 1-yr loss in the event of a 3% increase in rates would be -12.9%.
3. Past performance should not be used to predict future performance.
If that unlikely event occurred I would stay the course and rebalance by investing more!
When you're taking an RMD from the IRA?

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Re: The Three-Fund Portfolio

Post by skywalker_ca84 » Fri Dec 13, 2019 10:55 am

Just came across this thread. I don't understand why should one invest in Total International Stock ETF (VXUS). Since inception, it has underperformed even BND, while the risk profile is much much higher than BND. Currently I am 90% VTI (have been since 2013) and reaped the benefits, but would like to rebalance. Wife and I are both 35, plan to retire by 55. Currently maxing both our 401k, Roth IRA, HSA and left over goes to a taxable account. I am thinking of making after-tax contributions to my 401k and convert to Roth -- my employer offers in-plan conversion.

I am thinking 15% Total Bond (BND), 15% Total International (VXUS) and 70% VTI, but given how poorly Total International has performed, wondering if I should just do 20% BND and 80% VTI. Thoughts?

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Re: The Three-Fund Portfolio

Post by donaldfair71 » Fri Dec 13, 2019 11:30 am

skywalker_ca84 wrote:
Fri Dec 13, 2019 10:55 am
Just came across this thread. I don't understand why should one invest in Total International Stock ETF (VXUS). Since inception, it has underperformed even BND, while the risk profile is much much higher than BND. Currently I am 90% VTI (have been since 2013) and reaped the benefits, but would like to rebalance. Wife and I are both 35, plan to retire by 55. Currently maxing both our 401k, Roth IRA, HSA and left over goes to a taxable account. I am thinking of making after-tax contributions to my 401k and convert to Roth -- my employer offers in-plan conversion.

I am thinking 15% Total Bond (BND), 15% Total International (VXUS) and 70% VTI, but given how poorly Total International has performed, wondering if I should just do 20% BND and 80% VTI. Thoughts?
Owning no VXUS is fine. Just don't do it because it's not performing. Do it because of a belief in American companies, American work ethic, etc. If/when VXUS performs better than VTI for an extended period, and it will at some point, you can't then jump in, as the gains to be had from owning it will have been likely already been gained.

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Total International Fund

Post by Taylor Larimore » Fri Dec 13, 2019 11:33 am

skywalker_ca84:

You can read my thoughts about why Total International should represent about 20% (of equity) in The Three-Fund Portfolio here:

viewtopic.php?t=196956

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: International isn't necessary, but if you must, limit yourself to no more than 20%."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: The Three-Fund Portfolio

Post by ruralavalon » Fri Dec 13, 2019 12:50 pm

It's good to see that you are making the maximum annual contributions to your tax-advantaged accounts.

skywalker_ca84 wrote:
Fri Dec 13, 2019 10:55 am
Just came across this thread. I don't understand why should one invest in Total International Stock ETF (VXUS). Since inception, it has underperformed even BND, while the risk profile is much much higher than BND. Currently I am 90% VTI (have been since 2013) and reaped the benefits, but would like to rebalance. Wife and I are both 35, plan to retire by 55. Currently maxing both our 401k, Roth IRA, HSA and left over goes to a taxable account. I am thinking of making after-tax contributions to my 401k and convert to Roth -- my employer offers in-plan conversion.

I am thinking 15% Total Bond (BND), 15% Total International (VXUS) and 70% VTI, but given how poorly Total International has performed, wondering if I should just do 20% BND and 80% VTI. Thoughts?
Vanguard Total International Stock Index Fund (VTIAX) or ETF (VXUS) is included for better diversification. During some periods international stocks have outperformed U.S. stocks.

At age 35 I suggest around 20% in bonds or other fixed income. In my opinion around 20-30% of stocks in international stocks is reasonable.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Re: The Three-Fund Portfolio

Post by sidneyinplanning » Fri Dec 20, 2019 2:59 pm

skywalker_ca84 wrote:
Fri Dec 13, 2019 10:55 am
Just came across this thread. I don't understand why should one invest in Total International Stock ETF (VXUS). Since inception, it has underperformed even BND, while the risk profile is much much higher than BND. Currently I am 90% VTI (have been since 2013) and reaped the benefits, but would like to rebalance. Wife and I are both 35, plan to retire by 55. Currently maxing both our 401k, Roth IRA, HSA and left over goes to a taxable account. I am thinking of making after-tax contributions to my 401k and convert to Roth -- my employer offers in-plan conversion.

I am thinking 15% Total Bond (BND), 15% Total International (VXUS) and 70% VTI, but given how poorly Total International has performed, wondering if I should just do 20% BND and 80% VTI. Thoughts?
Isn't it cheap to buy? After say 20 years, it has to reverse. Any comments?

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Re: The Three-Fund Portfolio

Post by sidneyinplanning » Fri Dec 20, 2019 3:01 pm

OffGridder wrote:
Tue Dec 10, 2019 12:20 pm
ALinLI wrote:
Thu Dec 05, 2019 1:40 pm
Hi Gary,

Two things here i learned , money is fungible and its all 1 account meaning think of your IRA and taxable accounts as sub-accounts under your 1 main account.

So say you have stocks in your IRA and were forced to liquidate 100k in stocks due to an RMD but you really want to keep your asset allocation same. I would buy 100k in stocks in my taxable and then sell the 100k in bonds in my taxable. Net your total Stock position has not changed and have sold bonds as you wished.
Everyone's specific situation is different. I am a simple 3 funder. My taxable account is all in equities. My traditional IRA is all in bonds. My Roth is a mix of both equities and bonds. All rebalancing is done in my Roth account.
I makes sense. Thx.

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Re: The Three-Fund Portfolio

Post by ruralavalon » Fri Dec 20, 2019 5:03 pm

sidneyinplanning wrote:
Fri Dec 20, 2019 2:59 pm
skywalker_ca84 wrote:
Fri Dec 13, 2019 10:55 am
Just came across this thread. I don't understand why should one invest in Total International Stock ETF (VXUS). Since inception, it has underperformed even BND, while the risk profile is much much higher than BND. Currently I am 90% VTI (have been since 2013) and reaped the benefits, but would like to rebalance. Wife and I are both 35, plan to retire by 55. Currently maxing both our 401k, Roth IRA, HSA and left over goes to a taxable account. I am thinking of making after-tax contributions to my 401k and convert to Roth -- my employer offers in-plan conversion.

I am thinking 15% Total Bond (BND), 15% Total International (VXUS) and 70% VTI, but given how poorly Total International has performed, wondering if I should just do 20% BND and 80% VTI. Thoughts?
Isn't it cheap to buy? After say 20 years, it has to reverse. Any comments?
Vanguard Total International does not have to reverse.

But Vanguard Total International hasn't always underperformed as is claimed.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Re: The Three-Fund Portfolio

Post by oldcomputerguy » Sat Dec 21, 2019 8:10 am

[New member GRaTePHuLDoL has some questions regarding portfolio allocation, I split his question off into a separate thread here. -- mod oldcomputerguy]
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Re: The Three-Fund Portfolio - is it for me?

Post by dl777 » Sat Jan 04, 2020 4:10 pm

Taylor Larimore wrote:
Thu Nov 14, 2019 2:27 pm
bclasen wrote:
Thu Nov 14, 2019 12:14 pm
New member here -someone suggested this forum so I started reading from the beginning. Been overwhelmed a bit so I thought I'd throw out a question before getting in too deep (or buying the book). I'm a couple of years from retiring, managing IRAs (with Vanguard) and sitting on about $500k of cash due to a recent event. Question - is the Three Fund Portfolio applicable to someone about to retire? So far the posts I've read seemed like younger folks (I wish I found this earlier!) were the most active. If it is applicable, I'm sure there will be more details on asset allocation but for now I'd just like to know if this approach is for me.

Thanks! :D
bclasen:

Welcome to the Bogleheads Forum!

The Three-Fund portfolio is ideal for retirees. In addition to its many benefits is its "simplicity" which make it easier to manage for the investor, caregivers, and heirs.

Buy the book. If not pleased, I will refund your price.

Best wishes.
Taylor
Being close to retirement and being new to this forum I was wondering if this two or three fund strategy is outside of the total portfolio discussion. Does this only apply to funds that one is willing wait a long period of time to redeem during retirement. If the market goes down 40% in a year and interest rates rises 3-4% during the same time I would not want to sell anything and would wait 3-5 years for it to come back. Shouldn't there also be a component that is either TIPS or CDs or Money markets that would cover 3-5 years worth of living expenses? I did not read all 54 pages of this thread but of those 5-6 pages that I did read no one mentioned this. I remember having terrible angst when we had large stock market declines and rising interest rates (early 80s). Thanks!

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Re: The Three-Fund Portfolio - is it for me?

Post by bertilak » Sat Jan 04, 2020 6:30 pm

dl777 wrote:
Sat Jan 04, 2020 4:10 pm
Being close to retirement and being new to this forum I was wondering if this two or three fund strategy is outside of the total portfolio discussion. Does this only apply to funds that one is willing wait a long period of time to redeem during retirement. If the market goes down 40% in a year and interest rates rises 3-4% during the same time I would not want to sell anything and would wait 3-5 years for it to come back. Shouldn't there also be a component that is either TIPS or CDs or Money markets that would cover 3-5 years worth of living expenses? I did not read all 54 pages of this thread but of those 5-6 pages that I did read no one mentioned this. I remember having terrible angst when we had large stock market declines and rising interest rates (early 80s). Thanks!
Some points:
  1. The three fund portfolio is appropriate for all stages of investing. What is likely to change over time is the ratio of stocks to bonds, more bonds giving less volatile performance. That is appropriate for the time you are no longer contributing to your portfolio, or are approaching that time, so can no longer count on those contributions making up for any poor performance.
  2. Many people do have an emergency fund that they do not consider part of their investment portfolio. I personally do not do this, probably because of the next item...
  3. If you have a large enough portfolio then larger swings in value become less important, although they are still bothersome -- see number 1!
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet

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Re: The Three-Fund Portfolio

Post by Razasharpz » Sun Jan 05, 2020 1:49 pm

VTIAX or VTMGX (15%), VTSAX (75%), VBTLX (10%) for Ages 30-50.

Set it and forget it. Enjoy being rich.
Age 31: | 70% VTSAX | 20% VTIAX | 10% VBTLX

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Re: The Three-Fund Portfolio

Post by 4nursebee » Fri Jan 10, 2020 5:49 pm

I've not read the full 54 pages so chastisement might be in order...

Just set up to roll a retirees 401K into an IRA. My questions that I might have missed are:
1. Are there reasons to do 3 fund portfolio as mutual funds rather than ETFs or vice versa?
2. What are the ETF equivalents? editing because I see the answers here now:
https://www.bogleheads.org/wiki/Three-fund_portfolio

If it matters we are at Fidelity and want to implement 3 fund or similar when the money rolls over.
Thank you.
I'd still like the first question answered
4nursebee

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Re: The Three-Fund Portfolio

Post by ruralavalon » Fri Jan 10, 2020 6:04 pm

4nursebee wrote:
Fri Jan 10, 2020 5:49 pm
I've not read the full 54 pages so chastisement might be in order...

Just set up to roll a retirees 401K into an IRA. My questions that I might have missed are:
1. Are there reasons to do 3 fund portfolio as mutual funds rather than ETFs or vice versa?
2. What are the ETF equivalents? editing because I see the answers here now:
https://www.bogleheads.org/wiki/Three-fund_portfolio

If it matters we are at Fidelity and want to implement 3 fund or similar when the money rolls over.
Thank you.
I'd still like the first question answered
In a rollover IRA, which you are asking about, either traditional mutual funds or Exchange Traded Funds (ETFs) should work well.

My general preference is traditional mutual funds, because somewhat easier to use when you are regularly contributing new money as in an active 401k.

But in a rollover IRA ETFs should be fine. At Fidelity there is a large variety of ETFs offered commission free, like Vanguard ETFs and BlackRock iShares ETFs. This is a much larger variety than using Fidelity's traditional mutual funds.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Re: The Three-Fund Portfolio

Post by Razasharpz » Mon Jan 13, 2020 8:00 pm

Fired my financial adviser and am now rocking the 3 funds in my sig. All admiral ^__^
Age 31: | 70% VTSAX | 20% VTIAX | 10% VBTLX

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Taylor Larimore
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Re: The Three-Fund Portfolio

Post by Taylor Larimore » Mon Jan 13, 2020 11:21 pm

Razasharpz wrote:
Mon Jan 13, 2020 8:00 pm
Fired my financial adviser and am now rocking the 3 funds in my sig. All admiral ^__^
Razasharpz:

Congratulations and best wishes.
Taylor
Jack Bogle's Words of Wisdom: "There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite."
"Simplicity is the master key to financial success." -- Jack Bogle

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abuss368
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Re: The Three-Fund Portfolio

Post by abuss368 » Tue Jan 14, 2020 1:11 pm

Razasharpz wrote:
Mon Jan 13, 2020 8:00 pm
Fired my financial adviser and am now rocking the 3 funds in my sig. All admiral ^__^
In my opinion you have a very good portfolio.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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1789
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Re: The Three-Fund Portfolio

Post by 1789 » Tue Jan 14, 2020 7:47 pm

Razasharpz wrote:
Mon Jan 13, 2020 8:00 pm
Fired my financial adviser and am now rocking the 3 funds in my sig. All admiral ^__^
Congrats on implementing 3 fund portfolio. Now you can sleep like a baby :happy
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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abuss368
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Re: The Three-Fund Portfolio

Post by abuss368 » Tue Jan 14, 2020 8:20 pm

1789 wrote:
Tue Jan 14, 2020 7:47 pm
Razasharpz wrote:
Mon Jan 13, 2020 8:00 pm
Fired my financial adviser and am now rocking the 3 funds in my sig. All admiral ^__^
Congrats on implementing 3 fund portfolio. Now you can sleep like a baby :happy
Agreed. A very reasonable portfolio. Buy Taylor's book "The Bogleheads Guide to the Three Fund Portfolio" for additional insight and education. Taylor donates all proceeds to the John C. Bogle Center for Financial Literacy.

https://boglecenter.net
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

martiniii
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Re: The Three-Fund Portfolio

Post by martiniii » Sat Jan 18, 2020 10:19 am

1yr, 3yr, 5yr, 10 yr results for 3 fund portfolio through 2019?

Are these readily available for several different asset allocations?

Thanks.

Triple digit golfer
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Re: The Three-Fund Portfolio

Post by Triple digit golfer » Sat Jan 18, 2020 10:55 am

martiniii wrote:
Sat Jan 18, 2020 10:19 am
1yr, 3yr, 5yr, 10 yr results for 3 fund portfolio through 2019?

Are these readily available for several different asset allocations?

Thanks.
https://www.marketwatch.com/lazyportfolio

Use www.portfoliovisualizer.com to put in any allocations you wish.

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ruralavalon
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Re: The Three-Fund Portfolio

Post by ruralavalon » Sat Jan 18, 2020 10:58 am

Welcome to the forum :) .

martiniii wrote:
Sat Jan 18, 2020 10:19 am
1yr, 3yr, 5yr, 10 yr results for 3 fund portfolio through 2019?

Are these readily available for several different asset allocations?

Thanks.
You can use Portfolio Visualizer to look at total returns (with dividends reinvested) of any allocation of the three-fund portfolio over any time period.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

martiniii
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Re: The Three-Fund Portfolio

Post by martiniii » Sat Jan 18, 2020 11:11 am

Thanks. Great tool.

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