Thanks LadyGeek , I wasn't sure where to post itLadyGeek wrote:^^^ You're welcome.
New member bossballer41 has a question which I've moved into a stand-alone post, see: Starting a Three-Fund Portfolio - which funds?
The Three-Fund Portfolio
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Re: The Three-Fund Portfolio
- SacredSword93
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Re: The Three-Fund Portfolio
Thank you Taylor for keeping things simple!
Re: The Three-Fund Portfolio
May I ask what would be the suggested allocation of these three funds for a person who retires at age 63? Would you just do 33% each or go heavier on one fund?
- TheTimeLord
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Re: The Three-Fund Portfolio
The more I struggle to perfect and tilt my portfolio with ever smaller adjustments the more apparent the inherent wisdom of the 3 fund portfolio becomes. It is a a marvelous straightforward solution to a complex issue, dare I say it is a supremely elegant solution. Thank you.Taylor Larimore wrote:After a lifetime of investing since 1950 trying to "beat the market," I am convinced that a simple 3-fund (or ETF) portfolio of Total Stock Market, Total International, and Total Bond Market, properly allocated, is an ideal portfolio for most investors.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. |
Run, You Clever Boy! [9085]
Re: The Three-Fund Portfolio
I think you are looking for information on how to determine your AA, based on your age. Once you decide what your AA should be, 80/20; 50/50; 40/60 etc. then allocate as follows:LXEX55 wrote:May I ask what would be the suggested allocation of these three funds for a person who retires at age 63? Would you just do 33% each or go heavier on one fund?
For example, 50% of my portfolio is bonds, the other 50% is equities which 2/3 is TSM and 1/3 International
- Taylor Larimore
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Re: The Three-Fund Portfolio
LXEX55:LXEX55 wrote:May I ask what would be the suggested allocation of these three funds for a person who retires at age 63? Would you just do 33% each or go heavier on one fund?
Please read the part about "Asset-Allocation" in my opening post (OP).
Thank you and best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
- abuss368
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Re: The Three-Fund Portfolio
Jack Bogle will typically recommend "age in bonds" to start. An investors asset allocation is dependent on timeframe, tolerance for risk, and goals.LXEX55 wrote:May I ask what would be the suggested allocation of these three funds for a person who retires at age 63? Would you just do 33% each or go heavier on one fund?
John C. Bogle: “Simplicity is the master key to financial success."
- Taylor Larimore
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Allan Roth: One advisor to another.
Bogleheads:
Below are excerpts from an article by Allan Roth in the Financial Planning publication written for financial advisors:
Best wishes.
Taylor
Below are excerpts from an article by Allan Roth in the Financial Planning publication written for financial advisors:
https://www.financial-planning.com/slid ... ury-so-far"As an example of simplicity, over a decade ago I taught my son how to invest using just three index funds:
· A total stock index fund such as VTSMX
· A total international stock index fund such as VGTSX
· A total bond fund such as VBTLX
With these funds (or better yet, lower cost share classes of these funds), my son owned virtually every publicly held company on the planet, as well as an approximation of nearly every fixed-rate investment grade bond in the U.S."
"Noble Laureate William Sharpe’s paper "Arithmetic and Active Management" proved that owning the entire market at the lowest costs must beat the majority of investors."
"Owning even one other stock fund will actually decrease diversification since it will be making specific bets on industries, styles, or other factors."
"Over the years, I’ve benchmarked hundreds of portfolios against the equivalent weighted three-fund portfolio and can count on one hand the number of portfolios I’ve seen that bested this benchmark."
"The simple three-fund portfolio with a target and tolerance range for each fund sends the client on their way without them needing me in the future."
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
Re: The Three-Fund Portfolio
This is very similar to what Ben Stein recommends in YES, YOU CAN STILL RETIRE COMFORTABLY. Only difference is, Stein includes Inflation Indexed Bond fund, along with the other three mentioned. He recommends 25% for each fund, no matter what your age. I am not sure I am going to go with the 50% in stocks. I know at 63 I am a long term investor, but, that still seems a little high for me.
Re: The Three-Fund Portfolio
No, because:Drew31 wrote:Since I'm debating removing my tilts for a 3fund in another thread I'm curious for those that have held the 3 fund for s number of years have you had any regrets? Ever felt as if you were "missing out"?
1. The highest returning asset allocation can only be known in hindsight.
2. The purpose of my asset allocation is to meet my investment goals, not be the highest returning.
3. Per Brinson et al, 1986, the vast majority of a portfolio's return is determined by its asset allocation (mostly the stock/bond/cash ratios).
That being said, I do modify the 3 Fund by using exclusively Treasuries for my bond allocation; the higher correlation of corp bonds to equities, when compared to Treasuries, is something I prefer not to have.
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
Re: The Three-Fund Portfolio
Fast forward to 2017 and International is beating US YTD:selftalk wrote:Unfortunately a lot of folks are PEEKING at this time and seeing how the international arena is under performing the U.S. and are getting worried and impatient. We`ve read a lot about the performances of different asset classes on this website and intellectually we all know about reversion to the mean AND YET THE HUMAN EMOTIONS TAKE HOLD and try to motivate us into action. Stay the course is not for sissies I suppose. Have and muster up GRIT as it will most probably get you where you want to go in the long run by doing what`s been proven successful in years gone past.
VTI = Vanguard US Total Stock Market Index
VXUS = Vanguard International Total Stock Market Index
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
Re: The Three-Fund Portfolio
I can argue against holding both the S&P500 and Total Stock Market Index because the two funds have a 0.99 correlation with each other since 2001. You're not getting any diversification benefits by holding both.selftalk wrote:I`m comfortable to do what Buffett and Bogle suggest and that is own the S&P 500 for Buffett and the Total Stock Market Index Fund suggested by Bogle. Both funds have earned almost exactly the same results over the long term. My proxy for a bond fund however is my monthly income from my pension and my monthly income from social security. How can you argue against what these two masters advocate. I try to learn from the best and not chase rainbows ( other allocations ) written by other authorities to beat the major index.
Pick one or the other.
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
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Re: The Three-Fund Portfolio
Pretty sure selftalk meant TSM and TBM (or S&P/TBM) as this is what Bogle recommends.watchnerd wrote:I can argue against holding both the S&P500 and Total Stock Market Index because the two funds have a 0.99 correlation with each other since 2001. You're not getting any diversification benefits by holding both.selftalk wrote:I`m comfortable to do what Buffett and Bogle suggest and that is own the S&P 500 for Buffett and the Total Stock Market Index Fund suggested by Bogle. Both funds have earned almost exactly the same results over the long term. My proxy for a bond fund however is my monthly income from my pension and my monthly income from social security. How can you argue against what these two masters advocate. I try to learn from the best and not chase rainbows ( other allocations ) written by other authorities to beat the major index.
Pick one or the other.
Re: The Three-Fund Portfolio
No, I think the reference is to Buffett suggesting one thing and Bogle suggesting a (not different) different thing and the OP has decided to blend the two suggestions. The OP is also following Bogle's advice that you can let pensions and SS stand in for bonds and not actually invest in any bonds, if that is how it works out.gvsucavie03 wrote:Pretty sure selftalk meant TSM and TBM (or S&P/TBM) as this is what Bogle recommends.watchnerd wrote:I can argue against holding both the S&P500 and Total Stock Market Index because the two funds have a 0.99 correlation with each other since 2001. You're not getting any diversification benefits by holding both.selftalk wrote:I`m comfortable to do what Buffett and Bogle suggest and that is own the S&P 500 for Buffett and the Total Stock Market Index Fund suggested by Bogle. Both funds have earned almost exactly the same results over the long term. My proxy for a bond fund however is my monthly income from my pension and my monthly income from social security. How can you argue against what these two masters advocate. I try to learn from the best and not chase rainbows ( other allocations ) written by other authorities to beat the major index.
Pick one or the other.
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Re: The Three-Fund Portfolio
Going to moves home sale proceeds to the three fund portfolio.
Wanted to use Vanguard Life Strategy fund but upon review it is a four fund portfolio with a total international bond fund. From reading previous posts by Taylor and other it appears a total international bond index fund is not necessary or advisable.
My questions are two:
1) Why did Vanguard make the Life Strategy Fund with the total international bond fund?
2)Should i skip the Life Strategy fund and just go to the separate three Vanguard funds; Total US stock, Total International Stock and Total US Bond?
Thanks,
Stu
Wanted to use Vanguard Life Strategy fund but upon review it is a four fund portfolio with a total international bond fund. From reading previous posts by Taylor and other it appears a total international bond index fund is not necessary or advisable.
My questions are two:
1) Why did Vanguard make the Life Strategy Fund with the total international bond fund?
2)Should i skip the Life Strategy fund and just go to the separate three Vanguard funds; Total US stock, Total International Stock and Total US Bond?
Thanks,
Stu
Re: The Three-Fund Portfolio
Because in Vanguard's opinion adding the international bond fund provides more diversification and is a good thing. I'm not in favor of it.stuart2010 wrote:Why did Vanguard make the Life Strategy Fund with the total international bond fund?
What is the purpose of this money? When do you expect to need it? Is it part of your retirement portfolio (which the three-fund portfolio was designed for) or something else? Since it is likely that these home sale proceeds are going into a taxable account, using a balanced fund like LifeStrategy with its taxable bonds is not the best option. And if you go with the three separate funds you should reconsider the Total US Bond fund and perhaps use a muni bond fund.Should i skip the Life Strategy fund and just go to the separate three Vanguard funds; Total US stock, Total International Stock and Total US Bond?
Re: The Three-Fund Portfolio
I have a few simple questions. What would be a proper substitute for the VBTLX bond fund? I don't have 10k out to start, but I would like to start my taxable account with Vanguard. I am maxing my Roth IRA already and will be receiving a full match on my contributions if I join the new retirement system next year with my job.
Now, I also invest in the TSP... since I am military. Fishing50 advised/ recommended me to ignore VBTLX and go with the G and F funds of the TSP. Would this be something you recommend? ? I am already in the L2050 fund for my TSP, and the 2060 Target retirement fund with Vanguard.
Is my asset allocation in my taxable account, and G/F funds ( if I was to go this route) change my portfolio allocation? My 2060 Trgt is at 90% stock 10% bond. My L2050 fund is at 80/20... I would like for my taxable account to be the same if thats smart?
My main long term goal is general investing, but also as a home and land fund. I won't need this fund for a while. While in the military they provide for your housing. So, It wouldn't be smart for me to buy a home when I move every few years or so. I don't know when I'm getting out. It could be 5,10, or 20 years. So, this is going to be more of a long term investment. Is this smart? I'm still learning about my taxable account. Only 21, haha.
Explanation of TSP funds:
https://www.tsp.gov/InvestmentFunds/Fun ... atrix.html
Now, I also invest in the TSP... since I am military. Fishing50 advised/ recommended me to ignore VBTLX and go with the G and F funds of the TSP. Would this be something you recommend? ? I am already in the L2050 fund for my TSP, and the 2060 Target retirement fund with Vanguard.
Is my asset allocation in my taxable account, and G/F funds ( if I was to go this route) change my portfolio allocation? My 2060 Trgt is at 90% stock 10% bond. My L2050 fund is at 80/20... I would like for my taxable account to be the same if thats smart?
My main long term goal is general investing, but also as a home and land fund. I won't need this fund for a while. While in the military they provide for your housing. So, It wouldn't be smart for me to buy a home when I move every few years or so. I don't know when I'm getting out. It could be 5,10, or 20 years. So, this is going to be more of a long term investment. Is this smart? I'm still learning about my taxable account. Only 21, haha.
Explanation of TSP funds:
https://www.tsp.gov/InvestmentFunds/Fun ... atrix.html
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Re: The Three-Fund Portfolio
Now, I also invest in the TSP... since I am military. Fishing50 advised/ recommended me to ignore VBTLX and go with the G and F funds of the TSP. Would this be something you recommend? ? I am already in the L2050 fund for my TSP, and the 2060 Target retirement fund with Vanguard.
Slov:
There is no need to complicate your portfolio with G & F fixed-income funds because you already have bond funds in TSP and Vanguard. Decide on your overall stock/bond ratio and pick the appropriate Lifecycle funds.
Use Vanguard's low-cost, tax-efficient Total Stock Market and/or Total International Stock Market in your taxable account.
Thank you for your service to our country!
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
Re: The Three-Fund Portfolio
you need a small cap fund and an em fund
Re: The Three-Fund Portfolio
Uh, no you don't! This is the Three-Fund Portfolio thread! Three for all and all for three!
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Re: The Three-Fund Portfolio
Kennyt7:Kennyt7 wrote:you need a small cap fund and an em fund
The Three-Fund Portfolio already has the market's weight in small-cap stocks and emerging market stocks. Whether it is worthwhile to over-weight a market portfolio with overlapping funds having higher cost, less tax-efficiency and more complexity is a debate for another forum.
Best wishes.Warren Buffett: "There seems to be some perverse human characteristic that likes to make easy things difficult."
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
Re: The Three-Fund Portfolio
Human nature with regards to investing and/or emotion being as it is thinks that the more intricate and complicated something is the more profitable it will become. Boy has that ever been proven wrong time and again but human nature keeps on trying.
Re: The Three-Fund Portfolio
historically small caps win the stock allocation; about 12%
Re: The Three-Fund Portfolio
Ask yourself : Is over weighting small caps chasing performance ? It may very well be. The 3 fund portfolio is very simple. Why not keep it that way ? In time it has a very high probability to get you to your financial goals. Don`t over think it.
- Taylor Larimore
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"How many funds are needed to diversify"
Bogleheads:
Walter Updegrave, retired senior editor at MONEY magazine, has written an important article about the number of funds needed for adequate diversification. These are excerpts:
Best wishes.
Taylor
Walter Updegrave, retired senior editor at MONEY magazine, has written an important article about the number of funds needed for adequate diversification. These are excerpts:
http://money.cnn.com/2017/06/28/retirem ... index.html"When you're building a portfolio for retirement -- or any other purpose, for that matter -- your goal shouldn't be to load up with as many different types of investments as you can (although you can certainly get that impression given the constant flow of new and often gimmicky funds and ETFs that financial services funds churn out)."
"I prefer the total stock market fund approach I described above rather than separate funds for large-, mid- and small-cap stocks because it keeps things simpler and requires less monitoring and managing of one's portfolio."
"If you start throwing yet more funds into your current mix, I'd say you run the risk of turning your portfolio into an unwieldy mishmash of overlapping holdings that don't work together as a coherent whole. In short, you stand a good chance of "di-worse-ifying" rather than diversifying."
"Your next step is to make sure that your stock and bond holdings generally reflect the makeup of the stock and bond market overall. For example, large-company stocks account for roughly 70% of total stock market value, while midcaps and small-caps represent about 20% and 10% respectively. Your holdings don't have to mirror these percentages exactly. But if you want a truly diversified portfolio with a risk profile largely in line with that of the market overall, then you don't want your portfolio's proportions to be too far off either."
"Don't assume that more is better when it comes to funds."
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: "How many funds are needed to diversify"
Great article! What I found most interesting is the author notes that a simple Two Fund Portfolio of Total Stock and Total Bond should work for most folks. If one is so inclined, the author recommends the Vanguard Four Fund Portfolio by adding Total International Stock and Total International Bond.Taylor Larimore wrote:Bogleheads:
Walter Updegrave, retired senior editor at MONEY magazine, has written an important article about the number of funds needed for adequate diversification. These are excerpts:
http://money.cnn.com/2017/06/28/retirem ... index.html"When you're building a portfolio for retirement -- or any other purpose, for that matter -- your goal shouldn't be to load up with as many different types of investments as you can (although you can certainly get that impression given the constant flow of new and often gimmicky funds and ETFs that financial services funds churn out)."
"I prefer the total stock market fund approach I described above rather than separate funds for large-, mid- and small-cap stocks because it keeps things simpler and requires less monitoring and managing of one's portfolio."
"If you start throwing yet more funds into your current mix, I'd say you run the risk of turning your portfolio into an unwieldy mishmash of overlapping holdings that don't work together as a coherent whole. In short, you stand a good chance of "di-worse-ifying" rather than diversifying."
"Your next step is to make sure that your stock and bond holdings generally reflect the makeup of the stock and bond market overall. For example, large-company stocks account for roughly 70% of total stock market value, while midcaps and small-caps represent about 20% and 10% respectively. Your holdings don't have to mirror these percentages exactly. But if you want a truly diversified portfolio with a risk profile largely in line with that of the market overall, then you don't want your portfolio's proportions to be too far off either."
"Don't assume that more is better when it comes to funds."
Best wishes.
Taylor
Thanks!
John C. Bogle: “Simplicity is the master key to financial success."
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Re: The Three-Fund Portfolio
Hi Kennyt7 -Kennyt7 wrote:you need a small cap fund and an em fund
When an investor follows a strategy of total market index funds, one is essentially buying the haystack. All publicly traded companies are included. Vanguard provides just that: Total Stock and Bond funds for both U.S. and International at a very low cost.
More funds almost always results in more complexity.
Best.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: The Three-Fund Portfolio
Wait, don't you tilt towards Reits?abuss368 wrote:Hi Kennyt7 -Kennyt7 wrote:you need a small cap fund and an em fund
When an investor follows a strategy of total market index funds, one is essentially buying the haystack. All publicly traded companies are included. Vanguard provides just that: Total Stock and Bond funds for both U.S. and International at a very low cost.
More funds almost always results in more complexity.
Best.
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Re: The Three-Fund Portfolio
Yes, however an investor does not have too! I have family members invested in Jack Bogle's Two Fund Portfolio and plan to stay the course.gvsucavie03 wrote:Wait, don't you tilt towards Reits?abuss368 wrote:Hi Kennyt7 -Kennyt7 wrote:you need a small cap fund and an em fund
When an investor follows a strategy of total market index funds, one is essentially buying the haystack. All publicly traded companies are included. Vanguard provides just that: Total Stock and Bond funds for both U.S. and International at a very low cost.
More funds almost always results in more complexity.
Best.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: The Three-Fund Portfolio
abuss368 wrote:Yes, however an investor does not have too! I have family members invested in Jack Bogle's Two Fund Portfolio and plan to stay the course.gvsucavie03 wrote:Wait, don't you tilt towards Reits?abuss368 wrote:Hi Kennyt7 -Kennyt7 wrote:you need a small cap fund and an em fund
When an investor follows a strategy of total market index funds, one is essentially buying the haystack. All publicly traded companies are included. Vanguard provides just that: Total Stock and Bond funds for both U.S. and International at a very low cost.
More funds almost always results in more complexity.
Best.
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Re: The Three-Fund Portfolio
The two separate VG stock funds together do have more stocks than the VG total world stock fund, but in TWS "strategy and policy", there's a statement about possibly changing the benchmark to achieve a broader-based fund. This might increase the number of companies, bringing it closer to the two separate funds.
VT 60% / VFSUX 20% / TIPS 20%
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Cost Basis Method
Taylor,
As a newcomer and beginner in investment, I really like your three fund portfolio post. May I ask which cost basis method you applied for your account? Want to follow you exactly.
Thanks!
As a newcomer and beginner in investment, I really like your three fund portfolio post. May I ask which cost basis method you applied for your account? Want to follow you exactly.
Thanks!
Re: The Three-Fund Portfolio
newcomer2017, Welcome! I merged your post into here so it will be seen by Taylor Larimore.
I would caution you on following someone's investing methods, as what applies to one person may not apply to another. You have also posted a follow-up question here: Cost Basis Method, which can be used to answer questions about your own situation.
The wiki has some background info: Cost basis methods
I would caution you on following someone's investing methods, as what applies to one person may not apply to another. You have also posted a follow-up question here: Cost Basis Method, which can be used to answer questions about your own situation.
The wiki has some background info: Cost basis methods
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Re: Cost Basis Methods?
newcomer 2017:newcomer2017 wrote:Taylor,
As a newcomer and beginner in investment, I really like your three fund portfolio post. May I ask which cost basis method you applied for your account? Want to follow you exactly.
Thanks!
Welcome to the Bogleheads Forum!
A big mistake investors make is to mimic another investor who may have entirely different goals, risk-tolerance, time-frame and personal financial situation.
Nevertheless, to answer your question, I use the Average Cost Basis because I started with it long ago when it was the only IRS cost basis (I was aware of) and because it is the easiest. I've toyed with the idea of switching to the Specific Shares Identification method but never did. I really think this is a question for your accountant.
Our Wiki has a discussion of the various cost basis here: Cost Basis Methods.
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Cost Basis Methods?
Taylor,
Thank you very much and really appreciate you are willing to share your experience frankly! I will keep studying and gaining investment knowledge. During last a few I really learned a lot from your posts and Bogle's articles. with Best Wishes!
Thank you very much and really appreciate you are willing to share your experience frankly! I will keep studying and gaining investment knowledge. During last a few I really learned a lot from your posts and Bogle's articles. with Best Wishes!
- Taylor Larimore
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"Two-Thirds of Stocks Underperformed the Broad Market Index Over Their Lifetime"
Bogleheads:
I thank Simplegift for this article confirming that "Two-Thirds of Stocks Underperformed the Broad Market":
Secret of the (Total Market) Index Fund’s Success
Best wishes.
Taylor
I thank Simplegift for this article confirming that "Two-Thirds of Stocks Underperformed the Broad Market":
Secret of the (Total Market) Index Fund’s Success
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: The Three-Fund Portfolio
Some previous posts have covered this, but I wondered if anyone had further advice for non-US investors concerned about the currency risk of this approach.
This total stock market fund from Vanguard has c.20% invested in my domestic market, the UK: https://www.vanguardinvestor.co.uk/inve ... o-data-tab
Bearing in mind that the FTSE 100 earns c.70% of revenues overseas, the vast majority of the portfolio is highly exposed to FX.
At the same time, (the shambolic) Brexit negotiations make it riskier to increase UK exposure right now via FTSE 250 or UK small cap -- I realise that delaying investment would mean trying to time the markets, but this also seems like basic common sense.
Putting a large % into the UK feels like a high risk strategy that may or may not come off. Equally, having 90%+ of a portfolio directly exposed to foreign currencies also seems incredibly high risk. Would increasing UK exposure hedge my risk, or is there no correlation?
I don't feel that this approach is quite as suitable for non-US investors if I'm honest. However, as a complete novice, advice would be much appreciated.
This total stock market fund from Vanguard has c.20% invested in my domestic market, the UK: https://www.vanguardinvestor.co.uk/inve ... o-data-tab
Bearing in mind that the FTSE 100 earns c.70% of revenues overseas, the vast majority of the portfolio is highly exposed to FX.
At the same time, (the shambolic) Brexit negotiations make it riskier to increase UK exposure right now via FTSE 250 or UK small cap -- I realise that delaying investment would mean trying to time the markets, but this also seems like basic common sense.
Putting a large % into the UK feels like a high risk strategy that may or may not come off. Equally, having 90%+ of a portfolio directly exposed to foreign currencies also seems incredibly high risk. Would increasing UK exposure hedge my risk, or is there no correlation?
I don't feel that this approach is quite as suitable for non-US investors if I'm honest. However, as a complete novice, advice would be much appreciated.
- Taylor Larimore
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"Warren Buffet Says 99% of Investors Should Net Even Try to Beat the Market"
Bogleheads:
Warren Buffet Says 99% of Investors Should Not Even Try to Beat the Market
Warren Buffet would like The Three-Fund Portfolio.
Best wishes
Taylor
[Title fixed by admin LadyGeek]
Warren Buffet Says 99% of Investors Should Not Even Try to Beat the Market
Warren Buffet would like The Three-Fund Portfolio.
Best wishes
Taylor
[Title fixed by admin LadyGeek]
"Simplicity is the master key to financial success." -- Jack Bogle
Re: The Three-Fund Portfolio
New member dn160 is requesting assistance with his/her portfolio, which I've moved into a new thread: The Three-Fund Portfolio [Portfolio help]
Re: The Three-Fund Portfolio
The Boglehead philosophy of investing will do much for my heirs.
Signed,
A 3-funder.
Signed,
A 3-funder.
Re: The Three-Fund Portfolio
HenrysPlan2 has a question on rebalancing his 3-fund portfolio, which I've moved into a stand-alone thread: [How do I rebalance my Three-Fund Portfolio?]
Re: The Three-Fund Portfolio
New member PopMegaphone has a question which I've moved into a new thread. See: [Is company stock part of my 3-fund portfolio?]
FYI - The answers to both HenrysPlan2's and PopMegaphone's questions depend on their individual situations. The posts were moved into individual threads so we can focus on each one individually.
FYI - The answers to both HenrysPlan2's and PopMegaphone's questions depend on their individual situations. The posts were moved into individual threads so we can focus on each one individually.
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Re: "Warren Buffet Says 99% of Investors Should Net Even Try to Beat the Market"
Hi Taylor -Taylor Larimore wrote: ↑Sun Aug 06, 2017 2:55 pm Bogleheads:
Warren Buffet Says 99% of Investors Should Not Even Try to Beat the Market
Warren Buffet would like The Three-Fund Portfolio.
Best wishes
Taylor
[Title fixed by admin LadyGeek]
Indeed. Warren Buffett has recommended during many interviews on television that most investors should simply own "a few index funds". As such, I am sure he would not object to the Vanguard Total International Stock Index Fund as one of them when included with Total Stock Index Fund and Total Bond Index Fund. In recent years he has noted a two fund approach of the Vanguard S&P 500 (Why not Total Stock oh which Jack Bogle penned a letter to Mr. Buffett is a question) and Treasury Bonds.
Warren Buffett is very high on the United States of America. However, his company, Berkshire Hathaway, has invested in international markets.
In any event, I would expect the Three Fund Portfolio would meet his expectations and get his seal of approval!
John C. Bogle: “Simplicity is the master key to financial success."
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Re: The Three-Fund Portfolio
Taylor,
I wanted to let you know that I converted my Roth IRA to
the 3 fund portfolio. I put it in the Life Strategy Fund
80/20 growth portfolio. Because of my age I felt the
80/20 fund would be best for me.
Thank you for all your help & contributions to Bogleheads.
I wanted to let you know that I converted my Roth IRA to
the 3 fund portfolio. I put it in the Life Strategy Fund
80/20 growth portfolio. Because of my age I felt the
80/20 fund would be best for me.
Thank you for all your help & contributions to Bogleheads.
- abuss368
- Posts: 27850
- Joined: Mon Aug 03, 2009 2:33 pm
- Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
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Re: The Three-Fund Portfolio
Hi snarlyjack -snarlyjack wrote: ↑Wed Sep 27, 2017 6:44 pm Taylor,
I wanted to let you know that I converted my Roth IRA to
the 3 fund portfolio. I put it in the Life Strategy Fund
80/20 growth portfolio. Because of my age I felt the
80/20 fund would be best for me.
Thank you for all your help & contributions to Bogleheads.
An excellent strategy. The Vanguard LifeStrategy lineup provides a very low cost and diversified all in one fund. These funds are not the Three Fund Portfolio but rather include the recommended Vanguard Four Fund Portfolio of U.S. & International stocks and bonds. It won’t make much difference.
I like your approach.
John C. Bogle: “Simplicity is the master key to financial success."
- Taylor Larimore
- Posts: 32839
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- Location: Miami FL
Re: The Three-Fund Portfolio
snarlyjack:snarlyjack wrote: ↑Wed Sep 27, 2017 6:44 pm Taylor,
I wanted to let you know that I converted my Roth IRA to
the 3 fund portfolio. I put it in the Life Strategy Fund
80/20 growth portfolio. Because of my age I felt the
80/20 fund would be best for me.
Thank you for all your help & contributions to Bogleheads.
You are on the road to investment success.
Congratulations and best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
Re: The Three-Fund Portfolio
I balance to 33% each. Not because that ratio is better than any other, but because it is easy to rebalance. Every quarter I average the highest and lowest fund.
Re: The 3-Fund Portfolio and Mr. Bogle's crusade
I stumbled upon this. You have done it sir.Taylor Larimore wrote: ↑Tue Aug 07, 2012 7:23 pmHi Sunny:Sunny Sarkar wrote:Here is a link to Taylor's original post from 1999 on this topic in the old M* forum...
Which is better--15 funds or 4?
All the best,
Sunny
Thank you for the link to my original post recommending the 3-fund portfolio (plus a money market fund). It is gratifying for me to see how well that post has stood the test of time. Vanguard has recognized its merits by adopting it for their Target and Life Strategy Funds.
I made more than 25,000 posts on the old Morningstar Vanguard Diehard forum trying to help investors. I hope I live long enough to do the same here. It is immensely satisfying to be a soldier in Mr. Bogle's crusade "to give ordinary investors a fair shake."
Best wishes.
Taylor
Re: The Three-Fund Portfolio
New member bluerafters has a question which I've moved into a stand-alone thread. See: [Where do I invest my 2018 IRA contributions?]
Re: The Three-Fund Portfolio
New member about10 has a question which I've moved into a stand-alone thread. See: [Three-fund portfolio: Robo-adviser or 3 funds?]