nanameg wrote: ↑
Thu May 21, 2020 8:36 pm
Taylor Larimore wrote: ↑
Thu May 21, 2020 7:54 pm
I slightly prefer The 3-Fund portfolio with 20% of equity in international stocks. However, I am also a fan of the 2-Fund Portfolio for its simplicity
(read my link below).
It is hard to go wrong with either of these total market
Jack Bogle's Words of Wisdom: "The winning formula for success in investing is owning the entire stock market through an index fund, and then doing nothing. Just stay the course."
I think that’s what I’m beginning to understand...that I really can’t go wrong with either portfolio and I’m agonizing over splitting hairs.
I never was truly comfortable with the 4 fund portfolio I was trying to mirror in three different accounts for several years. I was especially unsure about the international funds but they were recommended by Vanguard so I went with them. We’re coming up on retirement and I panicked this March and first sold off the international stocks...that opened the floodgates and I sold everything a few days later.
I’m back in with a four fund portfolio from a PAS advisor and a two fund 50/50 in my husbands employer account that the advisor can’t manage. So far these last few weeks I’m much happier with the 2 fund ...just for sheer ease in following and contributing.
I have talked to enough folks that did what you did in March: panicked and sold international. That is the key and a huge piece of the puzzle. What can you stay with in all types of markets. A rising tide lifts all boats and our thoughts on risk established (or so we think). Once the water recedes, we question, rethink our tolerance for risk, and sell the funds that we probably should never have had in the first place.
The older I get I do not get caught up in the whole "what fund, what fund, what perfect portfolio" thing. I realize that the macro high level items are what matter: spend less than you make, save and invest you must, keep costs low, keep taxes low, own index funds, have enough cash, pay down/off debt.
The rest in terms of international, small, emerging, gold, really does not stinking matter if you mess up the macro items.
30,000 foot view!
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."