In the Wiki there's talk about an investment policy statement: https://www.bogleheads.org/wiki/Investm ... _statement. It helps some to put everything in writing to stay the course. If you do add SCV at some point, I'm sure you've already read that it can underperform for long periods of time, then have bursts of outperformance: tracking error. If you believe in the small value premium enough to go with it in the first place, it's imperative to stay the course so as not to lock in what could be a significant loss switching out of it during underperformance vs your other funds.snarlyjack wrote: ↑Wed Sep 06, 2017 8:32 amLongtermgrowth,
Thank you that is very good advice.
I was 20 years old when my Mom died (I' am now 23 years old).
When I started out I knew I didn't want to pay any commissions
so that left me with Fidelity or Vanguard. After studying the difference
between companies I picked Vanguard. One of the best decisions
of my life.
I picked the High Dividend Yield Index Fund because of the
big blue chip stocks in the fund that pay a dividend. Larry Swedkie
talked me into the Total Stock Market Fund for about a month
then I switched back to High Dividend Yield Index due to the stocks
in the fund. After further research I ended up 50% in High Dividend
Index & 50% in Dividend Appreciation Index. That is where I' am at now.
The stocks in those 2 funds are excellent. By adding Small Cap. Value
would increase the risk. Smaller stocks are way more volatile than larger
stocks. It was just a thought. I know some people like the SCV fund.
In my time of need the Bogleheads have been great. I have received
numerous e-mails from Taylor Larimore helping me. Plus, other
individuals at Bogleheads have e-mailed me. Plus, lot's
of conversations in the blogs. I consider finding the Bogleheads a
"God send from my Mom". As far as I' am concerned the Bogleheads is
the best financial forum out there & my part time home.
Longtermgrowth, once again thank you for your excellent advice!
I understand what you mean about Bogleheads. I would quite possibly have a chunk of things in a variable annuity and another chunk in high expense ratio funds with a 1.7+% AUM fee on top of that, as a result of being pressured to make up my mind, while still in shock after the loss of my Mom, if not for this site.
If you have your mind made up on SCV, I would recommend reading Mr. Swedroe's book "Your Complete Guide To Factor-Based Investing" before implementing anything.