November "Bogleheads On Investing" podcast with guest Jonathan Clements

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Rick Ferri
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November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by Rick Ferri » Tue Nov 06, 2018 5:34 pm

Episode #3: Bogleheads On Investing" with guest Jonathan Clements is now available. Check with iTunes or other podcast providers, or click below:

Episode 003: Bogleheads On Investing with Jonathan Clements, hosted by Rick Ferri

Jonathan Clements is the founder and editor of HumbleDollar. During Jonathan's long career as a financial writer he has worked for Euromoney, Forbes, and The Wall Street Journal. He is also the author of eight personal finance books. His latest book is From Here to Financial Happiness.

This interesting interview dives into Jonathan's career, his books, the FIRE movement, how money can buy you happiness, investment fees and why he was an early advocate for low-cost index funds. The podcast is approximately 55 minutes long.

Enjoy,
Rick Ferri

 
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by Rick Ferri » Tue Nov 06, 2018 8:15 pm

Bumped
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by Mel Lindauer » Tue Nov 06, 2018 11:12 pm

Another great podcast, Rick. Well done; keep 'em coming.

Best regards,

Mel
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by ICH » Wed Nov 07, 2018 2:04 am

Perfect. Thank you.

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by lostdog » Wed Nov 07, 2018 12:16 pm

Great listen. Thanks for bringing up the FIRE movement and the two fund portfolio.

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by Taj_Mahalo » Wed Nov 07, 2018 2:54 pm

Great podcast, Rick - thanks for sharing and thanks to Jonathan for his time.
Income is not wealth. Wealth is not income. Both are equally as important and either is capable of producing the other.

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by CollegePrudens » Wed Nov 07, 2018 11:22 pm

Well done Rick. I have listened/read Jonathan a few times before. You explored the back stories of his experiences nicely.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by car733 » Thu Nov 08, 2018 11:28 am

Did J. Clements recommended 50% of international allocation? Did I get that right?

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by Rick Ferri » Thu Nov 08, 2018 1:31 pm

Jonathan said he personally has 50% of his equity allocation in international and it has been this way for a long time.

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by friar1610 » Thu Nov 08, 2018 1:43 pm

My dog and I enjoyed listening to the podcast during our walk this morning. Thanks, Rick.
Friar1610

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by abuss368 » Thu Nov 08, 2018 4:38 pm

Rick Ferri wrote:
Thu Nov 08, 2018 1:31 pm
Jonathan said he personally has 50% of his equity allocation in international and it has been this way for a long time.

Rick Ferri
Wow! Rick do you allocate 50% to international?
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by Rick Ferri » Thu Nov 08, 2018 5:18 pm

abuss368 wrote:
Thu Nov 08, 2018 4:38 pm
Rick Ferri wrote:
Thu Nov 08, 2018 1:31 pm
Jonathan said he personally has 50% of his equity allocation in international and it has been this way for a long time.

Rick Ferri
Wow! Rick do you allocate 50% to international?
No. But to each is own. No way to tell if this is safer or better than 30% international or 0% international.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by MindTheGAAP » Thu Nov 08, 2018 5:24 pm

Rick Ferri wrote:
Thu Nov 08, 2018 5:18 pm
abuss368 wrote:
Thu Nov 08, 2018 4:38 pm
Rick Ferri wrote:
Thu Nov 08, 2018 1:31 pm
Jonathan said he personally has 50% of his equity allocation in international and it has been this way for a long time.

Rick Ferri
Wow! Rick do you allocate 50% to international?
No. But to each is own. No way to tell if this is safer or better than 30% international or 0% international.
Where does your recommendation fall along the spectrum then, Rick? Range is fine too, but curious as to where you land.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by Rick Ferri » Thu Nov 08, 2018 5:33 pm

I've always used 30% international equity and 70% US equity as my middle-of-the-road allocation (for US investors). That split has historically worked well in the long-term.

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by MindTheGAAP » Thu Nov 08, 2018 9:52 pm

Rick Ferri wrote:
Thu Nov 08, 2018 5:33 pm
I've always used 30% international equity and 70% US equity as my middle-of-the-road allocation (for US investors). That split has historically worked well in the long-term.

Rick Ferri
Thanks Rick - like the signature comment. Couldn't be more true on the whole life cycle.
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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by iamblessed » Fri Nov 09, 2018 8:15 am

I noticed he likes one brokerage and one bank/credit union idea.

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by Rick Ferri » Fri Nov 09, 2018 11:04 am

iamblessed wrote:
Fri Nov 09, 2018 8:15 am
I noticed he likes one brokerage and one bank/credit union idea.

Yes. I like that also. Keep it simple. Sometimes it's not possible because of circumstances, but it should be what we work toward.

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by iamblessed » Fri Nov 09, 2018 11:38 am

Rick Ferri wrote:
Fri Nov 09, 2018 11:04 am
iamblessed wrote:
Fri Nov 09, 2018 8:15 am
I noticed he likes one brokerage and one bank/credit union idea.

Yes. I like that also. Keep it simple. Sometimes it's not possible because of circumstances, but it should be what we work toward.

Rick Ferri
I am not quiet there but am working on it.

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Re: November "Bogleheads On Investing" podcast with guest Jonathan Clements

Post by arcticpineapplecorp. » Sat Nov 10, 2018 11:19 am

Rick Ferri wrote:
Thu Nov 08, 2018 5:33 pm
I've always used 30% international equity and 70% US equity as my middle-of-the-road allocation (for US investors). That split has historically worked well in the long-term.

Rick Ferri
looking forward to this one. Great job so far Rick.

I'm wondering why folks are so surprised by a 50% allocation of one's equity portion to international. Owning a two fund portfolio of total world stock market index fund and total bond market index fund would have about 50% of one's equity portion in international. Even VG's target date retirement funds have 40% of the equity portion in international now which is not that far off from 50%.

So it doesn't seem so surpising to me. Merriman, and I believe at times Swedroe has said an allocation of half one's equities internationally made sense to diversify against one's human capital or maybe it was employment which is priced in in U.S. dollars.

I personally have 30% of my equity holdings in international, based on past results regarding the efficient frontier (future resuls may vary):

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