The Three-Fund Portfolio

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Short Term Asset Allocation

Post by Taylor Larimore » Wed May 15, 2019 9:34 am

abuss368:

My 25% bond and 75% stock allocation is carefully considered. At age 95, with a life expectancy of 3 years, planning is simplified. :wink:

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: Short Term Asset Allocation

Post by abuss368 » Thu May 16, 2019 7:33 pm

Taylor Larimore wrote:
Wed May 15, 2019 9:34 am
abuss368:

My 25% bond and 75% stock allocation is carefully considered. At age 95, with a life expectancy of 3 years, planning is simplified. :wink:

Best wishes.
Taylor
Thanks Taylor!

Hope you are well.
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: The Three-Fund Portfolio

Post by LadyGeek » Fri May 24, 2019 10:42 am

New member goixiz has a question which I've moved into here: NOOB trying to learn (yes im a tad late age 52)
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Re: The Three-Fund Portfolio

Post by retire2022 » Thu May 30, 2019 5:51 pm

Morningstar's Jason Kephart writes positively on Vanguard funds

Vanguard's Two-Fund Portfolio Just Had Its Best Decade
Jason Kephart, CFA
30 May 2019
In Focus

VBIAX
VBTLX
VGTSX
VSMGX
VTIBX

If it feels like diversifying beyond a simple moderate portfolio that owns one U.S. stock index fund and one U.S. bond index fund has been a fool's errand over the past decade, there's good reason for that. Vanguard Balanced Index (VBIAX) had its best decade of risk-adjusted returns since it launched in 1992, and it invests in just two broad U.S. index funds. To be fair, seven of the 153 funds in the allocation--50% to 70% equity Morningstar Category had as good or slightly better risk-adjusted returns over the decade, so there was some room for improvement, but it has still been a fantastic time for simplicity....


https://www.morningstar.com/articles/93 ... -deca.html

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Re: The Three-Fund Portfolio

Post by LadyGeek » Wed Jun 12, 2019 7:41 pm

LXEX55 has asked several questions in this thread. I moved the questions and replies into a new thread. See: [Help me select a Three-Fund Portfolio for my retirement]
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Personal Portfolio Questions

Post by Taylor Larimore » Wed Jun 12, 2019 8:41 pm

LadyGeek wrote:
Wed Jun 12, 2019 7:41 pm
LXEX55 has asked several questions in this thread. I moved the questions and replies into a new thread. See: [Help me select a Three-Fund Portfolio for my retirement]
LadyGeek:

In order to keep this thread from become unwieldy, we must confine Three-Fund Portfolio topics to this portfolio only.

Thank you for moving threads about Personal Portfolios to the Personal Investment forum.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: Short Term Asset Allocation

Post by bltn » Sun Jun 16, 2019 4:40 pm

Taylor Larimore wrote:
Wed May 15, 2019 9:34 am
abuss368:

My 25% bond and 75% stock allocation is carefully considered. At age 95, with a life expectancy of 3 years, planning is simplified. :wink:

Best wishes.
Taylor
Taylor
Many thanks for the years of advice.
I m trying to pass these BH recommendations on to my kids. This knowledge is an important part of their education which I consider the most important component of my legacy for them.
Be well.

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Total Bond Market

Post by Taylor Larimore » Tue Jun 18, 2019 9:51 pm

Bogleheads:

Nice article by Morningstar supporting plain-vanilla, high-quality Total Bond Market Index Fund.

What's the Best Diversifier for Equity Risk?

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: Total Bond Market

Post by abuss368 » Wed Jun 19, 2019 4:31 pm

Taylor Larimore wrote:
Tue Jun 18, 2019 9:51 pm
Bogleheads:

Nice article by Morningstar supporting plain-vanilla, high-quality Total Bond Market Index Fund.

What's the Best Diversifier for Equity Risk?

Best wishes.
Taylor
Thanks for sharing Taylor. Total Bond Index is the biggest bond fund in the world and for good reason.
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: The Three-Fund Portfolio

Post by Dargo » Tue Jun 25, 2019 4:46 pm

Long time lurker finally delurking. Over the past decade or so I have been simplifying my portfolio. Not at the stage of 3 funds and not sure I ever will be but I appreciate all I have learned here.
Life is what happens to you when you are busy making other plans..John Lennon

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Re: The Three-Fund Portfolio

Post by ruralavalon » Tue Jun 25, 2019 5:54 pm

Welcome to the forum :) .

Dargo wrote:
Tue Jun 25, 2019 4:46 pm
Long time lurker finally delurking. Over the past decade or so I have been simplifying my portfolio. Not at the stage of 3 funds and not sure I ever will be but I appreciate all I have learned here.
"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 abuss368 » Tue Jun 25, 2019 10:01 pm

Dargo wrote:
Tue Jun 25, 2019 4:46 pm
Long time lurker finally delurking. Over the past decade or so I have been simplifying my portfolio. Not at the stage of 3 funds and not sure I ever will be but I appreciate all I have learned here.
Welcome to the forum. The Three Fund Portfolio is a great and very educational thread. Consider investing the time to read the thread. You will learn much.
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: The Three-Fund Portfolio

Post by LadyGeek » Thu Jun 27, 2019 1:41 pm

pidgynerd has a question which I've moved into an existing thread. See: Am I doing this right so far?
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Re: The Three-Fund Portfolio

Post by phatpodo » Thu Jun 27, 2019 8:01 pm

I read most of the pages on the three-fund portfolio over the past couple weeks, and I have become a believer. I converted my 457 yesterday, using VBTIX, VTSNX, and SCHB. My IRAs are next. I would like to thank everyone who contributed to this post for helping me to see the light! And a special thank you to Taylor Larimore for starting the post and your thoughtful responses.

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Re: The Three-Fund Portfolio

Post by Benjamin Buffett » Thu Jul 04, 2019 8:19 pm

Whenever people I know be them family, friends, colleagues, or people I know elsewhere ask me about investing or setting up a retirement account I loan them one book: that book is my hardback copy of The Boglehead's Guide to the Three Fund Portfolio. It really is the best book I have ever read on the subject.

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Re: Short Term Asset Allocation

Post by Highlandbeach » Wed Jul 10, 2019 4:26 pm

Taylor Larimore wrote:
Wed May 15, 2019 9:34 am
abuss368:

My 25% bond and 75% stock allocation is carefully considered. At age 95, with a life expectancy of 3 years, planning is simplified. :wink:

Best wishes.
Taylor
Hi Taylor,

Do you still hold/recommend 25% international? Thanks for all of your help and enjoy the summer!

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Re: The Three-Fund Portfolio

Post by cashboy » Wed Jul 10, 2019 4:51 pm

Taylor,

i just wanted to say thank you for this thread and sharing your depth of knowledge and experience.

post #1 in this thread changed my financial management life for the better, and has given me a brighter financial future.

i now have a 3-fund portfolio.

i manage it myself,
save thousands in fees,
enjoy lower ERs,
have a solid portfolio,
'understand' my finances,
and sleep well at night.

again, thanks

:happy

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Re: Short Term Asset Allocation

Post by Taylor Larimore » Wed Jul 10, 2019 9:28 pm

Highlandbeach wrote:
Wed Jul 10, 2019 4:26 pm
Taylor Larimore wrote:
Wed May 15, 2019 9:34 am
abuss368:

My 25% bond and 75% stock allocation is carefully considered. At age 95, with a life expectancy of 3 years, planning is simplified. :wink:

Best wishes.
Taylor
Hi Taylor,

Do you still hold/recommend 25% international? Thanks for all of your help and enjoy the summer!
highlandbeach:

A few years ago I wanted to sell stock in my taxable account for gifts. I had two funds there: S&P 500 and Total International. I decided to sell my Total International because its capital-gains were significantly less.

You may ask, why do I hold the S&P 500 Index when I prefer Total Stock Market? Again, taxes were the reason. Total Stock Market was (and is) my U.S. stock fund. When a bear market came along (I forget which one) I took a tax-loss using Vanguard S&P Fund as a 30-day alternate. Unfortunately (or maybe fortunately) the S&P fund almost immediately had a sharp increase in value and I didn't want to pay a capital gain tax to switch back so I no longer own my favorite TSM fund.

If I were to start over, I would own The Three-Fund Portfolio with 20% of equity in Vanguard Total International Index Fund.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: The Three-Fund Portfolio

Post by c_is_for_cow » Wed Jul 10, 2019 9:46 pm

Taylor,

I also want to say thanks to you. I read your 3-fund portfolio book and it changed the investing lives for my wife and I. We transitioned from a commissioned advisor, to a fee only advisor, to a 3-fund portfolio in the past 5 years. We manage our 3-fund portfolio now and sleep well at night. The portfolio diversification and simplicity is simply brilliant.

Thanks,

Cow

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Re: Short Term Asset Allocation

Post by abuss368 » Fri Jul 12, 2019 7:24 pm

Taylor Larimore wrote:
Wed Jul 10, 2019 9:28 pm
Highlandbeach wrote:
Wed Jul 10, 2019 4:26 pm
Taylor Larimore wrote:
Wed May 15, 2019 9:34 am
abuss368:

My 25% bond and 75% stock allocation is carefully considered. At age 95, with a life expectancy of 3 years, planning is simplified. :wink:

Best wishes.
Taylor
Hi Taylor,

Do you still hold/recommend 25% international? Thanks for all of your help and enjoy the summer!
highlandbeach:

A few years ago I wanted to sell stock in my taxable account for gifts. I had two funds there: S&P 500 and Total International. I decided to sell my Total International because its capital-gains were significantly less.

You may ask, why do I hold the S&P 500 Index when I prefer Total Stock Market? Again, taxes were the reason. Total Stock Market was (and is) my U.S. stock fund. When a bear market came along (I forget which one) I took a tax-loss using Vanguard S&P Fund as a 30-day alternate. Unfortunately (or maybe fortunately) the S&P fund almost immediately had a sharp increase in value and I didn't want to pay a capital gain tax to switch back so I no longer own my favorite TSM fund.

If I were to start over, I would own The Three-Fund Portfolio with 20% of equity in Vanguard Total International Index Fund.

Best wishes.
Taylor
Thanks Taylor.
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: Short Term Asset Allocation

Post by abuss368 » Sat Jul 13, 2019 12:34 pm

Taylor Larimore wrote:
Wed Jul 10, 2019 9:28 pm
Highlandbeach wrote:
Wed Jul 10, 2019 4:26 pm
Taylor Larimore wrote:
Wed May 15, 2019 9:34 am
abuss368:

My 25% bond and 75% stock allocation is carefully considered. At age 95, with a life expectancy of 3 years, planning is simplified. :wink:

Best wishes.
Taylor
Hi Taylor,

Do you still hold/recommend 25% international? Thanks for all of your help and enjoy the summer!
highlandbeach:

A few years ago I wanted to sell stock in my taxable account for gifts. I had two funds there: S&P 500 and Total International. I decided to sell my Total International because its capital-gains were significantly less.

You may ask, why do I hold the S&P 500 Index when I prefer Total Stock Market? Again, taxes were the reason. Total Stock Market was (and is) my U.S. stock fund. When a bear market came along (I forget which one) I took a tax-loss using Vanguard S&P Fund as a 30-day alternate. Unfortunately (or maybe fortunately) the S&P fund almost immediately had a sharp increase in value and I didn't want to pay a capital gain tax to switch back so I no longer own my favorite TSM fund.

If I were to start over, I would own The Three-Fund Portfolio with 20% of equity in Vanguard Total International Index Fund.

Best wishes.
Taylor
Taylor - you probably have a close enough portfolio to Mr. Bogle's Two Fund Portfolio - S&P 500 and Total Bond Index.

Appears you have reduced the number of funds you invested in over the years.
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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Changing from 15 funds to 2

Post by Taylor Larimore » Sat Jul 13, 2019 1:19 pm

abuss368 wrote:Appears you have reduced the number of funds you invested in over the years.
abuss368:

When we moved to Vanguard in 1986 we started with a portfolio of 15 Vanguard funds. I foolishly believed that more funds meant more diversification. I also wrongly believed in market-timing.

Fortunately, In 1993 I read Mr. Bogle's book, "Bogle on Mutual Funds" and Burton Malkiel's book, "A Random Walk Down Wall Street." These two books opened my eyes to the advantages of broad market index funds that could be held forever.

So "yes" abuss368, I reduced our number of funds from 15 to 2. Result: Performance (risk and return) has improved, and we enjoy the benefits of simplicity which are very important at this stage of my life (I'm 95).

Please read my "Simplicity" link below.
Jack Bogle's Words of Wisdom: "There is a critical difference between designing a product that sells, and creating an investment that serves."
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: Changing from 15 funds to 2

Post by abuss368 » Sat Jul 13, 2019 1:22 pm

Taylor Larimore wrote:
Sat Jul 13, 2019 1:19 pm
abuss368 wrote:Appears you have reduced the number of funds you invested in over the years.
abuss368:

When we moved to Vanguard in 1986 we started with a portfolio of 15 Vanguard funds. I foolishly believed that more funds meant more diversification. I also wrongly believed in market-timing.

Fortunately, In 1993 I read Mr. Bogle's book, "Bogle on Mutual Funds" and Burton Malkiel's book, "A Random Walk Down Wall Street." These two books opened my eyes to the advantages of broad market index funds that could be held forever.

So "yes" abuss368, I reduced our number of funds from 15 to 2. Result: Performance (risk and return) has improved, and we enjoy the benefits of simplicity which are very important at this stage of my life (I'm 95).

Please read my "Simplicity" link below.
Jack Bogle's Words of Wisdom: "There is a critical difference between designing a product that sells, and creating an investment that serves."
Best wishes.
Taylor
Many thanks Taylor! That puts a lot in perspective. Mr Bogle has always been right about "simplicity is the master key to financial success".
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: The Three-Fund Portfolio

Post by epd3 » Wed Jul 17, 2019 11:29 am

Mr. Larimore,
Five years ago, when I initially considered using Vanguard's PAS, their recommended INDEX approach included four funds, including TOTAL STOCK MARKET, TOTAL INTERNATIONAL STOCK MARKET, TOTAL BOND MARKET, and TOTAL INTERNATIONAL BOND MARKET. It seemed too simple, and too conservative, so I gave it a miss. Alternatively, I became an avid reader of the Independent Advisor by Dan Weiner, and over time I embraced his model portfolio approach. After reading your books, I am starting to think, "Wait a minute, maybe the simple and conservative approach was right all along."

Let me ask why you omit the TOTAL INTERNATIONAL BOND MARKET INDEX?

Thank you for writing your books!

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Vanguard Total International Index Fund

Post by Taylor Larimore » Wed Jul 17, 2019 2:28 pm

epd3"

Welcome to the Bogleheads Forum!

Your question is not uncommon. This is a reply I gave to the same question in an earlier post (page 17):
It is always tempting to add additional funds to the Three Fund Portfolio and overlook their additional costs and complexity. International bonds represent a large asset class which Vanguard added to their Target and Life-Strategy funds so their new Total International Bond Fund deserves a look.

It is notable that Vanguard added only a small amount of the new bond fund to their Target and Life Strategy funds. Total International Bond fund represents only 2.0% of the 2060 Target Fund and only 4.0% of the Life Strategy Growth Fund. It's largest allocation is 14% in the Target Retirement Income fund. These allocations are nearly meaningless.

Adding another fund inside a single Target or Life-Strategy fund adds no complexity to the investor. However, I doubt if it is worth complicating The Three Fund Portfolio with another small fund containing several disadvantages: More political risk; higher expense ratios (.23% and .20% Adm.); longer duration (6.6 years) and relatively week credit quality compared with Total Bond Market which is already in The Three Fund Portfolio to provide safety and income.
Best wishes.
Taylor
John Bogle's Words of Wisdom: "When confronted with multiple solutions to a complex problem, choose the simplest one." (Occam's Razor quote)
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: The Three-Fund Portfolio

Post by abuss368 » Sat Jul 20, 2019 2:25 pm

The Three Fund Portfolio keeps investing simple. Adding additional funds results in complexity and possibly higher costs.
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: The Three-Fund Portfolio

Post by hagridshut » Sat Jul 20, 2019 5:51 pm

My current primary investment account for the past few years is a company 401(k) plan with the majority of choices being lousy, active, high-ER funds.

By some miracle however there are a small number of low-cost index funds, including: S&P500, International Index, and U.S. Bond Index. I just use these 3 funds. It’s not the totally comprehensive coverage I get in my IRA, but the performance is virtually the same. There doesn’t seem to be much if any divergence between S&P500 and Total U.S. Index funds.

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Re: The Three-Fund Portfolio

Post by ruralavalon » Sat Jul 20, 2019 6:17 pm

hagridshut wrote:
Sat Jul 20, 2019 5:51 pm
My current primary investment account for the past few years is a company 401(k) plan with the majority of choices being lousy, active, high-ER funds.

By some miracle however there are a small number of low-cost index funds, including: S&P500, International Index, and U.S. Bond Index. I just use these 3 funds. It’s not the totally comprehensive coverage I get in my IRA, but the performance is virtually the same. There doesn’t seem to be much if any divergence between S&P500 and Total U.S. Index funds.
You don't need a comprehensive menu of funds in a 401k, just a few decent funds are necessary to make it work for you. You are right that a S&P 500 fund and a total stock market fund are near duplicates.
"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 takingcontrol » Sun Jul 21, 2019 8:35 am

Hey all,

Forgive my ignorance but please answer the following for me.
I'm looking at the price of VTIAX and here is what I see:
12/3/2010 $26.12
6/21/2019 $28.29

When looking at the graphics over the last almost decade, there's a few ups and downs, but it doesn't look like the index has really shown great growth.

Sure YTD growth is 13.27%, but when looking at the history it seems that it's jump a good bit and then go right back down to where it was previously.

What's the benefit of the 3-fund portfolio where you plow a good amount into this index if you just gained a total of less than $2 in 10 years?

Thanks in advance.

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Re: The Three-Fund Portfolio

Post by abuss368 » Sun Jul 21, 2019 9:05 am

takingcontrol wrote:
Sun Jul 21, 2019 8:35 am
Hey all,

Forgive my ignorance but please answer the following for me.
I'm looking at the price of VTIAX and here is what I see:
12/3/2010 $26.12
6/21/2019 $28.29

When looking at the graphics over the last almost decade, there's a few ups and downs, but it doesn't look like the index has really shown great growth.

Sure YTD growth is 13.27%, but when looking at the history it seems that it's jump a good bit and then go right back down to where it was previously.

What's the benefit of the 3-fund portfolio where you plow a good amount into this index if you just gained a total of less than $2 in 10 years?

Thanks in advance.
No one knows what the future may bring. You are looking in the rear view mirror. Unsure of the fund ticker symbols you noted. Is that international? If so international could outperform US going forward.
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: The Three-Fund Portfolio

Post by bertilak » Sun Jul 21, 2019 9:09 am

takingcontrol wrote:
Sun Jul 21, 2019 8:35 am
Hey all,

Forgive my ignorance but please answer the following for me.
I'm looking at the price of VTIAX and here is what I see:
12/3/2010 $26.12
6/21/2019 $28.29

When looking at the graphics over the last almost decade, there's a few ups and downs, but it doesn't look like the index has really shown great growth.

Sure YTD growth is 13.27%, but when looking at the history it seems that it's jump a good bit and then go right back down to where it was previously.

What's the benefit of the 3-fund portfolio where you plow a good amount into this index if you just gained a total of less than $2 in 10 years?

Thanks in advance.
Price does not tell the whole story. Growth ALSO includes reinvested dividends. Most places that show stock prices cater to traders/speculators who don't care much about dividends.

As the adage goes, "Be careful out there!" or you will get misled.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

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Re: The Three-Fund Portfolio

Post by takingcontrol » Sun Jul 21, 2019 9:35 am

Thank you for the reply.

When I look at dividends though, the payout is really just a few cents or dollars here and there on a quarterly basis.

Can someone who has had a position in VTIAX post about how this has performed in their 3-fund portfolio in the last 10 years?

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Re: The Three-Fund Portfolio

Post by AerialWombat » Sun Jul 21, 2019 9:45 am

takingcontrol wrote:
Sun Jul 21, 2019 9:35 am
Thank you for the reply.

When I look at dividends though, the payout is really just a few cents or dollars here and there on a quarterly basis.

Can someone who has had a position in VTIAX post about how this has performed in their 3-fund portfolio in the last 10 years?
I would encourage you to read any of the countless threads debating US vs International. Mr. Bogle didn’t believe it was necessary to hold any international at all. Some Bogleheads push total global market weight. Some folks suggest a 20% allocation to international as a compromise for diversification.

If you choose not to include international, your three fund can easily become a two fund. Total US Stock Market and Total US Bond Market and done.
“Life doesn’t come with a warranty.” -Michael LeBoeuf

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Re: The Three-Fund Portfolio

Post by bertilak » Sun Jul 21, 2019 9:46 am

takingcontrol wrote:
Sun Jul 21, 2019 9:35 am
Thank you for the reply.

When I look at dividends though, the payout is really just a few cents or dollars here and there on a quarterly basis.

Can someone who has had a position in VTIAX post about how this has performed in their 3-fund portfolio in the last 10 years?
Morningstar is the best place I know to get this kind of information: https://www.morningstar.com/funds/xnas/vtiax/quote
(Scroll down.)
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

takingcontrol
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Re: The Three-Fund Portfolio

Post by takingcontrol » Sun Jul 21, 2019 10:00 am

Darn, they want $30 per year for me to read the analysis. Thanks though.

takingcontrol
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Re: The Three-Fund Portfolio

Post by takingcontrol » Sun Jul 21, 2019 10:01 am

AerialWombat wrote:
Sun Jul 21, 2019 9:45 am
takingcontrol wrote:
Sun Jul 21, 2019 9:35 am
Thank you for the reply.

When I look at dividends though, the payout is really just a few cents or dollars here and there on a quarterly basis.

Can someone who has had a position in VTIAX post about how this has performed in their 3-fund portfolio in the last 10 years?
I would encourage you to read any of the countless threads debating US vs International. Mr. Bogle didn’t believe it was necessary to hold any international at all. Some Bogleheads push total global market weight. Some folks suggest a 20% allocation to international as a compromise for diversification.

If you choose not to include international, your three fund can easily become a two fund. Total US Stock Market and Total US Bond Market and done.
Cool. Currently my port is a 2-fund between Total US Stock Market and Total US Bond Market but with concerns about a market correction the 3-fund portfolio with inclusion of VTIAX became of interest to me.

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spdoublebass
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Location: NY

Re: The Three-Fund Portfolio

Post by spdoublebass » Sun Jul 21, 2019 12:40 pm

takingcontrol wrote:
Sun Jul 21, 2019 8:35 am
Hey all,

Forgive my ignorance but please answer the following for me.
I'm looking at the price of VTIAX and here is what I see:
12/3/2010 $26.12
6/21/2019 $28.29

When looking at the graphics over the last almost decade, there's a few ups and downs, but it doesn't look like the index has really shown great growth.

Sure YTD growth is 13.27%, but when looking at the history it seems that it's jump a good bit and then go right back down to where it was previously.

What's the benefit of the 3-fund portfolio where you plow a good amount into this index if you just gained a total of less than $2 in 10 years?

Thanks in advance.
Use portfolio visualizer.

If you put $10,000 in VTIAX in Dec 2010, in June 2019 it would be worth $14,953
CAGR of 4.8%
I'm trying to think, but nothing happens

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ruralavalon
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Location: Illinois

Re: The Three-Fund Portfolio

Post by ruralavalon » Sun Jul 21, 2019 1:09 pm

takingcontrol wrote:
Sun Jul 21, 2019 9:35 am
Thank you for the reply.

When I look at dividends though, the payout is really just a few cents or dollars here and there on a quarterly basis.

Can someone who has had a position in VTIAX post about how this has performed in their 3-fund portfolio in the last 10 years?
Vanguard Total International Stock Index Fund (VTIAX), total return of $10k invested over last 10 years.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

hagridshut
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Re: The Three-Fund Portfolio

Post by hagridshut » Mon Jul 22, 2019 12:22 pm

AerialWombat wrote:
Sun Jul 21, 2019 9:45 am
If you choose not to include international, your three fund can easily become a two fund. Total US Stock Market and Total US Bond Market and done.
There is a 2-fund way to include international. Use (1) Total World Stock Index and (2) Total US Bond Market.

This will global weight one’s equity holdings, which some may not want. There is also the trade off of modestly higher Expense Ratio.

One could also bring this solution back to a Three-Fund portfolio by adding International Bond Index. Given the current controversy over this asset class, I shall say no more :o

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