Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

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looking
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Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by looking » Sat Nov 16, 2019 3:12 pm

Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.
anyone just shows me what is it, it is like three-fund portfolios or, large, mid and small-cap ???.

thank you

Slow FIRE
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Joined: Mon May 14, 2018 8:36 pm

Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by Slow FIRE » Sat Nov 16, 2019 3:42 pm

Total Stock Market
Total International
or
Total World Index
plus
Total Bond Index

Set your allocation to your liking. If that's too much work, use one of the Target Retirement Fund.
Investing is a marathon, not a sprint.

Oldschool
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Joined: Fri May 24, 2019 6:24 am

Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by Oldschool » Sat Nov 16, 2019 3:52 pm

For me, simple is Total Stock Market Index and Total Bond Market Index...

yogesh
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by yogesh » Sat Nov 16, 2019 4:01 pm

Pick one of the following and stick to it.
https://www.bogleheads.org/wiki/Lazy_portfolios
Emergency: FDIC | Taxable: VTMFX | Retirement: TR2040

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dogagility
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by dogagility » Sat Nov 16, 2019 4:04 pm

looking wrote:
Sat Nov 16, 2019 3:12 pm
Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.
anyone just shows me what is it, it is like three-fund portfolios or, large, mid and small-cap ???.
thank you
I'm not sure how to respond... you have 685 posts on the forum and are asking this question?!
Taking "risk" since 1995.

Clubfoot
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Joined: Fri Sep 27, 2019 12:05 pm

Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by Clubfoot » Sat Nov 16, 2019 5:05 pm

I know keeping it simple is good. That being said, is there an advantage to having your international index to being a world ex-US fund? Thanks for your input.

longinvest
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by longinvest » Sat Nov 16, 2019 5:36 pm

looking wrote:
Sat Nov 16, 2019 3:12 pm
Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.
anyone just shows me what is it, it is like three-fund portfolios or, large, mid and small-cap ???.

thank you
Here's an example of a simple Bogleheads portfolio: The One-Fund Portfolio as a default suggestion.
Bogleheads investment philosophy | One-ETF global balanced index portfolio | VPW

Trader Joe
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by Trader Joe » Sat Nov 16, 2019 5:41 pm

looking wrote:
Sat Nov 16, 2019 3:12 pm
Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.
anyone just shows me what is it, it is like three-fund portfolios or, large, mid and small-cap ???.

thank you
I do not understand your question. Can you clarify?

shess
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Joined: Wed May 17, 2017 12:02 am

Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by shess » Sat Nov 16, 2019 5:51 pm

looking wrote:
Sat Nov 16, 2019 3:12 pm
Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.
anyone just shows me what is it, it is like three-fund portfolios or, large, mid and small-cap ???.

thank you
Look at a target-date type fund. If it's good enough for you, stop looking. Otherwise, look at how it splits up assets, and if that's good enough for you, split yours up that way. Otherwise, ponder why you want to make changes. The nice thing about that as a starting point is that you know some knowledgeable person though about the problem for longer than it took to write a reply, so they provide a good starting point.

Honestly, anything you find here is an opinion that you need to evaluate for whether it's a better opinion than the target-date type fund's baked-in opinion. This isn't a popularity contest, where the most votes wins.

NotTooDeepLearning
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by NotTooDeepLearning » Sat Nov 16, 2019 5:51 pm

OP has spent 12 years on the BH forum. Not sure this is a real question/poster.

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JoMoney
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by JoMoney » Sat Nov 16, 2019 6:10 pm

I took Warren Buffett's advice, I just use a low-cost S&P 500 index fund along with a good chunk of cash readily available in a some U.S. Savings Bonds and a Government Money Market account. It's worked out quite well for me, despite the many suggestions for various more complicated (and expensive) portfolios.
Question from Tim Ferris to Warren Buffett at 2008 BRK Annual Meeting wrote:If you were 30 years old and had no dependents but a full-time job that precluded full-time investing, how would you invest your first million dollars, assuming that you can cover 18 months of expenses with other savings? Thank you in advance for being as specific as possible with asset classes and allocation percentage.
Buffett: “I’d put it all in a low-cost index fund that tracks the S&P 500 and get back to work…”
Warren Buffett in CNBC interview wrote: https://www.youtube.com/watch?v=1N3g47P-iRc&t=1m18s
...anybody that I advise, ... and bear in mind they have the the proper attitude and if stocks go down 20% in the next month they're not going to be bothered... I would have them having enough cash on hand so they feel comfortable and the rest in equities...
Warren Buffett in 2013 Letter to BRK Shareholders wrote: http://www.berkshirehathaway.com/letters/2013ltr.pdf
...My money, I should add, is where my mouth is: What I advise here is essentially identical to certain
instructions I’ve laid out in my will. One bequest provides that cash will be delivered to a trustee for my wife’s
benefit. (I have to use cash for individual bequests, because all of my Berkshire shares will be fully distributed to
certain philanthropic organizations over the ten years following the closing of my estate.) My advice to the trustee
could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P
500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to
those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee
managers...
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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Duckie
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by Duckie » Sat Nov 16, 2019 8:07 pm

Clubfoot wrote:I know keeping it simple is good. That being said, is there an advantage to having your international index to being a world ex-US fund?
"World ex-US" is more specific than "International". World ex-US is all (or almost all) non-US stocks. International could mean that but it could also mean just developed markets. For example, (FSPSX) Fidelity International Index Fund follows the MSCI-EAFE Index which includes 21 developed market countries (not including US and Canada). (FSGGX) Fidelity Global ex U.S. Index Fund follows the MSCI ACWI (All Country World Index) ex US which includes 22 developed markets including Canada (but not the US) and 23 emerging markets. You need to know what index the international fund is following.

Clubfoot
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by Clubfoot » Mon Nov 18, 2019 9:07 pm

Thanks, i’m Wondering if total stock index and total international index have overlaps with US companies?
So, does it make sense to have world-ex US?

rixer
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by rixer » Tue Nov 19, 2019 1:56 am

I just use Vanguards Lifestrategy Fund. It's a globally balanced fund made up of four low cost index funds.

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Duckie
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Re: Invest in a very simple portfolio of broad market index funds using an allocation you can stick with.

Post by Duckie » Tue Nov 19, 2019 6:52 pm

Clubfoot wrote:Thanks, i’m Wondering if total stock index and total international index have overlaps with US companies?
It depends:
  • If by total stock index you mean a total US stock index fund like VTSAX, then obviously it would overlap with US companies.
  • If by total stock index you mean a total world stock index fund like VTWAX, then yes, the US portion would definitely overlap with US companies.
  • If you mean does a total US stock index fund like VTSAX overlap with a total international stock index fund like VTIAX, then the answer is no. You can compare their schedules of investments in their annual reports. The two types of funds do not invest in the same companies.
So, does it make sense to have world-ex US?
Yes, if you want to own stocks from other countries than the US.

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