Jack Bogle - Two Fund Portfolio

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sun Dec 29, 2019 12:23 am

Great interview with Mr. Bogle advising international stocks are not needed:

https://www.cnbc.com/2015/01/26/be-wary ... bogle.html
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Mon Dec 30, 2019 5:55 pm

Bogleheads -

How many folks are planning to simplify their portfolio's and streamline for the new year such as consolidating accounts and funds?

How many Bogleheads are considering Mr. Bogle's and Mr. Buffett's Two Fund Portfolio for the new year?
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Thu Jan 02, 2020 8:42 pm

Bogleheads -

Is anyone aware of Morningstar's updated performance information for Total Stock and Total Bond for January 01, 2019?

Morningstar's 15-Year Category performance - updated on January 01, 2019:

TOP 5% = Vanguard Total Stock Market (VTSMX)
TOP 4% = After tax.

TOP 9% = Vanguard Total Bond Market (VBTLX) in last (2008) bear market.

GOLD Analyst Rating: Total Stock Market
SILVER Analyst Rating: Total Bond Market
Last edited by abuss368 on Thu Jan 02, 2020 9:13 pm, edited 1 time in total.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Thu Jan 02, 2020 8:45 pm

Found it!

TOP 17% = Vanguard Total Stock Market (VTSMX)

TOP 9% = Vanguard Total Bond Market (VBTLX) in last (2008) bear market.

GOLD Analyst Rating: Total Stock Market
SILVER Analyst Rating: Total Bond Market
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by fortyofforty » Thu Jan 02, 2020 9:11 pm

abuss368 wrote:
Mon Dec 30, 2019 5:55 pm
Bogleheads -

How many folks are planning to simplify their portfolio's and streamline for the new year such as consolidating accounts and funds?

How many Bogleheads are considering Mr. Bogle's and Mr. Buffett's Two Fund Portfolio for the new year?
Giving it careful consideration. Will begin simplifying with the 4-in-1 approach, with LifeStrategy. Still prefer some international equities, and don't mind international bonds.
Indexing works, not because of magic, but because of math. | Diligentia. Vis. Celeritas. - Jeff Cooper | Original Vanguard Diehard

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sun Jan 05, 2020 9:58 am

Bogleheads -
Jack Bogle reminds us: "Simplicity is the master key to financial success. -- We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer » Sun Jan 05, 2020 10:05 am

fortyofforty wrote:
Thu Jan 02, 2020 9:11 pm
abuss368 wrote:
Mon Dec 30, 2019 5:55 pm
Bogleheads -

How many folks are planning to simplify their portfolio's and streamline for the new year such as consolidating accounts and funds?

How many Bogleheads are considering Mr. Bogle's and Mr. Buffett's Two Fund Portfolio for the new year?
Giving it careful consideration. Will begin simplifying with the 4-in-1 approach, with LifeStrategy. Still prefer some international equities, and don't mind international bonds.
I would invest solely in the Life Strategy 80/20 stock/bond mix if it was available in my 401k and I had no taxable account.

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Re: Jack Bogle - Two Fund Portfolio

Post by fortyofforty » Sun Jan 05, 2020 12:02 pm

Triple digit golfer wrote:
Sun Jan 05, 2020 10:05 am
fortyofforty wrote:
Thu Jan 02, 2020 9:11 pm
abuss368 wrote:
Mon Dec 30, 2019 5:55 pm
Bogleheads -

How many folks are planning to simplify their portfolio's and streamline for the new year such as consolidating accounts and funds?

How many Bogleheads are considering Mr. Bogle's and Mr. Buffett's Two Fund Portfolio for the new year?
Giving it careful consideration. Will begin simplifying with the 4-in-1 approach, with LifeStrategy. Still prefer some international equities, and don't mind international bonds.
I would invest solely in the Life Strategy 80/20 stock/bond mix if it was available in my 401k and I had no taxable account.
Yes, that's the one I will choose. When I look at my spouse's IRA, it is so simple, so easy. Just invest, once a year. Reinvest dividends and capital gains. And just forget about it. Of course, spouse did not grow up making all my mistakes, so I suggested a one-fund approach when the account was opened and it's worked out well so far.
Indexing works, not because of magic, but because of math. | Diligentia. Vis. Celeritas. - Jeff Cooper | Original Vanguard Diehard

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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor » Sun Jan 05, 2020 12:11 pm

abuss368 wrote:
Sun Jan 05, 2020 9:58 am
Bogleheads -
Jack Bogle reminds us: "Simplicity is the master key to financial success. -- We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
A great reminder for the new year! I have migrated closer and closer to the 2 fund portfolio for the simplicity.

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Re: Jack Bogle - Two Fund Portfolio

Post by 1789 » Sun Jan 05, 2020 12:21 pm

I think you are doing great by decreasing your funds to 2 funds
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sun Jan 05, 2020 1:52 pm

anon_investor wrote:
Sun Jan 05, 2020 12:11 pm
abuss368 wrote:
Sun Jan 05, 2020 9:58 am
Bogleheads -
Jack Bogle reminds us: "Simplicity is the master key to financial success. -- We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
A great reminder for the new year! I have migrated closer and closer to the 2 fund portfolio for the simplicity.
That is good to hear. Remember Jack Bogle's timeless advice: "Deep Down, I remain absolutely confident that the vast majority of American families will be well served by owning their equity holding in an all-U.S. stock-market index portfolio and holding their bonds in an all-U.S. bond-market index portfolio."
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer » Sun Jan 05, 2020 2:16 pm

abuss368 wrote:
Sun Jan 05, 2020 1:52 pm
anon_investor wrote:
Sun Jan 05, 2020 12:11 pm
abuss368 wrote:
Sun Jan 05, 2020 9:58 am
Bogleheads -
Jack Bogle reminds us: "Simplicity is the master key to financial success. -- We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
A great reminder for the new year! I have migrated closer and closer to the 2 fund portfolio for the simplicity.
That is good to hear. Remember Jack Bogle's timeless advice: "Deep Down, I remain absolutely confident that the vast majority of American families will be well served by owning their equity holding in an all-U.S. stock-market index portfolio and holding their bonds in an all-U.S. bond-market index portfolio."
But he could be wrong. He's even said he might be wrong. Isn't it prudent to diversify a bit in case the U.S. truly does end up in a situation like Japan?

I'm not saying an all U.S. equity portfolio is bad. Just giving a counterpoint.

Why don't you diversify internationally? From what I recall, you were tired of underperformance and always buying it to remain in balance. Aren't you a little concerned about going all U.S. after a long bull market? Does it bother you that you sold international low and bought U.S. high, relatively speaking?

Aren't you concerned about having all of your equity risk in a single country?

Just trying to spark some healthy discussion!

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Re: Jack Bogle - Two Fund Portfolio

Post by Wanderingwheelz » Sun Jan 05, 2020 2:37 pm

lostdog wrote:
Thu May 26, 2016 10:27 am
My Jack Bogle portfolio is Vanguard Total Stock Market Admiral and Vanguard Intermediate-Term Bond Index Fund. Very simple. Re-balance once a year with a 5% band in my retirement accounts. I am not interested in International investing as it most likely won't make a difference anyway ("When experts disagree, it is often because it does not make a foreseeable difference." -- Taylor Larimore, author of The Bogleheads' Guide to Investing).

In my taxable I have the Vanguard Balanced Index Fund Admiral. I have a different goal for my taxable account and it is not part of my retirement AA. I call my taxable account the semi-retirement goal. I am in a low tax bracket, the fund doesn't create capital gains distributions, it's always at a 60/40 AA with no capital gains for rebalancing and I don't care about the long term capital gains when selling small portions of the fund.
By “semi-retirement goal” what exactly do you mean? Do you mean you expect (or are) selling some of it periodically to cover the bridge between early retirement and age 59 1/2?

The reason I’d like to know is at 48 I am perhaps in a similar situation, but employed full time. I’ve never viewed my taxable brokerage account as “separate” from my tax deferred accounts, especially since I hold my bonds there for the tax benefits.

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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor » Sun Jan 05, 2020 4:22 pm

Triple digit golfer wrote:
Sun Jan 05, 2020 2:16 pm
abuss368 wrote:
Sun Jan 05, 2020 1:52 pm
anon_investor wrote:
Sun Jan 05, 2020 12:11 pm
abuss368 wrote:
Sun Jan 05, 2020 9:58 am
Bogleheads -
Jack Bogle reminds us: "Simplicity is the master key to financial success. -- We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
A great reminder for the new year! I have migrated closer and closer to the 2 fund portfolio for the simplicity.
That is good to hear. Remember Jack Bogle's timeless advice: "Deep Down, I remain absolutely confident that the vast majority of American families will be well served by owning their equity holding in an all-U.S. stock-market index portfolio and holding their bonds in an all-U.S. bond-market index portfolio."
But he could be wrong. He's even said he might be wrong. Isn't it prudent to diversify a bit in case the U.S. truly does end up in a situation like Japan?

I'm not saying an all U.S. equity portfolio is bad. Just giving a counterpoint.

Why don't you diversify internationally? From what I recall, you were tired of underperformance and always buying it to remain in balance. Aren't you a little concerned about going all U.S. after a long bull market? Does it bother you that you sold international low and bought U.S. high, relatively speaking?

Aren't you concerned about having all of your equity risk in a single country?

Just trying to spark some healthy discussion!
For me there is always the desire to beat the market (which I occasionally have to fight), but with the simplicity of the 2 fund portfolio I feel I can concentrate on other things (like living life) and by saving adequately I am confident I will have enough.

I do believe that US large caps give enough international exposure to avoid a Japan situation. How do I know? I don't but I work at a mega corp that gets over 50% of its revenue from abroad, and that revenue is a major component of what determines the stock price and dividend yield...

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Mon Jan 06, 2020 7:44 pm

anon_investor wrote:
Sun Jan 05, 2020 4:22 pm
...........but with the simplicity of the 2 fund portfolio I feel I can concentrate on other things (like living life) and by saving adequately I am confident I will have enough.
Very well said and I agree. Focus on the things we investors can control such as our savings rate.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Thu Jan 09, 2020 9:12 pm

Remember Bogleheads:
Jack Bogle's Words of Wisdom: “Investors are not paying nearly enough attention to the risks that could affect our markets: an unstable US federal government, a Brexit debacle, and a U.S. stock market that remains at relatively high valuations. -- Most investors would be wise to re-examine their portfolios to make sure that they are balanced with an appropriate bond position to provide some stability in volatile markets. -- Investors making the switch would “sleep better, lower their risks, and maybe even improve their long-term returns.”
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by smectym » Fri Jan 10, 2020 12:14 am

Strong arguments have been advanced for 2-fund; I don’t think that “no cash drag” is one of them. Might as well argue for a one-fund portfolio on the ground of “no bond drag.” Cash has a role in the portfolio. Though that role is controversial, the chorus of “cash is not an investment,” “cash is trash” etc. usually is loudest during prolonged bull markets like this history-maker that is bigger than any investor, and is now sweeping us all out to sea.

There may never be another bear market, ever. I’m really starting to think so myself. But on the off chance that ever there is, the “role of cash in the portfolio” will become a bit less controversial.

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Re: Jack Bogle - Two Fund Portfolio

Post by bondsr4me » Fri Jan 10, 2020 6:10 am

abuss368 wrote:
Thu Jan 09, 2020 9:12 pm
Remember Bogleheads:
Jack Bogle's Words of Wisdom: “Investors are not paying nearly enough attention to the risks that could affect our markets: an unstable US federal government, a Brexit debacle, and a U.S. stock market that remains at relatively high valuations. -- Most investors would be wise to re-examine their portfolios to make sure that they are balanced with an appropriate bond position to provide some stability in volatile markets. -- Investors making the switch would “sleep better, lower their risks, and maybe even improve their long-term returns.”
+1
They really are “Words of Wisdom”.

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sat Jan 11, 2020 2:45 pm

bondsr4me wrote:
Fri Jan 10, 2020 6:10 am
abuss368 wrote:
Thu Jan 09, 2020 9:12 pm
Remember Bogleheads:
Jack Bogle's Words of Wisdom: “Investors are not paying nearly enough attention to the risks that could affect our markets: an unstable US federal government, a Brexit debacle, and a U.S. stock market that remains at relatively high valuations. -- Most investors would be wise to re-examine their portfolios to make sure that they are balanced with an appropriate bond position to provide some stability in volatile markets. -- Investors making the switch would “sleep better, lower their risks, and maybe even improve their long-term returns.”
+1
They really are “Words of Wisdom”.
Thanks! The Two Fund Portfolio is simple and has been performing well. Most investors are wise to stay the course.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by Cheez-It Guy » Sat Jan 11, 2020 6:01 pm

I've got my parents one fund away from this. Dropped from 4 to 3 at the end of 2019. A few more years of charitable donations of appreciated shares from a taxable account, and they'll be there. This is assuming we don't count money market holdings (VUSXX).

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sat Jan 11, 2020 8:19 pm

Cheez-It Guy wrote:
Sat Jan 11, 2020 6:01 pm
I've got my parents one fund away from this. Dropped from 4 to 3 at the end of 2019. A few more years of charitable donations of appreciated shares from a taxable account, and they'll be there. This is assuming we don't count money market holdings (VUSXX).
My parents moved to the Two Fund Portfolio a long time ago. They have been very happy and very thankful for the simplicity. It has worked. Investing really can be this simple.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sun Jan 12, 2020 9:30 am

This quote from an old Swedroe book (about the Two Fund Portfolio):

"Only 10 out of 145 major pension funds (1987-1996) outperformed a portfolio consisting of a simple 60/40% mix of the S&P 500 index and the Lehman Bond Index."

(The Lehman Bond Index is now the Vanguard Total Bond Fund benchmark, I think)
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Two Fund & Three Fund Portfolios

Post by Taylor Larimore » Tue Jan 14, 2020 9:43 pm

abuss368:

The only difference between your 2-fund portfolio and my 3-fund portfolio is that the 3-fund portfolio contains 20% of equity in international stocks. The two portfolios are substantially the same: Low-cost, very diversified, above average returns, and simple to understand and implement.

Investors will not go wrong with either portfolio.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "In my view, owning the market and holding it forever is the ultimate strategy for winners."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: Two Fund & Three Fund Portfolios

Post by abuss368 » Wed Jan 15, 2020 4:21 pm

Taylor Larimore wrote:
Tue Jan 14, 2020 9:43 pm
abuss368:

The only difference between your 2-fund portfolio and my 3-fund portfolio is that the 3-fund portfolio contains 20% of equity in international stocks. The two portfolios are substantially the same: Low-cost, very diversified, above average returns, and simple to understand and implement.

Investors will not go wrong with either portfolio.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "In my view, owning the market and holding it forever is the ultimate strategy for winners."
Thanks Taylor! That is so true. Both portfolios are so close and identical that over the long term investors will not go wrong with either strategy.

I am happy (and surprised) how many Boglehead’s use Jack’s Two Fund Portfolio (maybe I should not be)!
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by 1789 » Wed Jan 15, 2020 4:59 pm

I talked to a friend yesterday who was looking for a portfolio with some good risk adjusted returns. I offered him either target date fund or 2-3 fund portfolios. He decided to go with three fund portfolio 70/15/15 :D
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer » Wed Jan 15, 2020 5:36 pm

1789 wrote:
Wed Jan 15, 2020 4:59 pm
I talked to a friend yesterday who was looking for a portfolio with some good risk adjusted returns. I offered him either target date fund or 2-3 fund portfolios. He decided to go with three fund portfolio 70/15/15 :D
:sharebeer

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Wed Jan 15, 2020 5:41 pm

1789 wrote:
Wed Jan 15, 2020 4:59 pm
I talked to a friend yesterday who was looking for a portfolio with some good risk adjusted returns. I offered him either target date fund or 2-3 fund portfolios. He decided to go with three fund portfolio 70/15/15 :D
All recommendations are excellent choices. Target, Two Fund, and Three Fund are strategies an investor can use forever. All the debates, threads, and arguing is essentially dancing on the head of a needle.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Wed Jan 15, 2020 9:41 pm

How many other Bogleheads are using Jack Bogle's recommended Two Fund Portfolio?
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Thu Jan 16, 2020 1:10 pm

"If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle." -- Warren Buffett
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore » Thu Jan 16, 2020 3:33 pm

Abuss:

I now hold your 2-fund portfolio. My Total Stock Market fund is in my taxable account and my Total Bond Market fund is in my IRA.

I sold my Total International fund when I wanted cash. It's lower return resulted in a lower tax than selling my other two funds. I doubt if the loss of my Total International Fund will make a big difference (although I miss its diversification benefit).

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "In my view, owning the market and holding it forever is the ultimate strategy for winners."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Thu Jan 16, 2020 6:09 pm

Taylor Larimore wrote:
Thu Jan 16, 2020 3:33 pm
Abuss:

I now hold your 2-fund portfolio. My Total Stock Market fund is in my taxable account and my Total Bond Market fund is in my IRA.

I sold my Total International fund when I wanted cash. It's lower return resulted in a lower tax than selling my other two funds. I doubt if the loss of my Total International Fund will make a big difference (although I miss its diversification benefit).

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "In my view, owning the market and holding it forever is the ultimate strategy for winners."
Thanks Taylor! Mr. Bogle would approve. You are right over the long term a 2 fund or 3 fund will probably not make much difference. Both are excellent choices and a can’t lose strategy.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by fortyofforty » Thu Jan 16, 2020 6:25 pm

abuss368 wrote:
Thu Jan 16, 2020 6:09 pm
Taylor Larimore wrote:
Thu Jan 16, 2020 3:33 pm
Abuss:

I now hold your 2-fund portfolio. My Total Stock Market fund is in my taxable account and my Total Bond Market fund is in my IRA.

I sold my Total International fund when I wanted cash. It's lower return resulted in a lower tax than selling my other two funds. I doubt if the loss of my Total International Fund will make a big difference (although I miss its diversification benefit).

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "In my view, owning the market and holding it forever is the ultimate strategy for winners."
Thanks Taylor! Mr. Bogle would approve. You are right over the long term a 2 fund or 3 fund will probably not make much difference. Both are excellent choices and a can’t lose strategy.
I sense another book in the offing, Taylor. The Two-Fund Portfolio is sure to be another hit. :D
Indexing works, not because of magic, but because of math. | Diligentia. Vis. Celeritas. - Jeff Cooper | Original Vanguard Diehard

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Thu Jan 16, 2020 6:43 pm

fortyofforty wrote:
Thu Jan 16, 2020 6:25 pm
abuss368 wrote:
Thu Jan 16, 2020 6:09 pm
Taylor Larimore wrote:
Thu Jan 16, 2020 3:33 pm
Abuss:

I now hold your 2-fund portfolio. My Total Stock Market fund is in my taxable account and my Total Bond Market fund is in my IRA.

I sold my Total International fund when I wanted cash. It's lower return resulted in a lower tax than selling my other two funds. I doubt if the loss of my Total International Fund will make a big difference (although I miss its diversification benefit).

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "In my view, owning the market and holding it forever is the ultimate strategy for winners."
Thanks Taylor! Mr. Bogle would approve. You are right over the long term a 2 fund or 3 fund will probably not make much difference. Both are excellent choices and a can’t lose strategy.
I sense another book in the offing, Taylor. The Two-Fund Portfolio is sure to be another hit. :D
I love the sound of that with proceeds to benefit the Jack Bogle Center for Financial Literacy.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sat Jan 18, 2020 4:53 pm

anon_investor wrote:
Sun Jan 05, 2020 12:11 pm
abuss368 wrote:
Sun Jan 05, 2020 9:58 am
Bogleheads -
Jack Bogle reminds us: "Simplicity is the master key to financial success. -- We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
A great reminder for the new year! I have migrated closer and closer to the 2 fund portfolio for the simplicity.
Have you officially moved to the Two Fund Portfolio?
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by ruralavalon » Sun Jan 19, 2020 10:22 am

abuss368 wrote:
Mon Dec 30, 2019 5:55 pm
Bogleheads -

How many folks are planning to simplify their portfolio's and streamline for the new year such as consolidating accounts and funds?

How many Bogleheads are considering Mr. Bogle's and Mr. Buffett's Two Fund Portfolio for the new year?
We are considering the one fund version, Vanguard Balanced Index Fund (VBIAX) to simplify.

We are both 74, my wife has no interest in investing and no desire to learn, and I want a portfolio she can easily live with if I am not here to manage for her.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sun Jan 19, 2020 10:50 am

ruralavalon wrote:
Sun Jan 19, 2020 10:22 am
We are considering the one fund version, Vanguard Balanced Index Fund (VBIAX) to simplify.

We are both 74, my wife has no interest in investing and no desire to learn, and I want a portfolio she can easily live with if I am not here to manage for her.
Your message speaks to me so much. My folks have been retired for a while and moved the Mr. Bogle's Two Fund Portfolio many years back and love the simplicity and effectiveness. It just works.

My spouse also has no interest or desire to manage a portfolio. In addition, my spouse was never comfortable with international. I should have listened to her and Mr. Bogle and Mr. Buffett earlier!

I think your choice of the Vanguard Balanced Fund is an excellent choice. There are many interviews where Mr. Bogle said that is all that is needed and that he invested in that fund for his grandchildren. He also mentioned that the Two Fund Portfolio would serve even more investors.

Simplicity!
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor » Sun Jan 19, 2020 11:54 am

abuss368 wrote:
Sat Jan 18, 2020 4:53 pm
anon_investor wrote:
Sun Jan 05, 2020 12:11 pm
abuss368 wrote:
Sun Jan 05, 2020 9:58 am
Bogleheads -
Jack Bogle reminds us: "Simplicity is the master key to financial success. -- We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
A great reminder for the new year! I have migrated closer and closer to the 2 fund portfolio for the simplicity.
Have you officially moved to the Two Fund Portfolio?
As close as I likely will be. I have a small amount of company stock in my 401k that I am not adding to, but hope to take advantage of favorable NUA tax rules in retirement. Also as Jack Bogle suggested I have a small play portfolio (less than 5%) currently in VGT (I don't add to this position) . I really like the simplicity of the 2 fund portfolio. No urge to tinker.

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Re: Jack Bogle - Two Fund Portfolio

Post by spdoublebass » Sun Jan 19, 2020 1:07 pm

abuss368 wrote:
Sun Jan 19, 2020 10:50 am
ruralavalon wrote:
Sun Jan 19, 2020 10:22 am
We are considering the one fund version, Vanguard Balanced Index Fund (VBIAX) to simplify.

We are both 74, my wife has no interest in investing and no desire to learn, and I want a portfolio she can easily live with if I am not here to manage for her.
Your message speaks to me so much. My folks have been retired for a while and moved the Mr. Bogle's Two Fund Portfolio many years back and love the simplicity and effectiveness. It just works.

My spouse also has no interest or desire to manage a portfolio. In addition, my spouse was never comfortable with international. I should have listened to her and Mr. Bogle and Mr. Buffett earlier!

I think your choice of the Vanguard Balanced Fund is an excellent choice. There are many interviews where Mr. Bogle said that is all that is needed and that he invested in that fund for his grandchildren. He also mentioned that the Two Fund Portfolio would serve even more investors.

Simplicity!
Abuss, just curious. I know you dropped international, but didn’t you also have a large portion (like 20-30% if I remember correctly) in REITs? Do you no longer hold those as well?
I'm trying to think, but nothing happens

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sun Jan 19, 2020 1:12 pm

spdoublebass wrote:
Sun Jan 19, 2020 1:07 pm
abuss368 wrote:
Sun Jan 19, 2020 10:50 am
ruralavalon wrote:
Sun Jan 19, 2020 10:22 am
We are considering the one fund version, Vanguard Balanced Index Fund (VBIAX) to simplify.

We are both 74, my wife has no interest in investing and no desire to learn, and I want a portfolio she can easily live with if I am not here to manage for her.
Your message speaks to me so much. My folks have been retired for a while and moved the Mr. Bogle's Two Fund Portfolio many years back and love the simplicity and effectiveness. It just works.

My spouse also has no interest or desire to manage a portfolio. In addition, my spouse was never comfortable with international. I should have listened to her and Mr. Bogle and Mr. Buffett earlier!

I think your choice of the Vanguard Balanced Fund is an excellent choice. There are many interviews where Mr. Bogle said that is all that is needed and that he invested in that fund for his grandchildren. He also mentioned that the Two Fund Portfolio would serve even more investors.

Simplicity!
Abuss, just curious. I know you dropped international, but didn’t you also have a large portion (like 20-30% if I remember correctly) in REITs? Do you no longer hold those as well?
Correct. Please see the edited opening post of this thread on Page 1: viewtopic.php?f=10&t=188176
Last edited by abuss368 on Sun Jan 19, 2020 1:14 pm, edited 1 time in total.
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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sun Jan 19, 2020 1:13 pm

spdoublebass wrote:
Sun Jan 19, 2020 1:07 pm
abuss368 wrote:
Sun Jan 19, 2020 10:50 am
ruralavalon wrote:
Sun Jan 19, 2020 10:22 am
We are considering the one fund version, Vanguard Balanced Index Fund (VBIAX) to simplify.

We are both 74, my wife has no interest in investing and no desire to learn, and I want a portfolio she can easily live with if I am not here to manage for her.
Your message speaks to me so much. My folks have been retired for a while and moved the Mr. Bogle's Two Fund Portfolio many years back and love the simplicity and effectiveness. It just works.

My spouse also has no interest or desire to manage a portfolio. In addition, my spouse was never comfortable with international. I should have listened to her and Mr. Bogle and Mr. Buffett earlier!

I think your choice of the Vanguard Balanced Fund is an excellent choice. There are many interviews where Mr. Bogle said that is all that is needed and that he invested in that fund for his grandchildren. He also mentioned that the Two Fund Portfolio would serve even more investors.

Simplicity!
Abuss, just curious. I know you dropped international, but didn’t you also have a large portion (like 20-30% if I remember correctly) in REITs? Do you no longer hold those as well?
I have moved to a Two Fund Portfolio of Total Stock and Total Bond as recommended by Jack Bogle and Warren Buffet. I have family that have done this for a very long long time. Mr. Bogle (and Buffett) are correct. It works.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by fortyofforty » Sun Jan 19, 2020 5:25 pm

As a "one-fund" solution to a "two-fund" desire, I like the Balanced Index fund, and also the Tax Managed Balanced fund, which is more conservative.
Indexing works, not because of magic, but because of math. | Diligentia. Vis. Celeritas. - Jeff Cooper | Original Vanguard Diehard

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Sun Jan 19, 2020 5:27 pm

fortyofforty wrote:
Sun Jan 19, 2020 5:25 pm
As a "one-fund" solution to a "two-fund" desire, I like the Balanced Index fund, and also the Tax Managed Balanced fund, which is more conservative.
Both are excellent choices that Jack Bogle wrote about in his books. You will be pleased.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore » Sun Jan 19, 2020 6:44 pm

abuss368 wrote:
Sun Jan 19, 2020 5:27 pm
fortyofforty wrote:
Sun Jan 19, 2020 5:25 pm
As a "one-fund" solution to a "two-fund" desire, I like the Balanced Index fund, and also the Tax Managed Balanced fund, which is more conservative.
Both are excellent choices that Jack Bogle wrote about in his books. You will be pleased.
fortyofforty:

I prefer abuss368's two-fund portfolio compared with a single balanced fund for two primary reasons: (1) The fixed allocation of a balanced fund does not allow the investor to change the allocation as the investor grows older and whose needs change. (2) With a fixed allocation, either the stocks or bonds will be in the wrong type of account for maximum tax-efficiency.

Best Wishes
Taylor
Jack Bogle's Words of Wisdom: "The Vanguard Total Stock Market Index fund and its Total Bond Market cousin represent the purest form of common-sense investing."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: Jack Bogle - Two Fund Portfolio

Post by Banjoman » Sun Jan 19, 2020 7:57 pm

abuss368 wrote:
Wed Jan 15, 2020 9:41 pm
How many other Bogleheads are using Jack Bogle's recommended Two Fund Portfolio?
I am in the process of selling my international funds in my 401K and IRA after reading all 10 pages of this thread and the recommendations of Taylor and Abuss368. It was made simpler since I converted everything to the 3-fund portfolio. Thank You, a Vanguard member since 2013.
True simplicity is very complex and hard to achieve... Steve Jobs

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Mon Jan 20, 2020 5:28 pm

Banjoman wrote:
Sun Jan 19, 2020 7:57 pm
abuss368 wrote:
Wed Jan 15, 2020 9:41 pm
How many other Bogleheads are using Jack Bogle's recommended Two Fund Portfolio?
I am in the process of selling my international funds in my 401K and IRA after reading all 10 pages of this thread and the recommendations of Taylor and Abuss368. It was made simpler since I converted everything to the 3-fund portfolio. Thank You, a Vanguard member since 2013.
You will have a portfolio that will never be below average. The difference between a 2 fund and 3 fund portfolio is that we are dancing on the head of a needle. Jack Bogle and Warren Buffett know more about investing than any of us could ever hope too. I made a decision to follow their lead and advice.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Mon Jan 20, 2020 5:28 pm

Jack Bogle's Words of Wisdom:
"When you buy the S&P 500, you buy a portfolio where roughly half the earnings and revenue comes from abroad."
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by 1789 » Mon Jan 20, 2020 10:30 pm

Banjoman wrote:
Sun Jan 19, 2020 7:57 pm
abuss368 wrote:
Wed Jan 15, 2020 9:41 pm
How many other Bogleheads are using Jack Bogle's recommended Two Fund Portfolio?
I am in the process of selling my international funds in my 401K and IRA after reading all 10 pages of this thread and the recommendations of Taylor and Abuss368. It was made simpler since I converted everything to the 3-fund portfolio. Thank You, a Vanguard member since 2013.

Congrats on your decision. The only thing matters is AA between US stocks and US bonds. You can tune that and sleep like a baby.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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Re: Jack Bogle - Two Fund Portfolio

Post by abuss368 » Tue Jan 21, 2020 8:01 pm

Jack Bogle's Words of Wisdom:
"Never think you know more than the market. Nobody does." -- "In my view, owning the market and holding it forever is the ultimate strategy for winners."
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Jack Bogle - Two Fund Portfolio

Post by Randtor » Wed Jan 22, 2020 4:32 pm

Taylor Larimore wrote:
Thu Jan 16, 2020 3:33 pm
Abuss:

I now hold your 2-fund portfolio. My Total Stock Market fund is in my taxable account and my Total Bond Market fund is in my IRA.

I sold my Total International fund when I wanted cash. It's lower return resulted in a lower tax than selling my other two funds. I doubt if the loss of my Total International Fund will make a big difference (although I miss its diversification benefit).

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "In my view, owning the market and holding it forever is the ultimate strategy for winners."
Hi Taylor,
If you don't mind me asking, what is your stock/bond split? I will be retiring in the next few months. When I sell my office building I will have a good deal of cash which will go into my taxable account as Total Stock Market. I will need to re-balance my retirement account, and plan on putting everything there into the Total Bond fund, as you have. I'm hoping to get my AA somewhere between 50/50 to 40/60.
Thanks,
Rand
"Whats done is done, and can't be undone"

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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor » Wed Jan 22, 2020 4:45 pm

abuss368 wrote:
Tue Jan 21, 2020 8:01 pm
Jack Bogle's Words of Wisdom:
"Never think you know more than the market. Nobody does." -- "In my view, owning the market and holding it forever is the ultimate strategy for winners."
This is such great advice. Until retirement, except for tax loss harvesting, I see no need to sell any of the VTSAX/VFIAX I hold in my taxable account. I own both funds because I have been using them as tax loss harvest partners. In a couple of decades in retirement, I will have the luxury of deciding whether to draw from tax deferred, Roth or taxable accounts, which ever makes the most sense at that time.

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