The Three-Fund Portfolio

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Triple digit golfer
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Re: The Three-Fund Portfolio

Post by Triple digit golfer » Mon Jun 15, 2020 6:59 am

JosephO wrote:
Sun Jun 14, 2020 10:59 pm
First time to write a message and I have no idea if I'm doing this correctly. I have a question about the book The Bogleheads' Guide to the Three-Fund Portfolio. It is about Benefit 19: Tax Efficiency. Mr. Taylor wrote: "As of this writing, Vanguard Total Stock Market Index Fund has a 15-year tax cost ratio of 0.40 which is less than half the tax cost ratio of the average equity fund." However later on Mr. Taylor wrote: "Unlike most equity funds, Vanguard Total Stock Market Index Fund and Total International Stock Index Fund haven't distributed a taxable capital gain since 2000. So my question is: Where does this tax cost ratio of 0.40 come from? Thanks in advance for the help!
The fund distributes dividends and those are taxable.

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Re: The Three-Fund Portfolio

Post by ruralavalon » Mon Jun 15, 2020 9:59 am

Welcome to the forum :) .

JosephO wrote:
Sun Jun 14, 2020 10:59 pm
First time to write a message and I have no idea if I'm doing this correctly. I have a question about the book The Bogleheads' Guide to the Three-Fund Portfolio. It is about Benefit 19: Tax Efficiency. Mr. Taylor wrote: "As of this writing, Vanguard Total Stock Market Index Fund has a 15-year tax cost ratio of 0.40 which is less than half the tax cost ratio of the average equity fund." However later on Mr. Taylor wrote: "Unlike most equity funds, Vanguard Total Stock Market Index Fund and Total International Stock Index Fund haven't distributed a taxable capital gain since 2000. So my question is: Where does this tax cost ratio of 0.40 come from? Thanks in advance for the help!
Those funds distributed dividends which are taxable as ordinary income.

The fact that those funds have not had to distribute capital gains just means that their tax cost is lower than similar funds of other companies.
"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 jason2459 » Mon Jun 15, 2020 1:53 pm

Just wanted to post a big thank you to Taylor for all he's contributed on this forum, wiki, and books among many many others.

I stumbled across this site a few months ago trying to figure out bonds. I always tried to keep a simple portfolio and everything about the methods driven by Mr. Bogle makes much sense to me. I've read through the wiki and just finished the Bogleheads Guide to Investing.

I've learned so much more then just about bonds and ways to simplify my protfolio even more. And how/why I can simplify my portfolio other then just because someone said I should.

I'm up across all my assets all time and for the year. I believe it's a great time to not time anything anymore ever again. Going to readjust my holdings. I'm jumping on this boat and sailing away, staying the course.

I'm going to keep reading and learning along the way so thank you everyone.

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"sailing away"

Post by Taylor Larimore » Mon Jun 15, 2020 4:40 pm

I'm jumping on this boat and sailing away, staying the course.
Jason:

I was the American Sailing Association "1992 Instructor of the Year." I am confident that "sailing away" using The Three-Fund Portfolio will bring you to your goal. :happy

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Stay the course."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: The Three-Fund Portfolio

Post by Carol88888 » Tue Jun 16, 2020 9:38 am

jason2459 wrote:
Mon Jun 15, 2020 1:53 pm
Just wanted to post a big thank you to Taylor for all he's contributed on this forum, wiki, and books among many many others.

I stumbled across this site a few months ago trying to figure out bonds. I always tried to keep a simple portfolio and everything about the methods driven by Mr. Bogle makes much sense to me. I've read through the wiki and just finished the Bogleheads Guide to Investing.

I've learned so much more then just about bonds and ways to simplify my protfolio even more. And how/why I can simplify my portfolio other then just because someone said I should.

I'm up across all my assets all time and for the year. I believe it's a great time to not time anything anymore ever again. Going to readjust my holdings. I'm jumping on this boat and sailing away, staying the course.

I'm going to keep reading and learning along the way so thank you everyone.
I will second that. This site is invaluable.

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Re: The Three-Fund Portfolio

Post by JosephO » Tue Jun 16, 2020 2:00 pm

Triple digit golfer wrote:
Mon Jun 15, 2020 6:59 am
JosephO wrote:
Sun Jun 14, 2020 10:59 pm
First time to write a message and I have no idea if I'm doing this correctly. I have a question about the book The Bogleheads' Guide to the Three-Fund Portfolio. It is about Benefit 19: Tax Efficiency. Mr. Taylor wrote: "As of this writing, Vanguard Total Stock Market Index Fund has a 15-year tax cost ratio of 0.40 which is less than half the tax cost ratio of the average equity fund." However later on Mr. Taylor wrote: "Unlike most equity funds, Vanguard Total Stock Market Index Fund and Total International Stock Index Fund haven't distributed a taxable capital gain since 2000. So my question is: Where does this tax cost ratio of 0.40 come from? Thanks in advance for the help!
The fund distributes dividends and those are taxable.
Thank you! I still find the tax cost ratio of 0.40 somewhat hi for the majority of qualified dividends that these funds have...

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Re: The Three-Fund Portfolio

Post by JosephO » Tue Jun 16, 2020 2:02 pm

ruralavalon wrote:
Mon Jun 15, 2020 9:59 am
Welcome to the forum :) .

JosephO wrote:
Sun Jun 14, 2020 10:59 pm
First time to write a message and I have no idea if I'm doing this correctly. I have a question about the book The Bogleheads' Guide to the Three-Fund Portfolio. It is about Benefit 19: Tax Efficiency. Mr. Taylor wrote: "As of this writing, Vanguard Total Stock Market Index Fund has a 15-year tax cost ratio of 0.40 which is less than half the tax cost ratio of the average equity fund." However later on Mr. Taylor wrote: "Unlike most equity funds, Vanguard Total Stock Market Index Fund and Total International Stock Index Fund haven't distributed a taxable capital gain since 2000. So my question is: Where does this tax cost ratio of 0.40 come from? Thanks in advance for the help!
Those funds distributed dividends which are taxable as ordinary income.

The fact that those funds have not had to distribute capital gains just means that their tax cost is lower than similar funds of other companies.
Thank you! :happy I still find the tax cost ratio of 0.40 somewhat hi for the majority of qualified dividends that these funds have...What do you guys think?

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Re: The Three-Fund Portfolio

Post by ruralavalon » Tue Jun 16, 2020 2:15 pm

JosephO wrote:
Tue Jun 16, 2020 2:02 pm
Thank you! :happy I still find the tax cost ratio of 0.40 somewhat hi for the majority of qualified dividends that these funds have...What do you guys think?
Tax cost of 0.40% for Vanguard Total Stock Market Index Fund (VTSAX) looks about right, comparing returns before and after taxes on distributions.

"After-tax returns are calculated using the highest individual federal income tax rates in effect at the time of each distribution." (link). So the tax cost is less for investors in more common tax brackets. My guess is that 12% is probably the most common tax bracket.
"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 JosephO » Tue Jun 16, 2020 2:22 pm

I will shoot three more questions/doubts I have from The Bogleheads' Guide to the Three-Fund Portfolio...

On the benefit 16: Portfolio Efficiency (Best Risk/Return Ratio) when writing about letting John Norstad, a retired mathematician at Northwestern University explain: "We give three proofs that under different assumptions, TSM (Total Stock Market) is efficient in the sense..." My question is where are these three proofs? I was expecting to enumerate and explain them if need be...

On the Benefit 17: Low Maintenance. In which way these two requirements would need maintenance?
-Contributions and withdrawals change.
-New Fund offerings need consideration.

On Benefit 18: Easy to rebalance. Why the rebalancing of the Three Total Market Index Fund portfolio more often results in a much smaller capital gains tax as mentioned in the last paragraph of this benefit?

Thanks in advance and happy to be in this forum :happy !

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Re: The Three-Fund Portfolio

Post by ruralavalon » Tue Jun 16, 2020 2:30 pm

JosephO wrote:
Tue Jun 16, 2020 2:22 pm
I will shoot three more questions/doubts I have from The Bogleheads' Guide to the Three-Fund Portfolio...

On the benefit 16: Portfolio Efficiency (Best Risk/Return Ratio) when writing about letting John Norstad, a retired mathematician at Northwestern University explain: "We give three proofs that under different assumptions, TSM (Total Stock Market) is efficient in the sense..." My question is where are these three proofs? I was expecting to enumerate and explain them if need be...
This requires use of the "wayback machine". Norstad tsm proofs pdf.

JosephO wrote:
Tue Jun 16, 2020 2:22 pm
On the Benefit 17: Low Maintenance. In which way these two requirements would need maintenance?
-Contributions and withdrawals change.
-New Fund offerings need consideration.

On Benefit 18: Easy to rebalance. Why the rebalancing of the Three Total Market Index Fund portfolio more often results in a much smaller capital gains tax as mentioned in the last paragraph of this benefit?

Thanks in advance and happy to be in this forum :happy !
I don't really understand these two questions.
"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 Miriam2 » Tue Jun 16, 2020 2:36 pm

jason2459 wrote: Just wanted to post a big thank you to Taylor for all he's contributed on this forum, wiki, and books among many many others.

I stumbled across this site a few months ago trying to figure out bonds. I always tried to keep a simple portfolio and everything about the methods driven by Mr. Bogle makes much sense to me. I've read through the wiki and just finished the Bogleheads Guide to Investing.

I've learned so much more then just about bonds and ways to simplify my protfolio even more. And how/why I can simplify my portfolio other then just because someone said I should.

I'm up across all my assets all time and for the year. I believe it's a great time to not time anything anymore ever again. Going to readjust my holdings. I'm jumping on this boat and sailing away, staying the course.

I'm going to keep reading and learning along the way so thank you everyone.
Carol88888 wrote: I will second that. This site is invaluable.
JosephO wrote:Thanks in advance and happy to be in this forum :happy !

Yes - we all love this site - and we can all thank Taylor Larimore :D who had this crazy vision in 1998 that he could put together an internet chat website where regular people like all of us from around the country could come together and intelligently discuss investing inspired by Jack Bogle, and where we could ask Qs and provide solid investing advice and tell personal investing experiences to help each other 8-)

Fortunately, Taylor - now 96 years young 8-) - has seen how successful his vision has turned out and how useful his simple Three Fund Portfolio has been to so many of us.

Taylor with the Vanguard Three-Fund Portfolio managers :D

Image

Left to Right: Total Bond Manager, Josh Barrickman; Total Stock Manager, Gerry O'Reilly; Taylor Larimore; Total International Manager, Mike Perre.
Taken 10/2013, at Bogleheads Conference 12.

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Re: The Three-Fund Portfolio

Post by jason2459 » Fri Jun 19, 2020 10:16 am

Wasn't planning on posting an update here but my mind is blown. So, I've reallocated and rebalanced several positions. I'm out of what I thought were my sector tilts which included utilities, REIT, and energies. They were roughly around 3% each of my portfolio.

After moving to total stock markets with some total exus and breaking down all my holdings by sectors I'm now holding 3.38% utilities, 3.17% energies, and 2.62% REIT!

I was not expecting that at all. I was not tilting effectively at all and making my allocations more complex then necessary.

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Re: The Three-Fund Portfolio

Post by ruralavalon » Fri Jun 19, 2020 10:32 am

jason2459 wrote:
Fri Jun 19, 2020 10:16 am
Wasn't planning on posting an update here but my mind is blown. So, I've reallocated and rebalanced several positions. I'm out of what I thought were my sector tilts which included utilities, REIT, and energies. They were roughly around 3% each of my portfolio.

After moving to total stock markets with some total exus and breaking down all my holdings by sectors I'm now holding 3.38% utilities, 3.17% energies, and 2.62% REIT!

I was not expecting that at all. I was not tilting effectively at all and making my allocations more complex then necessary.
Simplicity rocks :) .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Insignificant Funds

Post by Taylor Larimore » Fri Jun 19, 2020 12:43 pm

Jason wrote: I'm now holding 3.38% utilities, 3.17% energies, and 2.62% REIT!
Jason:

I suggest you exchange these three funds into your 3-fund portfolio. Their small allocation is immaterial and will probably reduce the returns from your total market index funds.

Strive for simplicity.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: Insignificant Funds

Post by jason2459 » Fri Jun 19, 2020 1:10 pm

Taylor Larimore wrote:
Fri Jun 19, 2020 12:43 pm
Jason wrote: I'm now holding 3.38% utilities, 3.17% energies, and 2.62% REIT!
Jason:

I suggest you exchange these three funds into your 3-fund portfolio. Their small allocation is immaterial and will probably reduce the returns from your total market index funds.

Strive for simplicity.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity."

:sharebeer

That's exactly what I did. I was holding approximately 3% in each individually in three different sector specific funds. During my process to get to a more simplified total US, total Int, Bond portfolio I sold those off.

What I did not expect at all is I ended up in practically the exact same allocation to them through a more diversified and simple allocation.

Roth I'm now: total us and some tips
401K I'm target date fund and a sp500 fund
Taxable I'm now total us and Total international and short term Muni.

I now only have 6 index funds. :)

Thanks so much for all your knowledge and wisdom.

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Re: The Three-Fund Portfolio

Post by abuss368 » Fri Jun 19, 2020 1:14 pm

jason2459 wrote:
Fri Jun 19, 2020 10:16 am
Wasn't planning on posting an update here but my mind is blown. So, I've reallocated and rebalanced several positions. I'm out of what I thought were my sector tilts which included utilities, REIT, and energies. They were roughly around 3% each of my portfolio.

After moving to total stock markets with some total exus and breaking down all my holdings by sectors I'm now holding 3.38% utilities, 3.17% energies, and 2.62% REIT!

I was not expecting that at all. I was not tilting effectively at all and making my allocations more complex then necessary.
Jack Bogle has said that most investors could go their lifetime without a need for a sector fund.

Keep investing (and life) simple.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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Re: The Three-Fund Portfolio

Post by Dargo » Sun Jun 21, 2020 6:52 pm

After a long journey have finally got to a three fund portfolio although part of my total stokmarket is actually a makeshift sp500/extended market due to availability in my 401k. Thanks for all the good advise
Life is what happens to you when you are busy making other plans..John Lennon

Triple digit golfer
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Re: The Three-Fund Portfolio

Post by Triple digit golfer » Sun Jun 21, 2020 7:02 pm

Dargo wrote:
Sun Jun 21, 2020 6:52 pm
After a long journey have finally got to a three fund portfolio although part of my total stokmarket is actually a makeshift sp500/extended market due to availability in my 401k. Thanks for all the good advise
I consider the S&P 500 equivalent to Total Stock Market. In fact, 2/3 of my U.S. equities are in the S&P 500 and the rest in Total Stock Market.

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Re: The Three-Fund Portfolio on Fathers Day 2020

Post by Taylor Larimore » Sun Jun 21, 2020 7:08 pm

Dargo wrote:
Sun Jun 21, 2020 6:52 pm
After a long journey have finally got to a three fund portfolio although part of my total stockmarket is actually a makeshift sp500/extended market due to availability in my 401k. Thanks for all the good advise
Dargo:

Thank you for sharing your satisfaction with my favorite portfolio.

You made my Fathers Day.

Taylor
Jack Bogle's Words of Wisdom: "We know that index funds that are focused on broad diversification in the major market sectors, bought and held for the long term, have proved to be the optimal strategy for investment success."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: The Three-Fund Portfolio

Post by abuss368 » Mon Jun 22, 2020 9:48 pm

Dargo wrote:
Sun Jun 21, 2020 6:52 pm
After a long journey have finally got to a three fund portfolio although part of my total stokmarket is actually a makeshift sp500/extended market due to availability in my 401k. Thanks for all the good advise
That is refreshing and rewarding to hear! I love this kind of update from Bogleheads!
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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Re: The Three-Fund Portfolio

Post by JosephO » Wed Jun 24, 2020 7:00 pm

ruralavalon wrote:
Tue Jun 16, 2020 2:30 pm
JosephO wrote:
Tue Jun 16, 2020 2:22 pm
I will shoot three more questions/doubts I have from The Bogleheads' Guide to the Three-Fund Portfolio...

On the benefit 16: Portfolio Efficiency (Best Risk/Return Ratio) when writing about letting John Norstad, a retired mathematician at Northwestern University explain: "We give three proofs that under different assumptions, TSM (Total Stock Market) is efficient in the sense..." My question is where are these three proofs? I was expecting to enumerate and explain them if need be...
This requires use of the "wayback machine". Norstad tsm proofs pdf.

JosephO wrote:
Tue Jun 16, 2020 2:22 pm
On the Benefit 17: Low Maintenance. In which way these two requirements would need maintenance?
-Contributions and withdrawals change.
-New Fund offerings need consideration.

On Benefit 18: Easy to rebalance. Why the rebalancing of the Three Total Market Index Fund portfolio more often results in a much smaller capital gains tax as mentioned in the last paragraph of this benefit?

Thanks in advance and happy to be in this forum :happy !
I don't really understand these two questions.
I'm sorry, I just don't know how to better explain these doubts I have any better since I'm quoting exactly what it's written on the book which I didn't get and/or didn't make sense to me, hence asking here for further clarification...and I do appreciate and give many thanks to Mr. Taylor for publishing this book, I also bought and read Bogleheads' guide to Investing and I think the Bogleheads' Guide to the Three-Fund Portfolio is a good complement for the former one.

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Re: The Three-Fund Portfolio

Post by David14 » Mon Jun 29, 2020 8:44 pm

I am new to the website so forgive me if this has been addressed but does the s&p 500 index fund work instead of total market index fund?

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Re: The Three-Fund Portfolio

Post by Triple digit golfer » Tue Jun 30, 2020 6:01 am

dag112 wrote:
Mon Jun 29, 2020 8:44 pm
I am new to the website so forgive me if this has been addressed but does the s&p 500 index fund work instead of total market index fund?
Yes, absolutely. I use the two interchangeably and consider them equal.

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Re: The Three-Fund Portfolio

Post by abuss368 » Tue Jun 30, 2020 6:17 am

dag112 wrote:
Mon Jun 29, 2020 8:44 pm
I am new to the website so forgive me if this has been addressed but does the s&p 500 index fund work instead of total market index fund?
It sure does. The difference in performance is a rounding error over time.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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Re: The Three-Fund Portfolio

Post by ruralavalon » Tue Jun 30, 2020 8:40 am

Welcome to the forum.
dag112 wrote:
Mon Jun 29, 2020 8:44 pm
I am new to the website so forgive me if this has been addressed but does the s&p 500 index fund work instead of total market index fund?
Yes a S&P 500 index fund works fine for investing in domestic stocks.

A S&P 500 index fund covers over 80% of the U.S. stock market investing in stocks of selected large-cap and mid-cap U.S. companies. In the 28 years since the creation of the first total stock market index fund the two types of funds have had almost identical performance. Portfolio Visualizer, 1993-2020.
"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 Miriam2 » Tue Jun 30, 2020 11:47 pm

Dargo wrote: After a long journey have finally got to a three fund portfolio although part of my total stockmarket is actually a makeshift sp500/extended market due to availability in my 401k. Thanks for all the good advise
Lol! You don't have a "makeshift" stock portfolio Dargo - you have a brilliant stock portfolio built with the funds available to you in your 401k. That's what Mr. Bogle suggests to replicate the Total Stock Market: the SP500 (large cap stocks) coupled with the Extended Market fund of mid & small caps. Mr. Bogle suggests about an 80/20 split between the two for your stock allocation.

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Re: The Three-Fund Portfolio

Post by Dargo » Thu Jul 02, 2020 8:13 pm

Miriam2 wrote:
Tue Jun 30, 2020 11:47 pm
Dargo wrote: After a long journey have finally got to a three fund portfolio although part of my total stockmarket is actually a makeshift sp500/extended market due to availability in my 401k. Thanks for all the good advise
Lol! You don't have a "makeshift" stock portfolio Dargo - you have a brilliant stock portfolio built with the funds available to you in your 401k. That's what Mr. Bogle suggests to replicate the Total Stock Market: the SP500 (large cap stocks) coupled with the Extended Market fund of mid & small caps. Mr. Bogle suggests about an 80/20 split between the two for your stock allocation.
Thanks would use total of I could but despite my requests no change. I am glad they give use vanguard index finds so really shouldn't complain
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Re: The Three-Fund Portfolio

Post by LadyGeek » Tue Jul 07, 2020 11:26 am

New member chubbles has a question which I've moved into a new thread. See: [Three-Fund Portfolio - Asset Allocation?]
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Re: The Three-Fund Portfolio

Post by kpmack » Thu Jul 09, 2020 1:24 pm

*First post!* I just read The Bogleheads' Guide to the Three Fun Portfolio. Good, easy, simple stuff and I appreciate the content. I know there is some leeway in terms of asset allocation in the TFP, but I'm no expert on bonds (or stocks, for that matter). My question is, is there any generally accepted advice on how much interest rates should affect bond allocation? For example, with interest rates being as low as they are right now, bond returns presumably won't even keep up with inflation, so what's the thought in allocating any money to them right now? Caveat: I am relatively young (37) and have +/- 20 yrs left in the market. Thanks!

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Re: The Three-Fund Portfolio

Post by CABob » Thu Jul 09, 2020 3:10 pm

I know there is some leeway in terms of asset allocation in the TFP, but I'm no expert on bonds (or stocks, for that matter).
You are correct there is leeway of zero to 100% in all allocations.

My question is, is there any generally accepted advice on how much interest rates should affect bond allocation?
I think the generally accepted advice on this forum is zero affect.

For example, with interest rates being as low as they are right now, bond returns presumably won't even keep up with inflation, so what's the thought in allocating any money to them right now?
Where is the money going to be allocated if not in bonds? An allocation to bonds is generally for safety and stability of a portfolio.
Bob

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Re: The Three-Fund Portfolio

Post by Taylor Larimore » Thu Jul 09, 2020 5:04 pm

kpmack wrote:
Thu Jul 09, 2020 1:24 pm
*First post!* I just read The Bogleheads' Guide to the Three Fun Portfolio. Good, easy, simple stuff and I appreciate the content. I know there is some leeway in terms of asset allocation in the TFP, but I'm no expert on bonds (or stocks, for that matter). My question is, is there any generally accepted advice on how much interest rates should affect bond allocation? For example, with interest rates being as low as they are right now, bond returns presumably won't even keep up with inflation, so what's the thought in allocating any money to them right now? Caveat: I am relatively young (37) and have +/- 20 yrs left in the market. Thanks!
kpmack:

Welcome to the Bogleheads Forum!

I am pleased that you "appreciate the content" of The Three-Fund Portfolio book. The John Bogle Center For Financial Literacy also appreciates your purchase.

Bonds are for safety. I would pay no attention to interest rates which suggests market-timing. The beauty of The Three-Fund Portfolio is that you can set it and forget it--except for rebalancing and a desired change in your asset-allocation (but not bond interest rates).

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "Regardless of what happens in the markets, stick to your investment program. Changing your strategy at the wrong time can be the single most devastating mistake you can make as an investor."
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: The Three-Fund Portfolio

Post by abuss368 » Sat Jul 11, 2020 11:10 am

kpmack wrote:
Thu Jul 09, 2020 1:24 pm
*First post!* I just read The Bogleheads' Guide to the Three Fun Portfolio. Good, easy, simple stuff and I appreciate the content. I know there is some leeway in terms of asset allocation in the TFP, but I'm no expert on bonds (or stocks, for that matter). My question is, is there any generally accepted advice on how much interest rates should affect bond allocation? For example, with interest rates being as low as they are right now, bond returns presumably won't even keep up with inflation, so what's the thought in allocating any money to them right now? Caveat: I am relatively young (37) and have +/- 20 yrs left in the market. Thanks!
Welcome to the Bogleheads!

Don’t worry about interest rates. Bonds are for safety and income. Any short or intermediate investment grade bond fund will do just that. Total Bond is an excellent choice.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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