I am pleased to see that Morningstar believes that each of the three funds in The 3-Fund Portfolio are "excellent choices to hold in 2023 and beyond." This is the link:
Jack Bogle's Words of Wisdom:"There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite."
What 3 do you currently have in your portfolio, Mr. Larimore? We're 77 & 76 and need to simplify.
TIA,
Phil
My portfolio contains Vanguard's S&P 500 Index Fund, Total International Index Fund, Total Bond Market Index Fund and a Cash Reserve Fund (VMRRX).
Best wishes
Taylor
Jack Bogle's Words of Wisdom:"The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the entire field of investing."
"Simplicity is the master key to financial success." -- Jack Bogle
My portfolio contains Vanguard's S&P 500 Index Fund, Total International Index Fund, Total Bond Market Index Fund and a Cash Reserve Fund (VMRRX).
Best wishes
Taylor
Jack Bogle's Words of Wisdom:"The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the entire field of investing."
My portfolio contains Vanguard's S&P 500 Index Fund, Total International Index Fund, Total Bond Market Index Fund and a Cash Reserve Fund (VMRRX).
Best wishes
Taylor
Jack Bogle's Words of Wisdom:"The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the entire field of investing."
Taylor = Simplicity!
Hope you are well sir.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
I find myself fighting the temptation to tinker with my portfolio constantly. Intellectually I have decided the 3 fund is what's best but still have the urge to shift things.
So far so good. Only thing I have done recently is not increase my bond percentage as I get older. In my mid 50s. Not planning on retiring anytime soon and have pension. Wife got a medium inheritance at TIAA tradional. we have to withdraw from it starting next year. As result I now have Bond at 30% instead of 40%. I am not adding in the inherited tiaa account in that percentage since it will have rmd starting next year and I don't know how to properly account for it other than its a guaranteed rate if return kind of like a CD/money market/cash type.
Life is what happens to you when you are busy making other plans..John Lennon
Dargo wrote: ↑Tue Sep 19, 2023 8:05 am
I find myself fighting the temptation to tinker with my portfolio constantly. Intellectually I have decided the 3 fund is what's best but still have the urge to shift things.
So far so good. Only thing I have done recently is not increase my bond percentage as I get older. In my mid 50s. Not planning on retiring anytime soon and have pension. Wife got a medium inheritance at TIAA tradional. we have to withdraw from it starting next year. As result I now have Bond at 30% instead of 40%. I am not adding in the inherited tiaa account in that percentage since it will have rmd starting next year and I don't know how to properly account for it other than its a guaranteed rate if return kind of like a CD/money market/cash type.
Dargo wrote: ↑Tue Sep 19, 2023 8:05 am
I find myself fighting the temptation to tinker with my portfolio constantly. Intellectually I have decided the 3 fund is what's best but still have the urge to shift things.
So far so good. Only thing I have done recently is not increase my bond percentage as I get older. In my mid 50s. Not planning on retiring anytime soon and have pension. Wife got a medium inheritance at TIAA tradional. we have to withdraw from it starting next year. As result I now have Bond at 30% instead of 40%. I am not adding in the inherited tiaa account in that percentage since it will have rmd starting next year and I don't know how to properly account for it other than its a guaranteed rate if return kind of like a CD/money market/cash type.
What types of "tinkering" are tempted to perform?
A little international bond or tip fund to try to improve bond performance. Buying back the Berkshire Hathaway b I sold a few years ago ( which I know is foolish since its higher now and probably won't continue to outperform) or the vanguard dividend index fund.
Life is what happens to you when you are busy making other plans..John Lennon
My portfolio contains Vanguard's S&P 500 Index Fund, Total International Index Fund, Total Bond Market Index Fund and a Cash Reserve Fund (VMRRX).
Best wishes
Taylor
Jack Bogle's Words of Wisdom:"The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the entire field of investing."
Why S&P 500 index fund vs total stock market index fund?
My portfolio contains Vanguard's S&P 500 Index Fund, Total International Index Fund, Total Bond Market Index Fund and a Cash Reserve Fund (VMRRX).
Best wishes
Taylor
Jack Bogle's Words of Wisdom:"The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the entire field of investing."
Why S&P 500 index fund vs total stock market index fund?
At the time, I was using the S&P 500 index fund for tax-loss harvesting from 0ur Total Stock Market Index Fund. While in the S&P 500 index fund, the S&P fund had a significant short-term gain. Rather than pay the tax we kept the S&P fund.
(Vanguard's Total Stock Market Index Fund and Vanguard's S&P 500 index fund have very similar long-term performance.)
Best wishes
Taylor
Jack Bogle's Words of Wisdom:"Deep down, I remain absolutely confident that the vast majority of American families would be well served by owning their equity holdings in a S&P 500 Index fund (or a total stock market index fund)--".
"Simplicity is the master key to financial success." -- Jack Bogle
My portfolio contains Vanguard's S&P 500 Index Fund, Total International Index Fund, Total Bond Market Index Fund and a Cash Reserve Fund (VMRRX).
Best wishes
Taylor
Jack Bogle's Words of Wisdom:"The Bogleheads forum is a treasure trove of information, as its contributors and visitors alike help one another, with no axe to grind, in all matter of topics that essentially cover the entire field of investing."
Why S&P 500 index fund vs total stock market index fund?
At the time, I was using the S&P 500 index fund for tax-loss harvesting from 0ur Total Stock Market Index Fund. While in the S&P 500 index fund, the S&P fund had a significant short-term gain. Rather than pay the tax we kept the S&P fund.
(Vanguard's Total Stock Market Index Fund and Vanguard's S&P 500 index fund have very similar long-term performance.)
Best wishes
Taylor
Jack Bogle's Words of Wisdom:"Deep down, I remain absolutely confident that the vast majority of American families would be well served by owning their equity holdings in a S&P 500 Index fund (or a total stock market index fund)--".
Exactly. These things often resolve around some practical detail or circumstance. One that can occur with some frequency is to have a 401k that offers an excellent S&P 500 fund and not a total market fund. That investor can certainly take what is available and not agonize over it.
Readers should not translate someone saying that they have or one "could" have the one fund as actual advice to do only that and there is something wrong with the other. We've gone around and around on that in words from Mr. Buffett and Mr. Bogle -- and now (but resolved) Mr. Larimore.
I, too, am in S&P500 (VFIAX) due to a TLH episode with TSM in March 2020. There never seemed to be a pressing need (perhaps not even a opportunity?) to switch back so here I sit!
Actually, I am quite happy with S&P500. I can pretend it is better than TSM because it's makeup is hand picked by experts! Besides, so many people (Buffett included) recommend it!
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Hi Fam - I am fairly new here. I have never invested in bonds. I am 34 yo, married. If I consider 3 fund portfolio - which ETFs / mutual fund to cover bonds should I consider? I am with Fidelity.
Jack Bogle's Words of Wisdom:"The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan."
"Simplicity is the master key to financial success." -- Jack Bogle
Jack Bogle's Words of Wisdom:"The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan."
And a hint: Don't use the Fidelity "zero" funds in a taxable account.
Get most of it right and don't make any big mistakes. All else being equal, simpler is better. Simple is as simple does.
I usually don't like to watch videos but that one is very good. The one it links to, The Bogleheads 3 Fund Portfolio is perhaps even better, although it is a bit longer.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
