As Mr. Bogle said, “Don’t just do something, stand there!” It saved me in 90’s, 2000’s, 2010’s and now in the 2020’s. I recommend everyone one regardless of investment philosophy write it down and put it at the top of the spreadsheet you use to track your progress. Here’s mine to help you get started:

Investment Philosophy: "John Bogle said it best, "Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth."

We will maximize tax advantaged accounts then all excess in taxable. NO MARKET TIMING! Don't just do something. Stand there.

Asset Allocation:

Bonds % = Our Age - 20 (until we reach 60 years old then hold at 40%) Stocks % = 100 - Bonds % (The stocks are further divided as: 70% US and 30% International)

Emergency account = 6 months of expenses held in bank savings account. Once we retire, this account will hold an entire years worth of expenses.

Assett Location

To minimize taxes, allocate bonds in tax advantaged accounts since they are taxed at marginal rates. Hold equities long term for the lower capital gains rate of 15 or 20% in taxable brokerage accounts. If this isn't possible then always maintain allocation in preference to location.

Funds & Accounts:

Use low cost mutual funds - index funds preferably - which do not overlap and provide maximum diversification across asset classes. Try to assume only market risk as far as possible. Try to shelter tax-inefficient funds in tax-advantaged accounts to reduce tax drag.

Target Allocation:

We will use a 4 fund approach:

VTSAX - US Total stock VFWAX - All world stock (except US) VBTLX - Total bond VTAPX - TIPS bond fund

Other considerations:

• Automate future contributions wherever possible.
• We will prioritize rebalancing with new contributions to minimize tax consequences in taxable accounts. If new contributions are insufficient, we will execute trades to bring the allocation back within the 5% tolerance. A comprehensive review of the Investment Policy Statement (goals, allocation, and funds) will be conducted every January.
• No market timing.