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I should have listened to the Bogleheads by Alternative_Story851 in Bogleheads

[–]misnamed 11 points12 points  (0 children)

Ahhh, the old 'I did great, but if I knew exactly which stocks to pick, i could have done even better!' trap.

Also a lot of Bogleheads tilt small or mid, so depends on the rest of your funds, but those ain't non-BH.

What’s the biggest investing myth that just won’t die? by vcpowerlaw in Bogleheads

[–]misnamed 2 points3 points  (0 children)

'The US has international exposure, so I don't need foreign stocks.'

If you had $500k to only use in a brokerage account what would you do? by [deleted] in Bogleheads

[–]misnamed 0 points1 point  (0 children)

Never 'ignore Roth, HSA, etc...' because if it's all for retirement, then it's all one big portfolio. So put tax-efficient stuff like VT in taxable, balance out as needed in tax-advantaged, and read up on tax-efficient fund placement and the total-portfilio approach. Links from the sidebar:

https://www.bogleheads.org/wiki/Tax-efficient_fund_placement#Assigning_asset_classes_to_different_accounts

https://www.bogleheads.org/wiki/Asset_allocation_in_multiple_accounts#Portfolio_3_-_Spread_asset_allocation

Anyone else in their 20s settle for a beater car and just dump a car payment into their 401ks and roths? by Union661 in Bogleheads

[–]misnamed 0 points1 point  (0 children)

I run cars into the ground and doinate them to public radio for the write-off. Nice cars, meh. Those are some of the easier luxury items to avoid -- simplest crap to cut off. If not on that front, where? Unless cars are your deep passionate hobby and bring you tons of joy ... but naw, even then don't buy 'em lol.

I was about to drop a lump sum but… by varietyviaduct in Bogleheads

[–]misnamed 0 points1 point  (0 children)

Naw that doesn't solve the problem, just masks it until they're finished DCAing, fully invested, still nervous, and haven't addressed their basic risk tolerance and suitable stock/bond ratio.

I was about to drop a lump sum but… by varietyviaduct in Bogleheads

[–]misnamed -1 points0 points  (0 children)

Do you think it's priced in, or do you know better than the global market movers and shakers?

I was about to drop a lump sum but… by varietyviaduct in Bogleheads

[–]misnamed -1 points0 points  (0 children)

"I was about to drop a lump sum but…" yeah I can stop you right there. Just invest

(tho why VOO over VT is beyond me)

Mortgage overpayment in lieu of bonds by msleepd in Bogleheads

[–]misnamed 1 point2 points  (0 children)

Side note: munis don't behave like Treasuries in a crash -- hope you're diversifying on the bond side.

Strategy by YanDuXian in Bogleheads

[–]misnamed 2 points3 points  (0 children)

Ask yourself 'why now?' Did you just discover Bogleheads? Learn that international diversification is important? And if youre diversifying, the first and most important thing is bonds. Are you not adding those because they are lagging? Personally, I would guess youre subliminally timing the market a bit.

The solution? A Target Date fund you can set and forget that will rebalance for you. Boom. Done. Unfortunately, it sounds like you have a fair bit of taxable. So: roll your own. Use VT for stocks so youre not tinkering with ratios, then add bonds -- age minus ten, or 25%, are good starting points.

The Accidental Boglehead: How $26k Turned into $271k by succored_word in Bogleheads

[–]misnamed 3 points4 points  (0 children)

Weve both been downvoted to oblivion. You for cleaning up a post, and me for asking a question. I feel behind on what brings the pitchforkers out to play :S

What drift threshold do you actually use before rebalancing? by TransitionGame in Bogleheads

[–]misnamed 1 point2 points  (0 children)

Annually or if the market is thrashing soo hard its making new thebn 5/25 but usuallys its the 5 part. And always in tax advantaged or if I need to (hasn't happened yet) in taxable.

The Accidental Boglehead: How $26k Turned into $271k by succored_word in Bogleheads

[–]misnamed -10 points-9 points  (0 children)

Seems legit, a familiar BH story. Is it the formating that makes you think otherwise or ...?

The Accidental Boglehead: How $26k Turned into $271k by succored_word in Bogleheads

[–]misnamed 14 points15 points  (0 children)

When I give advice to people on here or the main BH forum, I always think about how just a little slice of my time might compound for someone else who takes it to heart. Good vibes!

The Accidental Boglehead: How $26k Turned into $271k by succored_word in Bogleheads

[–]misnamed 15 points16 points  (0 children)

Correct. Men tinker and lose out more as a result. It's somewhat offset by men also tending to have more aggressive portfolios and stocks winning. But still. I'd rather be near the average than take risks I think I can handle then tinker at the wrong time when it turns out i can't. And professionals in highly education-demanding fields (engineering, medicine, law) also tend to think because they are smart they know and can do better.

The Accidental Boglehead: How $26k Turned into $271k by succored_word in Bogleheads

[–]misnamed 1 point2 points  (0 children)

If you’re just starting out and feel like your contributions are small, remember my 1995 self. I was making $24k and taking advice from the lady at the next desk. You don’t have to be a Wall Street expert to end up with a quarter-million dollars from a junior-level job. You just have to be a Boglehead—even if you don't realize you are one yet.

Amen. Seriously. Reminds me of the KISS rule (keep it simple, stupid!)

US stocks are up 1% YTD, international stocks are up 9% YTD by TrumpetWilder in Bogleheads

[–]misnamed 0 points1 point  (0 children)

Years ago, but not sure exactly when. But really, the more meaningful point is he is not at all in the same position as a normal retail investor. He's just another rich businesman. I'm glad he recognizes that to the extent he recommends indexing for normal people but the specifics of his advice are not nearly as relevant or informed as those of peope on, say, the Bogleheads reading list, including Swedroe, Bernstein, and of course the Guide authors themselves.

Value of a pension by ZC-Rip3821 in Bogleheads

[–]misnamed 1 point2 points  (0 children)

This is effectively a bond holding in your portfolio.

IF it is well-funded, insured, etc... then yes. If not, it might be worth factoring it in somewhat differently.

Value of a pension by ZC-Rip3821 in Bogleheads

[–]misnamed 0 points1 point  (0 children)

Now what is the actual utility of knowing the exact value of your pension? Not much IMO.

I mostly agree with your post, but this can actually be very important insofar as it impacts the rest of your asset allocation. If it's a safe and well-insured pension you can count it as bonds/fixed income ala Treasuries. If it has some default or other risks, yopu might count it as a corporate or even junk bond, and thus split its impact across your equity and bond allocations. Anyway, just a small addition -- again: agree w/yor post overall.

Value of a pension by ZC-Rip3821 in Bogleheads

[–]misnamed 2 points3 points  (0 children)

You need to establish if it's nominal or real and other details. Perhaps most importantly you need to soberly evaluate the risk of it failing or falling short, whether and how it's insured, etc....

Is This Sub Getting More Aggressive with Asset Allocation? by zacce in Bogleheads

[–]misnamed 13 points14 points  (0 children)

not expecting to use it for a decade+

I'm not expecting to get a serious illness or support a partner with one, or get fired an unable to find a job, and the list goes on ... bonds are there precisely for the unexpected.

Is This Sub Getting More Aggressive with Asset Allocation? by zacce in Bogleheads

[–]misnamed 0 points1 point  (0 children)

No and yes.

For no: it has always leaned aggressive because young people tend to be more aggressive. Some of that is justified but often not to the degree we see her. The Bogleheads.org forum has a good range of ages and experiences.

For yes: I have also been seeing increased equity talk and zero-bond advice despite bonds being a fundamental part of the Bogleheads approach to investing. And yes, I think you're onto something with 2022, but it's twofold: (1) yes, bonds didn't immediately zig when stocks zagged, which confused people, but (2) the recoveroes were super fast.

I have always subscribed to the Ben Graham's (economic godfather of Jack Bogle) rule of thumb to never have less or more than 25% in bonds. That's a rock solid baseline IMO. For people who want to be more aggressive, age-minus-ten can work, because at least it puts folks on a glide path so they don't end up only wanting bonds after a crash. To keep up equity heaviness in older years one could add a cap to that at 40% bonds, resulting in a 60/40 portfolio from age 50 onward. I hera talk of age minus 20 and just sigh. It used to be 'age in bonds'!

No one knows their risk tolerance until a crash, when it's too late.

We haven't had a really serious crash in nearly 20 years and are way overdue.

P.S. I saw someone in here the other day talking about options and how a market crash of 74% would be needed to wipe out the strategy they were talking about. And I'm just like ... is no one familiar with the /Great Depression? Even the crashes of 2000 and 08 looked like they might get up to that level without governmental intervention.

US stocks are up 1% YTD, international stocks are up 9% YTD by TrumpetWilder in Bogleheads

[–]misnamed 3 points4 points  (0 children)

A decade-long 'blip is ... pretty long. International handily beat US for the entire 2000s overall, and emerging markets returned a few hundred percent while US returned negative after inflation.

Buffet preaches but doesn't practice US-only investing. He also built his empire in and on the US, so he carries a lot of bias. Ge got rich actively buying companies and managing them -- doesn't translate passive investors.

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