Jack Bogle - Two Fund Portfolio

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Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

anon_investor wrote: Tue Jun 01, 2021 5:33 pm Anyone try using NTSX in lieu of VTI + VGIT for their 2 fund portfolio? It seems like potentially a tax efficient option in a taxable account for someone with 90%+ equity allocation. It also seems like a better option than VTSAX for an overstuffed emergency fund.
Isn't it like 90/60? I don't like the leverage factor here.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Marseille07 wrote: Tue Jun 01, 2021 5:37 pm
anon_investor wrote: Tue Jun 01, 2021 5:33 pm Anyone try using NTSX in lieu of VTI + VGIT for their 2 fund portfolio? It seems like potentially a tax efficient option in a taxable account for someone with 90%+ equity allocation. It also seems like a better option than VTSAX for an overstuffed emergency fund.
Isn't it like 90/60? I don't like the leverage factor here.
The leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

anon_investor wrote: Tue Jun 01, 2021 6:04 pm
Marseille07 wrote: Tue Jun 01, 2021 5:37 pm
anon_investor wrote: Tue Jun 01, 2021 5:33 pm Anyone try using NTSX in lieu of VTI + VGIT for their 2 fund portfolio? It seems like potentially a tax efficient option in a taxable account for someone with 90%+ equity allocation. It also seems like a better option than VTSAX for an overstuffed emergency fund.
Isn't it like 90/60? I don't like the leverage factor here.
The leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.
Wait, how does that work? I thought the lev is 150% as you have 100% and taking on a 150% position.
Triple digit golfer
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

Marseille07 wrote: Tue Jun 01, 2021 6:12 pm
anon_investor wrote: Tue Jun 01, 2021 6:04 pm
Marseille07 wrote: Tue Jun 01, 2021 5:37 pm
anon_investor wrote: Tue Jun 01, 2021 5:33 pm Anyone try using NTSX in lieu of VTI + VGIT for their 2 fund portfolio? It seems like potentially a tax efficient option in a taxable account for someone with 90%+ equity allocation. It also seems like a better option than VTSAX for an overstuffed emergency fund.
Isn't it like 90/60? I don't like the leverage factor here.
The leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.
Wait, how does that work? I thought the lev is 150% as you have 100% and taking on a 150% position.
I thought the same thing. Interested in learning more on this.
Da5id
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Re: Jack Bogle - Two Fund Portfolio

Post by Da5id »

Triple digit golfer wrote: Tue Jun 01, 2021 6:26 pm
Marseille07 wrote: Tue Jun 01, 2021 6:12 pm
anon_investor wrote: Tue Jun 01, 2021 6:04 pm
Marseille07 wrote: Tue Jun 01, 2021 5:37 pm
anon_investor wrote: Tue Jun 01, 2021 5:33 pm Anyone try using NTSX in lieu of VTI + VGIT for their 2 fund portfolio? It seems like potentially a tax efficient option in a taxable account for someone with 90%+ equity allocation. It also seems like a better option than VTSAX for an overstuffed emergency fund.
Isn't it like 90/60? I don't like the leverage factor here.
The leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.
Wait, how does that work? I thought the lev is 150% as you have 100% and taking on a 150% position.
I thought the same thing. Interested in learning more on this.
I assume there is a risk associated with the leverage. I wonder what the risk is and when/how it shows up?
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

Da5id wrote: Tue Jun 01, 2021 6:34 pm
Triple digit golfer wrote: Tue Jun 01, 2021 6:26 pm
Marseille07 wrote: Tue Jun 01, 2021 6:12 pm
anon_investor wrote: Tue Jun 01, 2021 6:04 pm
Marseille07 wrote: Tue Jun 01, 2021 5:37 pm

Isn't it like 90/60? I don't like the leverage factor here.
The leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.
Wait, how does that work? I thought the lev is 150% as you have 100% and taking on a 150% position.
I thought the same thing. Interested in learning more on this.
I assume there is a risk associated with the leverage. I wonder what the risk is and when/how it shows up?
It's very much like the HEDGEFUNDIE portfolio. Stocks crashing and yields rising would be very bad for NTSX.
000
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Re: Jack Bogle - Two Fund Portfolio

Post by 000 »

Here's a long thread about NTSX: viewtopic.php?t=302218

The fund holds 90% stocks unlevered and invests 10% in Treasury futures (implicitly levered play on Treasuries).
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

000 wrote: Tue Jun 01, 2021 6:42 pm Here's a long thread about NTSX: viewtopic.php?t=302218

The fund holds 90% stocks unlevered and invests 10% in Treasury futures (implicitly levered play on Treasuries).
Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
000
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Re: Jack Bogle - Two Fund Portfolio

Post by 000 »

Marseille07 wrote: Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
That seems to be a reasonable take.

I will add that as a bond bear I am not interested in bond futures at all. NTSX is a convenient way to achieve a levered play on declining interest rates, aka the recent past. I for one do not think that the near future is likely to resemble the recent past.
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

000 wrote: Tue Jun 01, 2021 6:49 pm
Marseille07 wrote: Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
That seems to be a reasonable take.

I will add that as a bond bear I am not interested in bond futures at all. NTSX is a convenient way to achieve a levered play on declining interest rates, aka the recent past. I for one do not think that the near future is likely to resemble the recent past.
Yeah, that's the thing about 90/60. It's not as radical as HEDGEFUNDIE's 165/135, but still quite a bit of lev on the bond side.

This is why my fixed income side is all cash instead.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Marseille07 wrote: Tue Jun 01, 2021 7:05 pm
000 wrote: Tue Jun 01, 2021 6:49 pm
Marseille07 wrote: Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
That seems to be a reasonable take.

I will add that as a bond bear I am not interested in bond futures at all. NTSX is a convenient way to achieve a levered play on declining interest rates, aka the recent past. I for one do not think that the near future is likely to resemble the recent past.
Yeah, that's the thing about 90/60. It's not as radical as HEDGEFUNDIE's 165/135, but still quite a bit of lev on the bond side.

This is why my fixed income side is all cash instead.
I guess too exotic on the fixed income side.
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

anon_investor wrote: Tue Jun 01, 2021 7:34 pm
Marseille07 wrote: Tue Jun 01, 2021 7:05 pm
000 wrote: Tue Jun 01, 2021 6:49 pm
Marseille07 wrote: Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
That seems to be a reasonable take.

I will add that as a bond bear I am not interested in bond futures at all. NTSX is a convenient way to achieve a levered play on declining interest rates, aka the recent past. I for one do not think that the near future is likely to resemble the recent past.
Yeah, that's the thing about 90/60. It's not as radical as HEDGEFUNDIE's 165/135, but still quite a bit of lev on the bond side.

This is why my fixed income side is all cash instead.
I guess too exotic on the fixed income side.
Mr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Marseille07 wrote: Tue Jun 01, 2021 7:48 pm
anon_investor wrote: Tue Jun 01, 2021 7:34 pm
Marseille07 wrote: Tue Jun 01, 2021 7:05 pm
000 wrote: Tue Jun 01, 2021 6:49 pm
Marseille07 wrote: Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
That seems to be a reasonable take.

I will add that as a bond bear I am not interested in bond futures at all. NTSX is a convenient way to achieve a levered play on declining interest rates, aka the recent past. I for one do not think that the near future is likely to resemble the recent past.
Yeah, that's the thing about 90/60. It's not as radical as HEDGEFUNDIE's 165/135, but still quite a bit of lev on the bond side.

This is why my fixed income side is all cash instead.
I guess too exotic on the fixed income side.
Mr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.
Yes, but not as good as I Bonds!
Triple digit golfer
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

anon_investor wrote: Tue Jun 01, 2021 7:49 pm
Marseille07 wrote: Tue Jun 01, 2021 7:48 pm
anon_investor wrote: Tue Jun 01, 2021 7:34 pm
Marseille07 wrote: Tue Jun 01, 2021 7:05 pm
000 wrote: Tue Jun 01, 2021 6:49 pm

That seems to be a reasonable take.

I will add that as a bond bear I am not interested in bond futures at all. NTSX is a convenient way to achieve a levered play on declining interest rates, aka the recent past. I for one do not think that the near future is likely to resemble the recent past.
Yeah, that's the thing about 90/60. It's not as radical as HEDGEFUNDIE's 165/135, but still quite a bit of lev on the bond side.

This is why my fixed income side is all cash instead.
I guess too exotic on the fixed income side.
Mr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.
Yes, but not as good as I Bonds!
I'm incredibly intrigued by I bonds. I'm a bond dummy. Are these just guaranteed to match inflation and therefore basically offer a 0% real return?

Why do TIPS have a negative yield? Isn't their purpose also to keep up with inflation?
Da5id
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Re: Jack Bogle - Two Fund Portfolio

Post by Da5id »

anon_investor wrote: Tue Jun 01, 2021 7:49 pm
Marseille07 wrote: Tue Jun 01, 2021 7:48 pm
anon_investor wrote: Tue Jun 01, 2021 7:34 pm
Marseille07 wrote: Tue Jun 01, 2021 7:05 pm
000 wrote: Tue Jun 01, 2021 6:49 pm

That seems to be a reasonable take.

I will add that as a bond bear I am not interested in bond futures at all. NTSX is a convenient way to achieve a levered play on declining interest rates, aka the recent past. I for one do not think that the near future is likely to resemble the recent past.
Yeah, that's the thing about 90/60. It's not as radical as HEDGEFUNDIE's 165/135, but still quite a bit of lev on the bond side.

This is why my fixed income side is all cash instead.
I guess too exotic on the fixed income side.
Mr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.
Yes, but not as good as I Bonds!
Yeah, though when making a 100M portfolio like the "Buffett" one I-bonds are really not an option anyway.
Last edited by Da5id on Tue Jun 01, 2021 7:57 pm, edited 1 time in total.
Da5id
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Re: Jack Bogle - Two Fund Portfolio

Post by Da5id »

Triple digit golfer wrote: Tue Jun 01, 2021 7:52 pm
anon_investor wrote: Tue Jun 01, 2021 7:49 pm
Marseille07 wrote: Tue Jun 01, 2021 7:48 pm
anon_investor wrote: Tue Jun 01, 2021 7:34 pm
Marseille07 wrote: Tue Jun 01, 2021 7:05 pm

Yeah, that's the thing about 90/60. It's not as radical as HEDGEFUNDIE's 165/135, but still quite a bit of lev on the bond side.

This is why my fixed income side is all cash instead.
I guess too exotic on the fixed income side.
Mr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.
Yes, but not as good as I Bonds!
I'm incredibly intrigued by I bonds. I'm a bond dummy. Are these just guaranteed to match inflation and therefore basically offer a 0% real return?

Why do TIPS have a negative yield? Isn't their purpose also to keep up with inflation?
I-bonds have a fixed yield + twice per year inflation adjustment. The fixed yield is currently 0, but has been higher in the past.

TIPs are sold at auction. So the negative yield is what the market things the inflation protection is worth.
Triple digit golfer
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

Da5id wrote: Tue Jun 01, 2021 7:54 pm
Triple digit golfer wrote: Tue Jun 01, 2021 7:52 pm
anon_investor wrote: Tue Jun 01, 2021 7:49 pm
Marseille07 wrote: Tue Jun 01, 2021 7:48 pm
anon_investor wrote: Tue Jun 01, 2021 7:34 pm

I guess too exotic on the fixed income side.
Mr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.
Yes, but not as good as I Bonds!
I'm incredibly intrigued by I bonds. I'm a bond dummy. Are these just guaranteed to match inflation and therefore basically offer a 0% real return?

Why do TIPS have a negative yield? Isn't their purpose also to keep up with inflation?
I-bonds have a fixed yield + twice per year inflation adjustment. The fixed yield is currently 0, but has been higher in the past.

TIPs are sold at auction. So the negative yield is what the market things the inflation protection is worth.
Makes sense. So inflation protection costs money, so the net is that they may lose to inflation. If inflation suddenly skyrockets, does the yield increase somehow?
Da5id
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Re: Jack Bogle - Two Fund Portfolio

Post by Da5id »

Triple digit golfer wrote: Tue Jun 01, 2021 7:59 pm
Da5id wrote: Tue Jun 01, 2021 7:54 pm
Triple digit golfer wrote: Tue Jun 01, 2021 7:52 pm
anon_investor wrote: Tue Jun 01, 2021 7:49 pm
Marseille07 wrote: Tue Jun 01, 2021 7:48 pm

Mr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.
Yes, but not as good as I Bonds!
I'm incredibly intrigued by I bonds. I'm a bond dummy. Are these just guaranteed to match inflation and therefore basically offer a 0% real return?

Why do TIPS have a negative yield? Isn't their purpose also to keep up with inflation?
I-bonds have a fixed yield + twice per year inflation adjustment. The fixed yield is currently 0, but has been higher in the past.

TIPs are sold at auction. So the negative yield is what the market things the inflation protection is worth.
Makes sense. So inflation protection costs money, so the net is that they may lose to inflation. If inflation suddenly skyrockets, does the yield increase somehow?
Variable part of yield for TIPS and I-bonds adjusts to CPI every 6 months I think.
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

This supreme portfolio is so simple yet so effective that there isn't much to talk about. The only portfolio that does it all.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Da5id wrote: Tue Jun 01, 2021 8:19 pm
Triple digit golfer wrote: Tue Jun 01, 2021 7:59 pm
Da5id wrote: Tue Jun 01, 2021 7:54 pm
Triple digit golfer wrote: Tue Jun 01, 2021 7:52 pm
anon_investor wrote: Tue Jun 01, 2021 7:49 pm

Yes, but not as good as I Bonds!
I'm incredibly intrigued by I bonds. I'm a bond dummy. Are these just guaranteed to match inflation and therefore basically offer a 0% real return?

Why do TIPS have a negative yield? Isn't their purpose also to keep up with inflation?
I-bonds have a fixed yield + twice per year inflation adjustment. The fixed yield is currently 0, but has been higher in the past.

TIPs are sold at auction. So the negative yield is what the market things the inflation protection is worth.
Makes sense. So inflation protection costs money, so the net is that they may lose to inflation. If inflation suddenly skyrockets, does the yield increase somehow?
Variable part of yield for TIPS and I-bonds adjusts to CPI every 6 months I think.
That is exactly how it works. I Bonds are non-marketable and can only be redeemed at Treasury Direct, but will never lose principal or earned interest (except a 3 month interest penalty if redeemed before 5 years). We use them as our main fixed income investment now. So VTSAX + I Bonds. But we don't have buffet money, so the $20k a year we can buy in electronic I Bonds is good enough.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Marseille07 wrote: Tue Jun 01, 2021 9:02 pm This supreme portfolio is so simple yet so effective that there isn't much to talk about. The only portfolio that does it all.
:sharebeer
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marklearnsbogle
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Re: Jack Bogle - Two Fund Portfolio

Post by marklearnsbogle »

anon_investor wrote: Tue Jun 01, 2021 9:35 pm
Marseille07 wrote: Tue Jun 01, 2021 9:02 pm This supreme portfolio is so simple yet so effective that there isn't much to talk about. The only portfolio that does it all.
:sharebeer
+1. :wink:
"Nothing is simpler than owning the stock market and holding it forever, and that’s essentially the idea behind the index fund.” - Bogle.
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Taylor Larimore
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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore »

Bogleheads:

Jack Bogle (who knows more than any of us about investing) wrote this in his updated (2017) edition of "The Little Book of Common Sense Investing":
"Deep Down, I remain absolutely confident that the vast majority of American families would be well served by owning their equity holding in a Standard & Poor's 500 Index fund (or a total stock market index fund) and holding their bonds in a total bond market index fund. (Investors in high tax brackets, however, would instead own a very low-cost quasi-index portfolio of high-grade intermediate-term municipal bonds.)
Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
ruud
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Re: Jack Bogle - Two Fund Portfolio

Post by ruud »

Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Jack Bogle (who knows more than any of us about investing) wrote this in his updated (2017) edition of "The Little Book of Common Sense Investing":
"Deep Down, I remain absolutely confident that the vast majority of American families would be well served by owning their equity holding in a Standard & Poor's 500 Index fund (or a total stock market index fund) and holding their bonds in a total bond market index fund. (Investors in high tax brackets, however, would instead own a very low-cost quasi-index portfolio of high-grade intermediate-term municipal bonds.)
Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Best wishes.
Taylor
Does this mean you no longer advocate for the 3-fund portfolio, even though you wrote a book on it? Why did your opinion change?
.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Thanks for sharing Taylor. I love this quote, it is so very true.
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Taylor Larimore
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Re: Jack Bogle - Two Fund Portfolio

Post by Taylor Larimore »

ruud wrote: Wed Jun 02, 2021 3:01 pm
Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Jack Bogle (who knows more than any of us about investing) wrote this in his updated (2017) edition of "The Little Book of Common Sense Investing":
"Deep Down, I remain absolutely confident that the vast majority of American families would be well served by owning their equity holding in a Standard & Poor's 500 Index fund (or a total stock market index fund) and holding their bonds in a total bond market index fund. (Investors in high tax brackets, however, would instead own a very low-cost quasi-index portfolio of high-grade intermediate-term municipal bonds.)
Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Best wishes.
Taylor
Does this mean you no longer advocate for the 3-fund portfolio, even though you wrote a book on it? Why did your opinion change?
rudd:

I am an advocate of total market index funds and simplicity represented by the 2-fund and 3-fund portfolios. I don't know which will prove to be better in the years ahead. I do know both are very likely to outperform most portfolios.

Read this:

What Experts Say About Total Market Index Funds

What Experts Say About Simplicity

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “The winning formula for success in investing is owning the entire stock market through an index fund, and then doing nothing. Just stay the course.”
"Simplicity is the master key to financial success." -- Jack Bogle
ruud
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Re: Jack Bogle - Two Fund Portfolio

Post by ruud »

Taylor Larimore wrote: Wed Jun 02, 2021 7:14 pm rudud:

I am an advocate of total market index funds and simplicity represented by the 2-fund and 3-fund portfolios. I don't know which will prove to be better in the years ahead. I do know both are very likely to outperform most portfolios.

Read this:

What Experts Say About Total Market Index Funds

What Experts Say About Simplicity

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “The winning formula for success in investing is owning the entire stock market through an index fund, and then doing nothing. Just stay the course.”
Thanks for the clarification!
.
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vineviz
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Re: Jack Bogle - Two Fund Portfolio

Post by vineviz »

Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Jack Bogle (who knows more than any of us about investing)....
I don’t think even Jack believed this.

Bogle’s magic was that he understood investors incredibly well, not necessarily investing.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch
DSBH
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Re: Jack Bogle - Two Fund Portfolio

Post by DSBH »

Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Jack Bogle (who knows more than any of us about investing) wrote this in his updated (2017) edition of "The Little Book of Common Sense Investing":
"Deep Down, I remain absolutely confident that the vast majority of American families would be well served by owning their equity holding in a Standard & Poor's 500 Index fund (or a total stock market index fund) and holding their bonds in a total bond market index fund. (Investors in high tax brackets, however, would instead own a very low-cost quasi-index portfolio of high-grade intermediate-term municipal bonds.)
Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Best wishes.
Taylor
Pretty amazing life, Mr. Bogle - https://about.vanguard.com/who-we-are/a ... e-tribute/
John C. Bogle: "Never confuse genius with luck and a bull market".
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

anon_investor wrote: Wed Jun 02, 2021 3:09 pm
Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Thanks for sharing Taylor. I love this quote, it is so very true.
Indeed. I think fixed income being all cash (or STT) is the simplest.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Marseille07 wrote: Wed Jun 02, 2021 10:05 pm
anon_investor wrote: Wed Jun 02, 2021 3:09 pm
Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Thanks for sharing Taylor. I love this quote, it is so very true.
Indeed. I think fixed income being all cash (or STT) is the simplest.
So 100% VFIAX (a lot of it) and just a checking account where the cash from dividends accumulates?
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

anon_investor wrote: Thu Jun 03, 2021 7:16 pm So 100% VFIAX (a lot of it) and just a checking account where the cash from dividends accumulates?
Cash will be reinvested. As Dalio said, cash is trash.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Marseille07 wrote: Thu Jun 03, 2021 7:21 pm
anon_investor wrote: Thu Jun 03, 2021 7:16 pm So 100% VFIAX (a lot of it) and just a checking account where the cash from dividends accumulates?
Cash will be reinvested. As Dalio said, cash is trash.
Sure in the accumulation phase, but I was thinking in early retirement. Just need enough VTSAX/VFIAX. :twisted:
Triple digit golfer
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

Marseille07 wrote: Wed Jun 02, 2021 10:05 pm
anon_investor wrote: Wed Jun 02, 2021 3:09 pm
Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Thanks for sharing Taylor. I love this quote, it is so very true.
Indeed. I think fixed income being all cash (or STT) is the simplest.
I prefer intermediate term bonds for fixed income, but we do keep about $15k or so in an online savings account that is part of our "fixed income" allocation.
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anon_investor
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Triple digit golfer wrote: Thu Jun 03, 2021 7:29 pm
Marseille07 wrote: Wed Jun 02, 2021 10:05 pm
anon_investor wrote: Wed Jun 02, 2021 3:09 pm
Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Thanks for sharing Taylor. I love this quote, it is so very true.
Indeed. I think fixed income being all cash (or STT) is the simplest.
I prefer intermediate term bonds for fixed income, but we do keep about $15k or so in an online savings account that is part of our "fixed income" allocation.
If it talks like an EF and walks like an EF, it just might be an EF... :twisted:
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

Triple digit golfer wrote: Thu Jun 03, 2021 7:29 pm
Marseille07 wrote: Wed Jun 02, 2021 10:05 pm
anon_investor wrote: Wed Jun 02, 2021 3:09 pm
Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Warren Buffett wrote:
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Thanks for sharing Taylor. I love this quote, it is so very true.
Indeed. I think fixed income being all cash (or STT) is the simplest.
I prefer intermediate term bonds for fixed income, but we do keep about $15k or so in an online savings account that is part of our "fixed income" allocation.
I think ITTs are a fine choice, esp when 10Y is still low at 1.6%.
Triple digit golfer
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

anon_investor wrote: Thu Jun 03, 2021 7:32 pm
Triple digit golfer wrote: Thu Jun 03, 2021 7:29 pm
Marseille07 wrote: Wed Jun 02, 2021 10:05 pm
anon_investor wrote: Wed Jun 02, 2021 3:09 pm
Taylor Larimore wrote: Wed Jun 02, 2021 1:31 pm Bogleheads:

Warren Buffett wrote:
Thanks for sharing Taylor. I love this quote, it is so very true.
Indeed. I think fixed income being all cash (or STT) is the simplest.
I prefer intermediate term bonds for fixed income, but we do keep about $15k or so in an online savings account that is part of our "fixed income" allocation.
If it talks like an EF and walks like an EF, it just might be an EF... :twisted:
It is the first tier of my EP*, in which I would make a corresponding move in retirement accounts to sell equities if necessary and maintain my AA.

*EP
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

Triple digit golfer wrote: Thu Jun 03, 2021 7:35 pm
anon_investor wrote: Thu Jun 03, 2021 7:32 pm
Triple digit golfer wrote: Thu Jun 03, 2021 7:29 pm
Marseille07 wrote: Wed Jun 02, 2021 10:05 pm
anon_investor wrote: Wed Jun 02, 2021 3:09 pm

Thanks for sharing Taylor. I love this quote, it is so very true.
Indeed. I think fixed income being all cash (or STT) is the simplest.
I prefer intermediate term bonds for fixed income, but we do keep about $15k or so in an online savings account that is part of our "fixed income" allocation.
If it talks like an EF and walks like an EF, it just might be an EF... :twisted:
It is the first tier of my EP*, in which I would make a corresponding move in retirement accounts to sell equities if necessary and maintain my AA.

*EP
What was EP again?
Triple digit golfer
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

Marseille07 wrote: Fri Jun 04, 2021 6:03 pm
Triple digit golfer wrote: Thu Jun 03, 2021 7:35 pm
anon_investor wrote: Thu Jun 03, 2021 7:32 pm
Triple digit golfer wrote: Thu Jun 03, 2021 7:29 pm
Marseille07 wrote: Wed Jun 02, 2021 10:05 pm

Indeed. I think fixed income being all cash (or STT) is the simplest.
I prefer intermediate term bonds for fixed income, but we do keep about $15k or so in an online savings account that is part of our "fixed income" allocation.
If it talks like an EF and walks like an EF, it just might be an EF... :twisted:
It is the first tier of my EP*, in which I would make a corresponding move in retirement accounts to sell equities if necessary and maintain my AA.

*EP
What was EP again?
Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

Triple digit golfer wrote: Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
Sounds fine. 15K of cash then ITTs for the rest of your fixed income side :beer I just have more cash out but no bonds.
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

Marseille07 wrote: Fri Jun 04, 2021 6:27 pm
Triple digit golfer wrote: Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
Sounds fine. 15K of cash then ITTs for the rest of your fixed income side :beer I just have more cash out but no bonds.
Total Bond, but close enough!
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Triple digit golfer wrote: Fri Jun 04, 2021 6:31 pm
Marseille07 wrote: Fri Jun 04, 2021 6:27 pm
Triple digit golfer wrote: Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
Sounds fine. 15K of cash then ITTs for the rest of your fixed income side :beer I just have more cash out but no bonds.
Total Bond, but close enough!
No ex-US? :twisted:
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Re: Jack Bogle - Two Fund Portfolio

Post by Triple digit golfer »

anon_investor wrote: Fri Jun 04, 2021 6:38 pm
Triple digit golfer wrote: Fri Jun 04, 2021 6:31 pm
Marseille07 wrote: Fri Jun 04, 2021 6:27 pm
Triple digit golfer wrote: Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
Sounds fine. 15K of cash then ITTs for the rest of your fixed income side :beer I just have more cash out but no bonds.
Total Bond, but close enough!
No ex-US? :twisted:
32% of my portfolio.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Triple digit golfer wrote: Fri Jun 04, 2021 7:28 pm
anon_investor wrote: Fri Jun 04, 2021 6:38 pm
Triple digit golfer wrote: Fri Jun 04, 2021 6:31 pm
Marseille07 wrote: Fri Jun 04, 2021 6:27 pm
Triple digit golfer wrote: Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
Sounds fine. 15K of cash then ITTs for the rest of your fixed income side :beer I just have more cash out but no bonds.
Total Bond, but close enough!
No ex-US? :twisted:
32% of my portfolio.
32% too much imho. :beer
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

anon_investor wrote: Fri Jun 04, 2021 8:19 pm 32% too much imho. :beer
32% is too much, but I'm going to once again include my fixed income in my AA calculations as 97/3 instead of 100/0 + 3% cash. Not a huge difference and I admit I go back and forth a lot.
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Re: Jack Bogle - Two Fund Portfolio

Post by anon_investor »

Marseille07 wrote: Sun Jun 06, 2021 3:16 pm
anon_investor wrote: Fri Jun 04, 2021 8:19 pm 32% too much imho. :beer
32% is too much, but I'm going to once again include my fixed income in my AA calculations as 97/3 instead of 100/0 + 3% cash. Not a huge difference and I admit I go back and forth a lot.
With new money going 100% to VTSAX (or equivalent), if the market keeps going up, my 93/7 may end up 97/3... :shock:

I think I did the calculations, I would need to move to 40% international in my 401k just to get to 20% international overall. If I ever wanted international, I don't think I would make such a drastic move in 1 day...
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

anon_investor wrote: Sun Jun 06, 2021 3:29 pm
Marseille07 wrote: Sun Jun 06, 2021 3:16 pm
anon_investor wrote: Fri Jun 04, 2021 8:19 pm 32% too much imho. :beer
32% is too much, but I'm going to once again include my fixed income in my AA calculations as 97/3 instead of 100/0 + 3% cash. Not a huge difference and I admit I go back and forth a lot.
With new money going 100% to VTSAX (or equivalent), if the market keeps going up, my 93/7 may end up 97/3... :shock:

I think I did the calculations, I would need to move to 40% international in my 401k just to get to 20% international overall. If I ever wanted international, I don't think I would make such a drastic move in 1 day...
Are you targeting a particular AA? 97/3 is what I'm nudging towards, as my cash is actually around 2.4% at the moment. Once I get there then new money will be invested instead.
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

I'm debating if I want my Two Fund Portfolio to be 95/5 instead of 97/3. Maybe holding 2% extra won't hurt.
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Re: Jack Bogle - Two Fund Portfolio

Post by LadyGeek »

We often recommend asset allocations in 5% steps. It's a lot simpler to manage for little added benefit.
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Marseille07
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Re: Jack Bogle - Two Fund Portfolio

Post by Marseille07 »

LadyGeek wrote: Sun Jun 06, 2021 8:07 pm We often recommend asset allocations in 5% steps. It's a lot simple to manage for little added benefit.
Yes, thank you. This was exactly my thinking of considering 95/5. Practically we can't do 100/0 if we include checking in AA, thus the next logical step sounded like 95/5.
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