Isn't it like 90/60? I don't like the leverage factor here.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.
Jack Bogle - Two Fund Portfolio
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Re: Jack Bogle - Two Fund Portfolio
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Re: Jack Bogle - Two Fund Portfolio
The leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.Marseille07 wrote: ↑Tue Jun 01, 2021 5:37 pmIsn't it like 90/60? I don't like the leverage factor here.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.
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Re: Jack Bogle - Two Fund Portfolio
Wait, how does that work? I thought the lev is 150% as you have 100% and taking on a 150% position.anon_investor wrote: ↑Tue Jun 01, 2021 6:04 pmThe leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.Marseille07 wrote: ↑Tue Jun 01, 2021 5:37 pmIsn't it like 90/60? I don't like the leverage factor here.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.
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Re: Jack Bogle - Two Fund Portfolio
I thought the same thing. Interested in learning more on this.Marseille07 wrote: ↑Tue Jun 01, 2021 6:12 pmWait, how does that work? I thought the lev is 150% as you have 100% and taking on a 150% position.anon_investor wrote: ↑Tue Jun 01, 2021 6:04 pmThe leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.Marseille07 wrote: ↑Tue Jun 01, 2021 5:37 pmIsn't it like 90/60? I don't like the leverage factor here.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.
Re: Jack Bogle - Two Fund Portfolio
I assume there is a risk associated with the leverage. I wonder what the risk is and when/how it shows up?Triple digit golfer wrote: ↑Tue Jun 01, 2021 6:26 pmI thought the same thing. Interested in learning more on this.Marseille07 wrote: ↑Tue Jun 01, 2021 6:12 pmWait, how does that work? I thought the lev is 150% as you have 100% and taking on a 150% position.anon_investor wrote: ↑Tue Jun 01, 2021 6:04 pmThe leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.Marseille07 wrote: ↑Tue Jun 01, 2021 5:37 pmIsn't it like 90/60? I don't like the leverage factor here.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.
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Re: Jack Bogle - Two Fund Portfolio
It's very much like the HEDGEFUNDIE portfolio. Stocks crashing and yields rising would be very bad for NTSX.Da5id wrote: ↑Tue Jun 01, 2021 6:34 pmI assume there is a risk associated with the leverage. I wonder what the risk is and when/how it shows up?Triple digit golfer wrote: ↑Tue Jun 01, 2021 6:26 pmI thought the same thing. Interested in learning more on this.Marseille07 wrote: ↑Tue Jun 01, 2021 6:12 pmWait, how does that work? I thought the lev is 150% as you have 100% and taking on a 150% position.anon_investor wrote: ↑Tue Jun 01, 2021 6:04 pmThe leverage is only on 10%, to simulate 60% treasuries through treasury futures. I think it is an interesting concept.Marseille07 wrote: ↑Tue Jun 01, 2021 5:37 pm
Isn't it like 90/60? I don't like the leverage factor here.
Re: Jack Bogle - Two Fund Portfolio
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).
The fund holds 90% stocks unlevered and invests 10% in Treasury futures (implicitly levered play on Treasuries).
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Re: Jack Bogle - Two Fund Portfolio
Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215000 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).
Re: Jack Bogle - Two Fund Portfolio
That seems to be a reasonable take.Marseille07 wrote: ↑Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
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.
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Re: Jack Bogle - Two Fund Portfolio
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.000 wrote: ↑Tue Jun 01, 2021 6:49 pmThat seems to be a reasonable take.Marseille07 wrote: ↑Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
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.
This is why my fixed income side is all cash instead.
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Re: Jack Bogle - Two Fund Portfolio
I guess too exotic on the fixed income side.Marseille07 wrote: ↑Tue Jun 01, 2021 7:05 pmYeah, 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.000 wrote: ↑Tue Jun 01, 2021 6:49 pmThat seems to be a reasonable take.Marseille07 wrote: ↑Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
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.
This is why my fixed income side is all cash instead.
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Re: Jack Bogle - Two Fund Portfolio
Mr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.anon_investor wrote: ↑Tue Jun 01, 2021 7:34 pmI guess too exotic on the fixed income side.Marseille07 wrote: ↑Tue Jun 01, 2021 7:05 pmYeah, 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.000 wrote: ↑Tue Jun 01, 2021 6:49 pmThat seems to be a reasonable take.Marseille07 wrote: ↑Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
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.
This is why my fixed income side is all cash instead.
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Re: Jack Bogle - Two Fund Portfolio
Yes, but not as good as I Bonds!Marseille07 wrote: ↑Tue Jun 01, 2021 7:48 pmMr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.anon_investor wrote: ↑Tue Jun 01, 2021 7:34 pmI guess too exotic on the fixed income side.Marseille07 wrote: ↑Tue Jun 01, 2021 7:05 pmYeah, 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.000 wrote: ↑Tue Jun 01, 2021 6:49 pmThat seems to be a reasonable take.Marseille07 wrote: ↑Tue Jun 01, 2021 6:46 pm Thank you. This person's analysis seems spot-on: viewtopic.php?p=4989215#p4989215
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.
This is why my fixed income side is all cash instead.
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Re: Jack Bogle - Two Fund Portfolio
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?anon_investor wrote: ↑Tue Jun 01, 2021 7:49 pmYes, but not as good as I Bonds!Marseille07 wrote: ↑Tue Jun 01, 2021 7:48 pmMr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.anon_investor wrote: ↑Tue Jun 01, 2021 7:34 pmI guess too exotic on the fixed income side.Marseille07 wrote: ↑Tue Jun 01, 2021 7:05 pmYeah, 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.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.
This is why my fixed income side is all cash instead.
Why do TIPS have a negative yield? Isn't their purpose also to keep up with inflation?
Re: Jack Bogle - Two Fund Portfolio
Yeah, though when making a 100M portfolio like the "Buffett" one I-bonds are really not an option anyway.anon_investor wrote: ↑Tue Jun 01, 2021 7:49 pmYes, but not as good as I Bonds!Marseille07 wrote: ↑Tue Jun 01, 2021 7:48 pmMr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.anon_investor wrote: ↑Tue Jun 01, 2021 7:34 pmI guess too exotic on the fixed income side.Marseille07 wrote: ↑Tue Jun 01, 2021 7:05 pmYeah, 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.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.
This is why my fixed income side is all cash instead.
Last edited by Da5id on Tue Jun 01, 2021 7:57 pm, edited 1 time in total.
Re: Jack Bogle - Two Fund Portfolio
I-bonds have a fixed yield + twice per year inflation adjustment. The fixed yield is currently 0, but has been higher in the past.Triple digit golfer wrote: ↑Tue Jun 01, 2021 7:52 pmI'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?anon_investor wrote: ↑Tue Jun 01, 2021 7:49 pmYes, but not as good as I Bonds!Marseille07 wrote: ↑Tue Jun 01, 2021 7:48 pmMr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.anon_investor wrote: ↑Tue Jun 01, 2021 7:34 pmI guess too exotic on the fixed income side.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.
Why do TIPS have a negative yield? Isn't their purpose also to keep up with inflation?
TIPs are sold at auction. So the negative yield is what the market things the inflation protection is worth.
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Re: Jack Bogle - Two Fund Portfolio
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 wrote: ↑Tue Jun 01, 2021 7:54 pmI-bonds have a fixed yield + twice per year inflation adjustment. The fixed yield is currently 0, but has been higher in the past.Triple digit golfer wrote: ↑Tue Jun 01, 2021 7:52 pmI'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?anon_investor wrote: ↑Tue Jun 01, 2021 7:49 pmYes, but not as good as I Bonds!Marseille07 wrote: ↑Tue Jun 01, 2021 7:48 pmMr. Buffett's portfolio holds short-term government bonds. It's not cash, but fairly close.
Why do TIPS have a negative yield? Isn't their purpose also to keep up with inflation?
TIPs are sold at auction. So the negative yield is what the market things the inflation protection is worth.
Re: Jack Bogle - Two Fund Portfolio
Variable part of yield for TIPS and I-bonds adjusts to CPI every 6 months I think.Triple digit golfer wrote: ↑Tue Jun 01, 2021 7:59 pmMakes 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 wrote: ↑Tue Jun 01, 2021 7:54 pmI-bonds have a fixed yield + twice per year inflation adjustment. The fixed yield is currently 0, but has been higher in the past.Triple digit golfer wrote: ↑Tue Jun 01, 2021 7:52 pmI'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?anon_investor wrote: ↑Tue Jun 01, 2021 7:49 pmYes, but not as good as I Bonds!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.
Why do TIPS have a negative yield? Isn't their purpose also to keep up with inflation?
TIPs are sold at auction. So the negative yield is what the market things the inflation protection is worth.
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Re: Jack Bogle - Two Fund Portfolio
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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Re: Jack Bogle - Two Fund Portfolio
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.Da5id wrote: ↑Tue Jun 01, 2021 8:19 pmVariable part of yield for TIPS and I-bonds adjusts to CPI every 6 months I think.Triple digit golfer wrote: ↑Tue Jun 01, 2021 7:59 pmMakes 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 wrote: ↑Tue Jun 01, 2021 7:54 pmI-bonds have a fixed yield + twice per year inflation adjustment. The fixed yield is currently 0, but has been higher in the past.Triple digit golfer wrote: ↑Tue Jun 01, 2021 7:52 pmI'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?
TIPs are sold at auction. So the negative yield is what the market things the inflation protection is worth.
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Re: Jack Bogle - Two Fund Portfolio
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.
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Re: Jack Bogle - Two Fund Portfolio
+1.anon_investor wrote: ↑Tue Jun 01, 2021 9:35 pmMarseille07 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.
"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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Re: Jack Bogle - Two Fund Portfolio
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":
Taylor
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":
Warren Buffett wrote:"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.)
Best wishes."There seems to be some perverse human characteristic that likes to make easy things difficult."
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
Re: Jack Bogle - Two Fund Portfolio
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?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":Warren Buffett wrote:"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.)
Best wishes."There seems to be some perverse human characteristic that likes to make easy things difficult."
Taylor
.
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Re: Jack Bogle - Two Fund Portfolio
Thanks for sharing Taylor. I love this quote, it is so very true.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."
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Re: Jack Bogle - Two Fund Portfolio
rudd:ruud wrote: ↑Wed Jun 02, 2021 3:01 pmDoes this mean you no longer advocate for the 3-fund portfolio, even though you wrote a book on it? Why did your opinion change?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":Warren Buffett wrote:"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.)
Best wishes."There seems to be some perverse human characteristic that likes to make easy things difficult."
Taylor
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
Re: Jack Bogle - Two Fund Portfolio
Thanks for the clarification!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.
TaylorJack 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.”
.
Re: Jack Bogle - Two Fund Portfolio
I don’t think even Jack believed this.Taylor Larimore wrote: ↑Wed Jun 02, 2021 1:31 pm Bogleheads:
Jack Bogle (who knows more than any of us about investing)....
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
Re: Jack Bogle - Two Fund Portfolio
Pretty amazing life, Mr. Bogle - https://about.vanguard.com/who-we-are/a ... e-tribute/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":Warren Buffett wrote:"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.)
Best wishes."There seems to be some perverse human characteristic that likes to make easy things difficult."
Taylor
John C. Bogle: "Never confuse genius with luck and a bull market".
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Re: Jack Bogle - Two Fund Portfolio
Indeed. I think fixed income being all cash (or STT) is the simplest.anon_investor wrote: ↑Wed Jun 02, 2021 3:09 pmThanks for sharing Taylor. I love this quote, it is so very true.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."
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Re: Jack Bogle - Two Fund Portfolio
So 100% VFIAX (a lot of it) and just a checking account where the cash from dividends accumulates?Marseille07 wrote: ↑Wed Jun 02, 2021 10:05 pmIndeed. I think fixed income being all cash (or STT) is the simplest.anon_investor wrote: ↑Wed Jun 02, 2021 3:09 pmThanks for sharing Taylor. I love this quote, it is so very true.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."
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Re: Jack Bogle - Two Fund Portfolio
Cash will be reinvested. As Dalio said, cash is trash.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?
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Re: Jack Bogle - Two Fund Portfolio
Sure in the accumulation phase, but I was thinking in early retirement. Just need enough VTSAX/VFIAX.Marseille07 wrote: ↑Thu Jun 03, 2021 7:21 pmCash will be reinvested. As Dalio said, cash is trash.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?
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Re: Jack Bogle - Two Fund Portfolio
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.Marseille07 wrote: ↑Wed Jun 02, 2021 10:05 pmIndeed. I think fixed income being all cash (or STT) is the simplest.anon_investor wrote: ↑Wed Jun 02, 2021 3:09 pmThanks for sharing Taylor. I love this quote, it is so very true.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."
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Re: Jack Bogle - Two Fund Portfolio
If it talks like an EF and walks like an EF, it just might be an EF...Triple digit golfer wrote: ↑Thu Jun 03, 2021 7:29 pmI 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.Marseille07 wrote: ↑Wed Jun 02, 2021 10:05 pmIndeed. I think fixed income being all cash (or STT) is the simplest.anon_investor wrote: ↑Wed Jun 02, 2021 3:09 pmThanks for sharing Taylor. I love this quote, it is so very true.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."
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Re: Jack Bogle - Two Fund Portfolio
I think ITTs are a fine choice, esp when 10Y is still low at 1.6%.Triple digit golfer wrote: ↑Thu Jun 03, 2021 7:29 pmI 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.Marseille07 wrote: ↑Wed Jun 02, 2021 10:05 pmIndeed. I think fixed income being all cash (or STT) is the simplest.anon_investor wrote: ↑Wed Jun 02, 2021 3:09 pmThanks for sharing Taylor. I love this quote, it is so very true.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."
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Re: Jack Bogle - Two Fund Portfolio
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.anon_investor wrote: ↑Thu Jun 03, 2021 7:32 pmIf it talks like an EF and walks like an EF, it just might be an EF...Triple digit golfer wrote: ↑Thu Jun 03, 2021 7:29 pmI 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.Marseille07 wrote: ↑Wed Jun 02, 2021 10:05 pmIndeed. I think fixed income being all cash (or STT) is the simplest.anon_investor wrote: ↑Wed Jun 02, 2021 3:09 pmThanks for sharing Taylor. I love this quote, it is so very true.
*EP
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Re: Jack Bogle - Two Fund Portfolio
What was EP again?Triple digit golfer wrote: ↑Thu Jun 03, 2021 7:35 pmIt 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.anon_investor wrote: ↑Thu Jun 03, 2021 7:32 pmIf it talks like an EF and walks like an EF, it just might be an EF...Triple digit golfer wrote: ↑Thu Jun 03, 2021 7:29 pmI 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.Marseille07 wrote: ↑Wed Jun 02, 2021 10:05 pmIndeed. I think fixed income being all cash (or STT) is the simplest.anon_investor wrote: ↑Wed Jun 02, 2021 3:09 pm
Thanks for sharing Taylor. I love this quote, it is so very true.
*EP
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Re: Jack Bogle - Two Fund Portfolio
Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.Marseille07 wrote: ↑Fri Jun 04, 2021 6:03 pmWhat was EP again?Triple digit golfer wrote: ↑Thu Jun 03, 2021 7:35 pmIt 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.anon_investor wrote: ↑Thu Jun 03, 2021 7:32 pmIf it talks like an EF and walks like an EF, it just might be an EF...Triple digit golfer wrote: ↑Thu Jun 03, 2021 7:29 pmI 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.Marseille07 wrote: ↑Wed Jun 02, 2021 10:05 pm
Indeed. I think fixed income being all cash (or STT) is the simplest.
*EP
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Re: Jack Bogle - Two Fund Portfolio
Sounds fine. 15K of cash then ITTs for the rest of your fixed income side I just have more cash out but no bonds.Triple digit golfer wrote: ↑Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
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Re: Jack Bogle - Two Fund Portfolio
Total Bond, but close enough!Marseille07 wrote: ↑Fri Jun 04, 2021 6:27 pmSounds fine. 15K of cash then ITTs for the rest of your fixed income side I just have more cash out but no bonds.Triple digit golfer wrote: ↑Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
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Re: Jack Bogle - Two Fund Portfolio
No ex-US?Triple digit golfer wrote: ↑Fri Jun 04, 2021 6:31 pmTotal Bond, but close enough!Marseille07 wrote: ↑Fri Jun 04, 2021 6:27 pmSounds fine. 15K of cash then ITTs for the rest of your fixed income side I just have more cash out but no bonds.Triple digit golfer wrote: ↑Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
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Re: Jack Bogle - Two Fund Portfolio
32% of my portfolio.anon_investor wrote: ↑Fri Jun 04, 2021 6:38 pmNo ex-US?Triple digit golfer wrote: ↑Fri Jun 04, 2021 6:31 pmTotal Bond, but close enough!Marseille07 wrote: ↑Fri Jun 04, 2021 6:27 pmSounds fine. 15K of cash then ITTs for the rest of your fixed income side I just have more cash out but no bonds.Triple digit golfer wrote: ↑Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
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Re: Jack Bogle - Two Fund Portfolio
32% too much imho.Triple digit golfer wrote: ↑Fri Jun 04, 2021 7:28 pm32% of my portfolio.anon_investor wrote: ↑Fri Jun 04, 2021 6:38 pmNo ex-US?Triple digit golfer wrote: ↑Fri Jun 04, 2021 6:31 pmTotal Bond, but close enough!Marseille07 wrote: ↑Fri Jun 04, 2021 6:27 pmSounds fine. 15K of cash then ITTs for the rest of your fixed income side I just have more cash out but no bonds.Triple digit golfer wrote: ↑Fri Jun 04, 2021 6:22 pm Whoops. I was supposed to not abbreviate it at the bottom. Emergency plan.
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Re: Jack Bogle - Two Fund Portfolio
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
With new money going 100% to VTSAX (or equivalent), if the market keeps going up, my 93/7 may end up 97/3...Marseille07 wrote: ↑Sun Jun 06, 2021 3:16 pm32% 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.
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
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.anon_investor wrote: ↑Sun Jun 06, 2021 3:29 pmWith new money going 100% to VTSAX (or equivalent), if the market keeps going up, my 93/7 may end up 97/3...Marseille07 wrote: ↑Sun Jun 06, 2021 3:16 pm32% 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.
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
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.
Re: Jack Bogle - Two Fund Portfolio
We often recommend asset allocations in 5% steps. It's a lot simpler to manage for little added benefit.
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Re: Jack Bogle - Two Fund Portfolio
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.