How many Bogleheads "tinker"with their portfolios?
How many Bogleheads "tinker"with their portfolios?
By " tinkering" I mean moving from one fund to another within the Vanguard family of funds, spicing up your core holdings by adding "x" percentage of a non core holding-such as a REIT-to improve diversification and/or returns or maybe even "tweaking"your asset allocation. This would all be in a tax favored account and would not include normal rebalancing.
While I often think about general investing info, I last checked my own balances a couple of months ago. I last tinkered with my portfolio when I retired in 2005. That seems fairly recent to my way of thinking.
To beat Uncle Mick to his line from Jack Bogle on portfolio tinkering, "Don't do something, just stand there."
To beat Uncle Mick to his line from Jack Bogle on portfolio tinkering, "Don't do something, just stand there."
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Re: How many Bogleheads "tinker"with their portfol
Only when I was "young and foolish".redrock wrote:By " tinkering" I mean moving from one fund to another within the Vanguard family of funds, spicing up your core holdings by adding "x" percentage of a non core holding-such as a REIT-to improve diversification and/or returns or maybe even "tweaking"your asset allocation.
Thank goodness I got over it :lol:
- Ron (e.g. "old, retired, and doing well, thank you very much...)
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These days, you can usually exchange one fund for another within a 401(k) without any fees. In a mutual fund company account you can almost always exchange between funds in the family without any fees. And at many brokerages, there are many funds with no transaction fees.
In a tax-advantaged account, there are no tax consequences.
This all makes the urge to tinker all but irresistible. I consciously try to resist it. But I fail.
I am very strict about "no sudden moves ever," specifically moves that would make big changes in my overall asset allocations. I try to wait at least a day, preferably a full month, between making a decision to make a financial move and actually making the move. I frequently use Vanguard automatic exchanges to make the move gradually, in installments, over a period of time. And, when in doubt, I try to lean in the direction of doing nothing.
Also, it's been my experience that an urge to tinker in my investment accounts is displacement activity. It's usually a substitute for doing the right thing, which is usually simple and boring, like saving more or spending less.
In a tax-advantaged account, there are no tax consequences.
This all makes the urge to tinker all but irresistible. I consciously try to resist it. But I fail.
I am very strict about "no sudden moves ever," specifically moves that would make big changes in my overall asset allocations. I try to wait at least a day, preferably a full month, between making a decision to make a financial move and actually making the move. I frequently use Vanguard automatic exchanges to make the move gradually, in installments, over a period of time. And, when in doubt, I try to lean in the direction of doing nothing.
Also, it's been my experience that an urge to tinker in my investment accounts is displacement activity. It's usually a substitute for doing the right thing, which is usually simple and boring, like saving more or spending less.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
I have overcome the urge to tinker as I have gotten older. My IRA is in good shape, so I plan to do nothing except continue to grow older.
Chaz |
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I have done some tinkering.
Last edited by DualCitizen on Wed Aug 05, 2020 5:40 pm, edited 1 time in total.
Since I've been steadily contributing, my "tweaking" has to do with improving asset locations or freeing up tax free space. For example in the next year or two I may have to sell one whole fund out of my Roth and re-buy the same fund in my Taxable with new money. And recently I added tax-exempt bonds to Taxable as a way to balance out nominal and inflation protected bonds, and as a place to deposit distributions.
Best regards, Tet
Best regards, Tet
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Re: How many Bogleheads "tinker"with their portfolios?
I am 36.
Until last year, I did not have much understanding of where my retirement funds were being invested.
I had a portfolio with Contrafund which was purchased almost 10 years ago after some advice from a CFP.
And I had a lot of cash.
I had spent too much time reading about what to do, but too scared to take any action.
This past year I decided to take ownership of my investments.
I made changes in my retirement accounts and moved them to broad index funds (S&P tracking or VT).
I invested most of my cash in VT.
I was so happy that I was finally taking action and was content with creating a very simple portfolio with the allocation I wanted.
Then I started reading again and looking through forums.
I was checking my portfolio every day.
I wasn't trying to chase gains, but other questions started to rise.
Was my fund placement tax-efficient?
Was VT good enough?
Etc.
So I tinkered a bit, trying to get to the "perfect" portfolio.
I ended up making a sale of some of my funds with short term gains.
I felt so stupid after that.
Luckily the gain is very small so tax won't be anything serious.
This was a small price to pay for a significant learning experience.
I am happy to read here that these urges tend to go away as you get older.
Until last year, I did not have much understanding of where my retirement funds were being invested.
I had a portfolio with Contrafund which was purchased almost 10 years ago after some advice from a CFP.
And I had a lot of cash.
I had spent too much time reading about what to do, but too scared to take any action.
This past year I decided to take ownership of my investments.
I made changes in my retirement accounts and moved them to broad index funds (S&P tracking or VT).
I invested most of my cash in VT.
I was so happy that I was finally taking action and was content with creating a very simple portfolio with the allocation I wanted.
Then I started reading again and looking through forums.
I was checking my portfolio every day.
I wasn't trying to chase gains, but other questions started to rise.
Was my fund placement tax-efficient?
Was VT good enough?
Etc.
So I tinkered a bit, trying to get to the "perfect" portfolio.
I ended up making a sale of some of my funds with short term gains.
I felt so stupid after that.
Luckily the gain is very small so tax won't be anything serious.
This was a small price to pay for a significant learning experience.
I am happy to read here that these urges tend to go away as you get older.
Re: How many Bogleheads "tinker"with their portfolios?
I used to spend a lot of time thinking about it. Luckily I didn’t do too much tinkering. Eventually I discovered (and rediscovered) other hobbies and completely forgot about it. Maybe the same will happen with you?
Perhaps an investment policy statement is a good place to start though.
Perhaps an investment policy statement is a good place to start though.
cheers ... -Mark |
"Our life is frittered away with detail. Simplify. Simplify." -Henry David Thoreau |
[VTI, VXUS, BND, VTEB, SV fund]
Re: How many Bogleheads "tinker"with their portfolios?
In my younger years, I have to admit that I did tinker around a little bit to try and boost returns. Sadly, I did some of this in a taxable account which took some time to undo, but March 2020 gave me the opportunity to undo the last of it. This took a few years and started by redirecting dividends/capital gains away from the funds I wanted out of, matching lots with gains with lots with losses and selling those to prevent taxable events, then basically waiting for a market correction to take care of the last of it. The investment I wanted out of really wasn't doing a lot of damage, it's just that it has become something of a closeted index fund but with the e/r of a managed fund, so I was prepared to slow-boat it.redrock wrote: ↑Sat Jul 04, 2009 9:28 pm By " tinkering" I mean moving from one fund to another within the Vanguard family of funds, spicing up your core holdings by adding "x" percentage of a non core holding-such as a REIT-to improve diversification and/or returns or maybe even "tweaking"your asset allocation. This would all be in a tax favored account and would not include normal rebalancing.
That doesn't mean I never change my portfolio for other reasons. These days I'm thinking more about what my withdrawals might look like in retirement than how much bigger my portfolio may become, though that's still important and both concepts are clearly linked.
A few years ago I decided to dedicate a portion of my portfolio to inflation adjusted income streams via Ibonds and TIPs which I'll tap into at age 70. That plus SS will just about cover absolute minimum living expenses. I think of it more as an insurance policy and what I think might cause my future 70+ year old self to not sleep at night. At this point, I prefer Ibonds, but the annual purchase limits are a pain. I'm still purchasing Ibonds every year and reducing the amount of TIPs accordingly. I should get all the way there before I turn 70. We'll see.
Another thing I'm looking at is to increase the duration of the remaining bonds I have which aren't part of the income stream above. With a PMT based withdrawal method (like ABW) that uses expected returns of stocks and bonds, and assuming that the majority of the time longer duration bonds have higher yields than intermediate duration bonds (generally true since the Volker era except in and around recessions), then using longer duration bonds should result in higher withdrawals than the intermediate ones I currently hold. Backtesting shows this to indeed be the case when using longinvest's bond yield and return spreadsheet and expected inflation from the Cleveland FED site for the time period starting in 1982. To maintain withdrawal smoothness in real terms, the effective duration would need to be reduced over time. Anyway, something I'll contemplate for the retirement era.
Lastly, since I do have my COLA'd income stream in place it may be logical at some point to increase my stock allocation. Again, something to contemplate in the longer run, but no rush today.
In the words of Cat Stevens "Take your time, think a lot, think of everything you've got....."
Cheers.
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Re: How many Bogleheads "tinker"with their portfolios?
I have recently moved from one fund to another similar fund to lower ER. Lots of new funds coming out and some are better than what was offered before. I switched from a Vanguard fund to Schwab ETF. This was for a tilt. Core holdings just get added to and otherwise sit there.
Re: How many Bogleheads "tinker"with their portfolios?
I have the urge every once in awhile (usually during bull runs) and may create a low percentage fun money account to help that someday. I only tinker now in an attempt to simplify and reduce the number of funds spread across accounts.
Re: How many Bogleheads "tinker"with their portfolios?
I don’t tinker, but I think about it quite a bit…..
Re: How many Bogleheads "tinker"with their portfolios?
A bit odd to see a post revisited after 12 years.
Tom D.
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Re: How many Bogleheads "tinker"with their portfolios?
I tinkered a lot with smaller allocation when I started out. Now I just stay the course, DCAing & nudging based on my plan.
Re: How many Bogleheads "tinker"with their portfolios?
Well depends on definition of tinkering. For some they needed to ponder for a decade to decide if they are tinkerers ?
I definitely would have given a different answer 20 and 10 years ago than now. Decreased tinkering trend. Not sure if it’s age, wisdom, realization of lack of wisdom, or maybe the world is perfect now, no reason to tinker. After all, can’t beat zero and near zero ER index funds unless they pay us !
Re:
This sounds a lot like what I do. Whatever portfolio changes I make are only after a lot of thought.nisiprius wrote: ↑Sun Jul 05, 2009 8:03 am These days, you can usually exchange one fund for another within a 401(k) without any fees. In a mutual fund company account you can almost always exchange between funds in the family without any fees. And at many brokerages, there are many funds with no transaction fees.
In a tax-advantaged account, there are no tax consequences.
This all makes the urge to tinker all but irresistible. I consciously try to resist it. But I fail.
I am very strict about "no sudden moves ever," specifically moves that would make big changes in my overall asset allocations. I try to wait at least a day, preferably a full month, between making a decision to make a financial move and actually making the move. I frequently use Vanguard automatic exchanges to make the move gradually, in installments, over a period of time. And, when in doubt, I try to lean in the direction of doing nothing.
Also, it's been my experience that an urge to tinker in my investment accounts is displacement activity. It's usually a substitute for doing the right thing, which is usually simple and boring, like saving more or spending less.
One example of this resulted from my angst over the 2008-2009 financial crisis and bear market. I bemoaned my missed opportunities of rebalancing my portfolio back in 2007. I told myself that I would from now on rebalance my portfolio as the market would hit new highs. It took until July 2013 for this to happen, market highs coincided with the so-called Taper Tantrum and I had the happy experience of rebalancing while stocks were getting more expensive as bonds where getting cheaper. So I waited probably 4 years or more to implement the mild rebalancing and de-risking program for my portfolio.
Other such shifts were sometimes considered for two years before making a change. This involved waiting for a good opportunity to make such a change.
A fool and his money are good for business.
Re: How many Bogleheads "tinker"with their portfolios?
My most exciting account was a Roth IRA with 100% VTI. Oh hum, just plain boring to watch. So I spiced it up by splitting out parts of it into Nasdaq 100 (QQQ) and Vanguard Information Technology Index (VGT). So for the last year or so their performance has been similar but the lead seems to change off week to week like a slow horse race (VTI, QQQ, and VGT). Not surprisingly no sign of a clear winner, or a clear loser, so far.
I thought about running a larger race, maybe 10 S&P 500 funds, but likely most of any performance difference would be due to the differing expense ratios.
When I check our accounts it's often just before going to sleep. Nothing in them is very exciting, the boredom helps me drift off to sleep.
I thought about running a larger race, maybe 10 S&P 500 funds, but likely most of any performance difference would be due to the differing expense ratios.
When I check our accounts it's often just before going to sleep. Nothing in them is very exciting, the boredom helps me drift off to sleep.
The closest helping hand is at the end of your own arm.
Re: How many Bogleheads "tinker"with their portfolios?
As I learn more (often from this forum), I occasionally make small changes. For example, recently I exchanged a small percentage of total bond fund for a TIPS fund in my 403b. But over time the changes become less frequent and smaller in magnitude.
May all your index funds gain +0.5% today.
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Re: How many Bogleheads "tinker"with their portfolios?
In March 2020, I tax loss harvested all my Total Stock into S&P 500, thinking I would be tax loss harvesting back again a few months later. After a year passed with nonstop growth, I realized that I might be stuck with S&P 500 forever, so I added enough Extended Market to create a Total Stock equivalent. Once that task was accomplished, I directed all future contributions to the real Total Stock. I consider that tinkering. I learned that I am not a good tax loss harvester because I wasn't willing to live with the new fund.
I did some tinkering with my bond funds a while back, but I consider that to be fairly harmless.
I did some tinkering with my bond funds a while back, but I consider that to be fairly harmless.
Re: How many Bogleheads "tinker"with their portfolios?
I Don't
For me there is
No Point
To
Consider
For me there is
No Point
To
Consider
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
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Re: How many Bogleheads "tinker"with their portfolios?
It is nice to have a written investment plan, but can you really plan out exactly when in your 40s/50s/60s you’ll reduce your stock exposure to gear up for retirement? I think it depends on career success and other things. In that sense, there is always some tinkering involved.
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Re: How many Bogleheads "tinker"with their portfolios?
Oh, yes and to my detriment. It all started when I first tax loss harvested moving a portfolio from individual stocks to index funds.
Then I spoke to my accountant and asked what to do with the losses I had accrued. His advice: you need to use them up now because at death the carry forward losses do not move onto your estate. They end.
That lit a fire under me and so I sold some index funds at a profit to take advantage of the losses.
And then as you may have guessed, I watched the market go up and up without me getting back in. I stood on the sidelines during 2 drawn downs of a few percent because I was greedily waiting for a 10% correction.
Finally I was fed up and I used this Monday's pullback to get fully invested. But I didn't go back to my original holdings. I figured I needed more value so I added a mid cap value ETF. Not sure this is an improvement over the putting it all back into S&P 500.
Then I spoke to my accountant and asked what to do with the losses I had accrued. His advice: you need to use them up now because at death the carry forward losses do not move onto your estate. They end.
That lit a fire under me and so I sold some index funds at a profit to take advantage of the losses.
And then as you may have guessed, I watched the market go up and up without me getting back in. I stood on the sidelines during 2 drawn downs of a few percent because I was greedily waiting for a 10% correction.
Finally I was fed up and I used this Monday's pullback to get fully invested. But I didn't go back to my original holdings. I figured I needed more value so I added a mid cap value ETF. Not sure this is an improvement over the putting it all back into S&P 500.
Re: How many Bogleheads "tinker"with their portfolios?
I did early on. I now "get it" and leave it alone.
Stocks-80% || Bonds-20% || Taxable-VTI/VXUS || IRA-VT/BNDW
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- Supergrover
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Re: How many Bogleheads "tinker"with their portfolios?
You’re not alone! Good for you for taking more control. I wish I would’ve been that smart at 36.hej wrote: ↑Thu Jul 22, 2021 4:38 am I am 36.
Until last year, I did not have much understanding of where my retirement funds were being invested.
I had a portfolio with Contrafund which was purchased almost 10 years ago after some advice from a CFP.
And I had a lot of cash.
I had spent too much time reading about what to do, but too scared to take any action.
This past year I decided to take ownership of my investments.
I made changes in my retirement accounts and moved them to broad index funds (S&P tracking or VT).
I invested most of my cash in VT.
I was so happy that I was finally taking action and was content with creating a very simple portfolio with the allocation I wanted.
Then I started reading again and looking through forums.
I was checking my portfolio every day.
I wasn't trying to chase gains, but other questions started to rise.
Was my fund placement tax-efficient?
Was VT good enough?
Etc.
So I tinkered a bit, trying to get to the "perfect" portfolio.
I ended up making a sale of some of my funds with short term gains.
I felt so stupid after that.
Luckily the gain is very small so tax won't be anything serious.
This was a small price to pay for a significant learning experience.
I am happy to read here that these urges tend to go away as you get older.
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Re: How many Bogleheads "tinker"with their portfolios?
I had an interesting situation with "untinkering."
My old Standard 401(k) was "tinkered" in that it was 32% TDF, 40% US Total market, 16% Bond Index 12% Int'l Developed.
Basically, the TDF offered was good, but expensive, so I split out some categories to other, cheaper funds to save on expense ratios. Rebalancing things was always a bit of a guess since T Rowe Price TDFs are fairly byzantine.
I recently changed jobs and just ran with a mostly pre-figured 401(k) formula via Guideline until I felt confident enough (new job, in Guideline) to set it up my way and do the rollover.
This was a lot easier, in that I just picked 4 low-fee funds: VTSAX (Total US), VTIAX (Total Int'l), VLGSX (Long Term Treasuries), VBTLX (Total US Bonds.).
And since Guideline basically rebalances for you...there's no tinkering needed unless you change your IPS.
What I did realize when I initiated the rollover was that I was effectively making a 5% move out of US and into Int'l with the rollover.
Realizing this, I trimmed that to a 3% move out of US and into Int'l since I don't think a job change should mean a major change in investing approach.
Result =
52% VTSAX
26% VTIAX
14% VLGSX
8% VBTLX
My glide path will probably only mean my percentage allocated to VBTLX will go up and VTSAX/VTIAX will go down by a few points over the next decade.
Simpler. Better.
My old Standard 401(k) was "tinkered" in that it was 32% TDF, 40% US Total market, 16% Bond Index 12% Int'l Developed.
Basically, the TDF offered was good, but expensive, so I split out some categories to other, cheaper funds to save on expense ratios. Rebalancing things was always a bit of a guess since T Rowe Price TDFs are fairly byzantine.
I recently changed jobs and just ran with a mostly pre-figured 401(k) formula via Guideline until I felt confident enough (new job, in Guideline) to set it up my way and do the rollover.
This was a lot easier, in that I just picked 4 low-fee funds: VTSAX (Total US), VTIAX (Total Int'l), VLGSX (Long Term Treasuries), VBTLX (Total US Bonds.).
And since Guideline basically rebalances for you...there's no tinkering needed unless you change your IPS.
What I did realize when I initiated the rollover was that I was effectively making a 5% move out of US and into Int'l with the rollover.
Realizing this, I trimmed that to a 3% move out of US and into Int'l since I don't think a job change should mean a major change in investing approach.
Result =
52% VTSAX
26% VTIAX
14% VLGSX
8% VBTLX
My glide path will probably only mean my percentage allocated to VBTLX will go up and VTSAX/VTIAX will go down by a few points over the next decade.
Simpler. Better.
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Re: How many Bogleheads "tinker"with their portfolios?
Guilty as charged. In April 2017, i went from 10% International to 30% International, than to 33% International, than to 35% International, and several weeks ago I went to 40% International. Tinkering has resulted in me being poorer, but I am comfortable with it.
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Re: How many Bogleheads "tinker"with their portfolios?
My "tinkering" is that I'll stop buying QQQ and will go VOO only going forward. I won't sell anything, but QQQ will be spent down first during decumulation.
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Re: How many Bogleheads "tinker"with their portfolios?
I’ve tinkered a lot since my understanding of risk/diversification has increased
15 years ago I was 100% S&P 500
10 years ago I decided to add VTIAX
This year I decided to allocate to Small Cap Value tilts using Avantis funds and am eager to contribute more towards AVES for emerging markets value when it is available
I feel more comfortable with my portfolio than I ever have. I essentially went from Jim Collins to Paul Merriman. Ha!
15 years ago I was 100% S&P 500
10 years ago I decided to add VTIAX
This year I decided to allocate to Small Cap Value tilts using Avantis funds and am eager to contribute more towards AVES for emerging markets value when it is available
I feel more comfortable with my portfolio than I ever have. I essentially went from Jim Collins to Paul Merriman. Ha!
20% VOO | 20% VXUS | 20% AVUV | 20% AVDV | 20% AVES
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Re: How many Bogleheads "tinker"with their portfolios?
Since moving to essentially a cash/S&P500 portfolio over 13 years ago, none at all. It helps me to have no moving parts, limited decision making requirements and automatic investing all of my contributions. It is so boring!
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett
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Re: How many Bogleheads "tinker"with their portfolios?
Almost all my tinkering is not within the Vanguard family of funds, or is in taxable, or is rebalancing.
Although last year I panicked and moved 0.2% of my funds from money market to federal money market.
Although last year I panicked and moved 0.2% of my funds from money market to federal money market.
Well, you pay a little bit, we're a little bit tough. |
You pay very much, very much tough. |
You pay a too much, we're too much a tough. |
How much you pay? ... Well, then we're plenty tough. - Marx
Re: How many Bogleheads "tinker"with their portfolios?
No need to change anything for me besides adding a very small crypto holding (under 1%) which hasn't done well and has strengthened my belief in the Boglehead way!
Light weight baby!
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Re: How many Bogleheads "tinker"with their portfolios?
Switched from Target Retirement funds to all-stock funds in IRA and 403b. Will revisit in 20 years.
- backofbeyond
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Re: How many Bogleheads "tinker"with their portfolios?
Yes I tinker. I have my portfolio loaded on Personal Capital that does a deep dive into breaking it all down. Love the app!
I'm 2 years out from retirement so I'm in the process of gliding from equities to bonds (in my case the TSP G fund). So twice a month, I move money around. I also recently sold all of my China funds (i.e. Alibaba). But for the most part, my tinkering is for tax harvesting. Sell my losers and move more money into G fund.
I'm 2 years out from retirement so I'm in the process of gliding from equities to bonds (in my case the TSP G fund). So twice a month, I move money around. I also recently sold all of my China funds (i.e. Alibaba). But for the most part, my tinkering is for tax harvesting. Sell my losers and move more money into G fund.
The question isn't at what age I want to retire, it is at what income. - George Foreman
- BuyAndHoldOn
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Re: How many Bogleheads "tinker"with their portfolios?
I used to tinker, but stopped once I saw I wasn't beating the (US) index funds. At least, not in aggregate, and not after taxes (in my taxable account).
That doesn't mean one could not have greater success with some tinkering, but you'd have to get lucky - consistently (e.g., buy the NASDAQ with a large portion of your funds in 2009 or something - and not sell year after year, which I tended to do once I got a "pop" with any "side position" I put on).
For equities: I currently do VT , total world equities (but I maintain a modest EM overweight) and call it a day. But even that hasn't outperformed a simple US equity strategy, in spite of the conceptual (and hopefully someday actual) benefits of holding international stocks.
I also hold a small position in VDIGX, an active Vanguard fund (Vanguard Dividend Growth) - but that has underperformed the S&P 500 as well. It does make me feel "safe" though, having some [small] portion of my money actively managed (someone is "helping me" by looking at market conditions, valuations, company prospects, etc.).
That doesn't mean one could not have greater success with some tinkering, but you'd have to get lucky - consistently (e.g., buy the NASDAQ with a large portion of your funds in 2009 or something - and not sell year after year, which I tended to do once I got a "pop" with any "side position" I put on).
For equities: I currently do VT , total world equities (but I maintain a modest EM overweight) and call it a day. But even that hasn't outperformed a simple US equity strategy, in spite of the conceptual (and hopefully someday actual) benefits of holding international stocks.
I also hold a small position in VDIGX, an active Vanguard fund (Vanguard Dividend Growth) - but that has underperformed the S&P 500 as well. It does make me feel "safe" though, having some [small] portion of my money actively managed (someone is "helping me" by looking at market conditions, valuations, company prospects, etc.).
I’d trade it all for a little more | -C Montgomery Burns
- MahoningValley
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Re: How many Bogleheads "tinker"with their portfolios?
The only tinkering I have done was to close down my 13-wk T-bill ladder and put it all into a TIPS fund.
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Re: How many Bogleheads "tinker"with their portfolios?
I do a little, mostly around international and a small and value tilt. I think over the years, I’d have been better off in a single balanced fund in each tax advantaged account and Total World Stock in our taxable accounts. Of course, the last decade has not favored small and value or international.
Re: How many Bogleheads "tinker"with their portfolios?
+2
"Owning the stock market over the long term is a winner's game. Attempting to beat the market is a loser's game. ..Don't look for the needle in the haystack. Just buy the haystack." Jack Bogle
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Re: How many Bogleheads "tinker"with their portfolios?
Yeah. I'm a tinkerer by nature, so I put certain rules down that allow me to tinker on a limited basis. I keep one fund at nuetral AA, experiment with the other one, then I can compare. So far it seems that 'tinkering' has yielded me some extra returns, about a half point per year for the past 6 years. This year am up 1.4% ytd vs my nuetral fund. It's enough that I'll let myself continue.BuyAndHoldOn wrote: ↑Sat Jul 24, 2021 7:41 am I used to tinker, but stopped once I saw I wasn't beating the (US) index funds. At least, not in aggregate, and not after taxes (in my taxable account).
That doesn't mean one could not have greater success with some tinkering, but you'd have to get lucky - consistently (e.g., buy the NASDAQ with a large portion of your funds in 2009 or something - and not sell year after year, which I tended to do once I got a "pop" with any "side position" I put on).
It's not about becoming the next Buffett, more about learning a few things, and feeling like I'm doing something - I'm just not very good at just 'standing there'!
"An investment in knowledge pays the best interest" - Benjamin Franklin
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Re: How many Bogleheads "tinker"with their portfolios?
Simplicity at it’s finest! The older I get, the more I appreciate less funds and complexity which results in less temptation to tinker!Ferdinand2014 wrote: ↑Fri Jul 23, 2021 10:39 pm Since moving to essentially a cash/S&P500 portfolio over 13 years ago, none at all. It helps me to have no moving parts, limited decision making requirements and automatic investing all of my contributions. It is so boring!
Way to go sir!
Tony
John C. Bogle: “Simplicity is the master key to financial success."