3 ms·
Principles: (1) asset allocation (2) diversification (3) rebalancing Investments: no-load index mutual funds/etfs (1) total US stock market index (2) total US
by dxs 3y ago
Principles: (1) asset allocation (2) diversification (3) rebalancing
Investments: no-load index mutual funds/etfs (1) total US stock market index (2) total US bond market index (3) total world stock market index, excluding US
Prime resource: Bogleheads.org – Investing advice inspired by John Bogle (1) www.bogleheads.org (2) www.bogleheads.org/wiki/Main_Page
- raccoonDivider 3y agoDo you still expect that to work now that the decade of low interest rates is over? Shouldn't people buy individual bonds instead?
- bombcar 3y agoThe answer depends on what you are doing, why you are doing it, whether you are in a tax advantaged account, and how you need the money. All of those affect what you should do and what is optimal. https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_fund https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_f... Reasons for a fund may include ease of management, variations in contributions and times, uncertainty of when the need, and ease of rebalancing. Individual bonds may be more appropriate for a defined liability at a specific time, for a bond ladder, or as a tax minimization strategy.
- misja111 3y agoWho says it's over? The current US fed rate is only at its 50 year historical average now, and most investors expect the fed to considerably lower its rates again this year.
- 2OEH8eoCRo0 3y agoStay the course! https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS
- sodality2 3y agoJust started reading Bogleheads’ Guide to Investing, quite a good read so far. It’s very informative about how the investing/trading industry relies on regular people giving up their gains on fees, loaded funds, etc when a simple investment plan like above is incredibly low risk.