Three fund portfolio?

MathWorks cJ8oNw
Mar 15 28 Comments

Finally getting my feet wet and starting to learn about investment (long overdue, money has been rotting in the bank).

I was thinking about just following Bogleheads three fund portfolio approach where you invest into VTSAX, international index fund and bonds fund or whatever. Planning on dumping 90% of my savings into the portfolio since I am young, single and without debt. Going to use Vanguard. Once I read a couple of books, maybe I will start investing directly into stocks with 5~10% or something.

Any thoughts, concerns or advice?

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TOP 28 Comments
  • Amadeus Trick2g
    I would suggest you put your money in a robo investor like betterment. They do automatic tax loss harvesting which will save you a ton f money on taxes every year. Also it rebalances your portfolio automatically over time to account for lesser risk exposure as you grow old. It’s a great hands off approach to investing.
    Mar 15 20
    • Broadcom Ltd. / Eng cr$&fe
      Go to wealthfront, answer their questionaire, evaluate your risk and they will spit out the % us stock, %international stock, %bonds. Buy those or similar fund in vanguard. U can simplify their recommendation to 3 funds
      Mar 15
    • MathWorks cJ8oNw
      OP
      I actually just took the vanguard questionnaire and got 80% stocks 20% bonds, 0% short term reserves. Thinking 40% VTSAX, 40% VTIAX, 20% VBTLX.
      Mar 15
    • Broadcom Ltd. / Eng cr$&fe
      Great! If u are in high tax bracket avoid bonds in taxable account. The interest is tax'd as income. U can hold bonds in tax deferred or buy tax empt bonds like Muni in taxable account
      Mar 15
    • MathWorks cJ8oNw
      OP
      Thanks everyone for the advice. Does having 401k in Schwab complicate any of this, assuming I want to use Vanguard for index funds/ETFs investment?
      Mar 15
    • Facebook / Eng vlMg30
      Not really. It could swing your asset allocation if it’s invested in something wonky, but if it’s just a target date fund it’s likely a similar breakdown to what you’re doing here.
      Mar 15
  • Amazon PIPorGTFO
    You are on a good path. Just do a 3 funds portfolio depending on your risk appetite. Rebalance once a year or with contributions. The most important thing is to put the money in early and as often as possible
    Mar 15 3
    • MathWorks cJ8oNw
      OP
      Yeah I am already late by a few years, kicking myself for being ignorant/nonchalant about this. Better late than never though I guess.
      Mar 15
    • Oracle lHEA77
      How old are you / yoe?
      Mar 15
    • Amazon PIPorGTFO
      Don't kick yourself. The best time to plant a tree was thirty years ago. The second best time is today. I also started late, but it doesn't matter this is not a sprint, it's a marathon
      Mar 15
  • LinkedIn dandilo
    Good start. Don’t listen to suggestions like robo-advisors. Read more details on investing basics here, highly recommended, in line with 3-fund portfolio: www.firetobiz.com/investing-basics
    Mar 16 2
    • Broadcom Ltd. / Eng cr$&fe
      Very good summary of bogglehead philosophy - thanks for sharing.
      Mar 17
    • Broadcom Ltd. / Eng cr$&fe
      I have done betterment. The TLH has more than paid for their fees for the next 10 years - however their rebalance has cost me in taxes😥. My 1099B from them is 20 pages long with 30 trades on each page !!!!
      Mar 17