Boglehead/Vanguard way to retire.

Yep behavioural aspects complicate matters. I’d feel comfortable investing lump sums in gloomier times but tend to favour DCA otherwise.

I witnessed a couple of unlucky investors who through just bad luck (not greed) invested a very large lump sum not long prior to the GFC crash. I think investors underestimate the ugly impact such an event can have on them and even much more so especially if a planned retirement was not that many years away. Imagine the regret of having to work a number of years longer than planned! The regret will eat away at you.

 

I used to think this was the generally accepted method but read an interesting article re: the bond tent, food for thought

The Portfolio Size Effect And Optimal Equity Glidepaths

 

Yes that article has received a lot of attention globally since it was published. I think it may have been mentioned in the Sequence of Returns Risk Thread?

The years closer to retirement and earlier years in retirement are a definate danger zone. Hence why in my previous post I mentioned the risk of lump summing a major amount into equities closer to retirement.

The larger one’s portfolio is the less the risk tends to be at a financial level but psychologically that’s a different matter.

 

Thanks Tess, saved to re read

 

An article to keep Bogleheads happy. Hopefully they won’t pick on me as much:

Keep It Simple With Index Funds

 

Taylor’s new book now available. At 92 he’s a very inspirational person not just in investing but in so many other way and a great promoter of investing simplicity:

https://www.amazon.com.au/Bogleheads-Guide-Three-Fund-Portfolio-Outperforms-ebook/dp/B07DH1QYJK

 

Three? Isn't that overcomplicating things? One all-world index fund and be done with it. I feel an ebook on that is in order.

 

Already been done. Former hedge fund Mgr Lars Kroijer is a huge advocate for a single World Equity Index FUND / ETF available through Vanguard:

https://www.amazon.com/Investing-Demystified-Speculation-Sleepless-Financial/dp/0273781340

The best you can do in Australia is one of Vanguard Diversified ETFs. From an investors perspective they’re only a single fund:

https://api.vanguard.com/rs/gre/gls/stable/documents/11894/au

 

Good stuff. 3 fund portfolio has a lot to recommend it. Like you I have a lot of respect for Mr Larimore.

 

@Big Daddy

Hows this travelling now and how did your re-balncing strategy go

 

Not sure if this managed fund by Blackrock has been mentioned on the forum before. I only discovered this today.

iSHARES ALL-COUNTRY EQUITY INDEX FUND

The Fund aims to match the performance of the MSCI AC World IMI Index (unhedged in Australian dollars with net dividends reinvested) before fees.




Includes your developed and emerging markets in one fund. Management fee 0.4% so not entirely cheap. Australian domiciled which is a plus.

Link to fact sheet - here

More info on MSCI ACWI index - here

Cheers,
Oracle.

 

It's going quite well as we keep regularly buying.
I've dropped VAF and IEM (too expensive) and loaded up on VGS . I have a 70 International /30 Australia split.


My 6 year old son just has VAS and VGS in the same ratio. Need to keep brokerage and management fees down. No real need to add international property or emerging markets to the portfolio.

 

Hi @Nodrog - where would RINC and DJRE fit into the above? You recently mentioned that you liked them

 

I like the “real asset income” concept of RINC but not the active ETF itself. It could roughly be described as a mix of actively managed ASX listed property and infrastructure.

Evidence suggests that for local and global listed property / infrastructure indexing is likely to outperform active management of same.

DJRE is a cap weighted index ETF for listed Global Property and IFRA is an index ETF for Global Listed Infrastructure. I like both these as they offer “global” diversification but more of their return is through income distributions which suits our investing style, psychology and objectives. And an alternative income source unaffected by potential changes to franking credits. Shame their valuations are so high at present. Blame the Fed for putting the brakes on rising interest rates.

 

Thank for comments @Nodrog. I like the concept of the Millner family Infrastructure / Property fund URB so threw a few dollars at it - but will wait and see how it actually performs over time.

 

BTW off topic but when I look at the info box of the right of this page titled "Members Online Now" it shows "Robots : 106". Have we been taken over by AI?

 

Not a fan of URB personally.

 

Harry Markowitz, Father of Modern Portfolio Theory has passed away at 95

Harry Markowitz, Nobel-Winning Pioneer of Modern Portfolio Theory, Dies at 95

 

That video was published about six years ago. He would have been 85+ in that interview.
It is truly remarkable to witness his remarkable mental acuity and sharpness displayed throughout the interview. This could be a positive side effect of stock investing!

 

Investment Wisdom From the ‘King of the Bogleheads’

98 years old and still going strong. Very inspirational.

An important point other than his great contributions to simple index investing is:

Looks incredible at 98.