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I am a Bogelhead
What is a bogelhead??
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What is a bogelhead??
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John Bogel founded the company Vanguard.
It was his principle of low cost index investing.
Self-proclaimed Bogleheads like myself subscribe to his ideas of low cost index investing.
Here are the other principles we follow:
It was his principle of low cost index investing.
Self-proclaimed Bogleheads like myself subscribe to his ideas of low cost index investing.
Here are the other principles we follow:
1) Live Below Your Means/Create Plan
Develop sensible budget.
Spend less than you earn. Live below what you need. Invest the rest. Frugality is important, but so is earning more.
Avoid bad debt; if you have such debt, pay off those balances first.
Develop sensible budget.
Spend less than you earn. Live below what you need. Invest the rest. Frugality is important, but so is earning more.
Avoid bad debt; if you have such debt, pay off those balances first.
2) Invest Early and Often
The earlier you start, the better you'll be financially.
The earlier you start, the better you'll be financially.
3) Never bear too much or too little risk
Understand how to allocate asset allocation and how it fits with your risk tolerance.
Investing is a game of risk - but you don't need to go crazy.
Understand how to allocate asset allocation and how it fits with your risk tolerance.
Investing is a game of risk - but you don't need to go crazy.
4) Diversify
Investing in low cost index funds gives you diversity in your portfolio, especially as you mix up stocks, bonds, and other asset classes.
Investing in low cost index funds gives you diversity in your portfolio, especially as you mix up stocks, bonds, and other asset classes.
Rather than trying to pick the specific stocks or sectors of the market that may outperform in the future, Bogleheads buy funds that are widely diversified, or even approximate the whole market.
Being average sounds bad, but it is actually a great thing.
Being average sounds bad, but it is actually a great thing.
5) Don't Time The Market
Time in the market is better than timing the market. You never will know when the top or bottom is, all you can do is invest for the long term.
Time in the market is better than timing the market. You never will know when the top or bottom is, all you can do is invest for the long term.
6) Invest With Simplicity
Indeed Funds!
"Simplicity is the master key to financial success. When there are multiple solutions to a problem, choose the simplest one."
-John Bogel
A portfolio held by many Bogleheads forum members is the three fund portfolio.
Indeed Funds!
"Simplicity is the master key to financial success. When there are multiple solutions to a problem, choose the simplest one."
-John Bogel
A portfolio held by many Bogleheads forum members is the three fund portfolio.
7) Stay The Course
This is perhaps the most challenging part of Boglehead investing, but is essential to its success.
No matter if bear or bull market, you keep investing.
Bogleheads strive not to be distracted, and strive not to waver.
This is perhaps the most challenging part of Boglehead investing, but is essential to its success.
No matter if bear or bull market, you keep investing.
Bogleheads strive not to be distracted, and strive not to waver.
The only real course correction needed is to rebalance once per year to bring the stock/bond allocations back to pre-set levels.
Hope you enjoyed this!
Feel free to join the forum at http://bogelheads.org
Hope you enjoyed this!
Feel free to join the forum at http://bogelheads.org
