Style Switcher

Predefined Colors

How to Have the Perfect Portfolio in Investment – John Bogle’s view

But now this brings us to the main point of 
our discussion with you which is to get your   advice for our viewers about what you consider 
to be the perfect portfolio now we know there's   no such thing as perfect but i suspect that TIFs 
will play some role in this what would you say to   the typical investor now today looking forward how 
should we be managing our wealth well let me um i   tried to cover this you'd be surprised at some of 
the what i've done in the asset allocation chapter   of my book a little bit because i've come to 
conclusion there's really not a very good answer   and i've concluded that regular rebalancing is not 
terrible but not necessary i've come to conclude   that it's 60%, 40% portfolio is probably the best 
option rather than going from 80 20 to 20 80 in a   target retirement plan uh maybe right and i may 
be wrong on that and i find it something very   individual uh and and you know and clearly i mean 
everybody knows this intuitively at the beginning   there are no easy answers to this so i'll come 
to exactly what i'm doing uh but what i was what   i did i got a letter from clearly a young man 
who was really worried about how he should be   investing and what his allocation should be and he 
said you know the dangerous risky world out there   and he didn't mention it but of course he's right 
you have potential nuclear war global warming much   more than just potential and racial division in 
the country uh right now uh threats to world trade   and division of wealth all over the world but 
most often very heavily in the us between the   haves and the have-nots all those things 
are worth worrying about but i said to him   you don't know and i don't know what's going to 
happen to any of them the market doesn't know   nobody knows so you just have to put them out of 
your mind and forget it what you want to think   about is how much risk you can afford and that's 
very much a personal thing and it has a little bit   to do with whether you're investing regularly 
and things like that and then i said to him if   it's helpful to you i'll tell you what i'm doing 
now i'm 88 years old and have an unusual kind of   planning my estate and i said i'm 50 bonds and 50 
stocks i don't happen to rebalance around that it   just seems to come out that way particularly in 
recent years and uh it's been higher than that   and been lower than that but right 
now i'm very comfortable at 50 50.   although i spend half my time worrying that i have 
too much in stocks and the other half of my time   worrying that i have too little in stock and i 
think that's the way most investors feel they   don't know what the right number is and when the 
market's going up they say god why don't i have   more stocks when it's going down so your own worst 
enemy in all this yes but having some stability   without automatically rebalancing i don't think 
you need to do that and and it's very clear   you know and anybody understanding economist 
certainly understands this that the more the   less you rebalance the more you're going to 
have because you're always selling the better   performing asset and you don't know whether it 
will do in the long run but i also look at it   as as very importantly uh and this is this is kind 
of an interesting thing i think the most important   thing you need to know about the performance 
of the stock market in the next 30 40 50 years   is what is the GDP of the united states going to 
do corporate profits are correlated at 96 percent   s p dividends are correlated at 96 percent with 
with the gdp of the united states the GDP doesn't   grow quite as fast but not a big difference 
6.7 compared to 7.5 or something like that   and then they'd be nominal and uh i think so 
what interests me is in peter lynch's book   something about wall street uh one up on 
wall street or something he says there's no   number that could interest him less than the gdp 
number is it going up or down and what that is is a statement that the short term is more 
important than the long term and i don't   believe this the short term is more important than 
long term and then you even get in freakonomics   those wise guys they did a nice interview with 
me i'm heard all of it yet but i will someday   um say pay no attention to the GDP well it's 
everything right but it's not everything today   and tomorrow right you know the gdp probably 
rose today about two three hundred and sixty   fifths of one percent or something whatever it 
is uh and uh we don't pay any attention to it   but it all comes down to for your you know the 
best portfolio is are you an investor or are you   a speculator and if you're going to keep changing 
things you were speculating because we can't know   if you're going to put commodities in there the 
ultimate speculation it has nothing going for it   no internal rate of return no dividend yield no 
earnings growth no interest coupon nothing except   the hope largely vain probably that you can sell 
to somebody else for more than you paid for it   how that could be even considered goals 
let's say an investment uh i do not know so   it's i'd like to take the mystery out of it and 
say that the perfect portfolio first i think for   a huge proportion over 90 percent certainly of 
the investors should be limited to marketable   securities they don't need the liquidity today but 
and we may have you know too much marketability   and that is too much sensitivity to prices as they 
change day by day but you want to get out of the   idea that you always have to do something and uh 
i have said in my books and you know something   happens and the federal reserve does something 
and the traders all at the beginning of the day i   think it's going to cause the market to go down so 
they sell and everybody else says it has nothing   to do with anything for you and when you hear news 
and your broker calls up and says do something   just tell them my rule is don't 
do something just stand there   and it's it's a lot of the rules that apply 
to the investment are not rules that apply to   ordinary life right and uh so don't do something 
just stand there so get a rough idea of what you   want to allocate your money to now i i do i'm 
really entirely indexed at my 50 50.

Uh although   oh my and i can't give you the proportions 
because i don't remember them but   my bonds that are in my retirement plan are 
bond index funds and the bonds that are in my   my uh personal account are municipal vanguard 
missile bond short intermediate and so i'm   reasonably comfortable with that so i think 
i'm too conservative for the average investor   so i'd say the perfect portfolio and it should 
be well let me just mention one other issue and   try a little bit differently uh blair academy i 
have a scholarship fund that i'm allowed to manage   and i don't i don't want to spend any time on 
and i don't so here is exactly what i've done   on the assumption that nobody will touch it for 
a long time and when i'm gone i mean maybe they   will maybe they won't but what i did this is 
probably ten years ago um we say put half of   it in Wellington Fund and have it balanced index 
fund the idea was not all on balance index fund   because there could be things that happen that a 
manager needs to adjust to neither of them have   an international component and that's fine with 
me that's i believe that's the better strategy so   that's and they would be together 90 of the fund 
and then against two contingencies um just in case   i put five percent in the emerging market index 
and i hope you're sitting down five percent in   gold really yeah in the event just a five percent 
hedge against some kind of catastrophe now   i wouldn't call that the perfect portfolio but 
i i mentioned only because that's one there's   distinctive meaning you cannot touch it and uh at 
least theoretically can't touch it it's designed   to be held through all extremes and so that's 
going to give you with the two balanced funds   uh roughly 62 percent in equities that's going to 
be with wellington fund more corporate bonds than   the index fund has i think the index is something 
that we should be very very careful about because   it has the one of a better expression too damn 
much in governments right i don't think any   individual would have a a bond account 70 in 
governments and 30 corps right maybe it should   be the reverse i think that makes more sense can 
i prove that no i'm sorry i can't so it's looking   at the long term looking at the numbers looking 
at cost above all there's no there's no ideal   portfolio perfect portfolio that ignores cost 
now you know i've seen these articles saying   well for example commodities no internal rate 
of return silly including gold except that's the   if nobody's gonna nobody's looking and we 
have something explosive that will help and   it probably shouldn't hurt you too much this 
portfolio actually had done rather well in the   last couple of years and it's fine in the long 
run and uh so you know and actually it may be   doing better than my own but i don't but i look at 
my performance because i'm so conservative right   uh i look at i look at the funds yeah but it's 
almost all indexed and i do have wellington fund   from those days with Mr Morgan and i wouldn't give 
that up as a sentimental matter but but i should

As found on YouTube

401K to Gold IRA Rollover

Read More

Vanguard Group founder on how to manage your 401 (k) plan

>>> WELCOME BACK TO WALL STREET. HERE'S MORE OF MARIA'S INTERVIEW WITH INVESTING LEGEND VANGUARD FOUNDER JACK BOGLE. MARIA: LOOK AT HOW MANY INDEX FUNDS THERE ARE. 5,000 INDEX FUNDS TODAY VERSUS THE NUMB OR F STOCK LOWER, 3,385 STOCKS. WHAT DOES THAT TELL US? >> IT TELLS US THAT PEOPLE ARE CRAZY, MARIA. WE DON'T NEED 5,000 INDEX FUNDS OR 6,000. THE WHOLE IDEA OF INDEX FUNDS WAS SIMPLIFY, SIMPLIFY, SIMPLIFY, RIGHT OUT OF RALPH WALL DO EMERSON. SEMP FIE SIMP FIE SIMPLIIE SIMPLIFY EVERYTHING. WE'VE NOW COMPLICATED IT BY GIVING PEOPLE MANY CHOICES AND BUILDING A SYSTEM WHERE THEY CAN TRADE THOSE CHOICES IN THE GLOAT GROWTH AND OUT OF VALUE AND SO ON. SO THERE'S TOO MUCH TRADING GOING ON, WHICH IS THE INVESTOR'S ENEMY FINALLY. THE ANSWER IS TO BUY AND HOLD THE STOCK MARKET VERY WELL EXEMPLIFIED BY THE 500, AND HOLD IT FOREVER.

AND THAT'S THE WINNING STRATEGY. ANY OTHER STRATEGY INVOLVES CHANGING THINGS. AND OVER AN INVESTMENT LIFETIME YOU COULD PROBABLY HAVE 40 CHANGES, 50 CHANGES. THERE'S IN WAY THAT CAN BE A WINNING STRATEGY. MARIA: YOU MAKE A REALLY GOOD POINT. WHAT ABOUT THE IDEA THAT PEOPLE WANT TO CASH OUT SOMETIMES. I MEAN, WHAT ARE YOUR MOST IMPORTANT ISSUES IN TERMS OF SELLING? YOU SAY HOLD ON FOR A LONG TIME. BUT WHAT IS A LONG TIME? WHEN CAN YOU ACTUALLY GET THOSE RETURNS AND WHAT DO YOU LOOK FOR AS A RUN TO SELL, JACK? >> THAT'S A GREAT QUESTION.

I GUESS MY FAIR TIME PERIOD IS THE SAME AS WARREN BUFFET'S TIME PERIOD, FOREVER. YOU KNOW FB FOR YOU KNOW,FB FOR YOU KNOW, F FOR YOU KNOW, FOROR YOU KNOW, FOR YOUR WHOLE LIFE. THERE WILL BE OPPORTUNITIES ALONG THE WAY. WE'VE SEEN THEM IN THE LAST 25 YEARS. TO GET OUT AND GET BACK IN. MARIA: VANGUARD IS CHANGING. THE RETIREMENT PLAN.

NOT HAVING THE FLAGSHIP S&P 500 FUND IN THE 401(k). WHY IS THAT. WHAT IS YOUR REACTION TO THE FACT THAT VANGUARD IS DROPPING 12 FUNDS FROM THE EMPLOYEE 401(k) RETIREMENT PLAN? IT WILL NOW OFFER 15 FUNDS, DOWN FROM 27. WHY? >> WELL, THE ANSWER IS THAT COMPANIES ALL OVER THE COUNTRY, AND I PRESUME VANGUARD, ALTHOUGH I DON'T RUN THIS PLACE ANYMORE, THERE HAVE BEEN TOO MANY CHOICES IN RETIREMENT PLANS. YOU COULD RUN A RETIREMENT PLAN WITH THREE OR FOUR CHOICES WITH ABSTOCK INDEX FUND, A BOND INDEX FUND, A BALANCED INDUCKS FUND AND THAT COULD BE IT AND INVESTORS CAN MAKE THE CHOICES EASILY. AN ASSET ALLOCATION ISSUE. AND BY GIVING THEM QUITE SO MANY ISSUES AT VANGUARD, NOT IN THE INDUSTRY GENERALLY, WE'VE CONFUSED INVESTORS. FOR VANGUARD IN PARTICULAR, THIS IS NOT GOING TO SURPRISE YOU, I THINK IT'S TOO BAD NOT TO HAVE THE 500 AS AN OPTION.

BUT IT'S PRETTY MUCH INDIFFERENT FROM AN INVESTMENT STANDPOINT BECAUSE OUR CREW MEMBERS, AS WE CALL THEM HERE AND BOGLE HIMSELF, JUST GO INTO THE TOTAL STOCK MARKET FUND WHICH IS 85% OF THE S&P 500 ANY WAY. I LIKE THE S&P 500 BUT I'M PERFECTLY SATISFIED WITH THE VANGUARD TOTAL STOCK MARKET INDEX FUND. A LITTLE BROADER. MARIA: WHAT DO PEOPLE NEED TO KNOW ABOUT THEIR 401(k) PLAN. I FEEL LIKE PEOPLE PUT THEIR MONEY IN THE 401(k) AND THEY DON'T NECESSARILY KNOW WHAT THE PLAN IS INVESTED IN. IS THERE ANY ADVICE YOU WANT TO GIVE US IN TERMS OF MANAGING THEIR 401(k) PLAN? >> WELL, THE LESS YOU MANAGE YOUR 401(k) PLAN THE BETTER. MAKE SOME CHOICES, ASSET ALLOCATE — ALLOCATE YOUR ASSETS, TO SOME DEGREE BASED ON YOUR AGE, AND YOU CAN DO THAT OF COURSE THROUGH THESE POPULAR TARGET DATE RETIREMENT PLANS IN WHICH VANGUARD IS SO TOTALLY DOMINANT IT'S ALMOST NOT WORTH TALKING ABOUT, AND GRADUALLY BUILD UP A BOND POSITION OVER A PERIOD OF TIME.

BUT THE OTHER OPTION IS EVEN SIMPLER AND THAT IS BUY THE BALANCED INDEX FUND, YOU'LL BE 60% IN STOCKS AND 40% IN BONDS FOR THE REST OF YOUR LIFE AND THAT MAY EVEN BE A BETTER STRATEGY. ONLY TIME WILL TELL. MARIA: IT'S SO IMPORTANT, JACK, JUST THIS WEEK WE LEARNED THAT THE SOCIAL SECURITY FUND IS GOING TO BE TAPPING INTO ITS FUND FOR THE FIRST TIME IN 36 YEARS. PEOPLE NEED TO UNDERSTAND SOCIAL SECURITY MAY NOT BE THERE FOR YOU WHEN YOU RETIRED. THE 0 NOWS THE O NOWS THE ONUOWS THE ONUSWS THE ONUS IS ON INDIVIDUAL TO MAKE SURE THEY HAVE A 401(k) AND SAVINGS IN THE STOCK MARKET, CORRECT? >> THAT'S CORRECT BTS.

I WOULDN'T WRITE OFF SOCIAL SECURITY QUITE SO SOON. I DON'T THINK THE NATIONAL POLICY OF THE UNITED STATES OF AMERICA, I BELIEVE THAT POLICY PRECLUDES A SIGNIFICANT REDUCTION IN SOCIAL SECURITY. AND TO ME IT'S KIND OF SAD THAT WE COULD FIX WIT SUCH TINY LITTLE CHANGES, CHANGE THE RETIREMENT AGE A LITTLE BIT, MAKE THE SOCIAL SECURITY MINIMUM.

As found on YouTube

401K to Gold IRA Rollover

Read More

How to Have the Perfect Portfolio in Investment – John Bogle’s view

But now this brings us to the main point of 
our discussion with you which is to get your   advice for our viewers about what you consider 
to be the perfect portfolio now we know there's   no such thing as perfect but i suspect that TIFs 
will play some role in this what would you say to   the typical investor now today looking forward how 
should we be managing our wealth well let me um i   tried to cover this you'd be surprised at some of 
the what i've done in the asset allocation chapter   of my book a little bit because i've come to 
conclusion there's really not a very good answer   and i've concluded that regular rebalancing is not 
terrible but not necessary i've come to conclude   that it's 60%, 40% portfolio is probably the best 
option rather than going from 80 20 to 20 80 in a   target retirement plan uh maybe right and i may 
be wrong on that and i find it something very   individual uh and and you know and clearly i mean 
everybody knows this intuitively at the beginning   there are no easy answers to this so i'll come 
to exactly what i'm doing uh but what i was what   i did i got a letter from clearly a young man 
who was really worried about how he should be   investing and what his allocation should be and he 
said you know the dangerous risky world out there   and he didn't mention it but of course he's right 
you have potential nuclear war global warming much   more than just potential and racial division in 
the country uh right now uh threats to world trade   and division of wealth all over the world but 
most often very heavily in the us between the   haves and the have-nots all those things 
are worth worrying about but i said to him   you don't know and i don't know what's going to 
happen to any of them the market doesn't know   nobody knows so you just have to put them out of 
your mind and forget it what you want to think   about is how much risk you can afford and that's 
very much a personal thing and it has a little bit   to do with whether you're investing regularly 
and things like that and then i said to him if   it's helpful to you i'll tell you what i'm doing 
now i'm 88 years old and have an unusual kind of   planning my estate and i said i'm 50 bonds and 50 
stocks i don't happen to rebalance around that it   just seems to come out that way particularly in 
recent years and uh it's been higher than that   and been lower than that but right 
now i'm very comfortable at 50 50.   although i spend half my time worrying that i have 
too much in stocks and the other half of my time   worrying that i have too little in stock and i 
think that's the way most investors feel they   don't know what the right number is and when the 
market's going up they say god why don't i have   more stocks when it's going down so your own worst 
enemy in all this yes but having some stability   without automatically rebalancing i don't think 
you need to do that and and it's very clear   you know and anybody understanding economist 
certainly understands this that the more the   less you rebalance the more you're going to 
have because you're always selling the better   performing asset and you don't know whether it 
will do in the long run but i also look at it   as as very importantly uh and this is this is kind 
of an interesting thing i think the most important   thing you need to know about the performance 
of the stock market in the next 30 40 50 years   is what is the GDP of the united states going to 
do corporate profits are correlated at 96 percent   s p dividends are correlated at 96 percent with 
with the gdp of the united states the GDP doesn't   grow quite as fast but not a big difference 
6.7 compared to 7.5 or something like that   and then they'd be nominal and uh i think so 
what interests me is in peter lynch's book   something about wall street uh one up on 
wall street or something he says there's no   number that could interest him less than the gdp 
number is it going up or down and what that is is a statement that the short term is more 
important than the long term and i don't   believe this the short term is more important than 
long term and then you even get in freakonomics   those wise guys they did a nice interview with 
me i'm heard all of it yet but i will someday   um say pay no attention to the GDP well it's 
everything right but it's not everything today   and tomorrow right you know the gdp probably 
rose today about two three hundred and sixty   fifths of one percent or something whatever it 
is uh and uh we don't pay any attention to it   but it all comes down to for your you know the 
best portfolio is are you an investor or are you   a speculator and if you're going to keep changing 
things you were speculating because we can't know   if you're going to put commodities in there the 
ultimate speculation it has nothing going for it   no internal rate of return no dividend yield no 
earnings growth no interest coupon nothing except   the hope largely vain probably that you can sell 
to somebody else for more than you paid for it   how that could be even considered goals 
let's say an investment uh i do not know so   it's i'd like to take the mystery out of it and 
say that the perfect portfolio first i think for   a huge proportion over 90 percent certainly of 
the investors should be limited to marketable   securities they don't need the liquidity today but 
and we may have you know too much marketability   and that is too much sensitivity to prices as they 
change day by day but you want to get out of the   idea that you always have to do something and uh 
i have said in my books and you know something   happens and the federal reserve does something 
and the traders all at the beginning of the day i   think it's going to cause the market to go down so 
they sell and everybody else says it has nothing   to do with anything for you and when you hear news 
and your broker calls up and says do something   just tell them my rule is don't 
do something just stand there   and it's it's a lot of the rules that apply 
to the investment are not rules that apply to   ordinary life right and uh so don't do something 
just stand there so get a rough idea of what you   want to allocate your money to now i i do i'm 
really entirely indexed at my 50 50.

Uh although   oh my and i can't give you the proportions 
because i don't remember them but   my bonds that are in my retirement plan are 
bond index funds and the bonds that are in my   my uh personal account are municipal vanguard 
missile bond short intermediate and so i'm   reasonably comfortable with that so i think 
i'm too conservative for the average investor   so i'd say the perfect portfolio and it should 
be well let me just mention one other issue and   try a little bit differently uh blair academy i 
have a scholarship fund that i'm allowed to manage   and i don't i don't want to spend any time on 
and i don't so here is exactly what i've done   on the assumption that nobody will touch it for 
a long time and when i'm gone i mean maybe they   will maybe they won't but what i did this is 
probably ten years ago um we say put half of   it in Wellington Fund and have it balanced index 
fund the idea was not all on balance index fund   because there could be things that happen that a 
manager needs to adjust to neither of them have   an international component and that's fine with 
me that's i believe that's the better strategy so   that's and they would be together 90 of the fund 
and then against two contingencies um just in case   i put five percent in the emerging market index 
and i hope you're sitting down five percent in   gold really yeah in the event just a five percent 
hedge against some kind of catastrophe now   i wouldn't call that the perfect portfolio but 
i i mentioned only because that's one there's   distinctive meaning you cannot touch it and uh at 
least theoretically can't touch it it's designed   to be held through all extremes and so that's 
going to give you with the two balanced funds   uh roughly 62 percent in equities that's going to 
be with wellington fund more corporate bonds than   the index fund has i think the index is something 
that we should be very very careful about because   it has the one of a better expression too damn 
much in governments right i don't think any   individual would have a a bond account 70 in 
governments and 30 corps right maybe it should   be the reverse i think that makes more sense can 
i prove that no i'm sorry i can't so it's looking   at the long term looking at the numbers looking 
at cost above all there's no there's no ideal   portfolio perfect portfolio that ignores cost 
now you know i've seen these articles saying   well for example commodities no internal rate 
of return silly including gold except that's the   if nobody's gonna nobody's looking and we 
have something explosive that will help and   it probably shouldn't hurt you too much this 
portfolio actually had done rather well in the   last couple of years and it's fine in the long 
run and uh so you know and actually it may be   doing better than my own but i don't but i look at 
my performance because i'm so conservative right   uh i look at i look at the funds yeah but it's 
almost all indexed and i do have wellington fund   from those days with Mr Morgan and i wouldn't give 
that up as a sentimental matter but but i should

As found on YouTube

401K to Gold IRA Rollover

Read More

What Happens If We Re-distributed the World’s 1%’s Wealth Back to the 99%?

Ah, the One Percent. That elite team of Americans that pay about
37% of the country’s taxes. Occupy Wall surface Street militants have actually been barrier
versus the Top 1%, trying to elevate temper as well as awareness of the expanding economic gap
in between the abundant and also everybody else in America. However What Occurs if We Give The One Percent’s.
Riches Back? Presuming that this redistribution is an one-time.
thing, which it can be done, possibly making use of terrible ways, or through a sudden Buddhaesque.
enlightenment, after that Firstly, there will be rapturous pleasure.
When every person is brought down to where everyone. Every person will certainly start intending what to. Because many of the recently
rich ones (moderatelyReasonably
History will slowly start asserting itself,. and focus of riches will start throughout. That will cause large aggravation, as well as. a whole brand-new round of physical violence as the newly-rich-but-soon-back-to-square-one will decline this unexpected spin of fate,. as well as will reassert.They ' ll either go communist, or will certainly develop.

common living, or will simply lastly surrender to their fate. Wait- perhaps this entire outcome will. be quickly noticeable to the smart (as well as non-greedy) participants of the globe
community,. and also they may suggest an entirely brand-new option -Development of a ' Worldwide Sovereign Mankind. Fund ' – that funds whatever humanity does. Peace.
Anywhere. So essentially, the poor would certainly become inadequate. once more, and also the rich would become rich once more. And one of the most possible result is this: It. would all go back to regular ultimately.

As found on YouTube

Retire Wealthy Home

Read More