The Bogleheads' Guide to Investing
Taylor Larimore, Mel Lindauer
Format: PDF / Kindle (mobi) / ePub
The irreverent guide to investing, Boglehead style
The Boglehead's Guide to Investing is a DIY handbook that espouses the sage investment wisdom of John C. Bogle. This witty and wonderful book offers contrarian advice that provides the first step on the road to investment success, illustrating how relying on typical "common sense" promoted by Wall Street is destined to leave you poorer. This updated edition includes new information on backdoor Roth IRAs and ETFs as mainstream buy and hold investments, estate taxes and gifting, plus changes to the laws regarding Traditional and Roth IRAs, and 401k and 403b retirement plans. With warnings and principles both precisely accurate and grandly counterintuitive, the Boglehead authors show how beating the market is a zero-sum game.
Investing can be simple, but it's certainly not simplistic. Over the course of twenty years, the followers of John C. Bogle have evolved from a loose association of investors to a major force with the largest and most active non-commercial financial forum on the Internet. The Boglehead's Guide to Investing brings that communication to you with comprehensive guidance to the investment prowess on display at Bogleheads.org. You'll learn how to craft your own investment strategy using the Bogle-proven methods that have worked for thousands of investors, and how to:
- Choose a sound financial lifestyle and diversify your portfolio
- Start early, invest regularly, and know what you're buying
- Preserve your buying power, keeping costs and taxes low
- Throw out the "good" advice promoted by Wall Street that leads to investment failure
Financial markets are essentially closed systems in which one's gain garners another's loss. Investors looking for a roadmap to successfully navigating these choppy waters long-term will find expert guidance, sound advice, and a little irreverent humor in The Boglehead's Guide to Investing.
those with wealth who want to pass on their assets, owning a long-term care policy eliminates the need to retain a large portfolio in case long-term care were to be needed. This makes it much easier to give away (gift) assets while they’re still alive, and it gives greater assurance that all of their remaining assets will be available for the heirs. If you go shopping for long-term care, here are some of the features a good policy will contain:• The daily benefit should equal the current daily
individually owned assets that were not yet transferred into the trust’s name or otherwise disposed of by title or beneficiary designation at the time of your death. Finally, you should be aware that there are a number of different types of trusts that may be appropriate, depending on your particular situation. These include, but may not be limited to, bypass, irrevocable, special needs, QTIP, generation-skipping, grantor retained interest trusts, and charitable remainder trusts. Which, if any,
deduction now. • Traditional IRAs may provide better protection from creditors. Factors Favoring a Roth IRA • You expect your future tax rate to be higher. • Roth IRA savings are worth more. The reason is that the Roth IRA contains after-tax dollars, which are more valuable than the pretax dollars in a regular IRA. • You want access to your funds. Roth IRAs incur no penalty on early withdrawal of contributions. • Withdrawals are not reportable income; therefore, they do not affect
are a few good ones around, but most have the lifespan of a fruit fly and a track record of providing terrible advice. We discussed investment newsletters in detail in Chapter 13. Suffice it to say that when it comes to investment newsletters, we feel that Malcolm Forbes said it best: “The only way to make money with a newsletter is by selling one.” Invitations to a Free Investment Seminar and Dinner These are almost always sales pitches that run the gamut from legitimate financial
study found that the average mutual fund investor underperformed the S&P 500 Index by approximately 3.4 percent per year during the 19 years studied. While part of the underperformance can be attributed to brokerage commissions, high fees and taxes, most of it’s caused by investor behavior. Thanks to greed, investors excitedly chase performance and buy when the market is up. Thanks to fear, they panic and sell when the market is down and lock in their losses. To quote the old comic strip