What do you think of the Bogleheads 3 Fund Portfolio? Invest in it here: optimizedportfolio.com/go/bh-3-fund

This is now THE reference video for the BH 3 fund. Thanks John!

@OptimizedPortfolio

11 ай бұрын

Thanks, David!

Thanks you’ve basically done a lot of hard work reading the boggle heads books and distilling it into these videos, and you have done this for free (apart from your KZread revenue of course 😊)

@OptimizedPortfolio

9 ай бұрын

Thanks for watching!

Fantastic video. Great explanation and breakdown. Subscribed immediately after.

@OptimizedPortfolio

7 ай бұрын

Thanks, Andrew!

Brilliant video, brother! I'll share with fam and friends!

@OptimizedPortfolio

11 ай бұрын

Thanks, TJ!

Awesome delivery, my man!

@OptimizedPortfolio

11 ай бұрын

Thanks!

I'm not sure what the symbol is in the US, but in Canada you can buy VGRO or VBAL, depending on your risk tolerance. They are both by Vanguard, with very low fees, diversification of global stock & bonds in a single etf, and they rebalance for you twice a year. It simply doesn't get easier.

@OptimizedPortfolio

11 ай бұрын

Thanks for sharing!

Incredible Video. Thank you

@OptimizedPortfolio

11 ай бұрын

Thanks!

Thanks for putting in the time and work for this video it’s a great video and the content is really good.

@OptimizedPortfolio

Ай бұрын

Glad you enjoyed it!

Excellent explanation. Thank you.

@OptimizedPortfolio

3 ай бұрын

Glad it was helpful!

This video is exactly what I needed. The 'youtube' portfolio of SCHD/SPY/QQQ is absurd and unfortunately makes a strong recency bias claim. VTI/VXUS/BND & DONE.

@OptimizedPortfolio

Ай бұрын

Agreed! 🙌 Glad you found it useful!

Thank you very much for that insight and the amazing effort. I will watch this video again sober, but it somehow is the first finance video I am whatching where I am actually buying what you're saying. Gonna do my own research after this but thank you so much for pushing me in this direction. Great stuff!

@OptimizedPortfolio

8 ай бұрын

Hah I'll take it. Thanks.

@ehochmuephi8219

8 ай бұрын

My pleasure and thanks for the reply! I never thought I would be looking up this bad boy: Vanguard LifeStrategy 80% Equity UCITS ETF Accumulating You Bogleheads are fascinating creatures with fascinating ideas ... I am intrigued. ;)

@OptimizedPortfolio

8 ай бұрын

@@ehochmuephi8219 Welcome to the club! 😎

SOLID VIDEO!

@OptimizedPortfolio

9 ай бұрын

Thanks!

Thanks. I'm still not totally convinced on international stocks but I'm about to watch your video on that! Great, easy to understand content on this channel!

@OptimizedPortfolio

11 ай бұрын

Thanks! Hopefully I can convince you. ;)

Thank you for the effort and sharing. I am an appreciative subscriber. My only question: BND for bonds rather than short & intermediate Treasuries? Thumbs up.

@OptimizedPortfolio

11 ай бұрын

Thanks! BND for the sake of simplicity in this video and because it's the default Boglehead rec so I decided not to get too in the weeds on it.

Great vid! What are your thoughts on a factor tilted boggle head portfolio?

@OptimizedPortfolio

11 ай бұрын

That's what I do.

I would appreciate your thoughts on this 3 fund variation that would take into account a factor tilt for a 60-40 portfolio. AVUS for US stocks, AVNM for international stocks and either BND or AVIG for bonds. For that matter, what's your view on a 1 fund portfolio like AVMA? Thank you and I really like your website!

@OptimizedPortfolio

8 ай бұрын

I like it, Peter! Basically a slightly factor-tilted 3-Fund. I haven't looked into AVMA yet.

Thanks for a great video! Question: Why use separate ETFs for U.S and Ex-U.S. ? Why not just have VT or AVGV or other globally diversified fund (and add the bonds ETF)? VT is slightly more expansive by a few points (0.07% currently if I'm not mistaken) , but will automatically reflect the true aspect ratio of US/WORLD by market cap without you worrying about it, and is much more agnostic as a buy, hold and forget tool.

@OptimizedPortfolio

6 ай бұрын

Most like to dial in their own manual ratio of US to international. It also allows for more tax loss harvesting in taxable space.

I love this video, it goes a great job explaining the 3FP and adds a lot of additional value. One thing I would like to know more about, is the philosophy for what type of accounts to use this strategy within for tax purposes. Thanks!

@OptimizedPortfolio

6 ай бұрын

Thanks! It's suitable for all account types. You could be slightly more tax efficient in taxable space by using a treasury bond funds instead of total bond market.

@TyGuyTV

6 ай бұрын

@@OptimizedPortfolio So would you say that it's best to invest in this type of 3FP in a IRA/401k -- max them out and if you have any investable income left over in the year add it to the same strategy in a brokerage? I'm looking to open some accounts with Vanguard this week to start my 3FP journey and want to make sure I'm doing so within the proper accounts for the best long-term returns/tax advantages :)

@TyGuyTV

6 ай бұрын

@@OptimizedPortfolio So would you say the best bet is to max out the IRA, then max out the 401k with this strategy before even thinking about continuing it into a brokerage account? And then keep the same allocation across all accounts?

@OptimizedPortfolio

6 ай бұрын

@@TyGuyTV Depends on your personal goal(s), potential short term liabilities, etc. and how you want to manage allocations across accounts. But yes generally speaking it's usually best to max out tax-advantaged space first.

Thank you! Can you please give a fidelity version of these picks?

@OptimizedPortfolio

3 ай бұрын

You can buy the funds I mentioned at Fidelity. Or see my video here for Fidelity funds: kzread.info/dash/bejne/qHx33JqaZcbXnJs.html

85% VT, 10% AVDV, 5% AVUV here. Boglehead with a slight small cap value tilt.

@OptimizedPortfolio

11 ай бұрын

Awesome!

Thanks for this! Quick question: Can I use the same 3 fund portfolio in my HSA, Solo 401k and Roth IRA?

@OptimizedPortfolio

10 ай бұрын

Yep!

Do you recommend an equal weighted total stock fund or s&p fund to avoid the 30% concentration in the magnificent seven diminishing diversification?

@OptimizedPortfolio

2 ай бұрын

Probably wouldn't hurt, but also might not help much. I talked about RSP - equal weight S&P 500 - a while back here: kzread.info/dash/bejne/aXiorpaYqdSzqrQ.html

Great video. One question. The video you did a few years back mentioned the advantages of treasury bonds over a total bond fund. Have your recommendations changed in regards to the bonds? Thanks.

@OptimizedPortfolio

5 ай бұрын

Thanks! No change; still prefer treasuries over corporates.

@robertgadawski7298

5 ай бұрын

@@OptimizedPortfoliothank you!

@OptimizedPortfolio

2 ай бұрын

@@robertgadawski7298 Anytime!

Could you please make a video of BND vs TLT for diversification benefits ?

@OptimizedPortfolio

11 ай бұрын

Thanks for the suggestion!

@osn19

11 ай бұрын

@@OptimizedPortfolioThanks, really love your content and dedication

@OptimizedPortfolio

11 ай бұрын

@@osn19 Thanks! :)

I have a question about your Ginger ale fund. Do you rebalance your portfolio and if so how often ?

@OptimizedPortfolio

11 ай бұрын

Roughly annually.

International bonds lower the return. Bond return is equal to current yield. US bond yield is 4%, Eurobond yield is 2-3%, and Japanese Bond is 1%. Emerging market bonds are worth looking at, according to professor Burton Malkiel.

@OptimizedPortfolio

3 ай бұрын

To be clear though, this particular portfolio does not prescribe international bonds.

I’ve been investing in a Target Retirement Fund and VTSAX in a Roth, and Target Retirement Fund in 401k. Should I pull out of the TRF and invest in the other two? Can/should I do the same with 401k?

@OptimizedPortfolio

6 ай бұрын

Your target date funds likely hold some variation of a total international stock market fund and a total US bond market fund inside them already. I'm a big fan of TDF's for someone who wants to be completely hands off. So I'd say maybe check what exactly is inside each TDF and then decide.

Which fidelity index funds would be similar to the detailed 3 Vanguard Funds

@OptimizedPortfolio

4 ай бұрын

kzread.info/dash/bejne/qHx33JqaZcbXnJs.html

Does van guard target date index funds do the same as the 3 portfolio but simpler

@OptimizedPortfolio

2 ай бұрын

Basically, yes, but of course you lose the ability to dial in specific allocations for int'l and bonds, as well as bond type and duration.

Thanks for the informative (and well edited) video! Would it be possible for you to provide information about what the best European equivalents of these funds are for a European citizen who is not able to directly invest into something like a Vanguard fund due to regulations? I mean for instance ishares core s&p 500 instead of VOO but for VTI, VXUS, BND

@OptimizedPortfolio

22 күн бұрын

Thanks! Sorry, I'm not at all familiar with the options for European investors. If you just mean other US-domiciled ETFs from iShares, they may be mentioned on my list here: www.optimizedportfolio.com/etfs/ Or you could possibly just Google "European equivalent of VTI" or something along those lines.

@cryptomancer.

21 күн бұрын

@@OptimizedPortfolio thank you very much! yes I'm researching them on my own as well, just wanted to ask for some additional advice :) the link might already come in handy

Do you have any info or research on boglehead vs value/dividend investing? I like vti and vxus, but knowing most stocks underperform, I'm wondering if there are screening processes that can help weed out those poor performers. I hear Avantis does this by using the value premium, but I'm still really new to investing and would love to see someone explain this to me.

@OptimizedPortfolio

9 ай бұрын

First, Value and div investing aren't the same thing. Secondly, yes Value has outperformed historically but hasn't done great in recent years. Only time will tell. Yes, Avantis jointly considers Value and Profitability. I've got a video covering some of their offerings and methodology.

Thanks for the info. You mentioned you have a 50/50 allocation of US/Int'l - does that mean you only invest in two funds?

@OptimizedPortfolio

2 ай бұрын

I have a few more funds for a small cap value tilt.

@NewYork10280

2 ай бұрын

@@OptimizedPortfolio Inquiring minds want to know...

@OptimizedPortfolio

2 ай бұрын

@@NewYork10280 www.optimizedportfolio.com/ginger-ale-portfolio/

Hi, what would be the best way to mirror and replicate VT/VTWAX with VTI/VXUS if i dont have access to VT in a 401k?

@OptimizedPortfolio

4 ай бұрын

Current weights are about 60/40 but that shifts.

My main concern as a 50 yr old setting up a 20 year investment plan is the large amount of bonds in this portfolio when they have performed so badly for the last decade. I understand the importance of diversification, but the uncorrelated benefits have come into question in recent times to.

@OptimizedPortfolio

25 күн бұрын

Sounds like recency bias at its finest. Don't forget to check your biases: kzread.info/dash/bejne/qpuLu9iPmMyyZKg.html

is it worth it to consider bonds that much , even at all if ur event horizon is 30+ years?

@OptimizedPortfolio

5 ай бұрын

As usual, depends on one's need, capacity, and tolerance for risk, as well as what you mean by "worth it."

For bond allocation and interest rate risk, would it make sense to put half of the bonds in tips etf’s?

@OptimizedPortfolio

11 ай бұрын

I'm of the mind nowadays that TIPS probably don't make much sense until retirement or for a short-term liability, as stocks tend to be the best inflation "hedge" over the long term.

can you please do a video on US bonds versus World bonds? I'm a world bond investor, but I'd like to hear the benefits/backdraws of US vs world. I'm still not convinced by an only US bond portfolio.

@OptimizedPortfolio

11 ай бұрын

Thanks for the suggestion!

Are your stats for international market performance correlated to exchange rates against the US Dollar? The last time international funds were attractive was when the US Dollar was very weak -- as the value gain was primarily due to the decline of the US Dollar and the re-conversion of foreign denominated shares to US Dollars. As the US Dollar began to advance, the gain in the foreign fund disappeared.

@OptimizedPortfolio

9 ай бұрын

Not sure. Maybe I'll check into this. Thanks.

I'm thinking about using mutual funds in my Roth Ira (I have Schwab). Would SWTSX/SWISX/SWAGX accomplish this, or would you still go ETFS (VTI/VXUS/BND). I would use the mutual fund version of Vanguards, but Schwab charges a fee.

@OptimizedPortfolio

18 күн бұрын

Mutual funds would be fine, though I don't know the specific tickers you mentioned off the top of my head.

@spykex9467

18 күн бұрын

@@OptimizedPortfolio thank you for the response! Apologies for the not elaborating I didn't want to make the comment too long. SWTSX (total us market) | SWISX (international market) | SWAGX (bonds) - I read that selecting vanguard mutual funds would occur a fee through Schwab, so I selected the Schwab version of the Boglehead concept that you explained in this video. I have been debating between this approach and Schwab's target date fund, but I feel like this will outperform and I don't mind doing the allocations on my own. But that has been my biggest source of conflict is deciding on either of the 2 approaches.

@OptimizedPortfolio

18 күн бұрын

Anytime! All good. I assumed those were what those funds were, but I didn't really have the time (or desire) to look them up. Maybe choose the approach you feel most comfortable with at the moment and if that changes later, you can always switch with no tax consequences.

@spykex9467

18 күн бұрын

@@OptimizedPortfolio thank you!

@OptimizedPortfolio

18 күн бұрын

Anytime!

I am using 40/40/20 ratio for 401k account and rebalance every quarter.

@OptimizedPortfolio

11 ай бұрын

Thanks for watching!

How would you alter this in a taxable account?

@OptimizedPortfolio

4 ай бұрын

I wouldn't.

@luisgracia6050

4 ай бұрын

@@OptimizedPortfolioyou would have that bond fund in it? Not a municipal or something like that. Thank you for the quick reply!

@OptimizedPortfolio

4 ай бұрын

If one's goal(s) and strategy warrant bonds in taxable, then sure. Treasuries would be marginally more efficient than total bond market. But don't let the tax tail wag the strategy dog. Munis typically only benefit very high income earners.

I have 100 thou in retirement goin up 7 per cent a year but im 50 years old cant get till i 65.... question should i smash that or put some in s and p 500

@OptimizedPortfolio

28 күн бұрын

I can't provide personalized advice here.

Would this work for a 90 year old? If so, what is your recommended asset allocation? I’ve just discovered all the hidden fees in my dad’s brokered account. I can’t believe how much of his money has gone to fees and commissions over the years. He wouldn’t need a broker if he could simplify his portfolio. Better late than never!

@OptimizedPortfolio

5 ай бұрын

Thanks for the question and comment, Alison! The fundamental ideas underlying the Bogleheads 3 Fund Portfolio like broad diversification, simplicity, and low fees are great for anyone of any age, so yes, definitely, though the allocation would likely look very different from what I proposed as the one-size-fits-most 80/20. I can't provide specific, personalized advice here, but depending on the particular goal(s) of the individual, it would probably include a heavy allocation to bonds, those bonds would be short-term treasuries, and the stocks piece would be much smaller. Consider seeking out a fee-for-service fiduciary advisor and just pay them for 30 min. to an hour of their time to recommend a specific allocation.

@alisonbaxter7485

5 ай бұрын

Thank you so much for your response and the excellent information provided in your video!

@OptimizedPortfolio

5 ай бұрын

@@alisonbaxter7485 Anytime!

60/20/20 ITOT/SCHD/IXUS ... I replace bonds with a dividend ETF... I just can't bring myself to "invest" in government debt

@OptimizedPortfolio

5 ай бұрын

Bonds and a dividend ETF are not at all the same thing.

@QuadTap

5 ай бұрын

@@OptimizedPortfolio Yes, I know. But I will die on this hill.

@OptimizedPortfolio

5 ай бұрын

@@QuadTap Weird position IMHO, considering we literally use short-term gov't debt as the "risk-free asset" to which we compare others.

@QuadTap

5 ай бұрын

@@OptimizedPortfolio bond ETFs weren't very risk free recently... I hedge the volatility with other non-brokerage assets. Things that are completely uncorrelated and don't even mark the market often like farmland. I just hate bonds. I'll hold schd forever and I would sell the bonds if they started losing money. So regardless of academically what is correct. I know that behaviorally bonds and me are like oil and water.

@OptimizedPortfolio

5 ай бұрын

@@QuadTap Appreciate that I said short-term* bonds aka T-bills. Longer bonds are another story. Fair enough. I suspect you may be in for a rough time when entering retirement with zero bonds, though.

Each super power usually lasts 250 years. USA 250 year run ends soon. They're in decline and have runaway inflation and debts in the trillions. At some point they will go the way USSR went. Maybe it'll be more like the British empire, a slow grind to insignificance. This makes me sceptical of investing traditionally over the next 20 years. Hopefully the boglehead approach works out for me.

@OptimizedPortfolio

3 ай бұрын

What do you mean specifically by "investing traditionally?"

Why 80/20 US - international vs using the actual weight which is closer to 60/40?

@OptimizedPortfolio

11 ай бұрын

I explained that in the video.

How 35%VT 35% AVGV 30% VGLT ??

@OptimizedPortfolio

2 ай бұрын

Might be good if one has a long horizon and wants a pretty significant tilt toward Value stocks.

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

@OptimizedPortfolio

3 ай бұрын

Indeed

Good presentation..However, I'm still not convinced that international equities are necessary, or even desireable. Especially, since this was the conclusion of the ORIGINAL "Boglehead", Jack; HIMSELF. Not to mention..if you look at a twenty year chart of VTSMX (U.S) vs VGTSX (non-U.S.) the final cumulative annual averages are not even CLOSE. Foreign stocks, have quite simply; HORRIFICALLY underperfomed U.S. In fact, to such a degree (especially since about 2013) I have to wonder if foreign markets will EVER catch-up, in the remainder of my lifetime!

@OptimizedPortfolio

11 ай бұрын

Thanks! So authority bias is not a substantive basis for an argument to begin with. Bogle's reasons for avoiding int'l were objectively terrible and basically amounted to "the French are lazy." Ironically, he would have had higher returns over his investing horizon had he invested globally. I'd encourage you to go watch my video on international diversification and hopefully I can convince you: kzread.info/dash/bejne/mKGcvMRpmLKqftI.html

50% SCHD, 40% VOO, 10% QQQM age 60

@stvartak7164

3 ай бұрын

No international stocks? No bonds?

@OptimizedPortfolio

Ай бұрын

Thanks for watching!

You survived

@OptimizedPortfolio

11 ай бұрын

Always.

12:45 What bonds beat the US stock market from 2000-2020? Rofl

@OptimizedPortfolio

Ай бұрын

Long treasuries. Total bond market. Take your pick. Not sure why you think that's a "rofl." You can easily backtest that claim yourself. If you're too lazy to do that and you don't want to take my word for it, here's the NYT on the subject: www.nytimes.com/2020/05/01/business/bonds-beat-stocks-over-20-years.html

@martinlutherkingjr.5582

Ай бұрын

@@OptimizedPortfolio TLT is up 16% since 2002. The data doesn’t go further back, what ticker are you referring to for bonds? Since January 2000, QQQ is up 400%. Does your calculation include taxes? What tax bracket?

@OptimizedPortfolio

Ай бұрын

@@martinlutherkingjr.5582 Nope again. First, I said 2000-2020, not 2002-2024. Specificity matters with this stuff. Secondly, TLT is up 137% since 2002 (going into 2024 YTD). Sounds like you may be looking at price return only? Not sure. 16% is wildly wrong. Lastly, QQQ is not the total US stock market. But even using QQQ is basically the exact same result for that period due to the harsher tech bubble crash it experienced in 2000 versus the broader market. Over the stated period, QQQ was up 280% while long bonds (e.g. VUSTX) were up 355%. I don't have time to go back and forth running backtests. Best of luck.

@martinlutherkingjr.5582

Ай бұрын

@@OptimizedPortfolio What resource are you using for your back testing?

@OptimizedPortfolio

Ай бұрын

​@@martinlutherkingjr.5582 Previously PortfolioVisualizer before they implemented the new 10-year limit on free plans. Now testfol.io the past week or so. Finominal might be a good alternative too. I'm still playing with a few to see what I want to go with going forward. The PV thing is very new. I might just end up doing a paid plan with them.

Cliff 🎶?

@OptimizedPortfolio

9 ай бұрын

What

@rheechashaipu1927

8 ай бұрын

It's not that long of a video.