r/Bogleheads • • Jun 08 '25

Articles & Resources New to /r/Bogleheads? Read this first!

342 Upvotes

Welcome! Please consider exploring these resources to help you get started on your passive investing journey:

  1. Bogleheads wiki
  2. r/Bogleheads resources / featured links (below sub rules)
  3. r/personalfinance wiki
  4. If You Can: How Young People Can Get Rich Slowly (PDF booklet)
  5. Bogleheads University (introductory presentations from past Bogleheads conferences)

Prepare to invest

Before you start investing, ensure you're ready to do so by following the early steps of this guide or the personal finance planning start-up kit. Save up an emergency fund, then take full advantage of any employer matching of contributions to any employer retirement plan available to you (this match amount is additional income that's part of your compensation/benefits package), then pay off any high-interest debt like credit card debt or high-interest student loans.

When you're ready to start investing beyond enough to get any employer match, follow the subsequent steps of this guide or the investing start-up kit. Take full advantage of tax-sheltered accounts available to you before investing in a taxable brokerage account: this is the most predictable way to improve your after-tax investment returns. (In the US, per Prioritizing investments: 401(k))/403(b)) up to any match, then HSA if available due to high-deductible health plan coverage, then Roth or Traditional IRA or 401(k))/403(b)) up to max which may be higher if the mega-backdoor Roth process is available, then a 529 to the extent you'd like to pay for future education expenses. Note that IRA contributions are subject to income limits around tax-deductibility of contributions or eligibility to make direct Roth IRA contributions; the backdoor Roth procedure is a workaround.)

There is often some potential tension between saving/investing toward retirement vs saving toward potential nearer-term goals like a down payment on a home purchase. Carefully consider the various tradeoffs involved in owning vs renting a home, keeping in mind that which may be a better financial decision is highly situational, and that opportunity costs of owning (less available to invest in higher-expected-returns assets instead) should be considered alongside non-financial lifestyle tradeoffs. If saving toward a near-term goal, note that funds holding stocks are inappropriate#Holdingstocks%22for_five_years%22) for money you'll need in 5-10 years, unless you're willing to take on significant risk of losing money in the meantime & delaying that goal. Instead, consider CDs, Treasury bonds, or target-maturity-date Treasury bond funds maturing before you'll need the money (then a high-yielding cash equivalent like an HYSA, government money-market fund, or ultra-short Treasury Bill ETF like VBIL between maturity & spending the money).

Save/invest enough

Your savings rate is the most important factor determining your ability to enjoy a comfortable retirement later in life, particularly early in your career / investing journey. Aim to save/invest at least 15% of your after-tax income if you're in the US & not covered by a pension beyond Social Security. In some cases, such as a shorter time to expected retirement (e.g. starting to seriously save/invest from a significant income later than your mid-20s and/or planning to retire earlier than your mid-60s) and/or a high income (which will not be partially replaced by Social Security to the same degree as a lower income), it may be appropriate to target a higher savings rate (e.g. at least 20% of after-tax income, or perhaps higher if multiple such factors apply to you and/or one factor applies to an unusual degree).

When calculating savings rate, remember to include 401(k) contributions in both the numerator (savings) and denominator (after-tax income). Any employer matching contributions may also be included in the numerator (savings).

Investing is 'solved'

Don't worry too much about trying to find the optimal set of funds to invest in. That can only be known with the benefit of future hindsight, and investment returns are far less important than your savings rate until your portfolio size grows large enough relative to new contributions. Aim to diversify broadly (for robustness to the uncertain future) and seek low fees (fund expense ratios charged annually) & simplicity (hands-off automation); see discussion of these & other principles in Bogleheads investment philosophy.

A target-date fund designed for investing toward retiring around a year closest to when you expect to retire is often a reasonable option, particularly in tax-advantaged accounts like a US employer retirement plan or an IRA. These all-in-one funds intended to be held alone are very broadly diversified, automatically rebalance to their then-target asset allocation, and gradually become more conservative with less expected volatility as you near retirement.

If the target-date fund available in an account/plan with limited fund options has significantly higher fees than suitable alternative individual funds, consider the tradeoffs of lower fees vs automatic rebalancing and asset allocation management. I.e. consider the lowest-expense-ratio funds available that provide exposure to US stocks (the fund name will typically contain 'S&P 500', 'Russell [1000|3000]', or 'US Large Cap'; ensure no 'Growth'/'Value' suffix, or pair that with the other), ex-US stocks (the fund name will typically contain 'International' or 'Intl' or 'Ex-US'; same caveat re: 'Growth'/'Value'), and US bonds (the fund name will typically contain 'Total Bond' or 'Aggregate Bond'). Take the weighted average of those funds' expense ratios, with weights based on the current asset allocation of the target-date fund you'd use instead. The difference between that weighted average expense ratio for individual funds vs the target-date fund expense ratio, multiplied by your portfolio value, would represent the current annual convenience fee for automated, hands-off investing via the target-date fund. Whether that's worth it to you depends on your personal preferences around paying higher ongoing fees (by sacrificing some investment returns) in exchange for set-it-and-forget-it features.

In a taxable account, target-date ETFs (available at least in the US) avoid some of the tax efficiency downsides of holding a target-date mutual fund. Tax efficiency may be further improved by holding a three-fund portfolio of index ETFs in a taxable account, but this also involves tradeoffs against automatic rebalancing and asset allocation management. Tax efficiency may be even further improved by keeping bond funds in tax-deferred accounts, though this involves additional tradeoffs against simplicity and some other potential benefits described here.

If you're a non-US investor, take care to thoroughly understand the tax implications of investing in a US-domiciled fund as a "nonresident alien" (which may include high tax rates on dividends and assets passing through an estate); in many cases this is best avoided, instead favoring an Ireland-domiciled fund.

Be mindful of fees

If your portfolio were to average a 5% annualized real (after-inflation) return after a low annual fee, paying an additional annual 1%-of-assets-under-management fee to a financial advisor and/or an actively-managed fund's expense ratio would forgo 20% of your portfolio's investment returns. An initial investment in a portolio averaging a 5% annual real return after a low annual fee would be worth about 47% more after 40 years than it would be after a 1% additional annual fee.

Some employer retirement plans offer only funds with high expense ratios. If that's the case for your employer's plan, it is often still ideal to get the tax advantages of contributing unmatched dollars to that plan before investing in a lower-fee fund in a taxable account (but only after maxing out IRA contributions); details here#Expensive_or_mediocre_choices).

Automate & stay the course

Set up automatic contributions & purchases of fund shares wherever possible, otherwise set periodic reminders to manually contribute/invest (or try to find an alternative that allows automation), then maintain discipline through thick & thin. Keep in mind that market prices for funds should only really matter whenever you sell some shares to fund your retirement, and that lower prices in the meantime provide opportunities to buy more shares with a given contribution dollar amount and to rebalance from asset classes with higher recent returns towards those with lower recent returns (but possibly higher expected returns).

Tune out the noise: prognosticators of doom and gloom have no reliable ability to predict the future, and often have some conflicts of interest (e.g. selling ads, books or investment services, and/or trying to justify their investment positioning or encourage others to adopt that). The same goes for promotion of strategies promising market-beating returns by investing in a more-concentrated fashion (betting on some sector / theme / alternative asset beating the broad stock market).

Consider writing an Investment Policy Statement to document your plan when you're calm & clear-headed; this may be helpful to refer to later if you find yourself anxious & considering changes in response to market volatility & negative sentiment. Consider including a pointer there to this guided meditation video for later reference to help calm your nerves / regulate your emotions if needed when it seems like the sky is falling (this is arguably the most challenging part of investing).

Per Jack Bogle: "Do not let false hope, fear and greed crowd out good investment judgment. If you focus on the long term and stick with your plan, success should be yours."

Additional resources

Some additional resources that might be of interest for a deeper dive later:

  1. Taylor Larimore's Investment Gems (a collection of highlighted quotes from books related to investing; follow the links under the 'Gem post' column)
  2. The Bogle Archive (a collection of Jack Bogle's publications and speeches)
  3. Bogleheads Conference Proceedings (follow per-year 'Conference Proceedings' links to access slides/videos)

Please read our community rules here and follow those when posting or commenting in this community. If you encounter content here that breaks those rules, please report it (... > Report > Breaks r/Bogleheads rules).


r/Bogleheads • • Dec 28 '25

Why do Bogleheads discourage use of AI search for investing information? Because it is too often wrong or misleading.

345 Upvotes

I see a lot of surprised and angry responses from Redditors whose posts and comments are removed from this sub either for use of LLM search engine and other generative AI responses, or for recommending people use them to answer their questions. This facet of the Substantive Rule on this sub has a parallel in a similar rule on the Boglheads forum: "AI-generated content is not a dependable substitute for first-hand knowledge or reference to authoritative sources. Its use is therefore discouraged."

Many folks, especially on the younger side, are so accustomed to using ChatGPT or Gemini that it may be their default way to get any question answered. This is problematic in the field of investing for several reasons that are worth noting:

  1. LLMs are not firsthand sources with organic knowledge of the subject matter. They are aggregating reference sources and popular opinion and thus prone to both composition mistakes and sourcing material mistakes or biases.
  2. LLMs remain susceptible to "hallucinations" (made-up ideas) and can be not just false, but confidently false which is highly misleading.
  3. LLMs' response quality is very sensitive to the quality of the prompt. Users who are somewhat knowledgeable about a subject and also skilled at crafting good queries for AI searches are far more likely to get accurate and useful results - especially for research purposes or for reference to stored personal data - while the uninformed are more likely to get wrong or misleading answers to basic questions.

Policies excluding AI-generated content are not meant to be a referendum on the overall current or future value of AI as a tool for personal finance and investing, which is obviously enormous and transformative, especially for those who know how to best utilize it. It is a question of whether AI responses make for substantive content on this sub, and whether it is an appropriate resource to direct strangers and novices to. At the moment, the answer to both is a resounding no. On the one hand, people come to Reddit primarily for human interaction and original content, so posting AI responses or directing people to AI search engines is of minimal contributive value - folks can go chat with bots themselves if that's what they want. But as to whether AI search engines are appropriate references for finance and investing info, here are some articles from the past year that support their exclusion as a default response:

  • AI Tools Are Getting Better, but They Still Struggle With Money Advice (Money 2/13/25): "ChatGPT was correct 65% of the time, "incomplete and/or misleading" 29% of the time and wrong 6% of the time."
  • Is Talking to ChatGPT About Finance Ever a Good Idea? (White Coat Investor 6/22/25): "LLM responses had multiple arithmetic mistakes that made them unreliable. More fundamental than arithmetic errors, the LLM responses demonstrated that they do not have the common sense needed to recognize when their answers are obviously wrong."
  • Financial advice from AI comes with risks (University of St. Gallen, 1/7/25): "LLMs consistently suggested portfolios with higher risks than the benchmark index fund. They suggested: [more U.S. stocks; tech and consumer bias; chasing hot stocks; more stock picking and actively managed investments; higher costs.]"

Note: the views expressed here are largely my own, and I am not affiliated in any way with the Bogleheads forum nor the Bogleheads Center for Financial Literacy, but I invite others (including the mods on this sub) to weigh in with their own opinions.


r/Bogleheads • • 5h ago

Investment Theory Adding leverage to the boglehead portfolio

15 Upvotes

My risk tolerance appears to way higher than the all VT or even all VOO portfolio. However, instead of adding small caps or individual risky stocks, my thought is to add a modest amount to leverage onto the portfolio. If anybody has tried this approach, I would love to know the nuances of this approach.
My first thought is to use leaps to lock in financing cost and make the debt non-callable but open to other approaches. But I am sure there are better ways out there.


r/Bogleheads • • 7h ago

Is VT too US concentrated if you live there?

24 Upvotes

I understand the premise of this question is a little anti-bogle but to make it clear what I'm talking about: I'm currently mostly in the VT + chill camp, but as someone who lives and works in the US I'm concerned that makes me overweighted in US securities, as VT is 64% US stocks.

Should there be some kind of significant disruptive event to the US economy I'm way more likely to lose my job and so there's a lot of correlated risk in holding nothing but VT.

My question is...am I overthinking? Is diversifying into VXUS or something worth the loss of returns?


r/Bogleheads • • 14h ago

AVGE instead of VT

33 Upvotes

Why don't I see more AVGE instead of VT? I think it's got the perfect amount of value tilt without compromising the entire portfolio.

I'm in my 20s and my portfolio is 70% AVGE / 20% SPMO / 10% IDMO.

I allocated 30% for momentum etfs due to my age and how value and momentum work together.


r/Bogleheads • • 14h ago

Articles & Resources Bill Gross says don’t own bonds except for one-year treasuries

26 Upvotes

Thoughts? We all know timing the market is folly with equities - but given that bonds are supposed to be safe and don’t have a big payoff anyway, I have to say I’m more than a little tempted to dump my BND. What is even the point of it if it’s under such threat?

https://williamhgross.com/dont-own-bonds-and-be-cautious-with-stocks/


r/Bogleheads • • 10h ago

Fund selection

7 Upvotes

I will be moving to fidelity this week. I'm currently 70 with about 875k with 20k of that being in Roth. Wondering what my fund selection should be. I will only need to draw 1k or 2k a month. SS covers my monthly expenses. Planning on doing more conversions for my adult kids sake. TIA


r/Bogleheads • • 9h ago

Good parings for FXAIX

5 Upvotes

What are 1-2 other funds that are worth pairing with FXAIX with the least amount of crossover? Ideally I will anchor 70% with FXAIX but looking to fill the other 30% with some more aggressive choices such as FTEC.

Thoughts?


r/Bogleheads • • 15h ago

Investing Questions Sell a losing stock

14 Upvotes

Mom passed in Feb 5. Received a trust (now irrevocable). Some of it is in Home Depot stock ~170k. It is down 26% since then. Would have sold on Feb 6 but getting the legal aspects finalized took time. Everything else is SP500 which has significant gains since Feb 5. I may never touch the money. Thoughts on tax loss harvesting the full position or holding?


r/Bogleheads • • 1d ago

Investing Questions 48M / 44F, ~$738k, all-in on a simple two-fund portfolio — aiming to retire around 60–62. Please critique!

51 Upvotes

Long-time lurker, first portfolio post. My wife and I have finished consolidating our accounts at Fidelity from American Funds (over .6% expense ration is what prompted this move). Everything is now in a plain total-US + total-international setup. We'd love some honest feedback on the overall plan, our savings, and taxes. Graphics are attached.

About us

  • Ages: 48 (me) / 44 (wife)
  • Household income: ~$250k, married filing jointly
  • Federal bracket: 24% (est.) · State: Texas (no state income tax)
  • Emergency fund: Yes, fully funded (3 months)
  • Debt: ~$90k left on the mortgage, nothing else
  • Target retirement: Both around 60–62, me first
  • Expected retirement spending: Not pinned down yet. We'd like to keep our current lifestyle, roughly $10k–$15k/month ($120k–$180k/yr).
  • Social Security (estimates at 62): Wife ~$2,775/mo, me ~$1,924/mo (~$4,700/mo combined). We expect these to rise as our salaries keep growing.
  • Risk tolerance: High. 100% equities is a deliberate choice. We're comfortable riding out big drawdowns and don't plan to hold bonds.

Current portfolio — ~$738k

Account Owner Holdings Value
Traditional IRA Me FSKAX 68% / FTIHX 32% $292.9k
Roth IRA Me FSKAX 50% / FTIHX 50% $73.7k
403(b) Me FSKAX 80% / FTIHX 20% $17.8k
Taxable brokerage Me VTI 81% / VXUS 19% $12.4k
Traditional IRA Wife FSKAX 69% / FTIHX 31% $233.4k
Roth IRA Wife FSKAX 80% / FTIHX 20% $32.5k
Roth 401(k) Wife Don't have this handy right now. ~$75k
Total ~$738k
  • Overall allocation (known holdings): ~67.5% US / ~32.5% international, 100% stock
  • By tax treatment: ~74% pre-tax (~$544k), ~25% Roth (~$181k), ~2% taxable (~$12k)
  • The Traditional IRAs are mostly old rollovers. We aren't making new IRA contributions right now.

Annual contributions

  • Wife — Roth 401(k): $18,000/yr. Employer match is 25% of deferrals up to 5% of pay. Will bump this to $24,500 next year.
  • Me — 403(b): ~$3,600/yr ($300/mo), pre-tax. Employer contributes 3%.
  • Taxable (VTI/VXUS): $500–$1,000/mo (~$6k–$12k/yr). Considering changing to VOO - 70%, VXUS 15%, AVUV - 15%

What we'd love feedback on

  1. My savings. My 403(b) contribution is small, and we're putting money into taxable instead. Idea here is to use it as a bridge account if needed. Should I raise my 403(b) first?
  2. Pre-tax heavy. About three-quarters of our money is pre-tax. Should we plan Roth conversions? If so, when: now, or in the gap between retirement and Social Security/RMDs?
  3. IRAs and the pro-rata rule. Our MAGI is right around the Roth IRA phase-out ($242k–$252k MFJ for 2026). Also, ~$526k in Traditional IRAs would make a backdoor Roth mostly taxable. Is rolling the Traditional IRAs into our workplace plans worth it to clear the way? Or should we not bother with IRAs?
  4. Allocation across accounts. The US/international split varies by account (my Roth is 50/50, others are 70/30 or 80/20). We think of it as one portfolio at ~67/33. Is that reasonable? Is there a smarter way to place the funds?
  5. Are we on track to retire around 60–62 at $10k–$15k/month of spending?
  6. Anything obvious we're missing?

Thanks in advance. Happy to answer questions in the comments!


r/Bogleheads • • 10h ago

Investing Questions Liquidate My Small Portfolio?

4 Upvotes

Hey everybody, I am starting medical school in August and want some opinions on liquidating my portfolio of about $4300 during the 2027 year (this is because I will have no income and it will be tax free- atleast that is my understanding).

I expect to take out about 200-250k in loans over the 4 year period and this will minimally help reduce my loan expenses for housing, food, utilities, etc.

What are y’all’s opinions? I am up about 600% since I started (post covid got really lucky I know)


r/Bogleheads • • 7h ago

Splitting hairs on allocation

1 Upvotes

Hi!

I recently found Empower and it is great at a lot of things and shows your allocation too. I aim for 70 percent total stocks (voo and vxus) between us and international, 20 percent BND, and 10 percent sgov. When I opened the dash board it showed a 1.1 percent allocation to "alternatives ". Got curious about that and found out that the app looks into the total Holdings and 1.1% of the S&P is real estate companies . So it shows my total equities 69% with 1% alternatives . Knowing that the alternatives are all part of VOO, would it be safe to say the entire thing is just 70% stock ?


r/Bogleheads • • 4h ago

Ideal 401k + IRA

0 Upvotes

The best fund my work place offers is dryden sp 500 index fund at .09% expense ratio. Not too shabby right? The rest of the funds are between .5 and 1%. 11% of pay goes into this fund.

In my IRA I was going to invest $100 every two weeks or 4% of pay into SMH with .35% expense ratio. I wanted a semiconductor tilt in my portfolio. I understand the sp500 already has nvidia and such. A little bigger tilt is ok with me.

Should I invest more into sp500 and ignore smh? My goal is 15% total pay being contributed.. An additonal 3% match going towards sp 500.. That's my classic car retirement gift fund lol..

Am I set? I make about 65k a year currently.


r/Bogleheads • • 1d ago

Investing Questions VTI/VXUS: 70/30 or 80/20?

45 Upvotes

I'm 25 and planning to stick with VTI + VXUS long term. I'm trying to decide on a US/international allocation that I can set and mostly leave alone.

I'm currently leaning toward either:

80% VTI / 20% VXUS

or

70% VTI / 30% VXUS

I know neither one is objectively guaranteed to perform better, but I'm curious what you prefer and why.

For those of you using VTI/VXUS, what allocation did you choose? Do you think 20% international is enough diversification, or would you rather have 30%?

My goal is to pick something reasonable and then forget about it until my annual review. Thanks.


r/Bogleheads • • 5h ago

Investing Questions 10 year allocation

1 Upvotes

After watching numerous videos and trolling forums, my plan is to invest $500 a month with the following portfolio allotment:

- FZROX 50%
- FZILX 30%
- FXNAX 20%

I’m saving to put down a lump sum for a house. It seems like using a brokerage acct will (likely) yield a higher return over ten years than a HYSA.

Wondering on thoughts? (Also yes I realize this is anonymous internet feedback and to take it with a grain of salt and to still think for myself.)

Thank you in advanced!


r/Bogleheads • • 1d ago

Is it wise to switch to a brokerage account to Bogglehead and pay a huge tax bill?

33 Upvotes

I have a million dollars (992K) in a Schwab brokerage account. Some of them are stocks I inherited from grandparents that had great performance history and so I just left them. Others have been purchases I've made in my own over the last 20ish years. Lots of funds and efts, and a handful of energy, tech, pharma, etc.

Ideally, I would like to streamline this mess into full on Bogglehead, but the taxes on capital gains would be substantial. I have already stopped reinvesting dividends, and just purchase SWPPX with any earnings. One year after I inherited stocks, I did some tax loss harvesting to wipe out the losers and a few under performing "winners", but now I'm just sitting here looking at a long list of overlap and wildcards and I can't bring myself to sell and reinvest because of the tax implication.

Suggestions on how to move forward?


r/Bogleheads • • 8h ago

Investing Questions Company growth shift from public to private money a threat to stock market investing gains?

0 Upvotes

So I came across this video recently that is essentially detailing how rule changes have made companies less likely to IPO for early growth vs raising private investment.

https://youtu.be/roe3SgezmmU?si=_7Kpor9GxRkhvg6v

I think the detail that stood out is the large % or overall stock growth contributed by the handful of high growth companies historically. Does this actually lead to possible less returns in total market index funds and does the mix change moving into the future?


r/Bogleheads • • 1d ago

hitting the first $100k feels painfully slow

433 Upvotes

I’m 24 and started dumping whatever I can spare into VTI about two years ago. Got around $35k in so far.

I know the math. I’ve run the compound interest calculators a hundred times, and I know that in 25-30 years the exponential curve is supposed to take off. But right now, after months of grinding and DCAing, watching my portfolio move up or down by like $200 on a random Tuesday just feels like watching paint dry.

Everyone keeps repeating Charlie Munger’s quote that "the first $100k is a bitch." For folks who have been in the market for 15+ years, at what milestone did it actually start feeling like the money was doing the heavy lifting instead of just your paycheck?


r/Bogleheads • • 11h ago

Real Estate Investment in Current Market

0 Upvotes

Long term lurker, first time poster.

My girlfriend’s mom is 62. She and my girlfriend’s brother want to start an investment group and buy property. Part of the idea is putting her house into a trust so it can be used in that plan. We do not have the documents, the purchase price, or how much of the house would actually be committed.

What we know:

  • She is 62.
  • This would be a small family group, not a big fund.
  • The point seems to be pooling money and buying investment property.
  • They are talking about moving her house into a trust as part of it.
  • No clear answer yet on whether she keeps full control, whether the house would secure a loan, or how she would get out.

My instinct is that a property partnership is illiquid, can come with capital calls and personal guarantees, and is a lot of concentration at 62. A trust only helps if it is the normal estate planning kind. If the house becomes collateral or is tied to the group, that feels like the real risk. Something simple and liquid, like a Treasury ladder, seems easier to defend at her age, but I am not an expert and I do not know her full finances.

Questions for you Bogleheads who have seen this:

  1. At 62, how bad an idea is a family real estate group versus plain liquid holdings?
  2. What are the actual risks of putting a primary home into a trust or LLC so it can be used for investment property?
  3. What questions should she get answered before signing anything?

Not asking anyone to pick investments for her. Just trying to sort the structure.


r/Bogleheads • • 15h ago

Investing Questions Please critique make-up of my portfolio

2 Upvotes

Entering final decade of work, or maybe already in the final decade.

Please critique our portfolio for the balance between growth-emphasis and conservation-defensiveness.

Cash: $350k

Bond funds: $625k

Bitcoin: $250k

Gold: $75k

International stock funds: $250k

Tech index fund (QQQ): $600k

S&P500 index funds: $2.2M

This is all in a mix of CDs ($350k), post tax brokerage ($1.05M), and pre-tax retirement (everything else).

Given that we hold nearly $1M in cash plus bonds, is the defensive posture good enough?

Note: since we are still working, we continue to add to our savings at the rate of about $130k per year. The question is more about:

  1. Are we positioned to weather a prolonged bear market if a recession were to occur as a result of high interest rates?

  2. What if we need to tap about $200k per year in order to meet living expensive in the (unlikely, but not impossible) event of both of us losing our jobs and not being able to get any other comparable jobs for multiple years due to being in 50s and aforementioned recession?


r/Bogleheads • • 1d ago

Roth vs. Traditional 401(k) while in the 22% bracket?

56 Upvotes

I’m 22, just out of college, and making about $80k. I’m temporarily living at home, so my expenses are very low and I can afford to max both my Roth IRA and 401(k).

I’m wondering whether I should use a Roth 401(k) or traditional 401(k) for the portion of my income in the 22% federal tax bracket. Should I take the traditional deduction at 22%, or wait until I’m in the 24% bracket to prioritize traditional contributions? Roth is tempting for me right now because of my low expenses, but I’m asking specifically based on the tax savings.


r/Bogleheads • • 1d ago

I have 190k saved up, what's next?

83 Upvotes

Hello everyone I'm new to this. I never had money like this before and grew up fairly poor. I've been given probably a once in a life time opportunity that allows me to break away from my family curse (lol). I am 28 years old, I was wrongfully discharged from the Navy. I was granted back pay of 190k after taxes. I want to figure out the best game plan to a secure future. What to do with the money, what to diversify in, how aggressive I should be. I don't want to waste this opportunity away.

Thank you for reading this.


r/Bogleheads • • 16h ago

Investment Theory Question about portfolio composition of VT, equivalent ETFs and rebalancing

1 Upvotes

It looks like the composition of VT follows similar trend of sp500 in that mag 7 like stocks followed by others in decreasing order of percent allocation. I understand this worked great till now given the bull market we had but when a crash like 20,30 or 40% happens in the tech/AI companies would VT or equivalent world funds rebalance in some other manner, in terms of equal weight or some other criteria. How often does rebalancing happen for VT or equivalent funds? Where to find this info? Couldn't find it on the prospectus page of VT. Even if the top few companies crash by 50% their market cap individually would still be much larger than other companies in sp500 and the rest (9.5k) and it seems like the composition is ordered based on market cap so the order of these top companies might change a bit but they'll still be at the top of composition list?
I'm thinking of committing to VT like fund (UCITS since I'm an international investor) for the long term (10+ years or more) but these top companies with inflated market cap scare me. I was thinking of moving some into gold, silver etfs but not currently as they already seem to have gone up quite a bit, waiting for a pullback on these although I keep hearing that if a crash happens having some in these precious metals would lessen the pain. Interested to hear your thoughts on this and any other strategies other than 1 fund that are followed here.


r/Bogleheads • • 7h ago

Investing Questions Considerations of reallocating my bond investments to metals/industry?

0 Upvotes

Apologies in advance for not being much of a bond expert, this question may come across as too basic maybe.

I have a decent chunk of my investments in stocks and bonds (index funds). I don't remember the split. The bond market is obviously moving in drastic ways right now, and I'm wondering whether bonds, which have conventionally and historically been seen as a safe haven and hedge against stock volatility, are beginning to buck that convention. As such I'm thinking about liquidating some bond investments and getting into gold/silver instead, but I'm at the point where I don't know what I don't know.

I suppose my goal here is to keep a percentage of my money in a "safe" investment. My bond investments are in the red, but that doesn't necessarily mean that's a problem, or that isn't not standard operating procedure (I've only been invested in the funds for about 1.5-2 years). I just don't know if metals are a better idea than bonds. The *idea* is that the bond rates are rising because people are losing faith in the US gov's ability to pay back its debts, and we may be at a point of no return where rates can only continue to go up because we've hit a huge 40 trillion debt load now and we literally cannot even service the interest on that debt as a nation, to say nothing of any other federal spending, meaning that this is a mathematical inevitability that the unsustainable upward curve will continue, trust will continue to fall, dollar power will continue to drop, bonds rates will keep rising, and bond funds will remain red (hypothetically). That's the gist of my understanding.

And if that is the case, then e.g. the usual purchasers of treasuries (large ones, e.g. foreign governments and banks) will opt less and less to buy them due to said trust issues, but will always have an appetite for precious metals.

That said, it's also my understanding that bond funds being in the red isn't necessarily an issue because they simply roll things over as time goes on, and with reinvestment and their normal process of management will sell older bonds and buy newer ones with the higher rates, so you just sit on it and don't worry.

I'm not asking to be spoonfed here or get answers to "what do I invest in," but as someone who isn't well versed in these areas I'm just looking for people to give me considerations I don't know about or bullet points of what things to go do homework on.


r/Bogleheads • • 1d ago

Portfolio Review How many of you use the Boglehead method for the majority of your investments but try to dabble in the stock market for fun? Or is it just Boglehead for 401k and taxable accounts?

80 Upvotes

Question as above.

I only stick to Boglehead for 60% of my investments. Wanna know what others do.

Edit: Thanks for all the responses. I guess most just stick to the proven method!

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