“Index funds eliminate the risks of individual stocks, market sectors, and manager selection. Only stock market risk remains.” John Bogle

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I’m sure you are not surprised that the topic of investing at the “top of the market” is the focus of the most common question I get. While John Bogle, the most famous of our Truth Tellers, recommends investors simply “Stay the Course!” it seems there are times when even John struggled with following his own advice.

I recently came across an interview where John discusses a couple of times he found his own advice difficult to stomach. I think you will find a number of his comments of interest. I particularly liked his comment, “Everyone is an indexer!”

Questions from Paula Pant Interview

Latest Podcast- Questions from Paula Pant Interview

While I was at the Bogleheads conference in Minneapolis earlier this year, I had a lengthy interview with Paula Pant.

I enjoyed the interview and found lots of questions and comments under the YouTube presentation that I wanted to answer.

While I wrote short comments on the site, I decided many of the questions were worthy of more discussion.Here is a link to the ⁠YouTube ⁠interview and ⁠podcast⁠:

#1. “Most of my holdings are in cash as I cashed out last time the market went down. How do I stay invested and think long-term to help me ride out the ups and downs of the market?” 02:17

#2. “I’m just beginning my investment journey and planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns.” ⁠https://rethinking65.com/the-preference-for-dividend-paying-stocks-is-irrational/⁠ 10:41

#3. "What Fidelity Funds do you recommend to build your ⁠4 Fund Portfolio⁠?" 15:00

#4. "How often do you recommend rebalancing the 4 Fund Portfolio?" 17:02

#5 "Nobody knows what’s going to happen next so we should practice some humility and CHOOSE a strategy with a long-term edge." What is the edge and what else do you need to know dividend stocks k? 21:02

#6. "I”m not looking to beat the S&P 500…I’m more than happy with the returns I get from it.” Does that mean it’s right for you? 24:36

#7. In response to Paul's recommendation of the 4 Fund Portfolio this is what one viewer said, “For what it's worth, backtesting shows his proposed fund portfolio does not do better than VTI or VOO.” Paul responds. 28:32

#8. "The only small cap value available in my 401k is DFSVX which has an expense ratio of .30%. Is this expense ratio too high? 32:32

#9. "Can you give ETF recommendations for all of the equity asset classes?" ⁠ Here are the Best In Class recommendations⁠. 35:23

#10. Please recommend more information on how I might adjust my 401k. ⁠We're talking millions⁠ and ⁠2 funds for life⁠. 36:37

#11 "Would you accomplish similar performance results by setting up a strategy using sector diversification instead of asset class diversification?" 40:01

#12 "I’m helping my 17 year old daughter with her Roth IRA. What do you think about shooting for an all equity 40/30/30 portfolio of US small cap value/S&P 500/Total International market?” 42:23

#13. “This guy has been pushing small cap value and underperforming for years. Sorry, no thanks." 44:25

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"Thank you for creating and sharing the analysis and quilt charts. The colorful quilts across many years are great, but the return rank frequency analysis are the real gems! The presentation is a great educational tool!"

I’m 12 years from retirement, the future looks like a ‘train wreck’ and I want out of the market. Should I sell?

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In This Edition None of This is Complicated! Latest PodcastTestimonial

In This Edition

None of This is Complicated!
Latest Podcast
Testimonial