Bogleheads 3 Fund Portfolio - The Ultimate Guide

Get this portfolio here: http://optimizedportfolio.com/go/bh-3...

The Bogleheads 3 Fund Portfolio is probably the most popular lazy portfolio out there. In this video we’ll take an in-depth look at what it is, why you'd want to use it, its historical performance, and how to build it with low-cost index funds.

// TIMESTAMPS:

00:00 - Intro
00:26 - What Is the Bogleheads 3 Fund Portfolio?
01:54 - Why Index Funds?
05:00 - Bogleheads 3 Fund Portfolio Benefits
09:29 - Choosing Assets and ETFs
09:55 - Why International Stocks?
12:33 - Bonds
13:13 - Why No International Bonds?
14:39 - Bogleheads 3 Fund Portfolio Portfolio Performance
15:28 - How To Build the Bogleheads 3 Fund Portfolio with ETFs

// SUMMARY:

The Bogleheads 3 Fund Portfolio is arguably the most popular lazy portfolio.

“Bogleheads” are followers of the advice of the famous Jack Bogle, founder of Vanguard and the father of index investing. The Boglehead philosophy is:

Develop a workable plan.
Invest early and often.
Never bear too much or too little risk.
Diversify.
Don't try to time the market.
Use index funds whenever possible.
Keep costs low.
Minimize taxes.
Invest with simplicity.
Stay the course.

The Bogleheads 3 Fund Portfolio is a simple portfolio comprised of 3 broad index funds – a total U.S stock market index fund, a total international stock market index fund, and a total U.S. bond market index fund.

Taylor Larimore, “King of the Bogleheads” and co-author of The Bogleheads Guide to Investing and The Bogleheads Guide to the Three-Fund Portfolio, succinctly summarizes the benefits as follows:

No advisor risk.
No asset bloat.
No front running.
No fund manager risk.
No overlap.
No sector risk.
No style drift.
Low tracking error.
Above-average return.
Simplified contributions and withdrawals.
Consistency.
Low turnover.
Low costs.
Maximum diversification.
Portfolio efficiency.
Low maintenance.
Easy to rebalance.
Tax efficiency.
Simplicity.

A one-size-fits-most 80/20 allocation for the Bogleheads 3 Fund Portfolio is:
60% total US stock market
20% total international stock market
20% total U.S. bond market

Using Vanguard ETFs and mutual funds, that means:
60% VTI or VTSAX
20% VXUS or VTIAX
20% BND or VBTLX

► Get this ETF portfolio here: http://optimizedportfolio.com/go/bh-3...

► Read the blog post here: https://www.optimizedportfolio.com/bo...

► Get the book by Taylor Larimore: https://amzn.to/2zI5uep

► Vanguard asset allocation quiz: https://investor.vanguard.com/tools-c...

► Vanguard allocation models: https://investor.vanguard.com/investo...

#lazyportfolio #3fundportfolio #bogleheads

// INVEST

► M1 Finance: https://optimizedportfolio.com/go/m1
► My comprehensive review of M1 Finance: https://www.optimizedportfolio.com/m1...
► Get my dividend portfolio: https://www.optimizedportfolio.com/m1...
► Lazy Portfolios: https://www.optimizedportfolio.com/la...
► Beginners’ reference guide (updated regularly): https://www.optimizedportfolio.com/be...
► Webull (for stock traders; get 2 free stocks): https://act.webull.com/kol-us/share.h...

// SOCIAL

► Website: https://www.optimizedportfolio.com/
► Patreon:   / optimizedportfolio  
► Facebook:   / optimizedportfolio  
► Instagram:   / optimizedportfolio  
► Twitter:   / optimizedport  

► Support my channel by shopping on Amazon (free for you): https://amzn.to/2TLCgCc

I appreciate all the support!

Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: https://www.optimizedportfolio.com/te...

Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.