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 • • 18h ago

To whoever recently shared The Simple Path to Wealth, thank you.

1.2k Upvotes

Earlier this year, I watched as some options plays went from +150% to -100%. I legitimately wanted to die for a solid month.

A few months later, I decide to buy back into the market. No more 0DTEs, but surely I can still pick winners right?

My portfolio has now dropped 17% in just three days. Looks like there might be blood in the water for the foreseeable future as well, but who knows. I sure as hell don’t.

A few days ago, I saw a comment in this sub talking about The Simple Path to Wealth by JL Collins. (I’d never actually bothered to read a book about finance until now, because I’m a genius and can make millions on my own thank you.) I’m only four chapters in but I think this book has already changed my life.

I spent so much time trying to get rich that I never thought about *building wealth*. It’s a complete change in perspective and behavior that requires little more than awareness and discipline, two qualities I have prevented myself from developing due to greed and arrogance.

I’m looking forward to the rest of the book, but it’s already made me feel better about how to approach things moving forward. I may need to wait years to recover the loss of the past few days (so far!), but I’d rather learn that lesson now and see a better way forward than continue to double down on my stupidity and pray for the best.

Yes, in many ways this is me mainlining copium. More than anything though I’m grateful to look at this situation in a new light and see it as a temporary setback rather than the end of the world.

  1. Spend less than you earn.
  2. Invest the surplus.
  3. Avoid debt.

That seems doable enough. Now all I have to do is not be completely regarded.

I already shifted my investment strategy moving forward because of this book though. To whoever shared it, thank you.


r/Bogleheads • • 16h ago

Wish I read The Simple Path to Wealth 10 Years Ago

223 Upvotes

Hello all- I’m a 49 year old woman working full-time. I would appreciate any advice as I am finally paying attention to my retirement funds. I have about $500k in a professionally managed IRA that is a roll over from my previous employer. I recently read The Simple Path to Wealth and then immediately did a deep dive on my returns in this account. My advisor has been managing it for 10 years, and my annual rate of return is under 7%. If I had invested this money in VTSAX 10 years ago, I’d have $400K more. Ugh!

Anyway I am moving this money to Vanguard. Are we still on board with 100% VTSAX? I realize the book was written over a decade ago. Am I too old for 100% stocks? I have about 15 years before I would need to draw from this.

I have another 401K with my current employer and it’s invested in a target retirement fund, outperforming the managed fund obviously.

I am still new to finance terms/ strategy and don’t understand a lot of the posts in here. Just want to know if I’m too late to implement Mr. Collins recommendations.

Thank you kindly!


r/Bogleheads • • 2h ago

Retirement parents with minimal retirement savings

8 Upvotes

Hi guys!

First off- I myself (30's) am a through and through Boglehead and embrace it fully in my retirement planning.

My father, 59, is hoping to retire around 65 years old. Located in midwest, if that matters. He has around 178k saved in his 401k due to historic low contributions and poor investment choices (gambles) that resulted in major losses.

In the last year or so, I have convinced him to take losses on his risky positions and move them into broad market funds. Here's the current situation:

Salary: around 130k

Contributions: 7% w/ 5% employer match (his contribution was at 3% until last year but convinced him to increase it. I'm working to get him to increase it even more)

Home: rents @ $1200/month

Low monthly expenses due to paid off car/modest lifestyle

Current investment mix:
401k value: 178k
97% in Fidelity 2035 Target Date Fund (I know this is a bit hyper-aggressive since he wants to retire closer to 2033 but I'm trying to hopefully help him catch up)
3% in company RSUs (I'm not sure if/what sale restrictions he has- trying to get info)

What am I missing? What could we do better? Am I guiding him in the right direction? What can we do to help him live comfortably in retirement? I expect him to receive social security at a rate of around $3k per month from my googling; plus whatever we can do with his current retirement savings.

On a personal note- have any of you been in this situation where a parent has sub-par retirement savings? Did you feel responsible for supplementing your parents income to help with expenses? My fiance and I are in the process of buying a house currently (in AZ) and wondering if we need to consider buying enough property to build an "in-laws" suit. We make plenty of money ourselves also want to prioritize our future and savings; while also being cognizant of my fathers needs and future.

EDIT* Not sure what I was trying to say when I made that title LOL sorry guys


r/Bogleheads • • 8h ago

Vanguard Email: Welcome to Flagship - Is this a thing again?

14 Upvotes

So we've been investing with Vanguard for a while now and we have slowly built up our investments with them over the years. I remember a while back reaching the $50k tier and seeing Voyager show up on our statements and thinking it was a nice way to show hitting a milestone. But by the time we hit the $500k mark (Voyager Select), all of that seemed to disappear. Even the old Voyager branding had switched over to Personal Inventor or something like that on the website and our statements. I did some quick research a year or so ago and read, mostly on the BH forums and here, that Vanguard had basically done away with all of their tiers and had sunseted the names and nowadays, if you don't have at least $5M, you don't really get anything.

So I was pretty surprised a few minutes ago when I got an email from Vanguard titled "Introducing Flagship—the next level of service" and welcoming me to it. There is a link directing me to https://investor.vanguard.com/self-directed-investing/flagship and mentioning a bunch of benefits like priority service, dedicated team, better Cash Plus APR, etc. They mention some TurboTax discounts coming soon. Even logging into our account, it shows it in the top banner:

Welcome to Flagship—the next level of service

More expertise. More support. More ahead.

Honestly, I'm kind of surprised as I was under the impression this isn't really a thing anymore. Did they bring it back, or is it just some legacy thing that doesn't really mean anything nowadays in terms of the number you call? I always thought it was a nice way of recognizing their customers and was kind of sad when I read it was killed off, but I think it's cool if they are bringing it back.


r/Bogleheads • • 46m ago

401k plan adds ".25% of account assets" fee—max out, or use personal IRAs?

• Upvotes

A work 401k plan adds a fee of ".25% of account assets" for all funds in the plan. That's on top of the individual investments' expense ratios (low fee Vanguard total market equity and bond funds, so those fees are low).

Would you continue to max out the tax-advantaged 401k despite this add-on fee, or contribute up to the employer match and then fund other IRAs before returning to fund 401k? The question ultimately boils down to whether that .25% would be enough to change the standard boglehead order of investments.


r/Bogleheads • • 17h ago

Pay down 7% rental mortgage vs S&P 500 — what would you do

48 Upvotes

30, in NYC, in school + working.

Income:
- Job: $4,660
- Rental income: $4,160
- Other income: $6,880
- Total: ~$15,700/mo

Spending:
- Mortgages: $3,410
- HOA: $790
- Rent: $1,750
- Living: $2,000
- Savings: $750
- Total: ~$8,700/mo

Leftover: ~$7,000/mo

- Savannah: ~$177k equity ($270k value − $93k mortgage at 7%) , rent is 1675
- San Diego: ~$114k equity ($424k value − $310k mortgage at 2.75%) rent is 2560
- Already invested: ~$200k brokerage + retirement

Choice: $7k/mo to 7% mortgage (paid off ~late 2027, frees ~$900/mo) or S&P 500?

What would you do?


r/Bogleheads • • 5h ago

Vanguard flagship email

5 Upvotes

I got an email today from Vanguard where they’re setting up a new flagship program with a $1 million threshold of qualifying funds. But only real advantage I see is a slightly higher Vanguard Cash APY. It has a link to a landing page.


r/Bogleheads • • 12h ago

Investing Questions VTI + VOO 50/50 Split

10 Upvotes

Before I was a Boglehead, I invested heavily in VOO + some other stuff.

Since getting into Bogleheading (word?), I've exclusively invested in VTI + VXUS + BND

I currently have an almost identical amount of VOO and VTI.

Question: Should I continue on VTI only for that category? Or put half into VTI and half into VOO?


r/Bogleheads • • 9h ago

Muni bonds?

6 Upvotes

My sibling and I are inheriting $2.3 million in a Roth and $5 million in a taxable account. The $5 million account is all govt muni tax free bonds that pay about $300k/year income. I’m early 50s my sibling is late 50s. Would you diversify that taxable account? I will need minimal income for another 8—10 years then want to retire fully. Thoughts?


r/Bogleheads • • 13h ago

Best way to save more on retirement with only a ROTH IRA

10 Upvotes

Hey everyone, I am an independent contractor (1099) (28 years old) and I make about $120k a year. In my current position I do not have a 401k option and I only have a self-managed ROTH IRA. I currently have the entire IRA in a TDF and I max it out every year. I also have a taxable brokerage account with 60% in VT and an emergency fund in money markets with 10 months of expenses.

At this point my taxable account is outpacing my IRA by about 5% YOY. Since I don’t have the added tax haven of a 401k I was wondering what’s the next best way to increase my tax deferred retirement savings?


r/Bogleheads • • 1d ago

15 years of Investing Data: $1M Contributed, $1M in Growth

202 Upvotes

I wanted to see how much of my portfolio came from contributions vs growth, so I dug back through 15 years of statements to reconstruct everything. This post is intended to be reflective and perhaps inspiring to fellow bogleheads who may be earlier in their investing journey, so personal details (age, income, etc.) are excluded.

Portfolio summary (October 2026)

  • Total contributed capital: $1,081,477 (50.2%)
  • Total investment growth: $1,071,960 (49.8%)
  • Current invested value: $2,153,437
  • Overall growth multiple: 1.99×

How to read the table: Each row tracks the money invested in that year and how much it has grown from then until today, not how much the portfolio gained during that calendar year. For example, the $80.2k invested in 2017 has generated an estimated $119.1k in growth since 2017, making those investments worth $199.3k today. Data Visualized (through an LLM): Here (although I'm sure r/dataisbeautiful could do better).

Year Invested Growth Value Today Multiple
2011 $13.0k +$54.5k $67.5k 5.2x
2012 $10.9k +$51.2k $62.1k 5.7x
2013 $6.2k +$27.7k $33.9k 5.5x
2014 $8.0k +$27.6k $35.7k 4.5x
2015 $26.0k +$66.1k $92.2k 3.5x
2016 $30.6k +$60.3k $90.9k 3.0x
2017 $80.2k +$119.1k $199.3k 2.5x
2018 $30.7k +$60.7k $91.4k 3.0x
2019 $58.7k +$104.2k $162.9k 2.8x
2020 $76.8k +$130.1k $206.9k 2.7x
2021 $33.5k +$32.6k $66.1k 2.0x
2022 $51.5k +$44.6k $96.1k 1.9x
2023 $221.4k +$171.6k $393.0k 1.8x
2024 $142.5k +$70.2k $212.7k 1.5x
2025 $199.4k +$44.8k $244.2k 1.2x
2026 YTD $92.1k +$6.6k $98.7k 1.1x
TOTAL $1,081.5k +$1,072.0k $2,153.4k 1.99x

Portfolio / Data Notes:

  • 2011-2019: Investments were a mix of mutual funds in a managed account
  • 2020+: Fired my advisor, became a boglehead, and moved 95%+ of existing assets and future contributions into VFIAX (S&P500) with the remainder in short-term treasuries (VUSXX)
  • Portfolio includes retirement accounts and taxable brokerage.

Insights (r/boglehead principles, illustrated):

1. The earliest contributions have done a disproportionate amount of the work. The $264k contributed before 2020 represents just 24% of my lifetime contributions but has grown to approximately $836k, or 39% of my current portfolio and 53% of all investment growth. I remember telling myself that consistently shoveling money into the magic box would pay off (thank you, The Richest Man in Babylon) and seeing a 5x return on 2011-2013 investments illustrates that principle.

2. The crossover point is here. After 15 years, investment growth ($1.072M) has almost exactly caught up to all lifetime contributed capital ($1.081M). Roughly half the portfolio now comes from money I never directly contributed. Compound growth really is remarkable.

3. Investment returns are becoming more consequential than new contributions. With a $2.15M portfolio, a 10% market movement translates to approximately $215k in gains or losses, more than I can contribute from discretionary income in a typical year.

That's a double-edged sword. Market corrections will inevitably happen, and the swings become much larger in absolute dollars as the portfolio grows.

But the strategy remains the same to continue investing regularly, keep costs low, stay diversified, and resist the temptation to react to short-term market movements.

The biggest takeaway for me: Early contributions matter enormously, but consistency and time are what allow compounding to do the heavy lifting. Grateful to be a boglehead and would encourage any one who hasn't to read The Simple Path to Wealth by JL Collins. Finally, if you want to be REALLY impressed with big numbers, check out the net worth progression thread on the OG bogleheads forum.

--

Has anyone else tried reconstructing how much of their current portfolio came from each contribution year? I'd be interested to see how the pattern compares for people with different investment histories.


r/Bogleheads • • 1d ago

I Bonds are going to be popular again

355 Upvotes

I Bonds have been a topic of discussion from time to time here. With today's inflation report, the new variable rate is set at a whopping 4.08% and the fixed rate is likely to increase to at least 1.30 on November 1st. This makes I Bonds a pretty compelling investment for many of us. Wait until the end of November to purchase since you will get the full month's interest regardless of when during the month you buy.

https://tipswatch.com/


r/Bogleheads • • 11h ago

Employer retirement health fund question

2 Upvotes

So when i turned 40, my employer started putting money in a retirement health fund. It is currently in a vanguard TDF (VFIFX). My other options are CISIX, FXAIX, SWLGX, FSMDX, VSMAX, FSFPX, FXNAX, SUTXX and some blckrock target allocation funds. I likely won't retire for at least 20 years. Would you keep it in the TDF or do some sort of mix of the others?


r/Bogleheads • • 15h ago

Investing Questions Mortgage vs. Investing

3 Upvotes

Wife and I have a $540K loan on our primary residence at 6.625%. Both around 30 years old and work full time with first kid on way. Combined gross income is probably around $270K-$300K a year.

We have about $200K in retirement accounts, $150K in taxable brokerage accounts, $30K emergency fund in money market. We put 15% down, PMI is immaterial at $40/mo.

We just bought the home this year and I’ve been making regular payments, nothing extra towards principal. I’ve been putting about $4-5K into the market each month in taxable account, dollar cost averaging into VT. We both also contribute to our 401k beyond getting match, I close to max mine out currently.

Ive been intentional about investing instead of paying off the mortgage to this point. Thought process has been the higher returns in the market will beat the guaranteed 6.625%, plus we will likely itemize our deductions with the new SALT cap being $40K since we make less than $500K. That, and the idea of hopefully interest rates go down in the next 10-15 years and we can refi.

However, part of me wonders if I’m not really factoring in the risk-adjusted rate of return of a guaranteed 6.625%. Home payment is pretty big, that obviously wouldn’t go down if we made extra payments towards the home, but we’d be building equity faster and drastically reduce total interest paid over life of loan.

Would love some outside opinions.


r/Bogleheads • • 6h ago

36M Large Family 1 income

0 Upvotes

As the title says - I’m seeking opinions on what may be lurking in my blind spots in life. Van is paid off and we don’t have savings to buy replacement outright, so I may have answered my own question. We have 4 kids, 2 teenagers, and we homeschool our younger 3 (oldest is starting high school for dual enrollment)

Net take home with all pay, benefits, and allowances

INCOME

Pay: 9634/mo after 400 to ROTH

rental income: 1650/mo (+247 differential to savings)

Total: 11,284

BILLS:

mortgage $1403/mo

rent: 1244/mo

utilities: 300

groceries 1400

gas 400

cell phones: 48

charitable giving/tithe: 1000

Various subscriptions, bills, budgeted spendings (mom/dad day with kids, Spotify, allowances etc) 2000

Total: $8243 (3,041 remain)

DEBT

family - $5,000 (0 interest, scheduled $500/mo

- major foundation repair ($31K) erased all savings, travel, and put us pinching for a year - this was the part I didn’t have saved.

401K loan - 4834 @ 4.75% (383/mo)

SAVINGS

$1000 to HYSA (balance is ~5000)

$243 rental surplus goes to Sep savings for house

Roth 401K - $68K

the remaining 1798 usually ends up either going to savings or spent on travel while we are assigned overseas. we’ve agreed building wealth is second to giving our kids an experience we never had. Understanding a pension at 39 years old (4 years away) will help ”catch up” maxing our ROTH once they’re out of the house. Anticipate by 40 my income total will be ~$160K


r/Bogleheads • • 1d ago

Windfall before retirement

39 Upvotes

Hi, just wondering what some here might do in this situation, cause I have no Idea what I want to do. Couple retiring in about 20 months. I will be 57 she will be 55. She gets a 40k Pension. No debt, own our house, both will get S.S at some point. 600K in roths, 1.2mil in 401Ks. We put in the Max every year in both. Brokerage account with 100k adding 1000/month. 98% of all accounts are in SNP index funds through fidelity.

My question is we just received a 500k windfall. Right now half sits in a discover HYSA and half in fidelitys FZDXX. Why, because I dont really know what I am doing, or what I want to do. Just curious on thoughts going forward. I have been real lazy to date on this whole thing, I know its time to start reading and figuring out a plan. Thanks!


r/Bogleheads • • 13h ago

Where to put 70k house savings in this market?

0 Upvotes

Hi all, first time poster here, but I am puzzling over the above question.

The wife and I have a little shy of $70k saved up outside of our retirement investments that we were wanting to use to buy a house this summer. I originally had it in SPY and cashed out when it looked like we were getting serious about buying in early August. However, just as I did that interest rates exploded and prices in our LCOL, medium sized, Midwestern city have yet to come down. This all means that we are probably going to be sitting on this money until either the price of homes or the interest rates come down, which may be a year or two. We currently own a townhome that is not appreciating as quickly as single family homes in our area, but we do have about another $60-75k of equity there to think about as well.

So yeah, where should I put the cash? It's currently in SPAXX, but I worry that we'll lose additional buying power keeping it in there for too long. However, I also feel wary of risking the market right now, and I don't think our timeline is long enough to warrant said risk.


r/Bogleheads • • 1d ago

Marginal Tax Rate

9 Upvotes

Just did my 2025 taxes. Wasn’t planning to max my wife’s solo 401k this year, but by the time the income is in the phase outs for child tax credit, dependent care credit, Qualified Business Income etc then the marginal rate gets high.

just put $25k in the software and it decreased my tax liability by $9k. Feel real good about getting that out later at less than 36% taxes.

anyway that’s all. Just a shout out to double checking marginal rate if you’re in a spot to do anything about it with that last dollar going to tax advantaged space.


r/Bogleheads • • 1d ago

What to do with a low interest student loan?

8 Upvotes

Stats: 27, unmarried, no kids anytime soon, dream of home ownership in the next decade in a HCOL area.

I just finished paying off my grad school loans that were at 7-8% depending on when I took them out. My only remaining student loan now is one I took out in undergrad that is only at 3.73% with a balance of $8500.

Given the relatively high interest rates, I was very aggressive in paying off the grad school loans (about 40% of my paycheck). I know low interest debts are not a priority, but I also know it would feel good to just get rid of it. My Roth is maxed already for the year and I am not yet eligible for my company's 401K.

Looking for any advice or guidance from someone who has been in a similar scenario


r/Bogleheads • • 12h ago

Investing Questions Unreasonable 3 fund portfolio allocations

0 Upvotes

Are there any allocations of the 3 fund portfolio (US stocks, ex-US stocks, US bonds) that are so unreasonable that no one should use them under any circumstances?

References:

Examples of common allocations I've seen:

  • Vanguard Target Retirement Funds: 54/36/10
  • Vanguard Balanced Index Fund: 60/0/40
  • Vanguard LifeStrategy Funds: 48/32/20, 36/24/40, 24/16/60, 12/8/80
  • 100% world stocks at market cap weight: 62/38/0
  • 100% stocks with home country bias: 90/10/0, 80/20/0, 70/30/0
  • 100% US stocks: 100/0/0
  • Jack Bogle: 50/0/50
  • Dave Ramsey: 75/25/0
  • Warren Buffett: 90/0/10
  • Bogleheads wiki sample 3-fund portfolios: 64/16/20, 48/12/40, 33/33/33, 32/8/60, 14/6/80

Examples of less common allocations I rarely see:

  • 100% ex-US stocks: 0/100/0
  • 100% US bonds: 0/0/100
  • Stocks and bonds with 0% US stocks: 0/50/50
  • 100% stocks with ex-US tilt: 20/80/0, 40/60/0
  • Stocks and bonds with ex-US tilt: 20/40/40, 40/30/30
  • Mostly US bonds with some US stocks and 0% ex-US stocks: 20/0/80, 40/0/60

Are any of these allocations considered unreasonable, and why? Are there any allocations all investors should avoid entirely, regardless of risk tolerance, time horizon, and other circumstances?


r/Bogleheads • • 1d ago

Roth IRA Holdings.

7 Upvotes

Just wanted to check with some more experienced folks but all of my IRA is in one fund, that fund being VFIAX with $22k. Unfortunately I'm unable to maximize my contributions right now but I'm still depositing monthly. It's 100% stocks and 0% bonds. Should I continue putting what I can into this sole fund or diversify more?


r/Bogleheads • • 1d ago

Which bonds should I buy?

14 Upvotes

I’m trying to switch my portfolio from 100% stocks (VTSAX) to 80/20 bonds. Planning to retire in about 10-15 years.

I am a little bit lost on which ones to buy. I read a bit about TIPS and i-bonds and they seem pretty good. I saw BND and VTIP are also recommended but I see that they went down in value over the last 5 years..


r/Bogleheads • • 1d ago

I’m 25 and starting a Roth IRA. What should I actually invest in?

5 Upvotes

I’m 25, studying computer engineering and working part time. I’m trying to get serious about investing now and put more into it once I graduate and make more money.

My plan is to put all my investing money into a Roth IRA until I hit the annual limit, then put anything extra into a regular brokerage. Not all my money, just what I’ve set aside for investing. Rent, emergency savings and bills are separate. I’m still building those savings so I’m not maxing it out right away.

What I want is to spend my 20s and 30s building wealth so by my 40s I have more freedom. Maybe buy a house and support a family, but I’m not set on buying by a certain age. I’m fine renting if it makes more sense.

Ideally I’d leave the Roth alone until retirement, but I’ve also considered using some of my contributions for a down payment in 15–20 years. I understand that means losing the future growth on whatever I take out.

Right now I’m trying to figure out what to actually buy inside the Roth. I’ve looked at just doing VT or splitting VTI and VXUS. I’m not trying to pick individual stocks or constantly trade. I want something diversified that I can keep putting money into without overthinking it.

What would you choose in my situation and why? Is just buying VT enough? Would you include bonds at my age? And does prioritizing the Roth make sense if I also want financial flexibility before retirement?

I’m new to this, so if my thinking is off somewhere, tell me. I want to understand why something makes sense instead of just buying whatever ticker someone recommends.