Comments on: Wise Advice From Mr. Bogle: Set it and Forget it http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 25 May 2012 16:59:00 +0000 hourly 1 http://wordpress.org/?v= By: Don Bucks http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-325203 Don Bucks Mon, 23 Jun 2008 22:03:06 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-325203 re: Mr. Bennett's comments, above, Bennett has been promoting his special brand of Financial planning for some time. I suggest before anyone use his 'planner' or follow his advice, they should do some due diligence. Google "Rob Bennett + Purcellville" or just go to these links: One of his sites: http://s162532268.onlinehome.us/Sewer/viewforum.php?f=1 A site that tracks and comments on his activities. He frequently participates as "Hocus": http://www.s152957355.onlinehome.us/cgi-bin/yabb2/YaBB.pl re: Mr. Bennett’s comments, above, Bennett has been promoting his special brand of Financial planning for some time.

I suggest before anyone use his ‘planner’ or follow his advice, they should do some due diligence.

Google “Rob Bennett + Purcellville” or just go to these links:

One of his sites:
http://s162532268.onlinehome.us/Sewer/viewforum.php?f=1

A site that tracks and comments on his activities. He frequently participates as “Hocus”:
http://www.s152957355.onlinehome.us/cgi-bin/yabb2/YaBB.pl

]]> By: Bozo http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-315831 Bozo Thu, 29 May 2008 20:29:00 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-315831 To: AJC Yup, you got it. When you get to a certain point, you cash stuff in to fund your retirement. If you don't, well, you're playing with fire. I was fortunate enough to save 20%+ of my gross from 1983 to 2006 (when I retired) in a tax-deferred account (401K, then a SEP-IRA). My wife also saves about the same, as she is still employed. I know by cashing out half in 2004 I missed some appreciation in stocks, but I was able to sleep better knowing it was there when I would need it. Anyway, I kept the other half "working" as it were in domestic and foreign stocks, and a modicum of bonds and cash. Good luck to all, Yours, Bozo To: AJC

Yup, you got it. When you get to a certain point, you cash stuff in to fund your retirement. If you don’t, well, you’re playing with fire. I was fortunate enough to save 20%+ of my gross from 1983 to 2006 (when I retired) in a tax-deferred account (401K, then a SEP-IRA). My wife also saves about the same, as she is still employed.

I know by cashing out half in 2004 I missed some appreciation in stocks, but I was able to sleep better knowing it was there when I would need it.

Anyway, I kept the other half “working” as it were in domestic and foreign stocks, and a modicum of bonds and cash.

Good luck to all,

Yours,

Bozo

]]> By: Rob Bennett http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-315466 Rob Bennett Wed, 28 May 2008 18:05:24 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-315466 I agree with Bogle that investors should not chase performance. I do not at all agree with the him that investors should "set it and forget it." I think that's dangerous advice. I take valuations into account when setting my stock allocation. I go with a higher stock allocation when prices are good and a lower stock allocation when prices are too high (as they are today). Rob I agree with Bogle that investors should not chase performance. I do not at all agree with the him that investors should “set it and forget it.” I think that’s dangerous advice. I take valuations into account when setting my stock allocation. I go with a higher stock allocation when prices are good and a lower stock allocation when prices are too high (as they are today).

Rob

]]> By: AJC @ 7million7years http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-315437 AJC @ 7million7years Wed, 28 May 2008 15:32:30 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-315437 Aaah, Bozo, you are talking about the CD (or Bond) laddering principle brilliantly covered by Paul Grangaard in his book, The Grangaard Strategy. It's a retirement / wealth preservation startegy ... very different to wealth-building, though. BTW: in your (retirement scenario) case, by pulling the stocks out you are not so much 'market-timing' as much as locking in your profits, because you were planning to sell down some of your stocks to provide cash for retirement living expenses in a few years, anyway. Right? Aaah, Bozo, you are talking about the CD (or Bond) laddering principle brilliantly covered by Paul Grangaard in his book, The Grangaard Strategy.

It’s a retirement / wealth preservation startegy … very different to wealth-building, though.

BTW: in your (retirement scenario) case, by pulling the stocks out you are not so much ‘market-timing’ as much as locking in your profits, because you were planning to sell down some of your stocks to provide cash for retirement living expenses in a few years, anyway. Right?

]]> By: Bozo http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-315363 Bozo Wed, 28 May 2008 09:05:22 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-315363 "Set and Forget" is wise, but a tad simplistic. Even with index funds, there comes a time when you might want to lock in some portion (say, 50%) in CDs. To a degree, that's market-timing, but it deals with risk tolerance. I always said that if I got to a point where I could guarantee a return of 5% or more, while withdrawing 4% or less, I would pull the trigger. I did so, as to half my nest egg, in August of 2006. I start to cash in those CDs next year. The ladder lasts until 2019, when I start to tap my Vanguard balanced stuff. I's say, "set and monitor" might be more appropriate. Yours, Bozo “Set and Forget” is wise, but a tad simplistic. Even with index funds, there comes a time when you might want to lock in some portion (say, 50%) in CDs. To a degree, that’s market-timing, but it deals with risk tolerance. I always said that if I got to a point where I could guarantee a return of 5% or more, while withdrawing 4% or less, I would pull the trigger. I did so, as to half my nest egg, in August of 2006. I start to cash in those CDs next year. The ladder lasts until 2019, when I start to tap my Vanguard balanced stuff. I’s say, “set and monitor” might be more appropriate.

Yours,

Bozo

]]> By: Bryan http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-315229 Bryan Tue, 27 May 2008 23:00:54 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-315229 I love phrases like these. A phrase is a principle and not a laundry list of rules you have to rigorously follow. All a principle requires is common sense and wise judgment; though that combo *does* seem to be seen less and less these days. Good advice, and thanks for the link. I love phrases like these. A phrase is a principle and not a laundry list of rules you have to rigorously follow. All a principle requires is common sense and wise judgment; though that combo *does* seem to be seen less and less these days. Good advice, and thanks for the link.

]]> By: Bob http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-315163 Bob Tue, 27 May 2008 19:01:40 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-315163 Set It, Forget It, and Make it Automatic When my Grandmother passed away 10 years ago I received 24 shares in a savings and loan as part of the estate, every 3 months I got a $5 dividend check that was just spent. After a few years I contacted the transfer agent and just had the dividends rolled over. Now I have 37.7396 shares of this stock. Granted I’m not a millionaire but I have not missed those dividend checks and what may I have in 10, 15, or 20 years? In the past few years I have also discovered (direct stock purchase plans) which has enabled me to gain positions in companies like. BAC 45.0297 shares total cost in fees $10.00 PEP 14.9859 shares total cost in fees $10.00 XOM 15.4472 shares total cost in fees ZERO I have my checking account drafted every month to buy stocks directly $50 at a shot to invest in companies of my choice and the ones I’m investing in now pay the fees so all of my money goes straight to stock. Set It, Forget It, and Make it Automatic

When my Grandmother passed away 10 years ago I received 24 shares in a savings and loan as part of the estate, every 3 months I got a $5 dividend check that was just spent. After a few years I contacted the transfer agent and just had the dividends rolled over. Now I have 37.7396 shares of this stock.
Granted I’m not a millionaire but I have not missed those dividend checks and what may I have in 10, 15, or 20 years?
In the past few years I have also discovered (direct stock purchase plans) which has enabled me to gain positions in companies like.
BAC 45.0297 shares total cost in fees $10.00
PEP 14.9859 shares total cost in fees $10.00
XOM 15.4472 shares total cost in fees ZERO
I have my checking account drafted every month to buy stocks directly $50 at a shot to invest in companies of my choice and the ones I’m investing in now pay the fees so all of my money goes straight to stock.

]]> By: Bob http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-315161 Bob Tue, 27 May 2008 18:59:36 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-315161 Set It, Forget It, and Make it Automatic When my Grandmother passed away 10 years ago I received 24 shares in a savings and loan as part of the estate, every 3 months I got a $5 dividend check that was just spent. After a few years I contacted the transfer agent and just had the dividends rolled over. Now I have 37.7396 shares of this stock. Granted I’m not a millionaire but I have not missed those dividend checks and what may I have in 10, 15, or 20 years? In the past few years I have also discovered (direct stock purchase plans) which has enabled me to gain positions in companies like. BAC 45.0297 shares total cost in fees $10.00 PEP 14.9859 shares total cost in fees $10.00 XOM 15.4472 shares total cost in fees ZERO I have my checking account drafted every month to buy stocks directly $50 at a shot to invest in companies of my choice and the ones I’m investing in now pay the fees so all of my money goes straight to stock. I have even set up a web page with over 150 companies on it that offer DSPP and it is FREE so you can do your own Research. Set It, Forget It, and Make it Automatic

When my Grandmother passed away 10 years ago I received 24 shares in a savings and loan as part of the estate, every 3 months I got a $5 dividend check that was just spent. After a few years I contacted the transfer agent and just had the dividends rolled over. Now I have 37.7396 shares of this stock.
Granted I’m not a millionaire but I have not missed those dividend checks and what may I have in 10, 15, or 20 years?
In the past few years I have also discovered (direct stock purchase plans) which has enabled me to gain positions in companies like.
BAC 45.0297 shares total cost in fees $10.00
PEP 14.9859 shares total cost in fees $10.00
XOM 15.4472 shares total cost in fees ZERO
I have my checking account drafted every month to buy stocks directly $50 at a shot to invest in companies of my choice and the ones I’m investing in now pay the fees so all of my money goes straight to stock.
I have even set up a web page with over 150 companies on it that offer DSPP and it is FREE so you can do your own Research.

]]> By: sam http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-315159 sam Tue, 27 May 2008 18:56:25 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-315159 Mr. Bogle's philosophy fits well with my own. Thanks for the link. Mr. Bogle’s philosophy fits well with my own. Thanks for the link.

]]> By: KC http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/comment-page-1/#comment-314965 KC Tue, 27 May 2008 02:56:12 +0000 http://allfinancialmatters.com/2008/05/26/wise-advice-from-mr-bogle-set-it-and-forget-it/#comment-314965 I don't know how people make money "day" trading. The fees are nothing anymore with electronic trading. But the taxes will kill you, especially if you are in a higher bracket. You have to wait a full 365 to qualify for the long term rate of 15%. Now holding a stock for 1 year isn't exactly long term in my book, but its not day trading either. I've bought stocks in good sound companies that made funadamental changes that frightened me and I sold under a year, but again not day trading cause I wasn't planning on making a quick sale, companies can change and they did. I suppose you could get lucky and pick a stock that doubled in less than a year. In that case I'd sell and pay the short term capital gains - I'm no fool, day trader or not. But again its "luck" when that happens. I do a lot of research before I buy anything - stock, bond, index fund, etc. - and I just don't get lucky enough to double my money in less than a year. That's why I consider making money in day trading pure luck. I just can't seem to do it with knowledge and research, so in my book it's akin to gambling. It's fine if you think you have an edge, but it just isn't for me. I don’t know how people make money “day” trading. The fees are nothing anymore with electronic trading. But the taxes will kill you, especially if you are in a higher bracket. You have to wait a full 365 to qualify for the long term rate of 15%. Now holding a stock for 1 year isn’t exactly long term in my book, but its not day trading either. I’ve bought stocks in good sound companies that made funadamental changes that frightened me and I sold under a year, but again not day trading cause I wasn’t planning on making a quick sale, companies can change and they did.

I suppose you could get lucky and pick a stock that doubled in less than a year. In that case I’d sell and pay the short term capital gains – I’m no fool, day trader or not. But again its “luck” when that happens. I do a lot of research before I buy anything – stock, bond, index fund, etc. – and I just don’t get lucky enough to double my money in less than a year. That’s why I consider making money in day trading pure luck. I just can’t seem to do it with knowledge and research, so in my book it’s akin to gambling. It’s fine if you think you have an edge, but it just isn’t for me.

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