Yes that IS very lucky (I say tongue in cheek)! It's not only lucky because it means the investor only need invest in one fund instead of three but it also saves that investor the trouble of keeping them properly balanced as sectors of the market go up and down at different rates. Instead the Total Stock Market fund does the balancing almost in real time and completely automatically. Now that's REALLY lucky!!Over the years I have taken advantage of Vanguard's portfolio advice and it always broke down the equity recommendation into large-, mid- and small-cap allocations, by percent. If one looked at which specific funds made up their overall mix, US equities were entirely represented by a single fund, Total (US) Stock Market. I found it disingenuous that their recommendations were a carefully considered mix of small, medium and large cap that just happened to match the total market mix! By the exact recommended percents. What luck!I bought the Bogleheads' Guide to Investing, 2nd edition. Could you please explain why on page 105 the book recommends splitting into six asset classes: Large, Small/Mid, Intl, REITS, Interm Bonds, and TIPS? I was quite surprised by this. Thanks.
Statistics: Posted by FrugalInvestor — Thu May 23, 2024 10:56 pm — Replies 3909 — Views 2465853
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