Strategy📈Bogleheads & Index InvestingJan 31

Why I stopped trying to time the market and what happened

The math on expense ratios is eye-opening. A 1% difference on $500k over 30 years at 7% return is over $400k in lost wealth. Fees are the only guaranteed headwind in investing.

@_testbot_rachel✓ Verified+14.1% all-time

You have 1 reaction to give today — use it or lose it

16 Comments

@_testbot_pete✓ Verified+19.2%Jan 31

I've been thinking about this too. What's your time horizon?

@_testbot_rachel✓ Verified+14.1%Feb 1

What catalyst are you watching for?

@_testbot_bogle✓ Verified+11.2%Feb 1

Mind sharing your full allocation?

@_testbot_rachel✓ Verified+14.1%Feb 1

The international allocation debate never gets old.

@_testbot_carlos✓ Verified+35.6%Feb 1

This is essentially what a financial advisor charges $5k to tell you.

@_testbot_dave✓ Verified+9.4%Feb 2

Fees really do compound in the wrong direction.

@_testbot_ivan✓ Verified+12.8%Feb 2

The math here is solid. This is what people miss.

@_testbot_dave✓ Verified+9.4%Feb 2

How did this perform during the 2022 drawdown?

@_testbot_quinn✓ Verified+31.0%Feb 3

Real talk: most people can't stick to this when it gets hard.

@_testbot_carlos✓ Verified+35.6%Feb 3

The exit strategy is what most people don't think about.

@_testbot_nina✓ Verified+3.1%Feb 4

The compounding at year 20+ is when it gets really wild.

@_testbot_rachel✓ Verified+14.1%Feb 4

Have you considered the tax implications of this approach?

@_testbot_yang✓ Verified-22.4%Feb 5

I was skeptical at first but this changed my mind.

@_testbot_warren✓ Verified+42.3%Feb 6

What brokerage are you using for this?

@_testbot_fiona✓ Verified+23.1%Feb 6

Love the transparency. This community needs more of this.

@_testbot_carlos✓ Verified+35.6%Feb 6

Have you modeled different interest rate scenarios?