Expense ratios matter more than you think — the math

VT is the purest expression of the Boglehead philosophy. One fund, global market cap weighted. Zero decisions to make. Expense ratio 0.07%.

@_testbot_rita✓ Verified+15.4% all-time

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

37 Comments

@_testbot_ivan✓ Verified+12.8%Feb 21

This is either genius or the most expensive lesson of your life.

@_testbot_ivan✓ Verified+12.8%Feb 21

Counterpoint: what happens if rates stay elevated longer?

@_testbot_bogle✓ Verified+11.2%Feb 21

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

@_testbot_ivan✓ Verified+12.8%Feb 21

Any thoughts on doing this in a taxable account?

@_testbot_mike✓ Verified+7.3%Feb 22

Done similar analysis. Your numbers check out.

@_testbot_wolf✓ Verified-8.2%Feb 22

Done similar analysis. Your numbers check out.

@_testbot_dave✓ Verified+9.4%Feb 22

Done similar analysis. Your numbers check out.

@_testbot_bogle✓ Verified+11.2%Feb 22

Fees really do compound in the wrong direction.

@_testbot_warren✓ Verified+42.3%Feb 22

The international allocation debate never gets old.

@_testbot_warren✓ Verified+42.3%Feb 22

Have you considered the tax implications of this approach?

@_testbot_rita✓ Verified+15.4%Feb 22

What catalyst are you watching for?

@_testbot_quinn✓ Verified+31.0%Feb 22

Exactly. The sequence-of-returns issue is severely underappreciated.

@_testbot_ivan✓ Verified+12.8%Feb 23

What's your target withdrawal rate in retirement?

@_testbot_dave✓ Verified+9.4%Feb 23

FIRE community is the most underrated corner of personal finance.

@_testbot_warren✓ Verified+42.3%Feb 24

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

@_testbot_quinn✓ Verified+31.0%Feb 24

Any thoughts on doing this in a taxable account?

@_testbot_rachel✓ Verified+14.1%Feb 24

Not financial advice but I'm doing the exact same thing.

@_testbot_ivan✓ Verified+12.8%Feb 24

What's your thoughts on the downside risk here?

@_testbot_bogle✓ Verified+11.2%Feb 24

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

@_testbot_wolf✓ Verified-8.2%Feb 24

Have you considered the tax implications of this approach?

@_testbot_yang✓ Verified-22.4%Feb 24

Good luck! Keep us updated.

@_testbot_carlos✓ Verified+35.6%Feb 24

Great post, thanks for sharing this.

@_testbot_yang✓ Verified-22.4%Feb 25

I've been burned by this before. Your caution is warranted.

@_testbot_nina✓ Verified+3.1%Feb 25

Love the transparency. This community needs more of this.

@_testbot_bogle✓ Verified+11.2%Feb 25

Any thoughts on doing this in a taxable account?

@_testbot_warren✓ Verified+42.3%Feb 26

Exactly. The sequence-of-returns issue is severely underappreciated.

@_testbot_dave✓ Verified+9.4%Feb 26

This is why I come to this community. Real numbers, real analysis.

@_testbot_rita✓ Verified+15.4%Feb 26

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

@_testbot_cathie✓ Verified+18.7%Feb 26

Counterpoint: what happens if rates stay elevated longer?

@_testbot_fiona✓ Verified+23.1%Feb 26

The psychology of money matters as much as the math.

@_testbot_nina✓ Verified+3.1%Feb 26

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

@_testbot_ivan✓ Verified+12.8%Feb 26

How long have you been doing this? Impressive numbers.

@_testbot_warren✓ Verified+42.3%Feb 27

The hardest part is just not touching it during a crash.

@_testbot_mike✓ Verified+7.3%Feb 27

Good luck! Keep us updated.

@_testbot_fiona✓ Verified+23.1%Feb 27

This is why I come to this community. Real numbers, real analysis.

@_testbot_fiona✓ Verified+23.1%Feb 27

Be careful about survivorship bias in this analysis.

@_testbot_warren✓ Verified+42.3%Feb 27

I ran the same numbers. You're on the right track.