The Bogleheads: Guide Of Investing Second Edition

Taylor Larimore & Mel Lindauer

Physical

In Circulation

The Boglehead's Guide to Investing is a DIY handbook that espouses the sage investment wisdom of John C. Bogle. This witty and wonderful book offers contrarian advice that provides the first step on the road to investment success, illustrating how relying on typical "common sense" promoted by Wall Street is destined to leave you poorer. This updated edition includes new information on backdoor Roth IRAs and ETFs as mainstream buy and hold investments, estate taxes and gifting, plus changes to the laws regarding Traditional and Roth IRAs, and 401k and 403b retirement plans. With warnings and principles both precisely accurate and grandly counterintuitive, the Boglehead authors show how beating the market is a zero-sum game.

Investing can be simple, but it's certainly not simplistic. Over the course of twenty years, the followers of John C. Bogle have evolved from a loose association of investors to a major force with the largest and most active non-commercial financial forum on the Internet. The Boglehead's Guide to Investing brings that communication to you with comprehensive guidance to the investment prowess on display at Bogleheads.org. You'll learn how to craft your own investment strategy using the Bogle-proven methods that have worked for thousands of investors, and how to:

  • Choose a sound financial lifestyle and diversify your portfolio
  • Start early, invest regularly, and know what you're buying
  • Preserve your buying power, keeping costs and taxes low
  • Throw out the "good" advice promoted by Wall Street that leads to investment failure

Financial markets are essentially closed systems in which one's gain garners another's loss. Investors looking for a roadmap to successfully navigating these choppy waters long-term will find expert guidance, sound advice, and a little irreverent humor in The Boglehead's Guide to Investing.

What will you learn from this book

  1. Index Fund Investing: The Bogleheads promote the idea of investing in low-cost index funds, which track market indexes like the S&P 500, as a way to achieve broad diversification and reduce investment costs.

  2. Long-Term Perspective: They emphasize the importance of having a long-term view when it comes to investing, encouraging investors to stay the course and not react impulsively to short-term market fluctuations.

  3. Asset Allocation: The book stresses the significance of asset allocation, helping investors find the right balance between stocks, bonds, and other asset classes based on their risk tolerance and investment goals.

  4. Cost Efficiency: Emphasizing the impact of fees on investment returns, the Bogleheads advocate for minimizing costs by choosing low-cost investment vehicles such as index funds and ETFs.

  5. Tax-Efficient Investing: The book covers strategies to minimize taxes on investments, such as utilizing tax-advantaged accounts like IRAs and 401(k)s and employing tax-efficient investment strategies.

  6. Rebalancing: They discuss the importance of periodically rebalancing a portfolio to maintain the desired asset allocation, ensuring that it aligns with the investor's goals and risk tolerance.

  7. Behavioral Finance: The book touches on behavioral biases and psychological aspects that can affect investment decisions, urging investors to remain disciplined and rational despite market fluctuations.

  8. Diversification: The Bogleheads stress the significance of diversification across different asset classes and within asset classes to spread risk and optimize returns.

  9. Simplicity in Investing: They advocate for a simple investment approach, avoiding complex strategies or trying to time the market, and instead focusing on a straightforward, disciplined investment plan.

  10. Education and Continuous Learning: The book encourages investors to continuously educate themselves about investing, empowering them to make informed decisions and understand the principles behind their investment strategies.

Language English
ISBN-10 0-471-73033-5
No of pages 307
Font Size Medium
Book Publisher Wiley
Published Date 28 Feb 2022

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