Here’s what our wiki says
https://www.bogleheads.org/wiki/Three-fund_portfolio
The challenge I have encountered is unless the person wants to take the time to understand diversified investing, that markets go up and down, that over the long run it is VERY difficult for an active fund manager to beat the market ( msee spiva reports), the effect of fees on one’s portfolio, and the need to stay the course is that when the market goes down ( and it will sooner or later) they may blame you. Years ago someone I helped set up a three fund portfolio called me after the market had dropped a few days in the row and were nervous and worried they were going to lose their nest egg. They sold everything at the worse time to buy a large purchase they never mentioned until that day. Another good friend grabbed me for hours asking questions. I explained the boglehead philosophy. He has since moved to two or three advisors the last 15 years because he keeps looking for one that can beat the market convinced someone can. Mixing family or friendships and investing without the person understanding for themselves what the long term path to success is can be a tough path.
I’ll show them our wiki but it is tough to teach someone enough so they see the big picture unless they find enlightenment on their own. Maybe like religion lol.
https://www.bogleheads.org/wiki/Three-fund_portfolio
The challenge I have encountered is unless the person wants to take the time to understand diversified investing, that markets go up and down, that over the long run it is VERY difficult for an active fund manager to beat the market ( msee spiva reports), the effect of fees on one’s portfolio, and the need to stay the course is that when the market goes down ( and it will sooner or later) they may blame you. Years ago someone I helped set up a three fund portfolio called me after the market had dropped a few days in the row and were nervous and worried they were going to lose their nest egg. They sold everything at the worse time to buy a large purchase they never mentioned until that day. Another good friend grabbed me for hours asking questions. I explained the boglehead philosophy. He has since moved to two or three advisors the last 15 years because he keeps looking for one that can beat the market convinced someone can. Mixing family or friendships and investing without the person understanding for themselves what the long term path to success is can be a tough path.
I’ll show them our wiki but it is tough to teach someone enough so they see the big picture unless they find enlightenment on their own. Maybe like religion lol.
Statistics: Posted by Parkinglotracer — Tue Nov 25, 2025 1:27 am — Replies 1 — Views 104