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Comment by dxs | Hacker News Reader

Principles: (1) asset allocation (2) diversification (3) rebalancing

Investments: no-load index mutual funds/etfs (1) total US stock market index (2) total US bond market index (3) total world stock market index, excluding US

Prime resource: Bogleheads.org – Investing advice inspired by John Bogle (1) www.bogleheads.org (2) www.bogleheads.org/wiki/Main_Page

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Do you still expect that to work now that the decade of low interest rates is over? Shouldn't people buy individual bonds instead?

The answer depends on what you are doing, why you are doing it, whether you are in a tax advantaged account, and how you need the money.

All of those affect what you should do and what is optimal.

https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_f...

Reasons for a fund may include ease of management, variations in contributions and times, uncertainty of when the need, and ease of rebalancing.

Individual bonds may be more appropriate for a defined liability at a specific time, for a bond ladder, or as a tax minimization strategy.

Who says it's over? The current US fed rate is only at its 50 year historical average now, and most investors expect the fed to considerably lower its rates again this year.

Stay the course!

https://fred.stlouisfed.org/series/FEDFUNDS

Just started reading Bogleheads’ Guide to Investing, quite a good read so far. It’s very informative about how the investing/trading industry relies on regular people giving up their gains on fees, loaded funds, etc when a simple investment plan like above is incredibly low risk.

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