Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Wednesday, 21 October 2015

Jack Bogle 4 Investment Rules

Jack Bogle, founder of the whole's largest mutual fund, Vanguard Group, is a long-term advocate of simple long-term Index investing.
He has a basic portfolio consisting of ONLY US Stocks and US Bonds.
As you grow older, more percentage should shift toward Bonds instead of Stocks.
At 86 years old, his current asset allocation is 50% Stocks 50% Bonds.
This is very different from what most financial books advice regarding asset allocation: taking 100 minus away your age, that should be your stock allocation, and the rest are bonds. This would result in Bogle having only 14% in stocks, which is a little under-invested.

More Links
What to Own during Rate Hikes?
Fine Print of CPF Money Withdrawal
5 Financial Things to do in your 20s
Singapore Finance Minister on Personal Finance Part 2

The 4 rules Bogle set for investing under such investment period:

1. Bogle doesn't rebalance — if you must, once a year is enough.
You reduce the brokerage fees you pay.
You don't end up selling your winners too early just to keep your portfolio "balanced"

2. Bogle doesn't invest overseas — at least, not directly.
He focus only in US because of legal protection available in US for investors. So invest in places that have a safe political and legal playing field.
Simultaneously, US companies also derive more than 50% of their income from overseas (developed and developing markets), so you ain't exactly missing out on overseas investment opportunities and growth!

3. To Bogle, diversification means bonds — and it doesn't need to mean anything more than that.
If you are okay with short-term volatility (aka risk), investing 100% in stocks is not a bad idea because historically, it give the best returns.
However, a little bonds are good for some emergency short-term needs like sudden medical bills - especially when the stock market is not doing very well for the short-term.
Bonds have reduce chances of massive drop in portfolio value

4. Bogle believes that if you make the 'simple' portfolio choices, you'll spend a lot less time worrying.
A simple Low-Cost Index Stock-Bond portfolio with minimum re-balancing will gives him the peace of mind because it is a simple strategy. No need for huge reports or massive phone calls on great investment ideas. 
just a simple monthly investment savings plan will do

Remember to offer your opinions. If you don't put your two cents in, how can you expect to get change?

Have a feedback? Tell us now! 

Subscribe to us or 
Follow us: Investment Stab on Facebook
Share this :


  1. Always be careful to choose which investment company we will put our savings.

    1. Hi Luke,
      We absolutely agree with you that it is important to choose the correct investment company to put our savings in.
      There have been fund companies that folded up and caused investors to lose their savings.
      Thus it is always best to stay with those firms that are more reputable
      Thank you for your support.


  2. It's really a nice and helpful piece of information. I'm glad that you shared this helpful info with us. Please keep us informed like this.
    Mortgage Loans

  3. Thanks for the information and links you shared this is so should be a useful and quite informative!professional global mobility providers

  4. Truly superb blog, I don’t have actual words to praise in regards for this
    Investment Management

  5. Super blog and very interesting information which I always wanted to search many article but you article is really fantastic.
    make 1000 dollars a week