The Bogleheads' Guide to Investing

"Kindness, integrity, and common sense can be scarce on Wall Street, but the Bogleheads have each in abundance. Reading The Bogleheads' Guide to Investing is like learning investing from your grandfather. There's a lifetime of wisdom packed into these pages, coupled with a sincere desire to help investors meet their goals. Jack Bogle will be proud!"

—Don Phillips, Managing Director, Morningstar

"The Vanguard Diehards—a.k.a the 'Bogleheads'—are easily the planet's most well-informed, congenial, and successful group of individual investors. At long last, they're letting the general public in on their solutions, their secrets, and their strategies. If you're about to retire, are planning to retire, or are even thinking of retiring, you can't afford not to read this book."

—William J. Bernstein, cofounder, Efficient Frontier Advisors author of The Intelligent Asset Allocator and The Four Pillars of Investing

"More than thirty years ago, John Bogle started a war in the mutual fund industry. His weapon was low fees, and his shield was common sense. In this book, three ardent followers sagely outline Bogle's approach that has benefited millions and will benefit millions more."

—Richard Ferri, CFA, President, Portfolio Solutions, LLC author of All About Asset Allocation and All About Index Funds

"Those investors who have the courage, discipline, and wisdom to follow the sound financial and investment strategies of The Bogleheads' Guide to Investing are virtually certain to achieve results superior to not only the vast majority of individual investors, but the vast majority of professionals as well. What is perhaps more important is that the quality of their lives will be improved because they will have more time to spend on the really important things in their lives."

—Larry Swedroe, author of The Only Guide to a Winning Investment Strategy You'll Ever Need

Within this easy-to-use, need-to-know, no-frills guide to building financial well-being is advice for long-term wealth creation and happiness, without all the worries and fuss of stock pickers and day traders.

Now, with The Bogleheads' Guide to Investing, you'll discover what it really means to be a Boglehead and learn how this approach can enable you to become a better investor and manager of your own financial resources. Assuming no extensive knowledge of finance on your part, Boglehead forum leaders Taylor Larimore, Mel Lindauer, and Michael LeBoeuf show you how to invest with simplicity and minimize the costs and taxes that quietly eat away at returns. Along the way, they'll also show you how to join the legions of Boglehead investors currently online—so you can post your own questions or help others solve their particular investment problems.

Other important topics covered throughout this book include:

• What types of investments you should use to get on solid financial ground
• How you can protect your investments against the ravages of inflation
• Steps to building a simple but effective investment portfolio and how to determine when to rebalance your portfolio
• How to live a comfortable retirement without running out of money
• How to efficiently pass on assets to your heirs
• How to keep your investing style simple, giving you more time to live life to the fullest
• And much more

With over a century of combined investment experience among them, authors Larimore, Lindauer, and LeBoeuf have seen a variety of different approaches to the market, but none more effective than the low-cost, tax-efficient philosophy of Jack Bogle. If you're looking for better long-term returns for your investment dollars, The Bogleheads' Guide to Investing can show you the way.

Bogleheads came into being in 1997 when Morningstar, the mutual fund research company, established a "Conversation Forum" at Morningstar.com dedicated to The Vanguard Group. Almost immediately, the site exploded with messages from ardent "Vanguard Diehards" (the Bogleheads' official name) expressing admiration of and appreciation to John Bogle, founder and retired chairman of Vanguard. Now, in The Bogleheads' Guide to Investing, readers will discover why so many people turn to John Bogle for investment advice. Unlike other investment books, this book is a gateway to a great online experience that teaches the Bogleheads' approach to investing and brings readers together with other Bogleheads online where they'll find help in dealing with investment issues and solving their particular problems. The Bogleheads teach readers how to invest with simplicity and how to minimize the costs and taxes that quietly eat away at returns. Boglehead forum leaders Taylor Larimore, Mel Lindauer, and Michael LeBoeuf have over a century of combined investing experience between them. Now, they share the low-cost, tax-efficient investment philosophy of one of the biggest names in mutual funds.

Taylor Larimore (Miami, FL), CCL, has been dubbed by Money magazine as "the Dean of the Vanguard Diehards" and John (Jack) Bogle himself calls Taylor "The King of the Bogleheads." Now 81 and retired, he is a Boglehead to the core. He regularly spends hours per day answering questions for free on the Morningstar Vanguard Diehard Forum and, in doing so, regularly preaches the investment religion of Saint Jack. In his mind, his wealth is a direct result of following the time-tested investment wisdom of Bogle, the founder and retired chairman of the Vanguard Group.

Mel Lindauer (Daytona Beach Shores, FL) was dubbed "The Prince of the Bogleheads" by Jack Bogle. He's a Forum Leader of the Vanguard Diehards on Morningtar.com where he's contributed more than 10,000 posts. A former Marine, he started investing in the late '60s and has first-hand experience with both bull and bear markets. Together with Taylor, he initiated and continues to organize the grassroots Diehards' annual meetings. He's been quoted in a number of newspapers and magazines and has appeared on CNN-fn.

Michael LeBoeuf (Paradise Valley, AZ), PhD. Companies large and small turn to Dr. Michael LeBoeuf when they want solid, practical ways to live and work smarter. He is an internationally published author, business consultant, and a dynamic professional speaker.  He has been interviewed on hundreds of radio and television talk shows including "The CBS Evening News", "Oprah," and "Good Morning America."  His books have sold almost two million copies, been translated into more than a dozen languages and adapted to produce 16 audio and video cassette programs.  His books include: How to Win Customers and Keep Them for Life, The Millionaire in You, Fast Forward, Working Smart, and Getting Results.

Acknowledgments.

Foreword by John C. Bogle.

Introduction.

PART I: ESSENTIALS OF SUCCESSFUL INVESTING.

Chapter 1: Choose a Sound Financial Lifestyle.

Chapter 2: Start Early and Invest Regularly.

Chapter 3: Know What You're Buying:??Part One.

Chapter 4:??Know What You're Buying:??Part Two.

Chapter 5: Preserve Your Buying Power With Inflation-Protected Bonds.

Chapter 6: How Much Do You Need To Save?

Chapter 7: Keep It Simple.

Chapter 8: Asset Allocation.

Chapter 9:??Costs Matter.

Chapter 10: Taxes:??Part One.

Chapter 11:??Taxes:??Part Two.

Chapter 12:??Diversification.

Chapter 13: Performance Chasing and Market Timing Are Hazardous to Your Wealth.

Chapter 14:??Savvy Ways to Invest for College.

Chapter 15: How to Manage a Windfall Successfully.

Chapter 16: Do You Need An Advisor?

PART II: FOLLOW-THROUGH STRATEGIES TO KEEP YOU ON TARGET.

Chapter 17: Track Your Progress and Rebalance When Necessary.

Chapter 18: Tune Out the "Noise".

Chapter 19: Mastering Your Investments Means Mastering Your Emotions.

Chapter 20: Making Your Money Last Longer Than You Do.

Chapter 21: Protect Your Assets By Being Well-Insured.

Chapter 22: Passing It On When You Pass On.

Chapter 23: You Can Do It.????

APPENDICES.

Appendix I: Glossary of Financial Terms.

Appendix II:?? Books We??Recommend.

Appendix III:??Financial Web Sites We Recommend.

Appendix IV:?? Vanguard Asset Allocation Questionnaire and Pie Charts.

About the Authors.

Index.