Bogle's Advice to Retirees in the Current Market Environment

The Vanguard founder urges retirees to stick with the market return, despite the low-yield environment.
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[@go2four]

Whenever someone tells me to sell off all my index funds and go all in on real estate, because "housing prices will double again in the next 5 years and you cannot lose ". I just listen to Jack Bogle interviews and stay the course. Godspeed Jack.

[@williemarte6416]

Four I believe he meant “hyped up real estate” as in too good to be true real estate developments. For example, Celebrity promoted gated communities with an enormous golf course, etc. I could be wrong though.

[@davidmurray6070]

I could listen to Mr. Bogle all day long. Brilliant, Honest and EXPRIENCED. Amazingly sharp given his advanced age in this video. A true legend.

[@Retiredmco]

So glad to hear Mr. Bogle's wisdom still speaking to us! Thanks for all the help in my wealth building!!

[@Showmetheevidence-]

Any video with Bogle (unles interrupted by someone’s unneeded commentary) gets an automatic thumbs up. A true legend & I wish more people knew about him.

[@Discovery_and_Change]

0:32 It's wiser to plan on a lower return (that is, prepare for the stock market not doing well) 0:55 Stick with the market return...don't try and do better 1:21 The chances are just about the same that you'll do worse (as better) (when trying to beat the market) 1:32 Yields are not as bad as people think 1:36 Real yields are not that far from their historical norms 2:14 Stick with the market return 2:28 It's risky (to go for high yields) 3:08 If you want to go for high yield, it's not awful, but do it on limited terms (no more than 1/3rd of your portfolio) 3:46 Younger people: you have to save more 4:12 Stay the course 4:28 I'm not for market timing (that is, trying to guess when is best time to buy and sell) 5:00 Be careful about costs (that is, the fees you pay for your portfolio) 5:22 Money market funds shouldn't be used in an investment account 5:25 If you need the money short-term, savings account is fine 5:34 short and intermediate, I don't do long 5:41 Most people can't deal with the volatility

[@sylviasandy]

Thank you

[@fabiolatgg]

Thanks!

[@Discovery_and_Change]

@@fabiolatgg You're welcome. Hopefully the stock market continues to get better.

[@fabiolatgg]

@@Discovery_and_Change according to Jack it will always go back up with a vengeance and I believe him! Hehe

[@BENR8108]

Jack Bogle is my spirit animal...

[@glennwolf5642]

Decade ago I invested in Vanguard High Yeild Bond and kept adding to it. now it reinvests at a silly rate that puts a big smile on my face.

[@matthewm9261]

Better dump that bond fund. Bonds are in a bubble. Alan Greenspan even said so. That clown didn't even see the 08 bubble

[@smallfarmproductions]

@@matthewm9261 The clown Jack Bogle who says don't try to time the market and focus on the costs of managing your funds? Bubble shubble. If you are in for the long term you keep buying. You just keep buying.

[@RomilCPatel]

Jimmy Hua Bonds have the inflation risk that stocks don’t, in today environment you are guaranteed to loose money in bonds due to negative real yields, so it’s better put in equities that have a low valuation like emerging markets.

[@babrams007]

Mr. Bogle always has very interesting words of wisdom!!

[@stemikger]

Jack has done more for the little guy then any one in the financial services business. Thank you Jack!!

[@CLGrant]

RIP Jack .."in the long run"....

[@elbago1hd21]

thank you for this speech

[@GenXstacker]

Such a sharp mind.

[@anthonydo5908]

god bless this man

[@243wayne1]

+Anthony Do- Don't worry. He did... With $80 *MILLION DOLLARS!*

[@jbullionaire2749]

He's God's financial advisor now

[@whatsup7184]

XXX What's UP was here and scraped all of this brief into his YT library.😃

[@alexisyoun6372]

His voice was still so energetic at that age! What a Godsend human

[@guloguloguy]

Could you PLEASE do some videos about how to best go about "re-balancing" One's "NO LOAD" Index Mutual Funds, or ETF's?!!!.....

[@teddyboy252]

Good job

[@trankt54155]

Has anyone looked at the returns on bonds (corporate, short term, long term, etc)?

[@francismausley7239]

Always grateful... "... the honor and distinction of the individual consist in this, that he among all the world’s multitudes should become a source of social good. Is any larger bounty conceivable than this..." ~ Abdul-Baha, Baha'i Faith

[@devraga9612]

2021, still relevant

[@zetsui0411]

real yields with historical 5:30 short and intermediate bonds long good but most can't deal with volatility

[@frankrizzo4778]

very smart and wise gentleman. The real rate of inflation is a lot higher than 1%. look at the price of groceries, rent, insurance, utilities. The government plays with the numbers to distort the truth.

[@BillsSpamMail]

They play with the numbers so they can use inflation to discount social security. They know rent is going up 5 to 10% a year and give 0% and 0.3% cost of living increase to social security the past 2 years. Those that saved for retirement will leave less to their children, those that did not save for retirement will be moved to Section 8.

[@frankrizzo4778]

Texas NightOwl you pretty much nailed it👍🏻

[@choochietrixie9352]

Dirt 117 YOU HAVE A POINT!! I have saved since I was 12. I have the proof. Now earliest retirement of most of our family. BUT THEY ALL WANT ME TO GIVE THEM MONEY!!! 🤮

[@nhanha7433]

And since we look for income investment shortterm return. The negligent from inflation or staff members handle business and security less negligent.

[@joycekoch5746]

Great advice for 2016 but in 2018 things are rather different- bonds are a sentence of death in the next decade.

[@nhanha7433]

You can buy more but you can not resale. If it take too long for return you are not meet the monthly life and bill require to spend and collect.

[@nhanha7433]

It nearly to listen to the federal reserve chairman explanation the recession economy. But you could not understand.

[@nhanha7433]

The price stock expensive because your liabilities at risk. If you are the holder or the buyer. Or the price stock too low your liabilities at risk at well. The stop the liabilities at risk before decide hold longer or buy more. Force you must look to know what the companies goal and also their current GDP and sale revenue and net income statement. And the cash flow statement

[@JamrockVybzTV]

The legend himself

[@georgegarner1425]

Do like my friend she put most of her money in vanguard Wellesley income fund and lives off the dividends and don't worry about the ups and downs live well my friend you can thank me later

[@jperez1910]

George Garner I have a couple of Wellesley account and love the Windsor and Star funds as well...

[@GenXstacker]

Nice. I currently have 40% of my portfolio in the Wellesley Income Fund. But I'm still working so all the dividends are being reinvested.

[@zorro149]

What was he talking about when he said the gates were going up around money market funds?

[@jperez1910]

Zorro Zero I believe he was talking about new regulations to money market funds, which allow for them tp charge more fees and also the short term nature of said accounts, etc...

[@roryboytube]

protection so that they don't get pillaged and dry up in the next crash. MMs are essential for the day to day running of most if not all businesses and corporations. They need strengthening so that when everybody else is losing their heads confidence remains in the liquidity of these funds.

[@xamanikia13]

Just don't peek is the hard part for me

[@MPK1881]

Reversion to the mean, is happening in the stock markets right now.

[@BillsSpamMail]

I lived in Dallas and a year ago moved to Houston where rent is similar. Rent started going up at 10 to 20% a year starting about 4 years ago. My $870 rent renewed at $1050, then at $1250. if we had renewed again they wanted $1450. Rent is 2nd only to taxes as an expense. Dallas inflation has to be running over 8% They keep official value low as a way to defund social security. making 100% of social security taxable from the 85% would not make enough difference. Shifting people from social security retirement to welfare via inflation is the plan.

[@knpstrr]

Health insurance is our #1 expense (low cost of living in the midwest) since Obamacare.

[@BillsSpamMail]

I was paying a little over $1,000/mo for medical just for me with $6,000 deductible before Obama Care. With Obama Care I went to $550/mo with $2,500 deductible. So insurance was my #1 expense before Obama Care.

[@knpstrr]

You're welcome.

[@BillsSpamMail]

You are right. I guess I should have thanked you. I just wondering what you going to do when you get my age. By then spouses (and children) will only be covered if you pay 100% of the cost. At current high costs single people are eventually going to start demanding higher pay than married or lower medical costs. As more people shift to using the ER as their doctor because they can't afford insurance, your employer will start making employees pay 100% of cost. Then it will get worse as more and more people go to ER as doctor.

[@knpstrr]

I pay 100% of the costs now for myself and wife. And since we receive no subsidy, we're also paying the premiums for those that get reduced premium costs.

[@fredschofield]

GodSpeed Jack

[@nhanha7433]

And also our 3 branch government always have lobbies.

[@nhanha7433]

We invest in 40000 dollars we need 4000 dollars income return in every month. We need the federal security member ensure. We do not want to sale stock. Therefore all of us support the stock split.

[@nhanha7433]

You do not understand what he said.

[@luisacosta4250]

If Mr bogle stick with his forecast,he should say:buy 100 percent in tips or put 100 percent under the matress(see the video on forecasting the stock market).

[@marshallhosel1247]

Jack should be required listening to Investing 101.

[@hankhamelin329]

He and most other financial "gu ru's" keep saying more in bonds for retirees. Don't understand that, total bond fund hasn't made anything in the last few years, matter of fact, it's lost money. Put your money in CD's and get GUARANTEED 3 percent and it's FDIC insured. Some say but if you need money immediately you lose interest in CD's, yea, a whopping 2 months interest, big deal. At least that 3% is guaranteed AND FDIC insured.

[@roryboytube]

Bond funds are for diversification and risk buffering. The Total BND and aggregates and long term treasury are all a waste of time. But stable income and diversification can still be found in short term high yield instruments.

[@AYVYN]

You de-risk with age, which means more Government Bonds or CDs Nobody is telling a 25 year old to buy 4% bonds unless you expect a bank run

[@trankt54155]

Bonds are giving investors NEGATIVE returns and PLUS inflation would leave investors in worse shape. That said, investors should have 2-3 years of cash for day-to-day expenses, then for year 2/3 to 10 years invest in high dividend paying stock ETFs that provide you quarterly dividend payment PLUS capital appreciation and for the >10 year horizon invest in S&P 500 ETF or total stock market ETF..

[@mendoblendo321]

What do you think about the market at the moment?

[@trankt54155]

@@mendoblendo321 In my opinion, the current market environment has not changed significantly for investors in terms of the type of allocations of investment assets (i.e. stocks vs. bonds vs. money market, CDs, bank savings, etc.). The outlook consensus still favors owning stocks because it's expected stock will appreciate in the neighborhood of around 7%-10% based on company earnings growths. However, with respect to historical trends from 70 years of market data of S&P 500, after a year of 25% return (this year) the FOLLOWING year can earn somewhere around -9% to 32% (with only 3 following years with negative returns of -9%, -5%,-3%) while the other 14 years earned from +7% to +32% (but the average is at around 14%). With respect to current markets with the Fed pending raising 25 basis points (equivalent to 0.25%) at least 4X, or maybe even as high as 8X as some speculated, to stamp down inflation, and they may do it very quickly given that employment appears to be full as the most recent unemployment rate last week has dropped below 4%. That said, the rotation of stocks will take place, as it has already been in the last few trading days of the new year, from GROWTH into VALUE stocks......as the cost of growth will be expensive for companies to pursue since the borrowing cost will go up as the Fed tighten liquidity with interest rates increases coupled with decreasing the balance sheet (decrease asset purchasing). Currently, there are still trillions of easy money sitting on the sideline that are waiting to be deployed and certainly even with EXTREMELY AGGRESSIVE increases of 25 basis pointsX8 would only bring the short-term interest rate up to around 2%, and the long term 10-year bond to perhaps around 3.5%-3.7% and that is still low with respect to real inflation. So investing in short- and even long-term bonds is a money purchasing-power losing proposition....forget about CD, savings, money market or cash under mattress (well you need some cash ready for paying off expenses for 1-2 years in case you don't want to sell stocks if there is a recession, since there is ALWAYS a chance of recession). All that in mind, it is STILL stocks where INVESTMENT money needs to go.....but into GOOD, VALUE stocks.....and even better if those value stocks pay handsome predictable dividends, which they (large companies) typically do. Typically good, stable, predictable dividend paying stocks are in the financial sector, utility sector, consumer staples....and so forth... Is there potential for value stock appreciation on top of dividend paying, the answer is YES because there is so much money sitting on the sideline that will be plowing into buying value stocks for dividend in addition to the the rotation out of growth into value stocks by fund managers, institutional investors and retail investors.......and these buyings of trillions by themselves will DRIVE UP the value stock prices,...already you can see the prices of banks, utility companies, energy companies, consumer staples, etc. are heading up in just a few days of trading in the new year...Hope this helps. Happy New Year, and do not gamble with bitcoins or cryptocurrency....or "investing" in China....because you can lose everything....remember, investing is not the same as gambling.

[@nhanha7433]

You work you get return income weakly. They run business they get return income daily. We are the investor we will get return income monthly. We need the federal ensure all of us have the income return. And ensure they are not cheating they us no cash no place to live and lack of things we need every day.

[@nhanha7433]

Most of us earn under 300 thousand dollars. We are the investors as well. 5000 Dollar invest. We need at least 600 dollars return. If we have 20000 dollars invest we need 2000 dollars each month. If we have 40000 dollars invest. We need 4000 dollars return in each month. In order to stay out future near term violent and challenging.

[@henryk.5192]

5% annual return within the next decade??? Better off in Real Estate, then.

[@matthewm9261]

Don't buy real estate or gold? Diversifying isn't having different class of stocks. We are in a post growth economy. All growth in the stock market is due to central banks stimulation.

[@BM-ru7ef]

Agreed. If a new investor bought the S&P500 in the late '90s and held them all this time then only in the last three years have they made any gains in their portfolio, gains that will be erased again in the next panic selloff. In the same period, gold has appreciated quite a bit, even after coming off its high in 2011. Meanwhile, inflation has reduced the purchasing power of the dollar by something like 40% since the late '90s so any dividends that investors receive or in the future, or capital gains from sales, will be far less valuable than the dollars they accumulated stock with in the first place.

[@roryboytube]

diversifying is having a bit of everything. if I had a centt for every time somebody has predicted a general real estate collapse i wouldn't need to invest at all. Supply and demand People need buildings Population is increasing exponentially Real estate demand is never going to collapse permanently

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[@Frank020]

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[@roryboytube]

Treasury bonds are no longer risk free. The price volatility of a 20+ year Treasury bill is as risky as equity. of course retirees should adjust their portfolio but the best advice is now:- *Max 40% equity. * Ditch all bond funds greater than 8 years duration *Short term investment grade bonds *Short term high yield credit bonds for income *short term TIPS for an inflation balast *Large cap, core stable, low volatility Dividend funds for continued income *Rotation Equity (Recovery stocks, Utilities, Consumer staples always assume a crash is imminent) *Abso!ute Minimum growth equity (no Tech !! outside of an index fund if youre over 70, unless you have an adequate separate pension) *Small proportion of high yield REITs ( High quality Residential, Warehouse & distribution, Healthcare) Ignore commercial or industrial real estate and no subprime rentals) * Gold n silver nuggets or funds. Inflation Ballast * Cash Cash Cash is still King ...available for bargain shopping if a downturn hits. In a money market account or in the ultra short TIPS or ultra short Investment grade fixed income.