Comments on: Book Review: The Bogleheads’ Guide to Retirement Planning

By: Rick Ferri

Rick Ferri — Tue, 03 Nov 2009 22:30:51 +0000

Thanks for reviewing the book. As you know, this book was written entirely by individual investors. It is a testament to the individual investor that they can absorb, understand, and articulate back complex financial concepts. These ‘Bogleheads’ decided on their own what is important and what is hyped product pushing. The had no financial incentive and no hidden agenda as do so many book authors as well as bloggers. The
‘Bogleheads’ are genuine people who are offering genuinely great advice.

By: David Merkel

David Merkel — Sun, 25 Oct 2009 03:05:20 +0000

Venn — it’s not that simple. I use models as guides, but I try to look at what is overplayed. Different models go in and out of favor. I don’t have one single model — I have models, and I apply them when I think they have validity, like a repairman with a bag of tools.

No one tool is *the* tool. I tried to describe this in my piece Risks, Not Risk. Even with semi-scientific tools, it remains an art and a science. Look for where risks are getting more than fair compensation — take those risks. Where risks are not rewarded, avoid them. That’s my method; it is a poor version of what Jeremy Grantham does.

By: VennData

VennData — Sun, 25 Oct 2009 01:12:47 +0000

Any “Quant model” that outperforms will eventually stop outperforming.

If it provides better non-risk adjusted returns, it will eventually have a huge drawn down.

If you’ve got some “quant model” that can beat a “Bogglehead” Asset Allocation with re-balancing, publish it and let’s see in ten years. Heck, you can even make ex-ante changes.

By: DaveinHackensack

DaveinHackensack — Sat, 24 Oct 2009 06:28:16 +0000

“We can look at Roths, but will the government preserve the tax-free treatment if things really get tight?”

I’ve been using that point to argue in favor of traditional, deductible IRAs (assuming one is eligible for the deduction) for years. The upfront deduction is a bird in the hand.

By: JK

JK — Fri, 23 Oct 2009 14:49:45 +0000

I second that request for help in accessing unhedged foreign bonds – Maybe a post topic?

By: q

Thu, 22 Oct 2009 15:06:12 +0000

thanks for the book review. it sounds like something that i could use to get the conversation started with my wife as she is generally smart but has little tolerance for this sort of thing.

> unhedged foreign bonds are a core part of asset allocation

i agree in principle — it would be really helpful though to have a roadmap for this. how can i know what is what?