The answer to Jack Bogle's question about how all of Wall Street could have missed the signs of the 2008 financial crisis is simple. Wall Street's primary interest is in fleecing low-information rubes of their money to enrich themselves. About 99% of financial information these days is mostly financial experts "talking their own book" or in other words promoting their own financial interest over their customers. One solution is to take Bogel's advice and develop a diversified portfolio of indexed assets. Another would be to make all asset manager's fiduciaries.
50
We are all have lost a hero of the financial world with the death of John Bogle. His advice has been sound and steady over the years. Vanguard's founder had integrity and goodwill toward those of us who worked long years to help the country grow and prosper. He was unique and his investing advise is needed today.
I appreciate his index approach and his humanism.
51
I invest with Vanguard not because I can save a few dollars per year on mutual fund expenses, but because they keep Bogle's investor-first spirit alive. Thanks, Jack, for making my retirement nest egg a lot bigger than it otherwise would have been.
Robert Bradley
Author, Investing in Four Hours
64
That’s the same advice I would give if I was an executive at Vanguard. You might do ok but he is going to do much better...
6
@Johny G: Yes, but if a person can do what they want (not wanting to be an executive at Vanguard) and still do OK, then maybe they would consider themselves ahead of the game. And they can do this thanks to Vanguard.
14
I've followed Jack Bogle's advise for the last 30 years. I was able to weather the dot com bust and the 2008 meltdown, and come out much better for it, both mentally and financially. I thank you sir. A true American hero.
77
Lost a true hero. The inventor of the index fund. Founded a company owned by its clients instead of outside stockholders, unlike "Chuck" and all the others. A wealthy man who called out unreasonably high investment management fees and, decades ahead of the times, led the way for the much lower costs seen today.
- a grateful Boglehead
60
Poor stealing from the rich = theft
Rich stealing from the poor = Capitalism
35
@Glenn S. I didn't the find the poor to be much better off under communism.
15
Great advice. Problem is first you need money to invest, especially in a plutocracy.
7
@Glenn S. You don't need much. What you need is to let the money grow, that is you need time. It is called the miracle of compound interest.
Put $500 into a Roth IRA next week. Within that you can by the Vanguard Index 500. Forget about it and let it grow over the years.
If you put in $500 a year for 10 or 15 years you will end up with half a million dollars or more.
A pretty much uniquely American road to wealth.
48
Baloney. If that was the case everyone would have a half- million in the bank. I wish it was.
10
Spend less than you earn. Take the difference and save / invest it
Self-discipline required = behave as the person you know you should be...behave better than the person you are.
Little sympathy or patience for people who live paycheck to paycheck
1. Minimum requirement
Save and maintain cash reserve of approx 6 months after tax income
2. Defer unimportant immediate gratification
Plan and save with the expectation to live to be 100 years
3. Make compound interest work for you
4. Your choice. Do you want to become wealthy or make others you spend money to become wealthy?
36
Bogle revolutionized one of America's most important industries - retirement. The first mutual fund I bought was the world's largest. It was front loaded and had a 1% or more annual fee. Bought it from a full service, full priced broker who thought it was great even a few years ago. Need I say more.... Scott
17
The nickname "Saint Jack" was spot on. He has done more for retail investors than anybody else. The growing FIRE movement might have been impossible without his brainchild, the Index Fund. He lived a good life and, if there is a heaven, he will feel at home there. Requiescat in pace.
58
There is an entire discussion forum devoted to Jack Bogle's model for investing, called the "bogleheads". It is quite active with very good discussions on Mr. Bogle's principles but also on retirement planning, financing, tax optimizations, when to take Social Security, managing the different IRA options, etc. I encourage anyone who is interested in learning more about Mr. Bogle's method of retirement investing to take a look at the forum. There is a whole subforum dedicated to questions from "newbies". It is free and no ads.
https://www.bogleheads.org
64
@Scott Werden Bogleheads, alas, has been polluted by DFA advisors and their promises of free lunches in small and value stocks.
2
This poor boy from Brooklyn studied John Bogle's advice back in the late 80's and started investing with Vanguard and Only Vanguard - and retired VERY comfortably at 58.
Thank you John, we rarely find such intelligent and altruistic people anymore.
95
But how then is one to create the feeling that one has outsmarted the market? Where is the ego gratification in simply staying the course and growing gradually wealthy?
5
@Chintermeister
Right here, with me. Maybe you were kidding??
6
I am a living proof of following all five pieces of advice of Mr Bogle.
I am almost 70 - and don't work anymore.
I worked all my life in the oil patch - much of it for a Major.
These Majors are well known for benefits including thrift plans that are managed by Vanguard and Fidelity for the most part.
I started as an employee contributing maximum to the thrift plan - and I can honestly say that even though I was a worker bee - granted I was a professional engineer - I have enough set aside that I have no idea how to spend.
43
@Neil - My story is very similar to yours. The system works. I"m 65 and coming up on 5 years of retirement thanks to the advice of Mr. Bogle.
10
As a long term client of Vanguard (28) years I can attest that the indexing policy has worked well for me. Every time I changed jobs the first thing I would do is send my 401K money directly to my Vanguard IRA. I am 63 years old and in my 5th year of retirement thanks at least partially to Vanguard.
38
John Bogle was a Prince. Every single thing he said has turned out to be true. Keep it simple: 60% (or so) Total Stock, 40% (or so) Total Bond plus some cash reserves. As for the Little Millenials, no need for Robo Investing either, why pay Fintech 12 basis points for a silly little app?
29
I went from Salomon Brothers to Fidelity and finally to Vanguard where my hopes for a retirement in which I am not forced to eat cat food have resided for the past nineteen years. The fees are minuscule by comparison. The staff is accommodating and polite.
Index across broad markets. Set percentages of your total investment in different markets. Rebalance regularly. You don't need advisors.
Thank you Mr. Bogle, the man who made it possible for the average American to fight a personal battle against the last forty years of Republican robbery and upward wealth redistribution.
110
@Julian Fernandez
Neither party is responsible for a global labor glut worsened by technology. Dems are responsible for wanting policies that would bring millions and millions of uneducated poor people to the US.
8
@Reader In Wash, DC
And Republicans are responsible for wanting policies that would keep millions and millions of poor people in the US uneducated.
60
One of the most laudatory, overused, and oftentimes inaccurately applied sentences n the English language upon someone’s passing is “He was a great man.” However, in John Bogle’s case, it is most apt. John Bogle was truly a great man.
69
From a recent interview he did with CNN Business...,
“I don't "bell the cat" with the president. But I talk about these things generally. Anything that increases the gap between rich and poor
is bad for our society. It's bad for our society and bad for our economy and stock market.
The second thing that concerns me is anything that makes racial divisions in our country
worse. It's bad for our society, but also bad for our economy and our markets.
And anything that reduces our bulwark against communism --NATO-- is bad for our economy and bad for our markets.
And anything that puts impediments to free international trade is also bad for our society and bad for our economy.”
185
The one time we met Mr. Bogle at an investor forum, he said do not do anything stupid. He said we are not usually smart enough to pick the right stock so invest in the market index. We did that with low fees and the results speak for themselves and our lives are better for it. A simple and elegant concept that works. Thanks to Mr Bogle for giving us that opportunity.
55
He was an honest, professional financial expert, adviser and educator - WOW, how unique! His achievements stood the test of time, and his legacy is a realized treasure chest for ordinary working Americans who are not affiliated with the financial services industry. Those who followed his guidance have solid nest eggs now to draw upon in retirement.
We members of the shrinking middle class thank you John for your candor, integrity, savings innovation and generous public service.
May he rest in blissful and eternal peace.
121
Here’s a guy who did good by doing good. Rather than aiming to amass enormous personal wealth, he realized success by doing right by his clients. He is a role model for others in the field of finance, but unfortunately most financiers will continue to be more focused on their total personal wealth than those of their invedtors.
94
John Bogle proves that common sense is not common. Bogle was so right about all the smart people missing the 2008 implosion of the system. Citigroup, GE and many others were leveraged to the hilt and their management did not even understand the risks. Alan Greenspan and many other experts were incompetent.
75
Been with Vanguard for over 25 years. Yea it has had its share of ups and down like everyone else. But overall. it's been one of the steadiest ships out there.
Spent many years with the likes of Merrill Lynch, Smith Barney and after the shift, I was amazed at the cost savings for the same products. Whenever you needed help with something, the staff is most accommodating in assisting you.
68
He probably gave away more than he kept. What a philosophy, investing wisely and safely without needing to acquire excessive wealth. A true capitalist for the people.
129
He was once quoted as saying that his only regret about money was that he didn’t have more of it to give away.
28
Bogle was my hero. He was not only a pioneer in index investing, he was also a pioneer in mutual-mutual organization. Vanguard is owned by its clients. There are no other shareholders to share profits. Therefore, an index fund offered by Fidelity or Blackrock is not the same as an index fund offered by Vanguard.
164