The Simple Path to Wealth

Since we own our bonds in VBTLX—Vanguard’s Total Bond Index Fund—most of the risks in owning individual bonds go away. At last count, and this will vary a bit, the fund holds 7,843 bonds. All are investment grade (top quality) and none rated lower than Baa (see Stage 4). This reduces default risk. The fund holds bonds of widely differing maturity d

There are many things money can buy, but the most valuable of all is freedom. Freedom to do what you want and to work for whom you respect.

2. The market always recovers. Always. And, if someday it really doesn’t, no investment will be safe and none of this financial stuff will matter anyway.

Here’s what, in order, you have to ask yourself: When do I need the money? If you genuinely need the money right now, nothing else matters. But each month you delay, your monthly check gets bigger. Do you think Social Security will collapse and stop paying?

“You know, if you could learn to cater to the king, you wouldn’t have to live on rice and beans.” To which the monk replies: “If you could learn to live on rice and beans, you wouldn’t have to cater to the king.”

Spend less than you earn—invest the surplus—avoid debt

No worries. Take a look at a global fund like VTWSX (Vanguard Total World Stock Index). This is an index fund that invests all over the globe. In some ways I like it even better than my beloved VTSAX. I don’t recommend it instead only because of its relatively steep expense ratio (.25%) and because VTSAX covers international pretty well for the rea

Finally embracing the indexing lessons Jack Bogle—the founder of The Vanguard Group and the inventor of index funds—perfected 40 years ago.

Life choices are not always about the money, but you should always be clear about the financial impact of the choices you make.