The Bogleheads' Guide to the Three-Fund Portfolio Quotes

“U.S. Total Stock Market Index Fund An International Total Stock Market Index Fund A U.S. Total Bond Market Index Fund”
― Taylor Larimore, The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk

“Just as the gambling industry wants people to think they can beat the casino, the investment industry wants investors to think they can beat the market.”
― Taylor Larimore, The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk

“Vanguard Total Stock Market Index.”
― Taylor Larimore, The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk

“Don’t look for the needle. Buy the haystack.”
― Taylor Larimore, The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk

“If your current securities are in a taxable account, and if they’re profitable, you need to consider any resulting taxes and fees before selling existing securities. This is a common problem and is the reason it is so important for investors to use tax-efficient funds when investing in taxable accounts. Here are five steps to minimize taxes: Stop making contributions into unwanted and tax-inefficient securities. Stop reinvesting distributions. Determine the amount of gain or loss in each taxable security. If any security has a loss, consider selling and taking the tax-loss benefit. If any security has a profit, consider selling up to the amount of your losses (after being held for one year to benefit from the lower capital gains tax rate). Numbers 4 and 5 will be a wash and will result in zero tax. Put the proceeds from your sales into the appropriate tax-efficient total market index fund(s).”
― Taylor Larimore, The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk

“Most of us have learned from experience that cheap goods and services are usually not as good as more expensive goods and services. Paying more will often buy a better house, a better car, better clothing, better airline seats, and better service. It is, therefore, understandable that many investors believe that paying more for expensive funds, expensive financial advice, and expensive investments will result in better results. The opposite is nearly always true.”
― Taylor Larimore, The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk

“To minimize risk, investors want funds with securities that act differently. If one stock or bond fund declines in value, we want other stocks or bonds in the portfolio to gain in value. If two funds hold securities that are the same (i.e., overlapped), diversification is reduced and risk increases.”
― Taylor Larimore, The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk

“Total Market Index Funds do not suffer the impact of front running because they hold nearly every publicly-listed stock. If a stock is sold by a small-cap index and bought by a mid-cap index, it makes no difference to the passive manager of a total market index fund because the index fund manager neither sells nor buys the stock, thus avoiding front running and other hidden turnover costs.”
― Taylor Larimore, The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk