A few months ago, I came across a website with a really weird name. It was called Bogleheads. Since there are quite a few very legitimate websites out there with strange or funny names (such as The Motley Fool), I didn’t think it would be wise to dismiss this one.

Good thing I didn’t. The reason it’s good is because the Bogleheads website is very much aligned with my thinking when it comes to investing. They are not into following the garbage you hear on the financial TV shows being spewed from the “expert’s” mouths. Sure they may be experts, but who are they trying to make money for, you or them? Remember, money is the root of all evil. Some people are flat out evil.

Okay, back to Bogleheads. Here are some excerpts from their website that I wholeheartedly agree with:

- …approach to investing begins with an investor deciding on percentage allocations to various asset classes…
- …implemented using low-cost vehicles which are true to the targeted asset classes…
- …tax costs are carefully considered…
- …emphasize regular saving, broad diversification, and sticking to one’s investment plan regardless of market conditions…

These snippets of text are courtesy of the Bogleheads Wiki homepage.

Bogleheads homepage screenshot. Courtesy of Bogleheads.org

Here’s what I like about the “Asset Allocation” method of investing. It’s sort of a set it and forget it style. All you need to do is to devise a portfolio across approximately six asset classes according to your age and risk tolerance. Then, keep investing money for as long as you need to. My philosophy is to never withdraw. Well, until you retire. You should rebalance every so often. My “rebalancing” occurs as I invest more cash. I don’t sell and buy as some people do. I only buy.

The Boglehead method is very similar to the MarketRiders method. The benefit of using MarketRiders is that you get the opinions of people who are smarter than you to develop the portfolio and choose the funds, then you have an automated piece of software do the rebalancing for you.

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