being frugal/saving vs investments

[RobbieB]

I don't trust anybody.

I believe anyone until proven guilty. You get the benefit of "reasonable doubt"

Folks here make me think I'm stupid for using a "wealth manager" and he's making me lots of dough.

I gave him more dough after he beat the other guys. I give people a try and then hire the best.

 

[samclem]

I try to always remember that indexing could not work were it not for the effort of active traders (who keep the market efficient and assure that assets are more fairly valued). Yes, they pay higher costs and, overall, have worse performance than more passive index investors, but it's a sacrifice they make that benefits me and others, so I appreciate it (whatever their motivation).

 

[GravitySucks]

To the OP, you have to be frugal to save, and you have to save to have something to invest.
With my career most of my investing was done during "The Lost Decade" of 2000 to 2010, so most of the money is from Savings with a nice bump from 2009 to now.

As for the John Bogle spinoff thread.... While I admire what Bogle did building Vangaurd and Index funds in general, along with his social commentary, I don't think his crystal ball is better than anyone else's. I personally think (hope) his forecasted 3% real over the next ten years is too conservative, but if he's right I'll still be fine, like most of us here.

 

[daylatedollarshort]

As for the John Bogle spinoff thread.... While I admire what Bogle did building Vangaurd and Index funds in general, along with his social commentary, I don't think his crystal ball is better than anyone else's. I personally think (hope) his forecasted 3% real over the next ten years is too conservative, but if he's right I'll still be fine, like most of us here.

I'm just curious where you are seeing a 3% real return forecast from John Bogle? Most of what I've read has him saying "investors may be left with nothing after adjusting for inflation". Link here:

John Bogle says you won't make much money from stocks - MarketWatch

 

[Big_Hitter]

I'm just curious where you are seeing a 3% real return forecast from John Bogle? Most of what I've read has him saying "investors may be left with nothing after adjusting for inflation". Link here:

John Bogle says you won't make much money from stocks - MarketWatch

I think 3% real is realistic if the portfolio is aggressive enough.

 

[GravitySucks]

Not sure where I saw the 3 % real. Must have been off a link in this forum though.
This study he co authored say 6% stock, 2.4 % bond.
http://www.businessinsider.com/bogle-stocks-to-gain-about-6-over-the-next-decade-2015-11
No inflation noted though.

Edit -
Looks like your link is newer. On some of his assumptions - I'm not paying 1% fund fee or .5% advisor fee.
If you believe in his forecast you might want to move everything to TIPS.

My main point remains: I don't think his crystals ball is clearer than anyone else's. I'm not expecting 7% real, but my crystal balls a bit cloudy too. Guess I'll try Tarot Cards next.

 

[RISP]

What had a bigger impact-saving/being frugal or investments - on reaching FIRE? Can you quantify or give one suggestion?

Haven't reached FI yet; in fact I have likely ~15 years ahead of me. So far, 10 years in, I'm at 77/23 (savings vs. investment returns).

My spreadsheet says this will have shifted closer to 64/36 by the time I'm FI. If I then decide to keep working and saving, it might go all the way to 40/60 by my mid-sixties.

In other words, the jury is still out on which will end up having been more important, saving or investing. I hope it'll be the latter.