Thursday, June 19, 2008

Are you diehard/Boglehead ?

Take this questionnaire and find out if you are diehard/Boglehead when it comes to your personal finance. I have copied this questionnaire from this thread on www.bogleheads.org

My score is 16. I lost one point on question 6 since my portfolio has small cap tilt. But I am comfortable with risks associated with small cap premiums (less volatile than REIT fund in my Roth :-D). And obviously, it meets my sleep test.

ARE YOU A DIEHARD/BOGLEHEAD?

1. In these trying times, do you think it's reasonable to make tactical allocation changes?
(Y=0, N = 1)

2. Is the best strategy to simply to hold a broadly diversified portfolio and stay the course?
(Y=1, N =0)

3. Critics argue that buy and holders are simply sticking their heads in the sand as risk rises in the marketplace. Do you agree?
(Y=0, N=1)

4. Do you manage risk by diversifying among different types of securities - including bonds - and then staying the course?
(Y=1, N =0)

5.
Do you rebalance and make necessary adjustments based on our own personal situation -- not on market forecasts?
(Y=1, N =0)

6. Do you overweight your portfolio to take advantage of the so-called value and small-cap premiums?
(Y=0, N=1)

7. Do you hold a broad market index fund and stay the course?
(Y=1, N =0)

8. Do you actively trade ETFs?
(Y=0, N=1)

9.
Do you invest in high-cost actively managed funds?
(Y=0, N=1)

10. Do you consider yourself a market timer?
(Y=0, N=1)

11. Do you save regularly?
(Y=1, N =0)

12.
Do you avoid mistakes?
(Y=1, N =0)

13. Do you have an asset-allocation plan?
(Y=1, N =0)

14. Do you diversify with broad market index funds?
(Y=1, N =0)

15. Do you keep costs low (including taxes)?
(Y=1, N =0)

16.
Do you strive for simplicity?
(Y=1, N =0)

17. Do you stay the course?
(Y=1, N =0)

****************************************************


SCORING:
17 = You ARE John Bogle!

13-16 = Give that man a Bogle Bobblehead! Charter member.

10-12 = Pretty Boglish! Stay the course!

6-9 = You've heard the word, but haven't quite walked the walk.

3-5 = Eek. Good luck with that!

0-2 = Unrepentant market timing stock trader!

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