Much of the financial world thrives on opacity. Jargon, shorthand and acronyms are the currency of the realm. Commentators are often simply looking for their 15 minutes of media fame, baffling their audiences (and many journalists) with bulls%!#.
Vanguard, despite loudly trumpeting that it is uniquely owned by the shareholders of its mutual funds and ETFs, is as opaque as they come.
For example, I call on Vanguard every year to disclose how much we, the owners, are paying the company’s top brass. After all, shouldn’t we owners know where our money is going?
I also try to shine a light on Vanguard’s board members and fund managers to show whether they are invested alongside us, the shareholders, and how much they’ve committed to the endeavor.
While Vanguard remains as opaque as the heavy curtains on a Broadway stage, I operate differently. I want to be transparent, not impenetrable. And I always try to communicate in plain English.
So, today, I will continue my tradition of telling you exactly how I invest my money. (A tip of my hat to Mutual Fund Observer editor David Snowball for his lead and inspiration.)
To be clear, I will tell you about my long-term investment portfolio—think retirement. This is separate from cash for rainy days and spending.
If you’ve been following my work, you know that I am emphatic about my philosophy of eating my cooking—owning the same funds and ETFs that I recommend to you, my IVA members.
So, without further ado, here’s the inside story.