The Boglehead Way (a.k.a. getting rich slowly on purpose)
Investing doesn’t need to feel like a second job, a casino, or a group chat full of panic. The boring path works. It just isn’t loud.
Step 1: Get ready to invest (because investing isn’t step one)
Before you pick funds, make sure the basics are handled:
Emergency fund (so you don’t sell investments during a life surprise)
Grab the employer match in your workplace plan (it’s part of your pay)
Pay off high-interest debt (credit cards are not “low-risk leverage”)
Also: if you’re saving for something you’ll need in 5–10 years, stock-heavy funds can be a faceplant waiting to happen. Use safer tools (cash equivalents, CDs, Treasuries, target-maturity Treasury funds) for near-term goals.
Step 2: Prioritize accounts (tax breaks are the closest thing to “free money”)
Once you’re past the match, the typical order is:
401(k)/403(b) up to the match
HSA (if eligible)
IRA (Roth or Traditional, depending on your situation)
Back to 401(k)/403(b) up to max (and maybe mega-backdoor Roth if available)
Taxable brokerage
529 (if college funding is a goal)
Translation: use tax-sheltered space before taxable, because taxes are a guaranteed drag.
Step 3: Pick a simple portfolio (investing is “solved”)
Your portfolio doesn’t need to be clever. It needs to be diversified, low-cost, and sustainable for your brain.
Option A: Target-date fund (the “set it and forget it” default)
One fund
Globally diversified
Automatically rebalances
Gradually gets more conservative as retirement approaches
Option B: Three-fund style (the “simple DIY” route)
A classic mix of:
Total US stock index
Total international stock index
Total bond index
Same philosophy, more knobs. More knobs means more temptation to “optimize” yourself into trouble.
Step 4: Fear the Fee Monster (small percentages eat big dollars)
A 1% extra annual fee sounds tiny. Over decades, it’s a wealth leak with a gym membership.
Quick numbers (simple, not fancy):
$10,000 growing at 5% for 40 years ≈ $70,400
$10,000 growing at 4% for 40 years ≈ $48,000
That’s about 46–47% more money by keeping costs low.
Fees are forever. Headlines are not.
Step 5: Automate and stay the course (behavior beats brilliance)
Set up automatic contributions and automatic investing whenever possible. Then do the hardest part:
Do nothing. Repeatedly.
A few mindset upgrades:
Market drops are not “bad news.” They’re shares-on-sale (if you’re still accumulating).
Rebalancing is just “sell a little of what ran up, buy a little of what lagged.”
Doomcasters aren’t prophets. They’re content creators.
Do this today / this week / this month
Today: Confirm you’re getting the full employer match (if offered).
This week: Write down your target savings rate (15% after-tax is a common baseline; more if you’re starting late or retiring early).
This month: Choose one simple portfolio approach (target-date or three-fund style).
This month: Turn on auto-contributions and auto-investing.
Ongoing: Check fees. Lower is usually better, all else equal.
Common mistakes (don’t do these)
Chasing “the best” fund instead of saving more and staying invested.
Paying high fees for complexity you don’t need.
Investing house down-payment money in stocks and calling it “bold.”
Rebuilding your portfolio every time the news gets spicy.
Quick Answers
What is Boglehead investing?
A simple, steady approach focused on low-cost index funds.
Do I need to watch the market daily?
No, the Boglehead way encourages patience and ignoring daily noise.
How much should I invest regularly?
Consistent contributions, even small ones, build wealth over time without stress.
Is this method risky?
All investing has risk, but steady, diversified investing lowers it.
Can I start with little money?
Absolutely, starting small and growing steadily is the key.
How do I avoid panic during market drops?
Remember the slow, steady plan and avoid reacting to short-term market swings.
Finally, investing feels calm and manageable, not overwhelming or rushed.
Joan K.
I love how this approach makes steady growth feel natural and stress-free.
Mark L.
