No one could ever accuse John Clifton "Jack" Bogle of being shy about offering investment tips. From book recommendations to investing tips and more, Jack Bogle offered his thoughts on almost every trend. But what exactly was his asset allocation? And did he stay true to his own advice?
The founder of Vanguard built his fund empire based on his core principles of investing. If you read John Jack Bogle's books or listened to his interviews, you'll notice that he never veered one degree off course. That, in itself, should give you a pretty fair idea of where Bogle kept his money, up until he died on Jan. 16, 2019.
Although the public may never know every nuance of where and how the man invested, you can get a decent glimpse of his portfolio based on the advice he offered. That advice was seemingly based on what Jack Bogle would do himself. The one thing known for certain is that Bogle invested 100% of his money in Vanguard funds. Keep reading to learn more about the man's investments and what happened to his estate.
- John Bogle founded Vanguard in 1975.
- He is considered the father of index investing.
- Bogle believed in a retirement portfolio of 50% stocks and 50% bonds, while his non-retirement portfolio was split 80-20 between bonds and stocks.
- He rarely invested overseas and didn't believe in rebalancing.
- Bogle died on Jan. 16, 2019, and divided his estate between his family and charity.
Jack Bogle’s Portfolio Asset Allocation
In 2015, Bogle revealed the asset allocation of his retirement shifted more toward a 50/50 allocation, with 50% in equities and 50% in bonds. This was away from the standard 60/40 allocation that he followed for years.
“I just like the idea of having an anchor to the windward,” Bogle said.
Bogle said he didn't believe there was a need for any other type of investment or asset class beyond equities and bonds in order to diversify. Outside of his personal and retirement portfolios, Bogle also said he invested in the Vanguard Balanced Index (VBINX) for his grandchildren.
As for his non-retirement portfolio, Bogle indicated that these investments were divided up in an 80/20 split between bonds and stocks.
What Stock Allocation May Have Looked Like
Bogle did follow his own advice when it came to investing in index funds, calling himself an indexer. He did, after all, create the first fund in 1975.
Of course, this is based on his core principle that people trying to beat the market find themselves on the losing side just as often as the winning side, but they pay a higher price. Bogle also said he preferred to index the entire stock market rather than just the S&P 500 Index.
He allocated 60% of the stock portion of his portfolio to the Vanguard Total Stock Market Index (VTSMX) along with some combination of the Vanguard 500 Index (VFINX) and the Vanguard Extended Market Index (VEXAX) to provide additional small- and mid-cap exposure.
Bogle said on numerous occasions that he never invested overseas. He also had a very small portion of his equity assets in a few sentimental holdings that happen to be active funds. These include the Vanguard Wellington (VWELX) and Vanguard Wellesley (VWINX) Income Funds.
What His Bond Allocation Might Have Looked Like
As for the bond portion of his portfolio, Bogle made some tactical adjustments over time, shifting his bond allocation to funds with shorter average maturities. His allocation was roughly half in intermediate-term bonds while the other half was in shorter-term bonds.
In 2006, Bogle allocated between the Vanguard Intermediate-Term Bond Index (VBILX) and Vanguard Inflation-Protected Securities (VIPSX). His largest investment of any kind was in the Vanguard Limited-Term Tax-Exempt Fund (VMLTX), presumably held in his non-qualified portfolio.
Bogle didn't find the need to rebalance his portfolio or to use many tactical asset allocation alterations to his strategy. For those who believed in rebalancing, Bogle suggested doing it no more than once each year. He always believed that people tend to worry less if they stick to a long-term strategy and keep their portfolio choices as simple as possible.
John Bogle's Estate
John Bogle died on Jan. 16, 2019. The 89-year-old's death from cancer was confirmed by his family. Bogle left behind a wife, six children, 12 grandkids, and eight great-grandchildren when he died. The investing world will likely remember him as the founder of Vanguard, the father of indexing, and as a champion of the average Joe, helping small investors reach their financial goals.
At the time of his death, Vanguard was worth $4.9 trillion. But his own personal net worth was estimated at $80 million in 2018. That's a far cry from his peers—notably Edward C. Johnson III. The chairman of Fidelity was worth $7.4 billion at the time.
Vanguard's assets under management as of June 30, 2020.
Although he didn't amass as much wealth as his counterparts in the financial industry, he did have plans for the future of his wealth. According to a statement he made about estate taxes, Bogle took great care and time to plan for his estate.
"I’m taking care of my wife of course first, and I’m taking care of my children, I have 6 children and those 12 grandchildren which were mentioned in my introduction," he said.
The remainder of his estate was set aside for charitable organizations, something he was known to do while he was heading up Vanguard. He was known to give a portion of his salary to various organizations, including educational institutions.
Jack Bogle FAQs
How Much Was John C. Bogle Worth?
Although he founded Vanguard, John Bogle's net worth was estimated to be roughly $80 million the year before his death. This is a stark contrast to his counterparts, including Edward C. Johnson III, chairman of Fidelity, who was worth $7.4 trillion at that time.
When Did Jack Bogle Die?
John Bogle died on Jan. 16, 2019, of cancer. He was 89 years old at the time of his death.
Who Is the Founder of Vanguard?
John Clifton "Jack" Bogle founded Vanguard in 1975. He founded the company on the premise that mutual fund companies should be owned by clients rather than people on the outside who simply seek profits. This theory was in line with Bogle's views that small investors should reap the benefits of their investments rather than corporations.
How Much Is Vanguard Worth?
Vanguard was believed to be worth $4.9 trillion in 2018, the year before Bogle's death. According to the company's annual report in June 2020, Vanguard had $8.8 trillion in assets under management (AUM).