The site includes the Bogleheads Wiki, a fabulous reference for every investor. Jack founded Vanguard and pioneered. From Bogleheads. Re: Money Market Mutual Funds vs Bond Funds. Bogleheads generally accept that the best portfolios use passive management, low costs, wide diversification and aim for tax efficiency. [1] Many individual employees encounter CITs through their investment in employer provided. Vanguard provides investment guidance based on four simple principles: [1] Define clear goals, invest with balance and diversification, minimize cost, and. For a video presentation of Bogleheads principles, refer to Video:Bogleheads® investment philosophy. They represent grok87's own opinions. QCDs can be included as part of a Required Minimum Distribution. These funds are structured as funds-of-funds, and charge only weighted averages of the. This wiki article provides many details about how to apply these principles, given constraints, such as the specific tax-advantaged accounts an investor has available. This article contains details specific to United States (US) citizens and US permanent residents (green card holders) living outside the US. The index is frequently used as a benchmark for measuring international. Classic Bernstein is a series of 12 forum posts which highlight the classic investing insights of William Bernstein, by forum member Simplegift. His research is in the field of modern. On January 1st, 2014, the balance would have been $5,150 = $6,500 + 10% interest - $2,000. We are part of his campaign "to give ordinary investors a fair shake. Treasury. Events. From Bogleheads. What Do Bogleheads Follow? Bogleheads follow several simple investing philosophies: 1. Taylor Larimore, CCL, was dubbed by MONEY magazine as "The Dean of the Vanguard Diehards. Vanguard Group fans would suggest that. The advent of exchange-traded funds in Australia gives investors the ability to access Australian and global equities and bonds. You would pay tax on gains in a non-UCITS fund or ETF that lacks HMRC reporting status [1] at higher income rates, instead of lower and more beneficial capital gains rates. (Jack) Bogle (1929 - 2019), after whom the Bogleheads® are named, was founder of the Vanguard Group and creator of the world's first retail index mutual fund. Investing Advice Inspired by John Bogle. Investing in actively managed funds. On the Forum, members discuss financial news and theory. From Bogleheads. Other types include closed-end funds and unit investment trusts. Free notary. 7% ($6,000 / ($50,000 + $6,000)) of the conversion step will apply to the non-deductible amount, and the remainder will be converted from the pre-tax amount. It does not apply to non-US investors. Mr. Chart 1 shows a sample portfolio of $100,000 with an asset allocation of 70% stocks and 30% bonds. Bonds are usually issued with maturities ranging from 1 year to thirty years. » Wed Oct 20, 2021 2:52 pm. renting a home. ISBN 978-0133108972. Tax-advantaged account, such as 401 (k) $5,000 money market fund <- emergency fund. Other portfolios (Armstrong Ideal and Swensen) are designed as 70/30 stock/bond portfolios. The earliest a widow or widower can start receiving Social Security survivors benefits based on age will remain at age 60. 75 percent or more of the gross income of such corporation for the taxable year is passive income, or. These ideas come from the investing philosophy of Vanguard-founder Jack Bogle. This amount is also the Survivor benefit for the widow in the couple once one of you passes. This has a number of implications for the mega-backdoor Roth process. As you approach retirement, it is a mistake to try to be too aggressive to make up for previous mistakes. In this and in future columns, we'll continue exploring some of the topics that are covered in the Bogleheads wiki. An immediate annuity is often designated as a Single Premium Immediate Annuity (SPIA) or an income annuity to differentiate it from a deferred annuity. Bill Bernstein had a "fireside chat", followed by a Bogle presentation, "Bogle Meets the Bogleheads— The Rouser Meets the Rabble". If you wish to contribute to the Bogleheads wiki in ways other than maintenance, please see Guide for contributors. It does not apply to non-US investors. The tool has a lot of potential and you’re off to great start. There is one slide package which covers all of the principles. Vanguard is now the world’s largest fund company, with more than 20 million investors, 175 U. The Wiki for EU investors includes some suggested portfolios suitable for the Boglehead approach to investing. John C. Max-ing out traditional 401k's by itself often causes income in retirement to exceed income during work years. Because emotions and subsequent behavioral pitfalls often lead to. The Wiki is a comprehensive investing and personal finance reference that was built and is maintained by members of the Bogleheads® community. Money markets are a collection of short-term investment instruments that are highly liquid and easily converted into ready cash. Bogleheads Hall of Fame. This will introduce you to the Bogleheads® philosophy, and help you find the right starting point for exploring all of the content in the wiki. [1] At year end 2016, SIMPLE IRAs held approximately $106 billion dollars of assets. An index fund pools investors' money, and uses it to invest in securities, aiming to replicate an index of a particular financial market. Registration and reception began at 2 PM on Wednesday, October 22, 2014 and and the reunion concluded at noon on Friday, October 24, 2014. Your current strategy isn’t working. For non-US investors, acting on fund or ETF suggestions in it may have harmful US tax consequences. William (Bill) Bernstein is a retired neurologist, author, investment adviser, and financial historian. The Bogleheads follow a few simple investment principles that have historically produced risk-adjusted returns that are better than the returns of average investors. Taxable equivalent yield (TEY) is a method to compare the after-tax return of fixed-income investments that have different rates of taxation. Then you could have: Taxable. If you know your actual PIA number for your FRA of 66 & 2 months, you can calculate your wife's spousal & survivor benefits pretty easily. This page is intended as a centralized resource for finding wiki pages that include some sort of template. This article contains details specific to United States (US) investors. TIAA. While the choices for mutual funds depend on the brokerage you use, most modern brokerages offer access to low-cost index mutual funds, and commission-free access to all ETFs. With traditional you pay no tax now but pay it on withdrawals. Merrill Edge is a large online brokerage platform that was founded in 2010, two years after Bank of America acquired Merrill Lynch. 1999. You can take your RMD any time during the year. An exchange-traded fund, or ETF, is a registered investment company. Accumulation-dynamic decumulation. This online course covers the. A Dual Budget model is a direct extension of the Bottom-up model, and incorporates two total spending estimates. Taxation of investments by Belgium. 17% on the first $1000 of primary savings. This article contains details specific to United States (US) investors . In 2014, Alice and Bob were in the 25% tax bracket (15% long term capital gains tax) and sold their shares. Both. Options: the most common option involving bonds is a call feature. Take your time and get organized. A stand-alone site was formed in 2007 and Bogleheads. [1] The funds become more conservative over time, creating a glide path by gradually shifting their asset allocations from equities and into fixed income. From Bogleheads. Multiply this percentage by the remaining balance of your portfolio. For instance, with an index fund three things matter: What index. To help you find your way around this world of knowledge, the wiki has a number of pages that organize its contents. - State/local income (former obtained from W-2 or final paycheck of this year withholding) or sales tax (not doing this) We do not have mortgage interest to deduct. See also: Vanguard funds: life strategy funds vs target retirement funds. The advent of exchange-traded funds in Australia gives investors the ability to access Australian and global equities and bonds. Its name comes from section 401 (k) of the Internal Revenue Code [1] which defines it. Bogle (1929 - 2019). The following outline is provided as a topical overview of bonds: A bond is a debt investment. Unfortunately, the article doesn't discuss the impact of asset location on risk, after taxes. Specifically, you benefit from tax loss harvesting as long as the tax you pay on the $1,000 extra capital gains ($10,000 - $9,000) in the first example above is less than the after-tax amount that $250 grows to. (A) In general. gold. Bogleheads on Investing. On the other hand, a QCD is limited to $100K per year per person. [1] [2] Most managed funds are tax-inefficient. It models the most common financial aspects of a retiree and their spouse's lives, including pensions, Social Security benefits, living expenses, IRA Required Minimum Distributions, purchase of an annuity, sale of a house,. A Health savings account (HSA) is a special account which is used in conjunction with a high deductible health plan. The Callan Periodic Table is the best visual information showing the importance of asset class diversification and the futility of market timing. First issued in 1980 as a replacement for the series E Savings Bonds, they have been offered ever since, though the rules applying to the bonds have changed several times. A reverse mortgage allows homeowners 62 and older to withdraw a portion of home equity as income or a line of credit without selling the home or making monthly payments. Re: bogle. Some of these ideas are distilled from Nobel prize-winning financial economics research on topics like Modern Portfolio Theory and the. Calculating personal returns. [2] Assessment Bonds are special types of municipal bonds used to fund a development project. by mhalley » Sun Oct 01, 2023 4:27 am. The personal finance articles cover topics such as budgeting, loan management, insurance, charitable contributions, and tax basics. The Bogle Center uses its "Bogleheads" trademark to help build a world of well. Main article: Mid caps. Bogleheads author Larry Swedroe suggests that tilting to stocks with higher expected returns, such as small-cap and value, can allow the investor reduce overall equity exposure while maintaining the same expected return for the portfolio. Many newcomers. Re: Asset location. John Bogle. Welcome. The idea is that maintaining a consistent mix of asset classes (most commonly equities and fixed income) will help to keep risk at the desired level. Risk is the uncertainty (variation) of an investment's return, which does not distinguish between a loss or a gain. Straight Line: A straight line glide path takes a steady, linear approach that gradually reduces the equity weighting of the portfolio over time. Welcome. Some of these ideas are distilled from Nobel prize-winning financial economics research on topics like Modern Portfolio Theory. Zero-coupon bonds or “zeros” result from the separation of coupons from the body of a security. Slice and dice refers to dividing allocations within a given unitary asset class, such as stocks. Vanguard and TIAA-CREF take this approach. Treasury Inflation-Protected Securities (TIPS) are a type of notes and bonds issued by the U. Posts: 14172. 529 plans are termed "qualified tuition plans" by the IRS, which authorized the plans in 1996 in Section 529 of the. 1. This column's topic is "Principles of Tax-Efficient. Unlike a flexible spending account, unused money remains in the account and can be invested; most accounts offer either mutual funds or brokerage accounts for investing. The page is now "live" in the wiki. Since the enactment of the TSP Modernization Act of 2017 on November 23, 2017, participants are no longer limited to a single partial withdrawal in their lifetime. It does not apply to non-US investors. Outline of investing. These funds are structured as funds-of-funds, and charge only weighted averages of the. The Netherlands is one of the few countries that has both an estate tax treaty and a withholding tax treaty with the US, and an active FATCA agreement. The main Wiki site for Bogleheads provides plenty of background for various approaches that can follow Bogleheads principles, while introducing some variety if you want it. The site consists of this wiki and the Bogleheads® forum. Taxable. [1] In terms of financial markets, commodities are raw materials that are traded on futures trading markets. Even while still employed, participants may make up to four withdrawals per year [6] Withdrawals can be taken from Traditional balances only, Roth balances only, or pro rata from both. From Bogleheads. John Bogle. Amortization based withdrawal formula. It shows what it costs the investment firm to operate the fund. [note 1] Index funds and ETFs were first created in the US and are now widely available outside of the US. [1]Valid example, yes. ↳ The Bogleheads® Wiki: a collaborative work of the Bogleheads community; ↳ Canada - finiki (wiki) Community; ↳ Personal Consumer Issues; ↳ Local Chapters and Bogleheads Community; ↳ US Chapters; ↳ Wiki and Reference Library; ↳. From Bogleheads. index information isn't too hard. Bogle Center for Financial Literacy supports everyday investors through the following channels including our podcasts and videos, social media, as well as our partner sites. IRA. 146. If you do not convert, the $2,637 investments will grow to $11,589 and the basis will grow to $3,015, for an after-tax value of $10,303, and including the pre-tax account the total value will be $45,726. Due to the availability of the Backdoor Roth IRA, appropriate situations for non-deductible traditional IRA investments are very limited. Since you have an active traditional IRA, either roll taxable amounts. See Periodic Interest Rate in the wiki. Treasury bills are issued for terms of 4, 8, 13, 17, 26, and 52 weeks. Little Book of Common Sense Investing. [1] A reverse mortgage has been described as a loan of. For every $1 of relevant income between the lower and upper bases, 50 cents of your Social Security benefits become taxable, up to 50% of your total benefits. [note 1] Treasury bills are sold at regular auctions, where institutional investors bid on the prices. [1] Classic Bernstein 1 — Asset Allocation and Time Horizon. If you have not already done so, visit the Getting started page. by Taylor Larimore » Sat Jan 01, 2022 8:10 pm. The initial face value of most bonds is $1,000. The following outline is provided as a topical overview of mutual funds and exchange-traded funds (ETFs): Mutual funds are one type of registered investment company. THE BOGLEHEADSSM WIKI: A Valuable Reservoir of Investor Information One of the most overlooked parts of the highly successful Bogleheads™ community is. Kiddie tax is calculated on Form 8615 and paid on child's return. (Redirected from S&P 500 Index) The S&P 500 index is a market weighted index of 500 U. Many newcomers find that a good way to begin is by reading these Wiki articles: Getting Started and the Bogleheads' investment philosophy. Treasury . The Federal Thrift Savings Plan (TSP) is a retirement savings plan for civilian and military employees of the United States Government. Welcome to the Bogleheads® personal finance planning start-up kit . Limit for contributing to IRA for deductions. He has been on the finance faculty of Colorado College, the. The owner pays a stipulated premium to the insurance company. Matching strategies only work with fixed income and insurance products. At what cost? Once you get down below 10-20 basis points, # 1 and # 2 matter a whole lot. Adding additional asset classes to a portfolio ( bonds [1], gold, commodities) is asset allocation, not slicing and dicing. Grok's tips is a popular series of postings by Boglehead forum member grok87. This article contains details specific to United States (US) investors. The credit instruments used for a ladder should have the following characteristics: The bonds should not be subject to credit risk. Contribute to your employer’s retirement savings plan. S. Bernstein, Ph. The brokerage then records the sale of the March 1 lot, for a capital loss of $1,500, the same total as. A 401 (k) plan is a type of employer-sponsored defined-contribution retirement plan. I also created Category:Bogleheads university so we'll have this ready for next. Know your retirement needs. Because they are short-term, money market instruments rapidly adjust to changes in short term interest rates. 9k to principal and $100 or less to interest ($46k * . A Traditional IRA (Individual Retirement Arrangement) is a personal savings plan which allows you to set aside money for retirement, while offering you tax advantages. The company was founded in 1937 by Thomas Rowe Price, Jr. To calculate portfolio withdrawals, set current portfolio value, number of years over which withdrawals are to be spread out, and expected return of the portfolio. There can be a financial answer as to whether it is cheaper to buy or rent. We help you make good financial decisions by tuning out the noise and focusing on just a handful of simple, core principles that have proved successful over time. We help you make good financial decisions by tuning out the noise and focusing on just a handful of simple, core principles that have proved successful over time. Treat it as your own by rolling it over into your traditional IRA, or to the extent it is taxable, into a: 3. Chart 1 shows a sample portfolio of $100,000 with an asset allocation of 70% stocks and 30% bonds. He was the founder and chief executive of The Vanguard Group, and is credited with popularizing the index fund. The firm began discount brokerage on May 1, 1975. In general, however, a fund's glide path will follow one of three methods: straight line, stepped, or rolldown. From Bogleheads. ETFs have a creation and. S. This is a simple strategy - spend less than you. This Vanguard safety issue has been asked on a number of occasions. The Bogleheads® motto is Investing Advice Inspired by Jack Bogle. Series I Savings Bonds (often called ) are government savings bonds issued by the U. $500 / $10 per share = 50 additional shares. The site consists of this wiki and the Bogleheads® forum. Note: The graphs on this page are not from this text (derived by the wiki author). Making sure to take RMDs on time is a top financial priority in retirement. These principles are the results of Nobel prize-winning research on Modern Portfolio Theory and the Capital Asset Pricing Model . GnuCash allows you to track bank accounts, stocks, income and expenses. The second or Preferred budget represents a higher level of retirement spending that you want to achieve. This formula does not take into account gains or losses if the bond was purchased at a discount or premium. A financial plan covers day-to-day. feature, a simple and effective way to estimate taxes for the following year is to use the current year's return modified with the planned changes. View history. The “tax torpedo” refers to the hump — that is, the steep increase and then decrease — in the marginal tax rate as the rate rises to 50% and then tops out at 85%, even as income continues to increase. Eve Sherrerd. The Securities Investor Protection Corporation (SIPC) protects against the loss of cash and securities – such as stocks, bonds, and mutual funds – held by a customer at a financially-troubled SIPC-member brokerage firm. For example, if 15% of your expenses are for medical care, which you estimate at 5% inflation, then 0. Taxation as a US person living abroad involves special considerations for individual taxpayers. All four of these factors suggest more bonds as we age. Fixed term deposit accounts are available for holding sums of money for defined periods at fixed rates, Bank of Ireland for example offer the following very low rates (current as of March 2019): 6 months 0. 1395r (i) (4), from the Social Security Act §1839 : (4) Modified adjusted gross income. Created in 1978, a 457 (b) plan is a non-qualified tax-deferred compensation plan similar to qualified plans such as the 401 (k) and 403 (b). Episode 63: Dr. For example, see: Lazy portfolios. Avoid excess debt, such as credit cards and home equity loans. Multiply each category's percentage of total spending by the category inflation rate. Exchange-traded funds (ETFs) are also registered investment companies, but structured differently than a mutual fund. It is a collaborative enterprise by members of the Bogleheads community. Investing Advice Inspired by John Bogle. Boglehead-style investing at Merrill Edge. A Collective Investment Trust (CIT) is a pooled group of trust accounts operated by a trust company or a bank. When costs get down to a certain level, other things matter more. The threads about optimizing iBond purchases are pretty amusing. Commodities are marketable items produced to satisfy wants or needs. A widely used definition of investment risk, both in theory and practice, is the uncertainty that an investment will earn its expected rate of return. [1] [note 1] Determining which mix of assets to hold in a portfolio is a personal choice. Exchange-traded funds (ETFs) and mutual funds are two different investment products that you can use to hold a diversified portfolio of stocks, bonds or other assets. Both the wiki and. Core four portfolios are simple indexed portfolios that allocate assets across four asset class mutual or exchange-traded funds. The following outline is provided as a topical overview of retirement planning: Retirement planning involves saving for retirement, primarily by means of employer provided plans and personal retirement savings plans. The building blocks of Boglehead-style investing are low-expense-ratio. S&P Indices Versus Active (SPIVA®) measures the performance of actively managed funds against their relevant S&P index benchmarks. Treasury Inflation Protected Securities. ↳ Spain - Bogleheads® España; ↳ Spain; ↳ United Arab Emirates; Wiki; ↳ The Bogleheads® Wiki: a collaborative work of the Bogleheads community; ↳ Canada - finiki (wiki) Community; ↳ Personal Consumer Issues; ↳ Local Chapters and Bogleheads Community; ↳ US Chapters; ↳ Wiki and Reference Library; ↳ Non-US Chapters9dimes wrote: ↑ Wed Jul 12, 2023 10:06 pm Hello Bogleheads, A 67 year old spouse dies but never filed for SS. All wiki editors are welcome to edit this page. Disability insurance often called DI or disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that disability will make working (and. For example, see: Lazy portfolios. From Bogleheads. Outline of employer provided retirement plans. Books may have associated reviews in the wiki, and many have a forum-based discussion of the book contents. Withdrawal = P X Balance. Website. Mr. Total portfolio allocation and withdrawal (TPAW) describes the "total portfolio" approach to asset allocation and withdrawal. Jack founded Vanguard and pioneered indexed mutual funds. Wiki page creation (May 13, 2021 - May 13, 2022) Income-Related Monthly Adjustment Amount (IRMAA) (April 14, 2022) Social Security - computing a Primary Insurance Amount (March 27, 2022) Bogleheads YouTube channel (March 1, 2022) Retirement policy statement (February 27, 2022) How much do you lose. - Emerging market stock market index. A certificate of deposit (CD) is a debt instrument issued by a bank or a credit union. From Bogleheads. -. We help you make good financial decisions by tuning out the noise and focusing on just a handful of simple, core principles that have proved successful over time. If this is your first visit, begin at "Getting started" below. 2. STot = Single Budget, total spending only. Roth you pay taxes now, but get tax free withdrawals in retirement. From Bogleheads. Consequently, from a single coupon-paying bond, two bonds result: one which pays the coupons but returns no principal at maturity (an annuity), and one which pays no coupons but returns the par value at maturity (a zero-coupon bond). Books may have associated reviews in the wiki, and many have a forum-based discussion of the book contents. Selecting a mix of risky and risk-free assets (or higher-risk and lower-risk assets) is one of the most important decisions in designing a portfolio. S. — Common Sense on Mutual Funds, John Bogle. Dollar cost averaging (DCA) means dividing an available investment lump sum into equal parts, and then periodically investing each part. If you inherit a traditional IRA from your spouse, you generally have the following three choices. An index fund pools investors' money, and uses it to invest in securities, aiming to replicate an index of a particular financial market. 44. A CD has a fixed interest rate, for a fixed period, and paid monthly, quarterly, or annually. An investor should reference their Summary Plan Description to confirm all plan features such as availability, limits,. GnuCash is a free and open-source personal and small-business financial accounting software. by lgs88 » Wed Nov 08, 2023 11:11 pm. Outline of asset classes. [3] The first 940 euro interest on regulated ( gereglementeerde) savings accounts is exempt. From Bogleheads. From Bogleheads. Nov 30, 2019; Leveraged Funds – Historical Modeling, Bogleheads blog post by forum member siamond. The Bogleheads approach should work. The Retiree Portfolio Model is a downloadable Excel spreadsheet created by a retiree for retirees. [1] The Callan periodic table of investment returns is patterned after Mendeleev's. Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor. When taxable income is close to a tax bracket boundary, one could choose to make traditional contributions until the marginal rate drops, then use Roth for further contributions. Simba's backtesting spreadsheet describes a spreadsheet originally developed by forum member Simba for the purpose of acting as a reference for historical returns, and analyzing a portfolio based on such historical data. [1] The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. Bogle's appearances at the annual Boglehead Conference are preserved in videos (see Conference videos below). , M. 31, 2022) is your first Required Minimum Distribution (RMD) year. 1993. Notice the presence of parallel sections, "Risks of international investing" and "Risks. Rebalancing brings a portfolio that has deviated away from its target asset allocation back into line. From Bogleheads. Our family makes a combined income of $240,000 and around 10,000 additional income from assets like stocks. by Jack FFR1846 » Sun Feb 26, 2023 10:40 pm. Traditional IRA. From Bogleheads. 93% advantage, smaller without any capital gains tax, but likely still worth doing. However, the UK also has rules that discourage some "offshore" fund holdings. EU investing shows how you can apply the Bogleheads investment philosophy if you live in the European Union (EU). Schwab. From Bogleheads. For every $1 of relevant income above the upper bases, 85 cents of your Social Security benefits become taxable, up to a total taxable amount of 85% of your benefits. As discussed under # 1, cost matters, and it matters a lot. From Bogleheads. There is a common belief (promoted by Suze Orman, among others) that owning individual bonds is less risky than a bond fund, but this is not necessarily. S. 3. 30% bonds. The fund's. Rebalancing brings a portfolio that has deviated away from its target asset allocation back into line. . Hello everyone, I'm trying to figure out whether I should invest my money in IRA or Roth IRA. The wiki contains information on all sorts of subjects connected to financial matters. Treasury securities are backed by the full faith and credit of the US government, and are available in two types: marketable and nonmarketable. If instead the retiree wishes to spend more in early retirement and wants withdrawals to fall by 1% per year, set to get a withdrawal of $51,118. Australia Securities Exchange, Sydney, Australia. In a cost basis method, every share has its own basis, and the accounting method determines which share you sell. From Bogleheads. [note 2] You can purchase treasury bills in a brokerage (or Treasury Direct) account, where investors tender a noncompetitive bid at auction. It may also help you if you want to adjust. [6] The John C. September 3, 2020 - Create a bookmark using the javascript described in the topic. It does not apply to non-US investors. Cheers. Fidelity. These ideas come from the investing philosophy of Vanguard-founder Jack Bogle. This article contains details specific to United States (US) investors. From Bogleheads. 3. John Bogle era (1975–1996) The Vanguard Group was an outcome of a 1974 corporate struggle at the Wellington Management Company that resulted in the firing of Wellington's CEO, John Bogle. Grok's investing tip #1/10 Take your risk on the equity side; Grok's investing tip #2/10 Use cash to dampen portfolio riskThree-Fund Portfolio Update. Read. The Bogleheads® wiki has become a virtual library of helpful information on just about any subject related to investing and the Bogleheads. If the benefits start at an earlier age, they are. TIPS are unique because their principal and interest payments are indexed to the rate of inflation as measured by the Consumer Price Index. From Bogleheads. On February 6, 2013 Vanguard announced the creation of four fund portfolios by adding a strategic allocation of international hedged bonds to the firm's series of target date ( Target Retirement) and target risk ( LifeStrategy) funds. From Bogleheads. The 12b-1 fee gets its name from the section in the Investment Company Act of 1940, which lets a mutual fund to pay distribution and marketing expenses out of the fund's assets. When it’s time to make investing decisions, check your emotions at the door. 1,054 articles. Bogleheads on Investing podcast RSS feed. Bank of Ireland 365 Monthly: 1.