John Bogle, founder of the Vanguard Group

John Bogle, founder of the Vanguard Group

The future of the financial system will be smaller, leaner, low-cost, and less complex (thank goodness!).  Currently, the vast majority of retirement plans (403b, 401k, 457b*) are big, fat, high-cost and way too complex. Retirement planning should be about as difficult to discover and learn as our first day on the job. For teachers it should be a lot easier than our first year in teaching.

Chick here for all of Mr. Bogle’s comments written by Dan Weil.

*Los Angeles Unified School District has a low-cost 457b plan that would make Mr. Bogle smile! For LAUSD employees the future is here! See the fund line up below. The four bold Vanguard choices is a simple starter diversified low-cost portfolio. This selection of funds includes bonds and domestic and international stocks (sans emerging markets).

LAUSD 457b Options-total fees



  1. Are there any advantages to contributing to the self-directed brokerage account? Pros/Cons?


    PS On a seperate note, is it cost effective to buy an EV if I commute eight miles to school? I’m 41 years old with three young children.

  2. Good questions Oscar. I remember talking with you at the workshops. Hope you are doing fine.
    I would not use the self-directed brokerage account because you have low cost Vanguard choices in the 457b fund already. You can set up a fully diversified portfolio with the s&p 500, extended market index, the total bond market and the developed market index (International exposure). You want to plan for retirement with a long term slow growth philosophy. In my mind, using the brokerage account is too risky.

    Commuting 8 miles would be fine for the Leaf. You can charge it every night on your regular plug in and you can get a used Leaf for about $16,000. I paid $37,000 for a new one 2.5 years ago. So the prices have come down for used one. However, what if you get another position that requires you to drive longer distance to work?

    have a great day,

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