How I Retired Early: The Index Fund Strategy That Made Me a Millionaire In My 30s
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- เผยแพร่เมื่อ 9 มี.ค. 2024
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Books that have helped us on our Financial Independence Journey
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The Bogleheads' Guide to Investing: amzn.to/2UjEc4j
The Intelligent Investor: amzn.to/2MKGokh
A Random Walk Down Wall Street: amzn.to/2zIVI8p
The Book on Rental Property Investing: amzn.to/2UkwgQ6
Building Wealth One House at a Time: amzn.to/2ZJQuDW
Rich Dad Poor Dad: amzn.to/2ZD29IK
The Total Money Makeover: amzn.to/2Lc0thn
The $100 Startup: amzn.to/2UnBpqK
Freakonomics: amzn.to/2HCnDeJ
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Our Rich Journey - How I Retired Early: The Index Fund Strategy That Made Me a Millionaire In My 30s: When it comes to achieving financial independence, the path you choose is as crucial as your destination. With a myriad of investment options out there, VTSAX (Vanguard Total Stock Market Index Fund) stands out as a beacon for many. Renowned for its sweeping diversification across the entire U.S. stock market and its notoriously low fees, it's no wonder why VTSAX is a favorite among long-term investors. But is putting all your eggs in the VTSAX basket the ultimate strategy for financial freedom? In this deep-dive video, we're unraveling the layers of investing solely in VTSAX - the good, the bad, and everything in between. But wait, there's more! What if VTSAX isn't the end-all-be-all? We explore alternative investment strategies that aim to beat the benchmark set by VTSAX. From picking individual stocks to diving into sector ETFs, real estate investments, and more.
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Amon & Christina you guys have no idea or (maybe you do) how much you have uplifted thousands of people on their journey to Financial independence. I thought, i new it all, until i came across your channel around 2018 and literally changed my life. Thank you for sharing your FI journey.
I rebalance my portfolio yesterday to 100% VTSAX. Thanks for this video!
Thank You Aman, I needed to hear this😊.
Comparing VTSAX, SWTSX, SNXFX, FSKAX, and the S&P 500, the S&P 500 is beating all of the other funds for the 1-, 3-, 5- and 10-years' time period, while paying dividends on a quarterly basis, VTSAX also pays quarterly dividends. Understanding that there are a few nuances between the funds, the S&P 500 still comes out ahead in total returns. Am I missing something here?
For now, maybe it will last and maybe it won’t but it is an oddity in history.
Great question. I’d love to see an answer to it because I’m gathering the same information.
Voo all the way
Buffet says S&P 500 index for retail investors. I don’t like VSTAX, as buying the whole market isn’t a strategy. It performs closely to SP500, but doesn’t resonate with me.
I put my stepmom 100% in fskax. She's done very well.
That’s great!!!
@@OurRichJourney Thank-you, yes we could certainly do better but we could do worse too ;)
Fskax is the same as vtsax
Do you think that the Schwab version of Total Stock Market Index is just as good as VTSAX even though there are subtle differences?
Hi Amon! I was looking at splg as it is only $60 vs. voo which is up in the $400 range and just wondering why there is such a price difference when they track the same index? Voo has been around longer and has more AUM but I’m wondering if one is better than the other or am I missing something? Please help
Thank you so much 🙏🏽
Great video as always. I shared your channel with a co-worker.
Thanks so much Will!!!
Any recommended ticker symbols for international index funds?
Thanks for your content.
Thank YOU for watching and commenting! ❤️
What was your monthly contribution for the 8 years (amount, not pct of earnings)? What about the principal you guys started of with? At what return rate on avg?
so is there any difference between investing in vtsax on fidelity or vanguard?
Hello, Love the channel and I appreciate all the good information you've provided throughout the years. I have to pushback a bit on the cons you listed. When you say you could be missing out on stocks and ETFs that could outperform, that's assuming somehow you will know which ones to pick that will outperform. It's extremely difficult to pick individual stocks and know which ones will outperform the market average. Secondly, Boglehesds have long debated the lack of international exposure that VTSAX may have but general consesus agrees that the top companies in VTSAX are multinational companies and thus, you get international exposure. I think soley investing in VTSAX in the stock market will be the best strategy for most. However, also investing in another asset class like Real Estate may also yield good results.
Would you recommend VIGAX? Can you make a video on this index fund.
Checking in from the DMV.
Hi LaShawn! Hope you’re having a great weekend!!!❤️
Do you guys have a video that discusses what expats can invest in while living overseas?
Which International index fund are you guys using?
We had been investing in Vanguard ETF CAD hedge but exposed to the S&P500 to leverage our portfolio
Wow. That’s high praise! 💰
😀😀😀
Good explanation...thanks
Another con that you failed to mention is that vtsax is capitalisation weighted and hence over exposes its investors to AI /technology risks. Which in the last ten years has preformed nicely but past performance doesn’t mean future performance. Consider rsp (equal weighted s&p 500 index) as a supplement to provide better diversification.
Love this channel. Good information. VOO however is a better quality US ETF. VTSAX has too much coal with the diamonds. The other diversification is a bonus.
Thanks for sharing! Are you both only doing long flips in the RE sector right now?
No. We have two Airbnb rentals in Portugal now 😀
What is the Vangard UK equivalent of VTSAX.
Hello, I have been following your channel for awhile now.
Great content no dough about it but before recommending your community to invest in Real Estate, it would be useful that you share as well what strategy you use for Asset Protection Plan & State Planning.
Great content as always. Love what you guys are doing. Have you guys shared any strategies for maintaining US accounts with Vanguard/Schwab/Fidelity while living abroad without it being closed
Are these investments available in Canada?
VTI, VYM for me!
Can someone teach me how to sell shares and withdrawal strategies
Should we be investing with market at all time highs
What is the equivalent VTSX for a european investor as ?
Does anyone know if this is available in the UK? Thank you!
Yes is available with another name
I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green and my retirement is edging closer by the day.
For anyone who has invested in a vtsax account. How much would you suggest starting off with when investing in a vtsax account and what percentage of your check bi weekly would you suggest adding to it?
is there a Canadian fund equivalent
I have majorly of my investments in their mutual fund plus it’s ETF VTI, no minimum
Hate how you can’t automate it
But it can be good for lump sum payments 😀
Hi Amon & Christina. I read that brokerage companies don't make it easier for american expats to keep their investments in the US. Do you have any suggestions of brokers or a process to keep US investments? Thank you.
ThanksAmon&Christina! 💝💝💝💝 Awesome courses. anyone on the fence ...Enroll take my word for it.
C'Ann - You are too sweet! Thank you!!!💕💕💕
Thanks for the video but so many other ETFs have beaten this ETF. I tell everybody to do some research. ❤
I dont vanguard. But it sounds like a great index fund. VOO and VTI i feel are other great substitutions if you dont have vanguard.
Ive also been buying etfs in other sector's. My 3 heavy hitters are SCHD, DVY, and VYM.
Since some of the funds i mentioned dont dip into international stocks. I buy index funds from certain countries. Just keep in mind that most only pay once or twice a year
Living abroad as a Portuguese resident are you obliged to pay taxes also in Portugal?
Only the US and Eritrea tax based on citizenship rather than residency.
I have a question about why out of all places did you guys choose Portugal ? Just curious. ( The good the bad and the ugly) 🤔🇺🇸
They have a video about it from a few years ago (titled Why we chose Portugal). But things in Portugal have changed quite a bit since then, so I'm not sure all their reasons are still applicable nowadays.
It is said to be very great for expats of color
Great vifep
I plan to invest in it
❤️
What did u invest in? How much a month? How long it took to grow? Help us out, come on
Most American companies are pretty much international. So Vtsax is a world fund pretty much. But I get what you’re saying in other words
Do you pay income tax on dividend if reinvest it?
Depends on the account. For standard brokerage accounts, you still have to pay taxes on dividends even when you reinvest them. 😀 But, for a tax advantaged account, taxes on reinvested dividends can be deferred (for 401ks and traditional IRAs, for example) or tax free (for Roth IRAs, for example).
Please correct me if I'm wrong, but if you're in the 10 or 12% tax bracket, the long term gains would be tax free even in a brokerage account, correct? And short term would be taxed at the regular income tax bracket you're in?
Splitting hairs when compared to VOO etc
Can vtsax be purchased through charles schwab?
Yes it can!
Yes it can!
Yes, but they will charge a fee if you buy another brokerage’s funds. It’s better to buy it directly from Vanguard. A minimum of $3,000 is needed to buy if it’s your first time purchasing the fund. Charles Schwab has their own total stock market fund (SWTSX).
I'm sure they have an equivalent fund.
Is it healthy to put 100K in VTSAX from the beginning?
That’s a hard question to answer without knowing multiple things about you and knowing where the money is right now. Also your risk tolerance, could you hold if it drops 60%, it’s possible.
Sure
VTI is ALL you need
vgt
Over the long term VTSAX does really well and will beat the vast majority of the portfolios by the experts..
How does one get around the fact that Americans living in the EU can’t invest into US funds?
Why VTSAX instead of VTI?
VTI is actually alittle better, I have both for automatic investing the mutual fund is easier.
I think the answer is that either way your fine, but I like Vti for its tax efficiency, which is meaningful if your in you high earning years.
Automatic investments why I choice it.
This probably sounds dumb, but is it a good time to start investing since the market is at an all time high? I’m so lost on all this. Late 40’s & scared I’m gonna retire BROKE.
I would open a vanguard account and put my money in their money market fund which is just like a checking and it’s earning like over 5% a year now anyways. Then you can either decide to jump all in on an etf like VOO that mirrors the S&P 500 or the one like he described vtsax or vti. Catch the market down one day and put it all in or just dollar cost average over the year into one of their funds. It’s really all you need.
Don't allow fear to stop you. Allow that emotion to propel you into action. Do your research and study. We need our money to work for us. I believe in God and his leadership. I'm being led to study the stock market for financial freedom. Before I speak with an investor, I need to have knowledge and understanding of the stock market. I'm not going in blindly. I will present to them what I plan to accomplish, and they can impart their knowledge of the stock market and what investments I should consider in order to reach my goal of financial freedom. Pray and ask God to guide you and lead you to the right people and investors to accomplish your goals. Never allow fear to dictate your life or thoughts. Stand strong and fight for what you want to accomplish. Im 56, starting over, and I will not settle. Be courageous and step out of your comfort zone and make your money work for you. Study and get the knowledge that you need and speak with an investor at your bank. Financial freedom is the goal. You will succeed.
Yes. It's called dollar cost averaging. Just invest every month. It will average out over time.
I am still laughing about that wig lol
But this a great video I am forwarding to my neice
So the wig is seared into your mind?! 😂
@@OurRichJourney coming to America is one of my all time favorites lol. 🤣 Hahah
Hi There
Hi Danelle!❤️
What about investing in Bitcoin?
I invest in VTSAX through Charles Schwab
60/40 Portfolio
60% Bitcoin
40% VTSAX
😊
❤️
The New investing is upon us, SWING fore the fances and Set Sail,
👍
I recommend you add the Vanguard Small Cap Value Fund with the VTSAX. Allocation, 80% / 20%
👀
😀
The only thing you need to become successful is BITCOIN ❤❤❤
You are getting international exposure bc the top companies are international
Get some ISO crypto coins. I’m up big since 2021, and will crest big time 2024-25.
Bitcoin is digital Gold! #BTC #Bitcoin
Or, it's a Ponzi scheme waiting for a rug pull and more bagholders.
I invested 100% into vsjxjdjfjsx and haven’t made any money yet😂
It is overweight in tech at almost 30%
Yes, tech companies represent a large portion of the US stock market. 😀
Also Buy Bitcoin 🚀
In my 457b I like VFIAX However, in my HSA I like VTSAX and VTMGX
😀
I have $400,000 invested, spread out across different cash assets and companies. Although I have diversity, I feel like that $400,000 would grow more if it was just in my VTSAX. If I heard you right, you all looked for other assets that mirrored or outperformed VTSAX and with that strategy is that like having $400,000 in VTSAX?