"#8 Too Conservative" is one everyone should study. It is a great chart. Bonds reduce volatility but most people should wait might be better off waiting until they are 10-15 years from retirement before shifting from 0-10% to 20-40% in bonds. A ten year time frame of the broad US Stock Market will almost always significantly exceed bonds. It you have 10 years to increase your bond portion of your retirement account to your preferred percentage that is good runway. Once I got to retirement I created a three year ladder of CD for withdrawals and in fact keep a lower percentage of bonds than I had thought I would. I replenish the CD ladder when needed.
Fantastic reminders and guidance! Thanks for sharing! I fell badly into diversification trap but am now simplifying, simplifying, simplifying... The conservative vs aggressive portfolio diagram was an excellent add and gives tangible food for thought. This video added to my thinking - a sign of quality content.
#9 happened to me several times… even if you hold your stock for awhile. I have had several stocks that I held for 4 years that doubled in value at that time… i figured there’s no way they could ever go much higher so I sold. 10 years later they are 5x. If you have a good company with strong fundamentals, don’t sell unless you have a real solid reason in their future performance or if you have a well researched stock you prefer over them.
Yup. The secret is to patiently observe and study your preferred companies over time and keep your eggs in those baskets which work well for you. Stay put unless there's a clear change downward in the company (stocks) or industry (ETF's / funds).
Excellent video, Tae is the best at this and I find him to be very trust worthy. I am guilty of having too many accounts myself, going to consolidate this week.
Number 10 is most important I have followed a bunch of fire communities and most of them are so extreme. Talking about splitting toilet paper and eating as much as the same cheap and unhealthy food just to save a buck. It’s important to save money for the long term but yo alive now to. What’s the point of having a lot of money later if you have done nothing in your life to look back on… then you're alive but your not living. I read an article a while back of a Japanese man who saved everything and who kept a job he hated for 30 years so he could retire early. Then when the time came around the yen dropped significantly in value…
All of my retirement accounts Rollover IRA, ROTH IRA, HSA, Brokerage all at Fidelity. All my daily banking checking, savings, MMA at a credit union. No mortgage or loans.
I have a lot of different accounts. But since I'm a crazy person and I like doing my own book keeping, I know exactly where my money is and how much is in each of my 20 different accounts in various financial institutions. I should probably stop that.
I agree, and I admire people who are in touch with their money. But if you took a little time and expended a little effort to consolidate your investments into one each account of: Your current employer-sponsored plan (e.g., 401(k), if any A Traditional IRA A Roth IRA A taxable brokerage account A high-yield savings account (usually with an online bank, or "bank in the sky" as I call them) (& a checking account, of course) wouldn't your investment management & tax return preparation life be simpler? Wouldn't you have more time to do other things (including watching cat videos)? You could still do your own bookkeeping. If you're paying to have your taxes prepared, unless your financial life is really complicated, I suggest that you take a tax course (H&R Block offers them every fall, and it's not expensive). You'll save money on tax preparation, and you'll also figure out additional ways to reduce your taxes, making you a better money manager.
Love me a Roth. I am on track to be Tax Free Millionaire. $2.7 Milly in 12 years. 🎉🎉❤❤💪🏾💪🏾🤞🏾🤞🏾🙏🏾🙏🏾 i luv me growth so its all in growth E.T.Fs and stocks.🎉🎉
11:00 this was me 5 years ago. I had $70,000 in my savings account and no money in the stock market (other than my 401k/IRA). I bit the bullet and started investing at the end of 2019. I now have $300,000 in personal investments. Nothing spectacular, but it's many times better than if I let it sit in a bank account gaining less than 1% interest.
When you began discussing the necessity of taxes and defending the current system, it struck me how contradictory it is for the federal government to extract money from citizens' paychecks, only to allocate it to questionable causes, such as supporting illegal immigration and funding overseas military interventions to protect foreign borders rather than our own. This clearly undermines the very concept of "national defense" that is often used to justify such expenditures. The core issue lies in how taxes are collected. The federal government should not have the unchecked authority to DIRECTLY tax income from any and all sources. The 16th Amendment, which grants this power, is a deeply flawed provision that fundamentally overreaches and should be repealed to restore a more just and reasonable taxation system.
To be fair, Target Date Funds have bonds and cash, so *OF COURSE* they underperform the S&P 500. My recommended solution is to have a year's worth of take home pay (minus how much of what you take home you then invest) in emergency savings, then go 100% into equities (they give you the highest return, on average, over long periods of time.) I like the Total Market Index funds that Tae suggests because of their greater diversification.
@@brucestiles6477 There’s NOTHING fair about it! Target date funds are so bad it is equivalent to financial suicide. Might as well kiss a comfortable retirement goodbye!
@brucestiles6477 Thank you. I was thinking this is exact same thing. Including the, to be fair. To be more fair in the past bonds paid much more just as stocks paid more dividends.
Depending on dates you use. The S&P 500 has been one of the best performing categories in the last 10 years. Look at data from 2000 to 2010 and you sing another song
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"#8 Too Conservative" is one everyone should study. It is a great chart. Bonds reduce volatility but most people should wait might be better off waiting until they are 10-15 years from retirement before shifting from 0-10% to 20-40% in bonds. A ten year time frame of the broad US Stock Market will almost always significantly exceed bonds. It you have 10 years to increase your bond portion of your retirement account to your preferred percentage that is good runway. Once I got to retirement I created a three year ladder of CD for withdrawals and in fact keep a lower percentage of bonds than I had thought I would. I replenish the CD ladder when needed.
This was amazing. So informative. Thanks
A very well done video with timeless investment advice. Number 10 is so important.
15 seconds into this I immediately subscribed.... I learn something new expense ratio
Fantastic reminders and guidance! Thanks for sharing!
I fell badly into diversification trap but am now simplifying, simplifying, simplifying... The conservative vs aggressive portfolio diagram was an excellent add and gives tangible food for thought. This video added to my thinking - a sign of quality content.
#9 happened to me several times… even if you hold your stock for awhile. I have had several stocks that I held for 4 years that doubled in value at that time… i figured there’s no way they could ever go much higher so I sold. 10 years later they are 5x. If you have a good company with strong fundamentals, don’t sell unless you have a real solid reason in their future performance or if you have a well researched stock you prefer over them.
Yup. The secret is to patiently observe and study your preferred companies over time and keep your eggs in those baskets which work well for you. Stay put unless there's a clear change downward in the company (stocks) or industry (ETF's / funds).
Excellent video, Tae is the best at this and I find him to be very trust worthy. I am guilty of having too many accounts myself, going to consolidate this week.
Great advice as always, keep it up ✨️ 👍
I enjoy watching your videos
Number 10 is most important I have followed a bunch of fire communities and most of them are so extreme. Talking about splitting toilet paper and eating as much as the same cheap and unhealthy food just to save a buck. It’s important to save money for the long term but yo alive now to. What’s the point of having a lot of money later if you have done nothing in your life to look back on… then you're alive but your not living. I read an article a while back of a Japanese man who saved everything and who kept a job he hated for 30 years so he could retire early. Then when the time came around the yen dropped significantly in value…
You're *
@@d_all_in I changed it.
Agree 100%. Be smart and live your life. Money is a tool not a goal.
Very thoughtful and helpful. Well done, thank you!
Thank you.
Thank you❤
Great info thx
Which is better? A traditional 401k or Roth 401k?
Great content 👌 👏 👍
Hi from India
All of my retirement accounts Rollover IRA, ROTH IRA, HSA, Brokerage all at Fidelity. All my daily banking checking, savings, MMA at a credit union. No mortgage or loans.
Great video , BUT were missing the hair😒
I have a lot of different accounts. But since I'm a crazy person and I like doing my own book keeping, I know exactly where my money is and how much is in each of my 20 different accounts in various financial institutions.
I should probably stop that.
I agree, and I admire people who are in touch with their money. But if you took a little time and expended a little effort to consolidate your investments into one each account of:
Your current employer-sponsored plan (e.g., 401(k), if any
A Traditional IRA
A Roth IRA
A taxable brokerage account
A high-yield savings account (usually with an online bank, or "bank in the sky" as I call them) (& a checking account, of course)
wouldn't your investment management & tax return preparation life be simpler? Wouldn't you have more time to do other things (including watching cat videos)? You could still do your own bookkeeping. If you're paying to have your taxes prepared, unless your financial life is really complicated, I suggest that you take a tax course (H&R Block offers them every fall, and it's not expensive). You'll save money on tax preparation, and you'll also figure out additional ways to reduce your taxes, making you a better money manager.
Love me a Roth. I am on track to be Tax Free Millionaire. $2.7 Milly in 12 years. 🎉🎉❤❤💪🏾💪🏾🤞🏾🤞🏾🙏🏾🙏🏾 i luv me growth so its all in growth E.T.Fs and stocks.🎉🎉
11:00 this was me 5 years ago. I had $70,000 in my savings account and no money in the stock market (other than my 401k/IRA).
I bit the bullet and started investing at the end of 2019. I now have $300,000 in personal investments. Nothing spectacular, but it's many times better than if I let it sit in a bank account gaining less than 1% interest.
When you began discussing the necessity of taxes and defending the current system, it struck me how contradictory it is for the federal government to extract money from citizens' paychecks, only to allocate it to questionable causes, such as supporting illegal immigration and funding overseas military interventions to protect foreign borders rather than our own. This clearly undermines the very concept of "national defense" that is often used to justify such expenditures. The core issue lies in how taxes are collected. The federal government should not have the unchecked authority to DIRECTLY tax income from any and all sources. The 16th Amendment, which grants this power, is a deeply flawed provision that fundamentally overreaches and should be repealed to restore a more just and reasonable taxation system.
Not guilty of any of it really. Maybe chasing returns, but with very small amount. I would learn nothing about market if I just buy funds and hold.
For me, it's number 1. I recovered over 10k in my past 401k/IRA from previous jobs
So true of so many people. Sigh.
Worst investing mistake is a Target Date Fund. Many underperform the S&P 500 by about 5% annual average.
To be fair, Target Date Funds have bonds and cash, so *OF COURSE* they underperform the S&P 500. My recommended solution is to have a year's worth of take home pay (minus how much of what you take home you then invest) in emergency savings, then go 100% into equities (they give you the highest return, on average, over long periods of time.) I like the Total Market Index funds that Tae suggests because of their greater diversification.
@@brucestiles6477 There’s NOTHING fair about it! Target date funds are so bad it is equivalent to financial suicide. Might as well kiss a comfortable retirement goodbye!
@brucestiles6477 Thank you. I was thinking this is exact same thing. Including the, to be fair. To be more fair in the past bonds paid much more just as stocks paid more dividends.
Depending on dates you use. The S&P 500 has been one of the best performing categories in the last 10 years. Look at data from 2000 to 2010 and you sing another song
@@johngill2853 Luckily, over a career of 30 or 40 years of investing, the average is in the 10% area.