Great return. My portfolio is nearly identical to VTWAX / VT and returned 20.4%. I use the Boglehead's return spreadsheet which helps calculate the returns over time.
Thank you for sharing this valuable educational information. In 2021 had as many as 35 tech related stocks. I spend too much time researching, trading stocks, and my year end results were terrible. This week I am consolidating to an index fund, a bond fund, international fund, and 6 stocks. Thank you again!
Thanks for sharing! The crazy thing I can’t wrap my head around is that if one were to be a “coffeehouse investor” in the sense that if I simply invest in the S&P500 index and rebalance stock and bond annually without diving into any individual stocks or mutual funds, I would’ve done just as well (average) and have a lot more time for other hobbies and maybe even entrepreneurship that may increase my net worth. That’s my struggle with personal finance. I keep wanting to discover more secrets but once you get the basics down, it seems like the rest is more for the academicians than the average joes
And underperforming the simple lazy portfolio by just 1-2% can cost you a lot of money when you compound it over time. A lot of people will try to sell these "secrets," but there are none.
Couldn't agree more. However, you have to be prepared for the years when the S&P 500 underperforms a more diversified portfolio. It has happened and it will happen again. And in fact, historically a tilt toward value and small cap has outperformed the S&P 500. But again, just sticking with the S&P 500 has worked well for a very long time.
don't forget the SP500 isn't just an index, its a cap weighted system / strategy , in the sense that the market cap laggards get replaced , so there is inbuilt bias to the upside which should suit the coffee houses
@@rob_berger thanks. Would love to see a video of the the upside of value + small cap tilt on a year to year basis or decade to decade basis. I’m sure it’s one of those things that require Monte carlos simulation 😂 but that’s my issue with Paul Merrimen’s ultimate portfolio as well. Once a portfolio gets to a certain complexity, then It’s no different than managing individual stocks. You’re just replacing stocking picking with “basket of stocks” (mutual fund/ETF) picking. That’s fine if minimal time is required to managed the portfolio. But “underperforming” 1-2% by the market by taking a hands off approach doesn’t take into account the “cost” of time to research and stay up to date with the latest financial fads.
@@rob_berger What about investing a portion of the equities, like 10-20%, in a small cap index fund, and the majority of everything else in an S&P 500 index? Is this what you mean by diversifying? I have no confidence in myself to pick individual stocks.
@@rob_berger Definitely. You never know what will have happen in the next 10 years. Diversification guarantees you get a piece of each pie, regardless of what the market is doing.
@@starmorpheus Can do that with 3 to 4 funds and some money in GICs or bonds etc for more security. Good for small portfolios (under $50-100K), beginners and or DIYers who want to keep it simple. Very few on YT do good videos on this.
Great video. Thanks for sharing your ‘21 results. I’ve tracked my portfolio over the past 7 years and this year came up short like you but have outperformed 5 of 7 years. Results were 2 points short of S&P 500. Currently , I’m too exposed to U.S. tech sector so need some major rebalancing to reduce portfolio risks. Your insights are very helpful to start the planning!
After watching your videos I finally realized it’s time for a change. The return on my IRA, managed by a professional charging the 1% fee, was 10.9% for 2021. Twice a year my wife and I get a 45 minute chat session and free coffee. Portfolio is a mix of 28 mutual funds and ETFs. Enough said.
Definitely make the change, you can do this yourself. I knew nothing a year ago & learned just by reading, watching financial news, & watching TH-cam’s. I love being my own financial advisor. Sold all my mutual funds with high expense ratios, bought VTI & some terrific stocks (both Growth & Value). Buying my 2022 iBond this week.
That's nuts.. he's giving you 45 chat and $5 coffee a year and you're paying for his surf and turf for the whole family each day, couple of vacations a year and part of the mortgage... Self manage with 4 fund strategy and call it a day!
Very nice summary of what we all want to know. I’m 80/20. 15% of my stock portfolio is individual positions.. My total return was 17% accounting for my fixed income barely treading water. I sense a huge correction
Thanks and congratulatations! Can you tell us percentage of specific assets, eg. individual stocks are at 31%, emerging markets, you said at 10%. How about other segments of your portfolio, REIT, VTI,...
Hey Rob, are you considering doing one of these videos for 2022? Comparing your portfolio to the S&P 500 for 2022? That would be interesting and also interesting to see if you still have the same stock and fund investments. I enjoy your videos. Thanks!
Hi Rob, Our philosophy for investing is similar. My overall equity portion return was also less than the S&P 500 at around 23% as I too had 14% in International Index Fund returning 8% and 10% in small cap ETF. But, like you, I'm satisfied with the results for all the reasons you stated. My 5 % fun money stock allocation didn't do as well as yours coming in around 25%.
My 401k is 80/20 500 index and small cap index. Another account carries an REIT, MLP and muni bonds. Roth carries VTSAX total stock market index and VIGAX growth index. "Well covered" for stock or bond fluxuation as well as inflation. I agree with diversification but certainly don't see the need for more than 1 of each in any asset class. You could easily go VTSAX, VBTLX, VGSLX or their ETF equivalent and do very well. 80/10/10.
Rob, thank you so much for sharing your time and knowledge with us. While watching this video a doubt came to mind. The expense ratio of mutual funds, most of the time, is higher than ETFs. In addition, the minimum investment for mutual funds like VTSAX is $3000. Considering this, what is the advantage to invest in mutual funds instead of their ETFs pairs.
One thing to add, most channels and all investments talk about beating the S&P or a specific benchmark. I will tell you it can happen by accident and does not mean you have a solid portfolio. Your exposure and risk MATTER, especially when you're talking an investment horizon of 25-30 years. Lost money can't make money. Protecting your downside with notoriously safe funds during downturns help your portfolio remain on task. Expense ratios also matter when you're looking at 30+ years. A lot of money being left on the table. VIG & SCHD deserve a look for a lot of Roth IRAs to supplement the high volatility of an S&P 500 index overall.
My final answer after hearing all your data is that your final outcome is the same as the SP500 but you get a more diversified profolia so in a bad market , you actually is safer than SP500. Congrats
Hi Rob. Great channel!!! You have some great insights and I thank you for sharing them. Out of curiosity, How did your portfolio perform over the last 5 years compared to the sp500? I suspect it was far less volatile due to the diversification. Thanks.
Damn I did 21.75% on 2021, unfortunately in my country I don't have access to all US market so my portfolio is approximately 50% US (mostly ETFs) and 50% Mexican stock market.
8% from your international is great. It’s in line with historical returns unlike the US market, which may mislead investors into thinking 20%+ years are a regular regular return.
@RobBerger: I enjoy your approach very much. I both listen to your approach and follow it. I do have the question, if you are comparing your results to the S&P, why not just purchase the S&P Index Fund (or ETF)?
Thanks for the video. Did I miss you mention the two Bond Indexes you are invested in? I wrote down VTSAX, VFWAX, VSMAX, VGSLX and VEMAX. Also do you have a recommended % for each Index Fund in a Balanced Portfolio? I have been concerned about a significant Market Crash for sometime but have missed out on substantial gains and at 55 am running out of time to get to where I want to be.
You're right. I misspoke on the individual stock returns. The annualized return was 44.82%. I read the wrong number from the stock tracking tool I was using. And keep in mind those numbers don't include dividends.
Great recap of the year. If you had a large purchase to save and invest for like a second home or better home what index fund would you park the money in for a 5 plus year timeline?
Good video. Do you recommend using an investment manager or going with Vanguard and doing it yourself? I am 51. Not sure what would be best at this age. Thanks
Hi Rob, thanks for the video. Just a question, why not use small cap value instead of blend? It has better long term performance and also decrease volatility of portfolio with the total stock market.
REITs are in the US total stock market index and probably in the S&P 500, so no need to have a separate REITs etf is there? Aren’t the underlying costs in a REIT high?
That’s my conundrum too. Most readings I’ve done seems to suggest REITs and stock market performance correlate with each other so I don’t know how much diversification really exists there.
Need? No. You'll find about 2%+ of REITs in the S&P 500. The separate REIT fund gives me more exposure. Whether that will turn out to be good or bad only time can tell.
@@rob_berger in the early 2000s i had reit index as 10-15% of my portfolio as it supposedly does not correlate with the stock market. i only placed reits in me and my wife's roths and nondeductible ira, since then converted to roth. with the contribution limits, after 20yrs, their percentage of the portfolio declined. i finally got out of them completely in early 2020 and worse i put a significant portion in royal dutch shell which at that time had a high yield and never cut the dividend since WW2(ha ha) and vanguard all world ftse ex us and vtsax. since i can't harvest the tax loss on rds-b and loss aversion, i am letting rds-b ride for now. it is a small portion of my portfolio anyway and i do expect it will go up as we clear the pandemic. will see how it goes in 1 to 2 yrs. i may then put it in vtsax. my main reason for getting rid of it was that if my roths are going to be my last assets to spend down why am i limiting their growth with reits. i was only 53 y/o then and would still not be touching them for 20 yrs or more. even retiring at 55 i am still not planning on touching my roths early. over 20 yrs though they did follow the general stock market except for the first few years post tech crash.
Good information!! Suggestion/idea: Increase your equity holdings from 84% to 100% in 2022. If your 2021 fixed investments returned about 1%, then that pulls your overall return of about 29%, down to about 24%. If you have cash not included in the fixed income portion, then that would pull your overall return down further (cash drag). In case of a stock crash in 2022, then take out a personal loan to pay bills and do a rollover from your tax deferred accounts to a Roth IRA, so you don't miss out on the lower tax brackets in 2022. Thoughts? Too risky? p.s. My portfolio is essentially 100% S&P500, 0% bonds & minimal cash. My age is 60, retired.
Hi Rob, what are you going to do with these individual stocks this year? Hold them for another year? Sell some of them gradually to rebalance? Or swap in other stocks?
Hello Rob, I'd like to hear your thoughts on going all in on VIGAX vs VTSAX (one mutual fund for retirement). On portfolio advisor, the former outperforms the latter by nearly $15 million. I understand that you won't be as diversified as VTSAX, but I wonder if the risk/ROI is worth it from your perspective.
Rob, Just retired and spendibg more investing. Currently use M1 to buy stock. I am now looking to add I bonds therefore how is the best tool to track everything.
Wondering why you don't have the ETF versions of your Vanguard mutual funds, with typically a slightly lower ER and able to pick your buy/sell prices.? Thanks for sharing and Happy New Year Rob! I am getting all cashed up for '22 with regards to HSA, 401k, Roth/IRA's.
With mutual funds I don't have to concern myself with premiums/discounts. I always buy and sell an NAV. Many of Vanguard's funds have minimal premiums/discounts given their volume, so also a reasonable choice.
Great job Considering moving my money to the 500 index fund from the 2040 jh multi manager portfolio? The performance has been better (S&P 500 is not an option in my 401k)
"Considering moving my money to the 500 index fund from the 2040 jh multi manager portfolio?" Are you asking if you should move away from John Hancock?
@@wolverine9079 You generally want to stay away from mutual fund companies that sell LOAD funds (A B C ... shares) and have high expense ratios. J Hancock has several "2040" target date funds but unless you provide the 5 letter ticker it's not possible to comment on yours directly. JAVCX JHBAX JRRRX JETWX have expense ratios from 0.32% to 0.87% JHBAX charges *5%* load (commission) which comes out of your pocket. If you hold it in IRA it's a painless sell and purchase of S&P 500. Hopefully you don't own in taxable brokerage as it holds bonds and kicks out taxable dividends and CG. Are John Hancock investments the only option in your 401(k)?
the local Wells Fargo bank in my retiree populated town doesn't get high marks from retirees for customer service, etc ----I wonder what it is doing right for its stock to do so well.....
Great discussion. I consider myself a moderately aggressive investor. I am looking at managing my own portfolio as I go forward. Given my leaning towards say an 85-15 stocks/bonds ratio, what would you recommend percentage wise for individual stocks?
Nice job, I noted there was no income from puts and calls, and covered calls? I made a few dollars with them playing with common sense. Am I wrong , a low risk in a retirement account?? What is your opinion?
@@rob_berger is this the reason why you don’t reinvest your individual stock dividends? I don’t reinvest the dividends from my individual stocks that are in my taxable account, however I do reinvest my dividends from my individual stocks in my IRA.
Apple stock may have saved me. Also, you have to factor in timing. I made contributions each year, particularly 2018, which has a significant effect on returns.
The reason I’m asking is to gauge the cost of decreasing risk through diversification. Thanks again, I have gained much knowledge watching your videos.
I know that you are a smart man so I have to wonder why you selected VTSAX which has transaction fees and an expense ratio of .04%. FSKAX has no transaction fees and an expense ratio of .015%. Otherwise both funds are very similar.
Jack Bogle on International stocks: *_“Everyone tells me I’m wrong. In my book, ‘Bogle on Investing,’ I said, for a lot of reasons, you don’t need to own international stock. The reality is that we do better than the rest of the world. You don’t need currency risk, but if you want, don’t go over 20% in international...."I've been right. Since “Bogle on Investing” was published in 1993, the S&P 500 has gained 779% cumulative vs. 309% for the Europe, Australasia and Far East index. Does that mean I’ll be right in the future? I could be wrong. But when you buy the S&P 500, you buy a portfolio where roughly half the earnings and revenue comes from abroad."_* *_“What are you buying in non-US-stocks? The largest country in EAFE is Britain; the second-highest, Japan; and the third is that soul of hard work, France. I can’t see that I’d make more money in Britain, with Brexit; or Japan, a very structured, aging economy - or France, where they couldn’t pass a law saying you had to work 35 hours a week. And if you look at the last 10 years, the correlation between EAFE and the U.S. has been something like 92. That doesn’t seem to change your risk.”_*
@@rob_berger The Japan argument is a double edge sword. Americans who held a portion of Japanese stocks in their internationally diversified portfolios in the 1980s certainly regretted doing so for the very reason you mention. And I remember in the 80s there was every reason to think Japan would be the economic lion of the future. Americans were worried about Japan taking over the US at the time, especially with them buying up our real estate, fine artworks etc. But the Japanese market was and is much more insular and not nearly as internationalized as the American market. Globalization has converted the USA into an international business region. Large corporations started here can hardly be considered "US corporations" tied only or largely to the American market. All the biggees - Apple, Google, Microsoft, Facebook, Tesla etc make more money overseas, conduct their manufacturing and have more business activities outside of the US compared to within. The US is more of an administrative and legal home base - an international hub of commerce. With that said, the risk is increasing that the "administrative and legal home base" may be starting to crumble due to internal conflict. Balkanization is seeming much more likely as time goes forward. The future of our global reserve currency status seems strained as well. So maybe Jack Bogle will finally be wrong? Good thing he didn't live to see it.
21.6% return. 60% large cap / 20% mid/sm cap and 20% international. 0 bonds. I have a pension which I consider my fixed income portion. Great channel!
Great return. My portfolio is nearly identical to VTWAX / VT and returned 20.4%. I use the Boglehead's return spreadsheet which helps calculate the returns over time.
Thank you for sharing this valuable educational information. In 2021 had as many as 35 tech related stocks. I spend too much time researching, trading stocks, and my year end results were terrible. This week I am consolidating to an index fund, a bond fund, international fund, and 6 stocks. Thank you again!
You will sleep better.
Love his no-nonsense videos - very informative and great knowledge
Thanks for sharing! The crazy thing I can’t wrap my head around is that if one were to be a “coffeehouse investor” in the sense that if I simply invest in the S&P500 index and rebalance stock and bond annually without diving into any individual stocks or mutual funds, I would’ve done just as well (average) and have a lot more time for other hobbies and maybe even entrepreneurship that may increase my net worth. That’s my struggle with personal finance. I keep wanting to discover more secrets but once you get the basics down, it seems like the rest is more for the academicians than the average joes
And underperforming the simple lazy portfolio by just 1-2% can cost you a lot of money when you compound it over time. A lot of people will try to sell these "secrets," but there are none.
Couldn't agree more. However, you have to be prepared for the years when the S&P 500 underperforms a more diversified portfolio. It has happened and it will happen again. And in fact, historically a tilt toward value and small cap has outperformed the S&P 500. But again, just sticking with the S&P 500 has worked well for a very long time.
don't forget the SP500 isn't just an index, its a cap weighted system / strategy , in the sense that the market cap laggards get replaced , so there is inbuilt bias to the upside which should suit the coffee houses
@@rob_berger thanks. Would love to see a video of the the upside of value + small cap tilt on a year to year basis or decade to decade basis. I’m sure it’s one of those things that require Monte carlos simulation 😂 but that’s my issue with Paul Merrimen’s ultimate portfolio as well. Once a portfolio gets to a certain complexity, then It’s no different than managing individual stocks. You’re just replacing stocking picking with “basket of stocks” (mutual fund/ETF) picking. That’s fine if minimal time is required to managed the portfolio. But “underperforming” 1-2% by the market by taking a hands off approach doesn’t take into account the “cost” of time to research and stay up to date with the latest financial fads.
@@rob_berger What about investing a portion of the equities, like 10-20%, in a small cap index fund, and the majority of everything else in an S&P 500 index? Is this what you mean by diversifying? I have no confidence in myself to pick individual stocks.
Moral of the story don’t waste your time and invest in s&p 500
I can't argue with that, although I'm much more comfortable with my diversification.
@@rob_berger Definitely. You never know what will have happen in the next 10 years. Diversification guarantees you get a piece of each pie, regardless of what the market is doing.
@@starmorpheus
Can do that with 3 to 4 funds and some money in GICs or bonds etc for more security. Good for small portfolios (under $50-100K), beginners and or DIYers who want to keep it simple. Very few on YT do good videos on this.
Great video. Thanks for sharing your ‘21 results. I’ve tracked my portfolio over the past 7 years and this year came up short like you but have outperformed 5 of 7 years. Results were 2 points short of S&P 500. Currently , I’m too exposed to U.S. tech sector so need some major rebalancing to reduce portfolio risks. Your insights are very helpful to start the planning!
My portfolio perform 22% I would like to congratulate you on an outstanding portfolio diversification
Thank you for sharing Rob. My return was 17%
After watching your videos I finally realized it’s time for a change. The return on my IRA, managed by a professional charging the 1% fee, was 10.9% for 2021. Twice a year my wife and I get a 45 minute chat session and free coffee. Portfolio is a mix of 28 mutual funds and ETFs. Enough said.
Wow. That's crazy. I've yet to find an advisory worth 1% of my net worth each and every year.
Definitely make the change, you can do this yourself. I knew nothing a year ago & learned just by reading, watching financial news, & watching TH-cam’s. I love being my own financial advisor. Sold all my mutual funds with high expense ratios, bought VTI & some terrific stocks (both Growth & Value). Buying my 2022 iBond this week.
That's nuts.. he's giving you 45 chat and $5 coffee a year and you're paying for his surf and turf for the whole family each day, couple of vacations a year and part of the mortgage... Self manage with 4 fund strategy and call it a day!
28 mutual funds is insane! They probably have 1-1.50% MER already, why another 1% professional fee?!!
Save the 1% and invest in Starbucks.
60% IVV, 15% slyv, 15% QQQ, 10% value stock purchases and options sales.
Very nice summary of what we all want to know. I’m 80/20. 15% of my stock portfolio is individual positions.. My total return was 17% accounting for my fixed income barely treading water. I sense a huge correction
Congratulations Rob! Thank you for sharing. I’ve learned so very much from watching your channel.
Your wisdom is greatly appreciated. Thank you!
Thanks and congratulatations! Can you tell us percentage of specific assets, eg. individual stocks are at 31%, emerging markets, you said at 10%. How about other segments of your portfolio, REIT, VTI,...
Hey Rob, are you considering doing one of these videos for 2022? Comparing your portfolio to the S&P 500 for 2022? That would be interesting and also interesting to see if you still have the same stock and fund investments. I enjoy your videos. Thanks!
Thanks for your education in 2021! Looking forward to 2022👍🏽🇺🇸
This is very useful, and very consistent with your recommendations. Thank you for sharing.
Very interesting video, Rob. And Happy New Year.
Hi Rob, Our philosophy for investing is similar. My overall equity portion return was also less than the S&P 500 at around 23% as I too had 14% in International Index Fund returning 8% and 10% in small cap ETF. But, like you, I'm satisfied with the results for all the reasons you stated. My 5 % fun money stock allocation didn't do as well as yours coming in around 25%.
Happy New Year Rob - Thanks for ALL the great videos!
Thanks for a great year of information. Happy new year.
High quality content, thanks Rob. This is the way to retire safely.
HYN Rob. Interesting breakdown. Loving it!
@Rob Berger - can you please do a video on how you selected your individual stock holdings?
My 401k is 80/20 500 index and small cap index. Another account carries an REIT, MLP and muni bonds. Roth carries VTSAX total stock market index and VIGAX growth index. "Well covered" for stock or bond fluxuation as well as inflation.
I agree with diversification but certainly don't see the need for more than 1 of each in any asset class. You could easily go VTSAX, VBTLX, VGSLX or their ETF equivalent and do very well. 80/10/10.
My portfolio that mainly consists of individual stocks, edged out the S&P by one-half percent. Thanks for sharing, great information.
Please model your portfolio vs S&P in Portfolio Analyzer. I am interested to see how it would have performed during the previous rough patches.
Rob, thank you so much for sharing your time and knowledge with us. While watching this video a doubt came to mind. The expense ratio of mutual funds, most of the time, is higher than ETFs. In addition, the minimum investment for mutual funds like VTSAX is $3000. Considering this, what is the advantage to invest in mutual funds instead of their ETFs pairs.
Thanks for sharing. Happy New Year!
Happy new year!
One thing to add, most channels and all investments talk about beating the S&P or a specific benchmark. I will tell you it can happen by accident and does not mean you have a solid portfolio. Your exposure and risk MATTER, especially when you're talking an investment horizon of 25-30 years. Lost money can't make money. Protecting your downside with notoriously safe funds during downturns help your portfolio remain on task. Expense ratios also matter when you're looking at 30+ years. A lot of money being left on the table. VIG & SCHD deserve a look for a lot of Roth IRAs to supplement the high volatility of an S&P 500 index overall.
Hi Rob! Great vídeo, can you expand on the percentage allocation you have for each of your funds? Thank you!
I had similar results for the year. I am diversified and ended up at 25.8% overall.
Happy New Year!! My return was 16.5%. I didn’t include what I put in my portfolio.
I need to do this too just to see, but my portfolio in 2021 was basically just two funds: approx 80% VTI & 20% VXUS! A lot easier to compare lol
My final answer after hearing all your data is that your final outcome is the same as the SP500 but you get a more diversified profolia so in a bad market , you actually is safer than SP500. Congrats
Totally agree with this comment. Good job Rob 👏👏👏
55% myself. RWT, ZIM and INMD carried my portfolio this year (SSL also but sold in the summer)
thanks for sharing greetings from brazil...
Hi Rob. Great channel!!! You have some great insights and I thank you for sharing them.
Out of curiosity, How did your portfolio perform over the last 5 years compared to the sp500? I suspect it was far less volatile due to the diversification. Thanks.
Damn I did 21.75% on 2021, unfortunately in my country I don't have access to all US market so my portfolio is approximately 50% US (mostly ETFs) and 50% Mexican stock market.
It's good you're diversified.
8% from your international is great. It’s in line with historical returns unlike the US market, which may mislead investors into thinking 20%+ years are a regular regular return.
Look at the snps peformane every year theres a lot of close to 15% years
@RobBerger: I enjoy your approach very much. I both listen to your approach and follow it. I do have the question, if you are comparing your results to the S&P, why not just purchase the S&P Index Fund (or ETF)?
Thanks for the video. Did I miss you mention the two Bond Indexes you are invested in? I wrote down VTSAX, VFWAX, VSMAX, VGSLX and VEMAX. Also do you have a recommended % for each Index Fund in a Balanced Portfolio? I have been concerned about a significant Market Crash for sometime but have missed out on substantial gains and at 55 am running out of time to get to where I want to be.
18% return on 70% of your portfolio (etfs) and 31% on 30% of your portfolio individual stocks) doesn’t equate to a 26% return? More like 22%
You're right. I misspoke on the individual stock returns. The annualized return was 44.82%. I read the wrong number from the stock tracking tool I was using. And keep in mind those numbers don't include dividends.
Good evening! May you please do an analysis on ticker: MDIV.
Thank you in advance. Look forward to it.
Great recap of the year. If you had a large purchase to save and invest for like a second home or better home what index fund would you park the money in for a 5 plus year timeline?
Go Bucks!
Good video. Do you recommend using an investment manager or going with Vanguard and doing it yourself? I am 51. Not sure what would be best at this age. Thanks
Hi Rob, thanks for the video. Just a question, why not use small cap value instead of blend? It has better long term performance and also decrease volatility of portfolio with the total stock market.
REITs are in the US total stock market index and probably in the S&P 500, so no need to have a separate REITs etf is there? Aren’t the underlying costs in a REIT high?
vgslx/ reit index is only 0.12% expense ratio.
That’s my conundrum too. Most readings I’ve done seems to suggest REITs and stock market performance correlate with each other so I don’t know how much diversification really exists there.
Need? No. You'll find about 2%+ of REITs in the S&P 500. The separate REIT fund gives me more exposure. Whether that will turn out to be good or bad only time can tell.
@@rob_berger in the early 2000s i had reit index as 10-15% of my portfolio as it supposedly does not correlate with the stock market. i only placed reits in me and my wife's roths and nondeductible ira, since then converted to roth. with the contribution limits, after 20yrs, their percentage of the portfolio declined. i finally got out of them completely in early 2020 and worse i put a significant portion in royal dutch shell which at that time had a high yield and never cut the dividend since WW2(ha ha) and vanguard all world ftse ex us and vtsax. since i can't harvest the tax loss on rds-b and loss aversion, i am letting rds-b ride for now. it is a small portion of my portfolio anyway and i do expect it will go up as we clear the pandemic. will see how it goes in 1 to 2 yrs. i may then put it in vtsax.
my main reason for getting rid of it was that if my roths are going to be my last assets to spend down why am i limiting their growth with reits. i was only 53 y/o then and would still not be touching them for 20 yrs or more. even retiring at 55 i am still not planning on touching my roths early. over 20 yrs though they did follow the general stock market except for the first few years post tech crash.
Good information!! Suggestion/idea: Increase your equity holdings from 84% to 100% in 2022. If your 2021 fixed investments returned about 1%, then that pulls your overall return of about 29%, down to about 24%. If you have cash not included in the fixed income portion, then that would pull your overall return down further (cash drag). In case of a stock crash in 2022, then take out a personal loan to pay bills and do a rollover from your tax deferred accounts to a Roth IRA, so you don't miss out on the lower tax brackets in 2022. Thoughts? Too risky? p.s. My portfolio is essentially 100% S&P500, 0% bonds & minimal cash. My age is 60, retired.
@rob_berger you mentioned bond funds ... which ones are those?
How would your portfolio look when you back test that and the s&p 500 over 25 years?
Hi Rob, what are you going to do with these individual stocks this year? Hold them for another year? Sell some of them gradually to rebalance? Or swap in other stocks?
I plan to hold. My goal is to rebalance via retirement accounts, taxable interest/dividends, and new contributions.
Hello Rob, I'd like to hear your thoughts on going all in on VIGAX vs VTSAX (one mutual fund for retirement). On portfolio advisor, the former outperforms the latter by nearly $15 million. I understand that you won't be as diversified as VTSAX, but I wonder if the risk/ROI is worth it from your perspective.
Rob,
Just retired and spendibg more investing. Currently use M1 to buy stock. I am now looking to add I bonds therefore how is the best tool to track everything.
I bonds have to be tracked manually. But if you use Personal Capital, which I do, you add them manually.
Wondering why you don't have the ETF versions of your Vanguard mutual funds, with typically a slightly lower ER and able to pick your buy/sell prices.? Thanks for sharing and Happy New Year Rob! I am getting all cashed up for '22 with regards to HSA, 401k, Roth/IRA's.
With mutual funds I don't have to concern myself with premiums/discounts. I always buy and sell an NAV. Many of Vanguard's funds have minimal premiums/discounts given their volume, so also a reasonable choice.
Rob, what is your asset allocation (stock/cash/bond)?
Thanks for the video and happy new year. Do you plan to alter your index funds selection or keep them as is ? Thank you.
I have no plans to make any changes.
@@rob_berger A million thanks for the response.
Great job
Considering moving my money to the 500 index fund from the 2040 jh multi manager portfolio? The performance has been better
(S&P 500 is not an option in my 401k)
"Considering moving my money to the 500 index fund from the 2040 jh multi manager portfolio?" Are you asking if you should move away from John Hancock?
@@alrocky
Yes
@@wolverine9079 You generally want to stay away from mutual fund companies that sell LOAD funds (A B C ... shares) and have high expense ratios. J Hancock has several "2040" target date funds but unless you provide the 5 letter ticker it's not possible to comment on yours directly. JAVCX JHBAX JRRRX JETWX have expense ratios from 0.32% to 0.87% JHBAX charges *5%* load (commission) which comes out of your pocket. If you hold it in IRA it's a painless sell and purchase of S&P 500. Hopefully you don't own in taxable brokerage as it holds bonds and kicks out taxable dividends and CG.
Are John Hancock investments the only option in your 401(k)?
the local Wells Fargo bank in my retiree populated town doesn't get high marks from retirees for customer service, etc ----I wonder what it is doing right for its stock to do so well.....
It was more a question of valuation. Banks were undervalued, IMO, a year ago.
How do you invest your bonds and cash, and how did you determine your personal asset allocation?
Great questions. I plan to have a video out today that discusses that very topic.
Great discussion. I consider myself a moderately aggressive investor. I am looking at managing my own portfolio as I go forward. Given my leaning towards say an 85-15 stocks/bonds ratio, what would you recommend percentage wise for individual stocks?
Happy new year.
Change your thumbnail man. Lol
I thought it was funny!
@@rob_berger It was. Lol
Nice job, I noted there was no income from puts and calls, and covered calls? I made a few dollars with them playing with common sense. Am I wrong , a low risk in a retirement account??
What is your opinion?
I've never figured out how to consistently make money selling calls. I don't think most options traders have, either.
Why not have the equity portion all individual stocks. They outperform the index funds.
Are your individual stocks in a taxable account?
Most of them, although I own some BAC/WFC in retirement accounts.
@@rob_berger is this the reason why you don’t reinvest your individual stock dividends? I don’t reinvest the dividends from my individual stocks that are in my taxable account, however I do reinvest my dividends from my individual stocks in my IRA.
Great video. Am interested in your portfolio performance vs S&P overall a longer period, 10 years?
Underpreformed obviously bc he invests abroad
I'll see if I can pull that together.
Apple stock may have saved me. Also, you have to factor in timing. I made contributions each year, particularly 2018, which has a significant effect on returns.
The reason I’m asking is to gauge the cost of decreasing risk through diversification. Thanks again, I have gained much knowledge watching your videos.
I know that you are a smart man so I have to wonder why you selected VTSAX which has transaction fees and an expense ratio of .04%.
FSKAX has no transaction fees and an expense ratio of .015%.
Otherwise both funds are very similar.
VTSAX doesn't have transaction fees. It's also more tax efficient if it's in a taxable account.
It has a transaction fee if you buy it in Fidelity. You should buy the ETF VTI instead the mutual fund VTSAX if your broker is fidelity.
Congratulations on Ohio State's victory at the Rose Bowl.
Sad sad loss for Utah☹️
It was a tough loss for them. They played very well.
@@emphyrio There is nothing to be ashamed about GETTING TO the Rose Bowl. Utah has a lot to be proud of.
@@mruback3 l know, l only watched the first half and l really thought we (we) would win, bummer when l saw the end result🥺.
Jack Bogle on International stocks: *_“Everyone tells me I’m wrong. In my book, ‘Bogle on Investing,’ I said, for a lot of reasons, you don’t need to own international stock. The reality is that we do better than the rest of the world. You don’t need currency risk, but if you want, don’t go over 20% in international...."I've been right. Since “Bogle on Investing” was published in 1993, the S&P 500 has gained 779% cumulative vs. 309% for the Europe, Australasia and Far East index. Does that mean I’ll be right in the future? I could be wrong. But when you buy the S&P 500, you buy a portfolio where roughly half the earnings and revenue comes from abroad."_*
*_“What are you buying in non-US-stocks? The largest country in EAFE is Britain; the second-highest, Japan; and the third is that soul of hard work, France. I can’t see that I’d make more money in Britain, with Brexit; or Japan, a very structured, aging economy - or France, where they couldn’t pass a law saying you had to work 35 hours a week. And if you look at the last 10 years, the correlation between EAFE and the U.S. has been something like 92. That doesn’t seem to change your risk.”_*
All true, and yet at the same time I think back to Japan in the 1980s. The U.S. has had a remarkable run since WWII. Will that repeat itself? IDK.
@@rob_berger The Japan argument is a double edge sword. Americans who held a portion of Japanese stocks in their internationally diversified portfolios in the 1980s certainly regretted doing so for the very reason you mention. And I remember in the 80s there was every reason to think Japan would be the economic lion of the future. Americans were worried about Japan taking over the US at the time, especially with them buying up our real estate, fine artworks etc.
But the Japanese market was and is much more insular and not nearly as internationalized as the American market. Globalization has converted the USA into an international business region. Large corporations started here can hardly be considered "US corporations" tied only or largely to the American market. All the biggees - Apple, Google, Microsoft, Facebook, Tesla etc make more money overseas, conduct their manufacturing and have more business activities outside of the US compared to within. The US is more of an administrative and legal home base - an international hub of commerce.
With that said, the risk is increasing that the "administrative and legal home base" may be starting to crumble due to internal conflict. Balkanization is seeming much more likely as time goes forward. The future of our global reserve currency status seems strained as well. So maybe Jack Bogle will finally be wrong? Good thing he didn't live to see it.