How to Invest $1 Million | A Simple Strategy to Invest a Windfall
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- เผยแพร่เมื่อ 16 พ.ค. 2024
- How to Invest $1 Million | A Simple Strategy to Invest a Windfall ⛱
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0:00 How to Invest $1 Million
2:00 How Ryan Cohen invested $3.4 billion
4:04 Why investing $1 million is hard
8:50 How to invest a windfall
12:07 The Warren Buffett Portfolio
15:10 3 Fund Portfolio
19:34 Indvidual Stocks
23:26 Book recommendations
In today's episode, I'm going to answer a deceptively simple question. The question that seems hard, and it's really pretty easy. And it's this, how should you invest $1 million? Now, a lot of you may be saying, Rob, that's the last thing I need to worry about. I'm just trying to save $50 a month, or $500 a month, or whatever. It actually turns out to be, I think, a pretty significant question. And we can learn a lot about ourselves and investing generally, by asking this question and answering it, even if maybe it's not directly applicable to you right at this moment.
#1million #investing #windfall
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.
Net worth truly snowballs after $100k! Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE!
Although the stock market is continuing rallying, there is a risk of reversals in the key indexes, sectors, and top stocks in particular. I advise you to consult a broker or financial counselor for advice.
It comes down to technique; a downtrend gives you room to focus on the market and grow significantly in the short or long term. While it is easier to make money when the market is rising, a downtrend can still yield high returns if you have the necessary knowledge and skills. For this reason, I have been scaling up during this difficult period by working with an investment advisor; this has been the only way I have raised up to $150K in the last six months.
That's impressive, have you always had guidance?
Please educate me, i'm willing to make consultations to improve my situation,
I've had majority of my holdings in ETFs, tech stocks and I've had 45% increase in my portfolio, especially with Nvidia P/E (price to earnings ratio) adding few others, personally, coach Jennifer Lea Jenson take good care of my holdings.
I received advice to spread my investments across various assets like stocks and bonds to safeguard my inherited portfolio, which stands at about $2.5 million. My usual strategy of buy-and-hold doesn't
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you?
Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Great video. We are all seeking for financial independence and a better way of life. This is not difficult to achieve with savvy investing, a frugal lifestyle, and cautious budgeting. I'm glad I learned early on to work hard for financial independence.
In my opinion, making a smart investment is not only a technique for earning passive income, but also a profitable way of saving for future expenses. People who fail to make the proper judgments early in life often come to regret it later in life. Nonetheless, investing alone can be difficult and risky. As a result, I recommend obtaining expert assistance (financial advisors). The challenge is not just watching videos and reading investing books; it is about implementing information effectively.
@@TeresaBrickle Sincerely, your remarks have genuinely inspired me. I'm highly interested in investing and have a substantial sum of money that I'm willing to invest with the appropriate information. My greatest worry is losing money on a bad investment. As a result, I'm eager to hear your comments and ideas on how to invest intelligently.
@@Curbalnk As an OAP with extensive expertise, I am certain that the success of any investment is dependent on getting the appropriate knowledge, regardless of what others think. "Be greedy when others are scared, and fearful when others are greedy," Warren Buffer constantly says. This is undoubtedly the key to succeeding even while others fail. I made $100,000 while working with licensed financial adviser HEATHER ANN CHRISTENSEN. So far, it's been a positive experience with her.
@@Shultz4334 Please tell me how I can contact your financial planner.
@@Curbalnk Do a fast web search to see if you can connect with her and conduct your study using her complete names.
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
Ensuring the protection of your capital holds greater significance than solely focusing on making money. This is primarily because once your capital is lost, the process of generating profits becomes significantly more challenging. It is comparable to the notion of "missing the train" versus the irreversible consequence of "losing your money." While there are various opportunities available, once your funds are depleted, it becomes exceedingly difficult to recover.
Wall Street advocated for quality stocks that boasted high profitability and low debt, positioning them as a form of insurance against economic uncertainties. However, these quality stocks have underperformed the S&P500 index this year. As a result, my portfolio, valued at around $200k, has experienced a decline of approximately 20%. I am seeking recommendations on how to enhance my investment returns and scale up my portfolio.
@@jessicasquire The reality is that nobody possesses absolute knowledge in the world of investing. Therefore, it is crucial to develop your own process, effectively manage risk, and remain committed to your plan, regardless of the circumstances. Additionally, it is essential to continuously learn from past mistakes and strive for improvement in order to navigate the investment landscape successfully.
@@Lemariecooper I agree, which is why I find it beneficial to have an investment coach guiding my day-to-day investment decisions. They possess a skillset focused on capitalizing on both long and short positions, effectively managing risk to leverage its asymmetric upside, and employing hedging strategies to mitigate the impact of market downturns. Additionally, their access to exclusive information and in-depth analysis further enhances the potential for outperforming the market. I have been utilizing the services of an investment coach for over two years, and the results have been remarkable, with net earnings exceeding 2.8 million.
@@Erikkurilla01 Would you be willing to provide information about the advisor who aided you? As a 39-year-old, I am eager to expand my stock portfolio and devise a retirement plan.
@@jessicasquire I am presently in communication with *STEPHANIE KOPP MEEKS* , an advisor affiliated with UBS Financial Services Inc, who has been featured in an interview on CNBC Television. Her approach has proven to be effective, as evidenced by the positive outcomes I have achieved. She provides valuable insights on optimal entry and exit points for the specific securities I focus on.
Rob, You nailed it! I left a long term employer and rolled it over to an IRA. It was scary and relatives had assets under management and so we did the same. Four to five years later I am self directed, thanks to you and others!
Thank you. I am always impressed with your videos. The content is spot-on and provides excellent advice. In addition, you provide a feeling of confidence in your honest delivery. You help us relate to the message by tying it to your own decisions.
First time watching Rob Berger. Great talk Rob. Really informative, intelligent points in this video. And you have a nice, likable presentation style. So I subscribed. I'm 56, it's nice to find a financial youtuber who's more at my own stage in life.
Thank you Rob for the wonderful insight. It just answers to the point my concern at this point. Appreciate that!
Thank you so much for your video's, they are excellent.
I was wondering if a personal financial advisor is needed if I follow either your 3 or 6 "bucket" portfolio structures and then use a good accountant to advise me on tax related issues?
Allocation should be driven by 1) risk tolerance, 2) years to retirement and/or years to needing access to money, and 3) objectives and final goals. A million maybe enough for some and a person may choose a less risky allocation to avoid volatility while providing needed cash requirements.
@Rob, If you are near or reach age 65, do you think you would change your percentage of investment allocation? or any other adjustment? thanks.
Another great video and advice! Thanks Rob.
Semper Fi.
The was a great, no bs, straightforward video!!! I love his chill style and I’m probably going to binge him over the next few days. Lots of learned knowledge and experience!
Mr Berger I love your ideas I have a question which online broker do you use, I am sorta like the windfall I have $900000 to invest I am also 75 years old I have not read what you would be right for my age in regards to what etfs to invest in since I don't have 20-30 years left to invest do you favor vanguard funds mostly do you buy them from vanguard or some other online broker
Thanks
Mike Kelley
I couldn't agree more. Common sense, simple portfolio construction with 2 - 6 ETF. And avoiding complexity.
I really like your take on those topics. And you combine your knowledge with life experience and pragmatism.
I´m currently about to retire and only recently found your channel. Thx for your work and your views.
But what happens if the market crashes in the beginning?
@@theotherview1716 if you are older specially now, simply invest a larger portion into t bills/bonds to hedge your risk.
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Man Rob, I really appreciate your videos. You're a good man!
Thank you for explaining this in a clean way..
I wish i learnt most of these principles about seven years ago. A lot of people have been trapped strongly in the matrix-- Go to school, get a job, and then slave your whole life. Many miss out on life-changing information that could have great effect on their finances. I played with the stock market sometime in 2020, and I was surprised at how well it turned out. I want to put in $90k more into the market. I heard people are making really great returns despite the downturn. Any recommendations?
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.
@@kurttSchuster For real, I've wanted to switch to a wealth manager. Please, could you recommend yours?
@@kurttSchuster she actually appears to be well-read and educated. I just did a Google search for her name and found her webpage, I appreciate you sharing
Buy ADA.
Super, informative and very knowledgeable - many thanks
Would love to hear more about investing in bonds
Compared to the SPX, both 3 fund and 6 fund portfolio was a little better in performance until 2018 but after 2018 SPX appeared to be a little better (I looked at the chart on the 3rd week of March 2023). Could you please show comparison charts of these portfolio vs SPY or SPX?
Thanks for the advice. It sounds reasonable from someone who presents himself both smart and down to earth.
So helpful. This turns away from all of the noise. Much appreciated!
Love the videos Rob. Such sound and sensible advice for the average person. Thank you for the book recommendations too! Do you have other favorite youtube channels as well on the topic of financial independence?
Love your videos, Rob! Thanks for sharing your expertise. Wondering why you chose VOO for your 2 Fund vs. VTI for the 3-6 portfolios?
Because Buffett selected an S&P 500 index in his 2013 Berkshire Hathaway letter. Frankly, I don't think it much matters. The performance of the two are nearly identical over the long-term. I suppose an argument could be made for VTI in the 2 and 3 fund portfolio and VOO for any portfolio that separately includes small cap.
@@rob_berger Not sure if you have an equivalent in the States, but Vanguard has a few all in one etf's in Canada, that are extremely popular. They diversify across the globe, with their own US, Canadian & Global stocks & bonds, rebalance the portfolio for you, and you can select your own risk level, all for a very low MER of .25. VGRO is 80/20, VBAL is 60/40 and there is one that even distributes a 4% monthly distribution called VRIF. Curious to get your opinion on these
Thank you for this, and especially for sharing what you are personally doing.
How diff is that portfolio than just vt?
Curious what u specifically think about vwo? The past history isn’t great but obviously the past isn’t a great indication but I’ve heard arguments that structurally it’s not good because many of those markets have difficult economies, inflation etc. curious about ur thoughts
Congratulations for your videos and I agree 100% with your investment advice methodology . Gasaca / Spain.
Very good video. Thoughts on paying off mortgage with lump sum? Eg
Thank you.
Hi Rob. At 18:05 you tell about the the more diversified 6-fund portfolio. My question is, why invest in VWO Emerging Markets, when VXUS tracks both Developed and Emerging Markets(25%) through the VXUS Int. Stock ETF? Thanks!
Thank you! God bless!
You can purchase vti as voo which are identical on the cost and performance the good thing is you buy the dip of the one is more at this moment it might be this time vti an other time voo sorry for my English I hope you understand my point of view I also invest in a ask Australian market on vts which is total us market it is vti it seems it s more performing for some reason I should check on portfolio visualizer. That s in Australian dollars I am from new caledonia
Thanks, this is exactly what I need at this stage in my retirement!
I'm considering using Vanguard's advisory services. In the introduction call, the advisor asked me where I would get income since I am considering retiring before 59 1/2. I said I would consider 72t distributions. The advisor wasnt aware that 72t distributions applied to IRAs. Has me thinking this person may not be right for me.
Rob thanks a lot for this channel, I am learning a lot. Can you do a video comparing performance between 3 fund portfolio and 6 fun portfolio. Regards!!
Thanks a million for the great video. It's helping my husband and I communicate as we anticipate a small windfall. One problem we have is finding someone to ask questions of who doesn't want to manage our money for us at 1% or more. Every time we interview someone we get the commissioned broker pitch. Where do we find these hourly advisors? Is there a professional website that lists them? Thanks again!
Such a great topic and approach to investing. We have a friend who will be receiving an inheritance shortly which will help her catch up from starting late with retirement savings! Def passing on this info to her if she will listen to the suggestions. Thanks Rob much appreciated.
Excellent information. Thanks for sharing.
Great Talk Rob; I was about to make that mistake of hiring Investment managers. BC if felt like a Mill was a big deal to invest. But I have been doing a good job on my $110K and $460K; great insight you have. Thanks for simplifying this for us; and giving us new investment strategies.
Long video but has good insight enjoy it while driving home from work
So, do you invest it all at once or, for eg. In in installments over a year?
Thanks Rob for an informative presentation. I have watched three of your videos today but one thing I didn’t hear you mention is the shorter time horizon. What if one has a shorter time horizon (of less than ten years) to invest windfall? What would be the four to five way split?
I would like to hear the answer on your question as well 👍
Thanks Rob
I live in the Washington DC area and would love a recommendation on a fee only financial advisor to help my with my portfolio construction/mainentence. Someone who was knowledgeable about ROTH conversion and tax implications would serve me well too. Might you have a recommendation?
Could you shed some light on where to diversity in term of tax implications and some other considerations. For instance, if I have cash, 401k, IRA accounts, I may use Roth IRA for high-yield U.S. stock ETFs such as VTI because any growth is tax free. For foreign stocks, I may use cash to purchase because of some foreign tax credit I can claim. I am wondering if you think this kind of strategy would make sense, or it does not really matter. Thanks!
Simple truth - One of the best Investment videos geared towrard retirement I have seen!
Hi Bob - what can one do if they are 65 still working and selling a rental property. So my window is a lot shorter than someone young who has 1MM to invest. Thank you.
Great video. Exactly my situation now. Just sold my biz and retired. Been a buy and hold investor all my life, a little at a time. Always been very diversified. Now getting info overload on less is more. Of course at the time of this comment 5/2022 the market is correcting. I'm ready to jump in.
This resonates. Thank you. Recently retired early at 59 under circumstances similar to your description. I decided it would be a good idea to get some advice so I went to a major brokerage to discuss ideas for retirement income. The representative was very happy to work with me and scheduled a meeting with an advisor. I arrive at the meeting a week later and find that the advisor is from an outside firm than will charge fees from .85 to 1.25%. Yeah, no thanks.
With a little more research, I see they have a "robo" account that offers a financial planner for $30 per month, customized portfolios and automated tax loss harvesting. Looking into this more.
59 early ...lol.
should be, they get paid if you get paid. Why does a guy with $200,000 pay more than the guy with $100,000 for the exact same advice? Just like the reality commission on selling your house? I don't get it.
This is exactly what I needed to hear. Great video, thank you for simplifying investing for us. You really alleviated the fear around investing
Question I have is: once we say invest in the 3 fund portfolio: how do we go about rebalancing? I.e
Do we need to increase the bond, lower the stock closer to retirement? Much appreciated!
THX, 6-fund investing min 18
Excellent, well-balanced, commentary. You are very intelligent, knowledgeable, and articulate. Thanks for your video.
Thank you Rob! I am watching as many of your videos as I can!
Question, if you were to have a big lump sum to invest today, with rates where they are, would you still choose BND over a short or medium term bond fund?
You mentioned dollars you need in the next 5 years… would buying actual bonds (say a ladder) be a good way to invest the cash you need within the next 5 years?
I have less of an understanding about Bonds and bond funds than I do stocks but I do keep hearing to invest in short term treasuries. BND is long duration.
Hi Rob great video! I have a question. I have about 6 different investment accounts with all kinds of investments would love to simplify as you describe. Do you have any recommendations for how to consolidate without creating a nightmare in taxes?
CD's especially now. Ladder up to say 10 years out. Even short term CD ladder too, for easier access if need some cash.
I just took my lump sum pension 3 months ago. My pension is my fixed income SAFE account.
My 401k is in individual stocks, all in dividend payers on the automatic DRIP plan. Let compounding work its magic.
That's my plan, and working so far. Only down 1.95% in 2022 versus S & P down 20% or more, because my dividends cushioned the blow in the market.
Lately like this past week, I bought 2 3 month, 2 6 month, 1 9 month, and 3 1 year CDS, all paying 5% up to 5.40%. Only 80k, as have plenty more to invest in higher rates which IMO is upcoming.
IMO funds is no way, as I refuse to pay expense ratios, when I can do as well or better investing on my own.
How to invest $1M? That's easy.
1) Pay off your house and any other debt
2) Keep enough cash to sleep very well and fund any major expenses in the next 5 years (home renovations, kids' college, etc.)
3) Dump the rest in an S&P index fund.
1. you shouldnt pay off your house, you should use the lump sum of 1mil and invest that and use the earnings from the investment to pay the house. Do the math, youll have a lot more money.
@@alexkwilliams By that logic, you should NOT use the investment earnings to pay off the house; you should reinvest all dividends. And further, you should never pay off your house - you should constantly refinance and pull out all equity to invest in the market. See where I'm going? At a certain point, most people want the security of a paid off house. To paraphrase Warren Buffett, don't risk what you need (a house) for what you don't need (a little higher number in your Vanguard account).
@@ramrod2298 you gotta pay the mortgage somehow, im not factoring in a job here.
@@alexkwilliams There is no right or wrong of paying off a house. However, I can tell you that you will have financial freedom and a psychological effect that you must factor in when you have no DEBT. That feeling of No Debt is ineffable.
Love this idea. I keep no debt not even a mortgage. This is to keep my risk very low, even when investing 100 percent in stocks. My rationale is that stocks will outperform bonds and if need to take a 50 percent haircut a couple times in my life to enjoy the sweet gains, I can sleep easy with no debt.
Thank you for another fantastic educational video.
I have just discovered your channel. So far so good! Time to binge. Watching this video here, it’s a year old. Market is down and projects to go lower. I have 1.2m in IRA and ready to retire. Has your strategy recently changed? I’m currently 15% Index equities, 10% index bond, 75% t-bills. I was 100% equities for many years but now I am fearful of a rigged market. Does your 60-40 strategy still apply into the summer of 2023?
This is great! I like the way you think.
How would you change the 90:10 portfolio when 30 vs 20 vs 10 vs 1 year away from retirement?
When looking at the total returns in the S&P500 index from 1927-2020, here are the average, minimum and maximum annualized returns at the end of any 30-year, 20-year, 10-year, and 1-year investment period:
Ave Min Max
1 year 12.16 -43.34 53.99
10 year 12.44 -1.35 23.13
20 year 12.38 5.65 18.97
30 year 12.39 9.79 18.44
Hey Rob. Thanks for the Video. Where is the link to your M1F pies?
Identify the stocks which continually have paid dividends and which have a good record of raising their dividends. Then pick the ones with a high (but not too high) yield. Very high yields is a red flag that the company is in trouble.
Mr Berger on your 6 stock portfolio would this work for a taxable account or just for a non taxable act
Thanks, I love your videos, you are very honest. Can you tell me again who is the specialist you talk to a couple times a year? I think you said Soro or Zoro?
Wow. First time viewer. Subscribed on the first one!
@RobBerger How is the recommendation to pull out and not invest what you expect to spend within 5 years (you give as examples things like home improvements, a wedding, or a trip around the world) any different than a bucket strategy? They sure seem the same to me except there's presumably no refilling buckets out of other assets.
Just a perfect video for simple guy in Vermont. Thank you!
best advice Ive heard in many years
Great information Thank you
I faced more or less exactly this situation. One of my foremost concerns was to exercise some caution so as not to lose the principal. I entered the stock market and became surely overdiversified, with a certain portion in CD's but most of it spread far around amongst stocks. I ended the latest year with about a 40% profit, and things continue prospering along nicely. I trade frequently seeking profits, but also am aware of dividends and selling option premium to enhance returns. I make all my own decisions and would never entertain paying any portion in fees to any so-called professional for management.
Well said.
Quick question. If we have 3 or 6 index fund 1M portfolio at the time of retirement, how do we withdraw money from IRA or 401k account for monthly expenses? Should we sell stock and bond every month with 4 percent rule?How savvy retirees withdraw money from IRA/401K accounts during retirement?
Thank you. Just what I needed to watch. My hubby and I are directors of our farm business and own property, plus small pensions. I am nearly 52, hubby is 55. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
Hello Kate.
Any opinions on putting some in a Annuity or Bank CD's? Like 25 percent.
Three fund portfolio might be better suited to the more “hands off” investor, but I tend to like a little more diversification. I just feel better with a bigger spread. Although, too much diversification can lead to a “clunky” inefficient, repetitive and overlapping portfolio. I’ve tried to maintain an optimistic all weather approach. Optimistic, meaning a healthy sense of growth that leans towards equities.
I use the 4 fund portfolio. IVV, VXF,VXUS and either Agg or tlt
Rob, may I ask what is your return from your 3 or 6-fund portifoliao over the long term?
Hi there. I’ve been searching for something like your video for too long. We are perhaps like minded by age and you aren’t trying to sell something. I’ve subscribed and look forward to more interesting dialogue and discussion with you and your viewers. Great stuff and thx !!!
@@emmamindfullytrader5454 so you are saying you made $10,000/14 per day on average off $1,000 invested?? Seems hard to imagine unless I misread your post. Perhaps you could explain in a bit more detail. Thx.
What do you think about TLTW. An interesting ETF with 20 year Treasury Bonds. I like this bond ETF dividend at 16.17. I also have JEPI, JEPQ and BSTZ. These three ETFs pay my house payment and have capitol growth.
An excellent discussion. Keeping it simple is a huge step up for the majority of people.
What do you think of the covered call funds? Like $JEPI, $JEPQ, both of those are JP Morgan’s and can pay 10 to 12 percent divided and paid monthly? There are Global covered call funds too like $XYLD paying a 12.81%. Yes those options can change though, but covered calls managed by JP Morgan bank seems like a pretty good risk reward for index weighted fund like $JEPI paying over 10%…
He's spot on with the psychological factor which we forget about. So many athletes and rappers go broke when they get that windfall
Because they never had to learn how to manage money. Same with lottery winners, who are usually financially “unsuccessful” before they won.
I have a question in regards to investing/ I am 68/ may come into a windfall, tax free/ doesn’t seem like long a long term investment would soot me? Do you have my idea on this ? Thx
Sound advice! What about the classic book ‘ A Random Walk Down Wall Street?’ It’s been reprinted many times. He is a financial economist and at least for a while, on the board of Vanguard. It’s especially good for those with an interest in the history of the market and/or those who have at least a little academic perspective.
This might be the subject for another video, but would your advice change if the Windfall were located in an Inherited IRA subject to the Secure Act 10-year withdrawal rules?
Not really. I have an inherited IRA and when money is forced out of the account, I can just reinvest it into my overall asset allocation plan.
@@rob_berger can you roll over inherited traditional IRA into a Roth IRA? I believe there is no time limit on having to withdraw from a ROTH IRA? is that correct?
@@manp1039 www.merrilledge.com/ask/family-finances/rollover-inherited-ira-rules
Amazing content!! Just discovered your channel
Great video. However, I think there are two basic types of retirement investor classes. One is for those that need funds from there investments to live on after retirement. The other is for those who have a great pension/retirement plan and are not dependent on their investments so much to keep up their lifestyle. I think these two basic types of investors look at investing completely different. Just my thoughts. Yours is one of the best videos I've seen on you-tube and I subscribed. Thanks Rob.
Just my thoughts.
And your thoughts are correct. My pension income ($45000/year) covers all my spending. My investment portfolio is 100% equities. I have no need for fixed-income securities.
ROB,,,, Could you do a Video on How To INVEST CASH ONLY CASH , not a , IRA, 401K IRA, ROTH IRA, Or ROTH 401K. PLEASES
SOON. Help me. Thanks. Kc
Nice Video! I wonder if the founder of Chewy would like to re-visit his investments (one year later) - then again - making predictions about any company (or even the stock market) - is difficult. I think I would have erred on the side of higher dividend yield funds with that kind of money 🙂
Two years from retirement and this is where I find myself. My wife and I have invested in our 401k for the last 40 years. Never worried to much about our accounts. When the market was down we just continued to invest. But, now that we are close to retirement I’m constantly thinking about what to do with our 401K money. It’s become like a part time job research and watching videos like yours. As the retirement date nears I get more nervous about it. I’ve used the two fund portfolio all these years, not really knowing anything. I’ve adjusted the allocation to a 60/40 S/B as I near retirement.
I know how you feel! What topics could I cover in future videos that you would find useful?
@@rob_berger - Love your videos. Could you make a video about the best places to stash cash as a placeholder for those who may be hesitant to invest at the moment? For those of us that are admittedly timing the market. 😊
@@rob_berger yes, the subject of asset allocation. I know most professionals recommend not dropping below a 60/40 stock to bond ratio. But, in retirement and your relying on the money is that the recommendation. Also In my wife’s 401K she has access to Vangaud’s Wellington and Wellesley funds. Both seem like ideal funds for retirement. Have you looked at them. At Retirement I was thinking of moving money to one or maybe both.
Yes tough to manage on your own but you are not paying large fees! I have all my money 💰 in cash. This way no surprise tax bracket can place a large cost if you move to a higher one. When u do retire have every item u invested in your control.
My 2¢ :
Keep 3 year’s worth of portfolio draws in cash instruments during retirement. Highly unlikely that the market will be down more than 3 years in a row. With that safe money in cash, you won’t have to sell assets when they’re down. The rest of my money is in a simple 60/40 portfolio (Vanguard) plus some rental real estate. This has worked very well for me over 23 years of retirement so far. Gives me peace of mind.
Another great video! Definitely educational, greatly appreciate the content. Keep it coming.
The fear of living off the nest egg was a big one! I think mostly because we had always been so frugal in an effort to build it. Five years out and it hasn't been any problem. It's kind of hard to adjust to the fact that we don't need to save for retirement anymore.
There are two surprising anxieties:
1) spending the saved money
2) the wearing-off of the novelty of having free time (takes 1-12 months to wear off for most people)
I retired once in my late 30s and it was disastrous. I've worked ever since. Although I have enough money, it does nothing to solve the anxiety of 'nothing productive needs to be done'
This is probably the reason many people, including older people in my family who retired, did not live too long.
To get a feel for what 'endless free time' feels like:
1) if you went to college, remember after the 5 to 6 week long break in December-January for the holidays how it felt to get back to work
2) what is the longest vacation you're ever taken - at the end of the vacation did you say "ready to get back to real life" or "this doing nothing productive all day needs to continue"
There are people who thrive doing absolutely nothing productive all day. But I bet it's a small number of people.
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1/4 in buy-to-let property, 1/4 in vanguard style tracker, 1/4 in other investment assets eg Vintage Rolex, 1/4 in higher risk equities eg tech/Nasdaq.
Really appreciate the video. Found your channel and subscribed. Thumbs up!
Rob - one consideration on your 6 fund portfolio; you’re adding emerging market exposure to your VXUS exposure which already has about 30-40% of its portfolio in emerging markets, so you’re effectively overweighting emerging market exposure. Might be worth considering VEA in lieu of added more volatile and lowering returning emerging markets, as VEA overweights your selection into developed well capitalized international markets.
Love your stuff. Wish I could have the luxury of sitting down for a coffee with you someday to talk through investing strategies because you’ve got a fantastic perspective and wisdom about investing for the long run.
Correct info.
Helpful discussion
A lot of it depends on age. Older you get the less risk you should be exposed to.
A million is nice to have, but it's not near as much money as many think it is.
Some people who are older who are convinced they won't be living on the streets feel they are investing for the next generation.
If someone came up to me and asked me I got this $1mil windfall, how should I invest it?
My first question would be, how old are you?
My second question would be, do you own your own home?
Depending on thoues answers I would ask other questions.
13:47 I did a quick search for interest and he’s not doing that now but it’s still fairly simple.
Rob, do you benchmark periodically your portfolio, to S&P500 or the 'Buffet portfolio'?