i started the process, its easy to do and you will be much happier having control over your own money then someone else. The main thing I would say is understand what your buying and what your goal is. If I didn't find Rob channel I would still be paying crazy fees.
I used Mark for a while. Very knowledgeable, good guy. However, I had my portfolio at fidelity and had gone through a very detailed use of their planning tool. Basically he said that I was nowhere near conservative enough, and my plan was going to crash after x number of years. I asked him how he knew more than half of the PhD's on the planet that created the tool I used to put the plan together. I decided to do it on my own.
Funny coincidence. Today I told my financial advisor that I was going fully self directed. It was easy. I now have a self directed IRA and a self directed brokerage account.
This was the best explanation of SIPC I've ever seen. It's very confusing to read about it. Makes you wonder why you need insurance if you own the assets, but that's not what it's for.
The problem with target date funds is that when you need to sell to generate income, you have to sell all of the asset classes that comprise that fund. If on the other hand you had separate large/mid/small cap with separate international and bond funds, you could avoid selling (for example) small cap if that asset class was in bear territory while the balance of assets were in neutral or positive territory.
One could argue that if you are looking to specifically diversify in your context, then you wouldn't be a target date fund investor to begin with. When you buy an S&P500 index or a total market index fund, you also can't separate out specifics either, so it's not really an argument for or against.
In Boldin, how can they predict current IRMA if they don't know the previous 2 years income? Is there a place for Boldin Q&A? Love the channel, it's been very helpful.
Great video. You nailed it with these questions that I believe are on most people's mind, especially myself as an early retiree. Paying myself every Q is an unknown and for now, I have HYSA that I can live on until I reach 59 1/2. Somewhat related to your last topic here, I re-watched one of your video about the Vanguard Dynamic Spending and I believe this is my way forward. I have played with the FI calculator and I know the dynamic spending is a go for me but I need a way to implement this every year based on my actual portfolio value. I am also a big fan of Boldin software and I was wondering if you had found a way to mimic Dynamic spending with Boldin and if so, if you could share this with us. If not, is there a platform where we could use the dynamic spending approach? Many thanks.
LOVED your question five answer! In Boldin, I was trying to setup individual funds return estimates as a separate entry for each fund within the same account before your recommendation. I was basically trying to make Boldin act like Pralana. Thanks the simplification tip. 🙂
Great question and discussion as to why are we still holding bonds in our portfolios. Can anyone explain how Rob came up with the estimate for the return on his BND fund? He took the duration multiplied by 2 and subtracted 1. So in the example the duration was six years so 6x 2 -1=11 and concluded that over the next 11 years you could expect to earn the SEC yield of 4.61 %. Where did that magic come from?
Hey Rob, awesome stuff as always. I use Boldin and Projection Lab as well. I think if you use the dividend and bond features as intended, the tax calculations end up being more accurate.
Good luck Monday, Rob. I'm from Ohio, but my grandfather was ND's biggest fan. (For some reason, my Wikipedia entry says my dad went to ND, but that's not true.)
Rob, can you explain the calculation that you made with BND to calculate its long term rate of return. 6 year maturity doubling it to 12 yrs subtracting 1 yr. 4.6% a yr….if held 11 yrs….is that correct and why?
For me, this guy has a way of giving rise to trust and calm in a chaotic world. Buy and hold can get both pretty scary. His fundamental message: there is no free lunch out there….. good enough for me.
Rob - Very much enjoying the FQF segments. The bond discussion is interesting. For the past several years I have maintained an ETF bond ladder using Invesco Bullet Shares ETFs. Each ETF is comprised of several hundred bonds that mature in the same year. In December of each bond year the fund liquidates. If shares are not sold, the liquidated funds are deposited into your account. For the investment grade version of the funds the expense ratio is 0.10. The 2025 ticker is BSCO, the 2026 ticker is BSCP, etc. Currently I have a ladder in place with funds maturing through 2030. Current SEC yield on BSCO, the 2025 version is 4.58%. Current SEC yield on BSCU, the 2030 version is 5.11%. Each year at the beginning of December, before the current year fund liquidates, I sell the shares and either use the funds or rollover them into the next 5 year ETF. This process of maintaining a bond ladder with these year specific ETFs works well for me. Thanks.
Interesting! I’m learning here, so what is the reason you sell the shares in early December rather than just letting them liquidate? What is the advantage to selling early? Thanks, I appreciate any answer you can provide.
@@PelicanNorth In Dec 2023 I let them liquidate and it worked OK. The reporting looked a little odd on the brokerage statement and, as I recall, was a little confusing on the broker generated 1099. Also, they set the date in mid December for the liquidation. In 2024 I sold the 2024 shares during the first week in December. This gave me better control of the timing and the transaction was reported on the statements and tax documents like any other sale. Selling just felt cleaner and more controlled.
Im retired, EVERY financial adviser IVe worked with dumped garbage on me based on how they got commissions. If you do stay with one of them, make them sign something that says "I will disclose fully to client XXX how I am compensated as a %% of wages: fees from clients, incentives and commissions from products. They all push annuities and insurance. Its all garbage. I see a comment below how this video is "dense and irresponsible". Id be willing to bet it was made by an advisor. They are like realtors, but they charge more, and dont even show houses.
I'm 54 and new to investing my portfolio consists of ESGV 41%, VSGX 4%, SCHD 15%, EAGG 5% US Aggregate Bond - VTIP 20% Sht-Term Inflation-Protected - VGSH 15% Short-Term Treasury is this ok or would you get rid of one and if so which one? I don't want to hold on to all of them if they're the same. Would like to keep my portfolio as simple as possible since I don't know much about investing and I'm learning as I go.
I guess my solution to dumping a financial advisor is not to use one in the first place. I know that if I had a financial advisor and that person told me it would be top hard for me and I should stay with them, I would dump that advisor before they finished making that statement. As far as a fund goes versus a bond ladder goes, I insist on knowing what I will get in returns for tax planning since all of my investments are after tax. That is a consequence of never having worked anywhere that offered a 401K and due to my age not contributing to an IRA due to the trivially low contribution limits when I was working. I am also unwilling to pay any fees. So a bond ladder where I take the interest out, but reinvest the principal is my choice. As you said, it is dead simple to set up a bond ladder and you always know what your returns will be. I also always hold all bonds to maturity.
Rob, you've demonstrated Boldin in this and several other videos. Do you know how Boldin decides on the standard deviations? I'm not sure if entering only the expected rates of return is enough. I appreciate if you can get back to me. Thanks!
I have a CFP, he's with a firm that sets % of investment based on age primarily. So seniors are pretty much locked into a portfolio, that's shall we say very "conservative". The Firm dictates the percentage allocation, taking away the authorization of the Planner to 'manage' based on input of the client. If it wasn't for the tax implication, I'd just cash out and manage the results myself, however taxes would financially destroy me, so I'm trapped. Thanks for your video.
How are you trapped? Unless the firm has you in some non-marketable security or some proprietary investment, there should be no reason for you to be stuck with the firm. Securities and money in an IRA can be transferred in-kind (ACAT) or your current firm would liquidated within the IRA and directly rollover the proceeds to your new brokerage IRA. Assets in a taxable brokerage can be transferred in-kind just as easily unless your current firm has you in some proprietary thing that you can't transfer. In-kind transfer allows you to transfer securities from one brokerage to another without selling, thus no tax implications. Direct IRA rollovers also have no tax implications.
I had 2 advisors that were mediocre and one went to prison for defrauding me and his other clients. I moved my accounts to Vanguard 4 years ago and used their advisors which was only .3% fees. They were OK but eventually I had to fire them because they wouldn't invest my money the way I wanted it invested. Almost a year ago, I took over my own accounts and my returns have been MUCH higher than any advisor was getting me.
I'm in TN. I did my first Roth Conversion in December 2024. I paid my tax on that conversion from cash I had using the EFTPS website the same day I did my conversion. My question is for the annual income tax return are there forms other than the 1040 that I will have to fill out for the IRS since I did this Roth Conversion. I'm having a hard time finding that answer on TH-cam. Do you do your own annual income tax return or hire someone to do it? Thank you
There is this constant perception that investing on your own is scary. It is not scary at all, it is exciting. And Easy. Fear is an internally generated emotion...just as shy people can become great public speakers, this fear can be overcome with solid logic based formulas and turning off the news...and keep a 3 year return hat on. I keep their 1% and it's a piece of cake. The last 2 years were +27% and +24% - that's exciting my friends! To miss out on that is scary to me.
I'm convinced that investing $50k-100k in the right company before it goes big is more important than saving for retirement. However, picking the right company is so hard. I have around $200k in a HYSA and want to invest. What are the best opportunities now?
The potential downside of target date funds is that when you want to withdraw from them, you cannot choose to sell, for example, the bond portion of them if stocks are down. Unless I’m missing something.
This is a valid point. But it's really only relevant when you're coming into retirement itself. If you are concerned about it at that point, you can move to your own bespoke asset allocation. IMO, for the building years, one could do a lot worse than TDFs. For one, they protect you (by which I mean me) from doing anything blatantly stupid.
If you want the flexibility of picking and choosing what to sell, then you would not be investing in a target date fund. You can't sell individual underperforming stocks in an S&P500 index fund, either.
You could buy a target date fund that is far in the future (where there is little allocation to bonds). So in that, you’d get a prudent ratio of stock fund types in an easy, inexpensive package. Then you could buy your desired percentages of bond funds separately. And maybe-as Paul Merriman advocates-also add some Small Cap Value and/or Large Cap Value.
One doesn't need to pay an advisor to figure out how to generate a paycheck each month. Schwab, fidelity, or vanguard are all too happy to have your business, will step you through the form to fill out to get a monthly (or weekly or quarterly) "paycheck" direct deposit to your checking account. It's really easy. Only thing that one needs to do is make sure there's at least that amount in cash when the paycheck is due. Its probably the easiest way to "rebalance". If you're stock-heavy after growth, sell the stock fund high. If you're bond heavy after a downturn, sell the bonds. A given paycheck should be a drop in the bucket relative to one's total holdings.
BND duration x 2 less 1 year. So for the next 11 years it will earn 4.61% return each year or the total return for 11 years? I have never heard this calculation before.
The major brokeraage like Fidelity, Vanguard, Schwab, etc you can just look up RMD and it will direct you to their RMD calculator. They usually tag RMD on any retirement accounts subject to RMD to make it easy.
You can also look up the single life table of factors (which table you use depends on circumstances, but that’s the most common one) by age and divide that into the account balance for last December 31. The factor is an average person’s life expectancy upon reaching that age.
I’m a buy and hold investor and don’t invest in total bond market funds. The reason is that such a find will hold between 30 and 40 % of long term bonds. While long term bonds can have a volatility that can be similar to stock they don’t have the same long term earning potential. A buy and hold investor who holds bonds to control risk wouldn’t want long term bonds and therefore no total bond market funds. Just my 2 cents.
I was really surprised to hear that Rob thinks he may consider a target date fund in the future. Shocking to me. I know he has talked about steps to simplify his portfolio but never thought he would consider a target date fund.
One reason someone might do that is for a spouse after the numbers person dies. Not saying that’s Rob’s reason, but it does simplify the portfolio. It’s a trade-off.
I Hit $32,590 today. Thank you for all the knowledge and nuggets you had thrown my way over the last week i started with 5k in last week 2024.... now i just hit $32,590❤️. thanks to Katherine Grace Maier for helping me achieve this
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
Ron, I’m puzzled as to why you think creating a Treasury leader would take time. You can build one in just 5 minutes and decide whether to roll over the mature treasury either at creation or at a later date. Anyone with a basic understanding can do it.
If you get near retirement, and the (Vanguard) target retirement fund gets too conservative, you can just switch over to one of their life strategy funds.
If your "core position" at the brokerage is part of an FDIC "Insured Deposit Sweep" then it's a bit more like a bank. With over $200k it gets spread over several external banks to ensure it maintains insurance. Interest is pretty low so I don't keep a lot in it.
So many people hate on target date funds because they have underperformed their favorite large growth etf lol. These same people tend to underperform TDFs over long term because theyre just chasing performance and panic sell at the worst times.
They should also be helping with estate planning, tax planning withdrawal strategies, keeping abreast of how changes to the tax code will affect you and your money, etc. it should be more than asset allocation.
I have researched this extensively the last 3 years and the answer appears to be “usually”. The best strategies to avoid finding out is to change your passwords at least annually, use an authentication app or passkey when possible, and avoid SMS for 2FA. Also use an authentication app or passkey with your email account and bank. Finally, lock down your phone’s SIM card and Port Out option.
I have two accounts with Fidelity. One is an IRA, managed. The managed account is Fidelity proprietary funds. The other is a regular brokerage account that I manage and is all Index funds. They are kicking my ass. Thinking about letting them manage the brokerage account.
Jesus, no. Transfer your funds elsewhere if necessary, but unless you want a nightmare tax bill, don’t sell everything if you have a brokerage account. Blanket statements like this are why no one should take investment advice from strangers on the internet.
Headline January 17, 2025: Vanguard to Pay More Than $100 Million to Resolve Violations Related to Target Date Retirement Funds . Another example of Vanguard losing sight of the best interests of small investors. Aren't these target funds actually a fund of funds where you get double charged for fees?
@marcyan5399 it’s a fine fund. The only downside I see is that it can only be held in a Fidelity account. If you move to another brokerage firm you’ll need to sell it. All their proprietary zero cost funds work that way as I understand it.
i started the process, its easy to do and you will be much happier having control over your own money then someone else. The main thing I would say is understand what your buying and what your goal is. If I didn't find Rob channel I would still be paying crazy fees.
Love your level headed, non click bait helpful info
Man, this stuff (info/advise) is pure gold! Thank you Mr. Berger.😁
I used Mark for a while. Very knowledgeable, good guy. However, I had my portfolio at fidelity and had gone through a very detailed use of their planning tool. Basically he said that I was nowhere near conservative enough, and my plan was going to crash after x number of years. I asked him how he knew more than half of the PhD's on the planet that created the tool I used to put the plan together. I decided to do it on my own.
Funny coincidence. Today I told my financial advisor that I was going fully self directed. It was easy. I now have a self directed IRA and a self directed brokerage account.
No one else to blame now when you leave thousands and thousands on the table or paid in taxes😂
On boldin, you can split 401K into 2: stocks and bonds. Then you set different rates of returns.
This was the best explanation of SIPC I've ever seen. It's very confusing to read about it. Makes you wonder why you need insurance if you own the assets, but that's not what it's for.
Thanks, Rob. I love FQF. Your bond and tips discussion was very, very helpful.
My mindset was forever changed when I heard the expression “the firm made money, the advisor made money. Two out of three ain’t bad.”
That is a great quote, and factual.
"When our clients do better, we do better. And when our clients do worse, we do just fine."
The problem with target date funds is that when you need to sell to generate income, you have to sell all of the asset classes that comprise that fund. If on the other hand you had separate large/mid/small cap with separate international and bond funds, you could avoid selling (for example) small cap if that asset class was in bear territory while the balance of assets were in neutral or positive territory.
One could argue that if you are looking to specifically diversify in your context, then you wouldn't be a target date fund investor to begin with. When you buy an S&P500 index or a total market index fund, you also can't separate out specifics either, so it's not really an argument for or against.
In Boldin, how can they predict current IRMA if they don't know the previous 2 years income? Is there a place for Boldin Q&A?
Love the channel, it's been very helpful.
Great video. You nailed it with these questions that I believe are on most people's mind, especially myself as an early retiree. Paying myself every Q is an unknown and for now, I have HYSA that I can live on until I reach 59 1/2. Somewhat related to your last topic here, I re-watched one of your video about the Vanguard Dynamic Spending and I believe this is my way forward. I have played with the FI calculator and I know the dynamic spending is a go for me but I need a way to implement this every year based on my actual portfolio value. I am also a big fan of Boldin software and I was wondering if you had found a way to mimic Dynamic spending with Boldin and if so, if you could share this with us. If not, is there a platform where we could use the dynamic spending approach? Many thanks.
LOVED your question five answer! In Boldin, I was trying to setup individual funds return estimates as a separate entry for each fund within the same account before your recommendation. I was basically trying to make Boldin act like Pralana. Thanks the simplification tip. 🙂
Great question and discussion as to why are we still holding bonds in our portfolios. Can anyone explain how Rob came up with the estimate for the return on his BND fund? He took the duration multiplied by 2 and subtracted 1. So in the example the duration was six years so 6x 2 -1=11 and concluded that over the next 11 years you could expect to earn the SEC yield of 4.61 %. Where did that magic come from?
Hey Rob, awesome stuff as always.
I use Boldin and Projection Lab as well.
I think if you use the dividend and bond features as intended, the tax calculations end up being more accurate.
I can tell you're a man of distinction from your ROM The SpaceKnight #1 Subscribed!
Since BND has been so unprofitable in the past ten years could something like SCHD be a substitute in retirement? Love your channel.
Good luck Monday, Rob. I'm from Ohio, but my grandfather was ND's biggest fan. (For some reason, my Wikipedia entry says my dad went to ND, but that's not true.)
Rob, can you explain the calculation that you made with BND to calculate its long term rate of return. 6 year maturity doubling it to 12 yrs subtracting 1 yr. 4.6% a yr….if held 11 yrs….is that correct and why?
Yes, please explain.
Yes Please.
Yes please. Please do.
Thanks for showing that target date info, that's good to know, never thought of that
Your videos are fantastic! TY!!!
I like the Lifestyle funds more than the Target Date.
Can you pls do a review of BND vs EDV? Also what would be a good % to invest
Thank you for another very informative video. You are helping me build the confidence to be able to create a retirement paycheck myself.
For me, this guy has a way of giving rise to trust and calm in a chaotic world. Buy and hold can get both pretty scary. His fundamental message: there is no free lunch out there….. good enough for me.
Rob - Very much enjoying the FQF segments. The bond discussion is interesting. For the past several years I have maintained an ETF bond ladder using Invesco Bullet Shares ETFs. Each ETF is comprised of several hundred bonds that mature in the same year. In December of each bond year the fund liquidates. If shares are not sold, the liquidated funds are deposited into your account. For the investment grade version of the funds the expense ratio is 0.10. The 2025 ticker is BSCO, the 2026 ticker is BSCP, etc. Currently I have a ladder in place with funds maturing through 2030. Current SEC yield on BSCO, the 2025 version is 4.58%. Current SEC yield on BSCU, the 2030 version is 5.11%. Each year at the beginning of December, before the current year fund liquidates, I sell the shares and either use the funds or rollover them into the next 5 year ETF. This process of maintaining a bond ladder with these year specific ETFs works well for me. Thanks.
This is the only way I’d buy bond etfs.
Interesting! I’m learning here, so what is the reason you sell the shares in early December rather than just letting them liquidate? What is the advantage to selling early? Thanks, I appreciate any answer you can provide.
@@PelicanNorth In Dec 2023 I let them liquidate and it worked OK. The reporting looked a little odd on the brokerage statement and, as I recall, was a little confusing on the broker generated 1099. Also, they set the date in mid December for the liquidation. In 2024 I sold the 2024 shares during the first week in December. This gave me better control of the timing and the transaction was reported on the statements and tax documents like any other sale. Selling just felt cleaner and more controlled.
Im retired, EVERY financial adviser IVe worked with dumped garbage on me based on how they got commissions. If you do stay with one of them, make them sign something that says "I will disclose fully to client XXX how I am compensated as a %% of wages: fees from clients, incentives and commissions from products. They all push annuities and insurance. Its all garbage. I see a comment below how this video is "dense and irresponsible". Id be willing to bet it was made by an advisor. They are like realtors, but they charge more, and dont even show houses.
Caveat Emptor
The primary skill set of a Financial Advisor is salesman and marketer. Not so different than a car salesman.
@@harrychu650 The salesman's suit never changes no matter what they're selling. You must find the best deal.
I use 5% expected return on my investments in Boldin. I think it is middle of the road, Rob just said that’s conservative.
I agree with you. 5% to 5.5% is middle of the road for 55/45 to 60/40 portfolio. Reason, things are about to get crazy.
I'm 54 and new to investing my portfolio consists of ESGV 41%, VSGX 4%, SCHD 15%, EAGG 5% US Aggregate Bond - VTIP 20% Sht-Term Inflation-Protected - VGSH 15% Short-Term Treasury is this ok or would you get rid of one and if so which one? I don't want to hold on to all of them if they're the same. Would like to keep my portfolio as simple as possible since I don't know much about investing and I'm learning as I go.
I guess my solution to dumping a financial advisor is not to use one in the first place. I know that if I had a financial advisor and that person told me it would be top hard for me and I should stay with them, I would dump that advisor before they finished making that statement.
As far as a fund goes versus a bond ladder goes, I insist on knowing what I will get in returns for tax planning since all of my investments are after tax. That is a consequence of never having worked anywhere that offered a 401K and due to my age not contributing to an IRA due to the trivially low contribution limits when I was working. I am also unwilling to pay any fees. So a bond ladder where I take the interest out, but reinvest the principal is my choice. As you said, it is dead simple to set up a bond ladder and you always know what your returns will be. I also always hold all bonds to maturity.
Rob, you've demonstrated Boldin in this and several other videos. Do you know how Boldin decides on the standard deviations? I'm not sure if entering only the expected rates of return is enough. I appreciate if you can get back to me. Thanks!
I have a CFP, he's with a firm that sets % of investment based on age primarily. So seniors are pretty much locked into a portfolio, that's shall we say very "conservative". The Firm dictates the percentage allocation, taking away the authorization of the Planner to 'manage' based on input of the client. If it wasn't for the tax implication, I'd just cash out and manage the results myself, however taxes would financially destroy me, so I'm trapped. Thanks for your video.
How are you trapped? Unless the firm has you in some non-marketable security or some proprietary investment, there should be no reason for you to be stuck with the firm. Securities and money in an IRA can be transferred in-kind (ACAT) or your current firm would liquidated within the IRA and directly rollover the proceeds to your new brokerage IRA. Assets in a taxable brokerage can be transferred in-kind just as easily unless your current firm has you in some proprietary thing that you can't transfer. In-kind transfer allows you to transfer securities from one brokerage to another without selling, thus no tax implications. Direct IRA rollovers also have no tax implications.
I had 2 advisors that were mediocre and one went to prison for defrauding me and his other clients. I moved my accounts to Vanguard 4 years ago and used their advisors which was only .3% fees. They were OK but eventually I had to fire them because they wouldn't invest my money the way I wanted it invested. Almost a year ago, I took over my own accounts and my returns have been MUCH higher than any advisor was getting me.
It is likely partially that the S&P rose 24% in the last 12 months as well.
@@teresawood6830yeah. I would go with this. A lot of us made a truck load this last year!
where can I find this low cost financial adviser in your site? I tried to find and was not successful. can you please provide link here?
Google “planvision”
I'm in TN. I did my first Roth Conversion in December 2024. I paid my tax on that conversion from cash I had using the EFTPS website the same day I did my conversion. My question is for the annual income tax return are there forms other than the 1040 that I will have to fill out for the IRS since I did this Roth Conversion. I'm having a hard time finding that answer on TH-cam. Do you do your own annual income tax return or hire someone to do it? Thank you
Another terrific video. Thank you, Rob.
8:38 Isn’t a rolling ladder an escalator?
no, because ladders have rungs and escalators have steps🤣
There is this constant perception that investing on your own is scary. It is not scary at all, it is exciting. And Easy. Fear is an internally generated emotion...just as shy people can become great public speakers, this fear can be overcome with solid logic based formulas and turning off the news...and keep a 3 year return hat on. I keep their 1% and it's a piece of cake. The last 2 years were +27% and +24% - that's exciting my friends! To miss out on that is scary to me.
Can u share more about how to do it in an easy way? Pls explain 3 year hat…
Go Bucks! 🏈
I'm convinced that investing $50k-100k in the right company before it goes big is more important than saving for retirement. However, picking the right company is so hard. I have around $200k in a HYSA and want to invest. What are the best opportunities now?
The potential downside of target date funds is that when you want to withdraw from them, you cannot choose to sell, for example, the bond portion of them if stocks are down. Unless I’m missing something.
This is a valid point. But it's really only relevant when you're coming into retirement itself. If you are concerned about it at that point, you can move to your own bespoke asset allocation. IMO, for the building years, one could do a lot worse than TDFs. For one, they protect you (by which I mean me) from doing anything blatantly stupid.
If you want the flexibility of picking and choosing what to sell, then you would not be investing in a target date fund. You can't sell individual underperforming stocks in an S&P500 index fund, either.
You could buy a target date fund that is far in the future (where there is little allocation to bonds). So in that, you’d get a prudent ratio of stock fund types in an easy, inexpensive package. Then you could buy your desired percentages of bond funds separately. And maybe-as Paul Merriman advocates-also add some Small Cap Value and/or Large Cap Value.
One doesn't need to pay an advisor to figure out how to generate a paycheck each month. Schwab, fidelity, or vanguard are all too happy to have your business, will step you through the form to fill out to get a monthly (or weekly or quarterly) "paycheck" direct deposit to your checking account. It's really easy.
Only thing that one needs to do is make sure there's at least that amount in cash when the paycheck is due. Its probably the easiest way to "rebalance". If you're stock-heavy after growth, sell the stock fund high. If you're bond heavy after a downturn, sell the bonds.
A given paycheck should be a drop in the bucket relative to one's total holdings.
Still complicated for me!
How is losing money in BND for 13 years protecting against inflation?
BND duration x 2 less 1 year. So for the next 11 years it will earn 4.61% return each year or the total return for 11 years? I have never heard this calculation before.
It is just a rule of thumb to calculate next year’s return, I would guess. Would be interested to hear the reasoning behind that formula.
Investing on your own: liberating or terrifying? I feel like it’s the ultimate test of financial independence, but not everyone’s ready for it.
If I ditch my advisor how do I determine the amount of my RMD?
You type “RMD table 2025” into Google search
The major brokeraage like Fidelity, Vanguard, Schwab, etc you can just look up RMD and it will direct you to their RMD calculator. They usually tag RMD on any retirement accounts subject to RMD to make it easy.
Schwab has an online calculator for RMDs.
Vanguard provides that information at the first of every year for each fund once the RMDs start. Later in the year they tell you the remaining RMD.
You can also look up the single life table of factors (which table you use depends on circumstances, but that’s the most common one) by age and divide that into the account balance for last December 31. The factor is an average person’s life expectancy upon reaching that age.
Instead of tips or trestery bonds....is it ok just to invest in a total bond market?
I’m a buy and hold investor and don’t invest in total bond market funds. The reason is that such a find will hold between 30 and 40 % of long term bonds. While long term bonds can have a volatility that can be similar to stock they don’t have the same long term earning potential. A buy and hold investor who holds bonds to control risk wouldn’t want long term bonds and therefore no total bond market funds. Just my 2 cents.
BND is a total bond market fund. I cannot remember if it's only US or US and foreign at the moment.
I was really surprised to hear that Rob thinks he may consider a target date fund in the future. Shocking to me. I know he has talked about steps to simplify his portfolio but never thought he would consider a target date fund.
One reason someone might do that is for a spouse after the numbers person dies. Not saying that’s Rob’s reason, but it does simplify the portfolio. It’s a trade-off.
I Hit $32,590 today. Thank you for all the knowledge and nuggets you had thrown my way over the last week i started with 5k in last week 2024.... now i just hit $32,590❤️. thanks to Katherine Grace Maier for helping me achieve this
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
Great Video!
Looking for list of low cost advisors Rob mentioned. Anyone see that list?
search for "rob berger low cost financial advisors”. it’s the 4th one on my list.
Ron, I’m puzzled as to why you think creating a Treasury leader would take time. You can build one in just 5 minutes and decide whether to roll over the mature treasury either at creation or at a later date. Anyone with a basic understanding can do it.
I have no idea how to buy individual bonds or evaluate them.
I don’t have a basic understanding (yet), that’s why I’m hear listening
If you get near retirement, and the (Vanguard) target retirement fund gets too conservative, you can just switch over to one of their life strategy funds.
Just pick a target date fund that's x years out. Every couple of years, switch it to x years out again. Whatever x is for you, 5, 10, 20 years.
Forget advisors! They make money regardless of you making any money!
Yep, total scam.
I dumped BND again (lost money) and only have ultra short term bond ETFs now.
Sounds like you might need an advisor 😂
no no no. You need to understand what the bonds are for in your portfolio. You're performance chasing.
If your "core position" at the brokerage is part of an FDIC "Insured Deposit Sweep" then it's a bit more like a bank. With over $200k it gets spread over several external banks to ensure it maintains insurance. Interest is pretty low so I don't keep a lot in it.
So many people hate on target date funds because they have underperformed their favorite large growth etf lol. These same people tend to underperform TDFs over long term because theyre just chasing performance and panic sell at the worst times.
We set it & forget VWENX,VIEIX,VTI,VIIIX and VFORX.
What exactly do financial advisors do for you other than charge you 1% annually?
They talk you out off selling during a crash
They should also be helping with estate planning, tax planning withdrawal strategies, keeping abreast of how changes to the tax code will affect you and your money, etc. it should be more than asset allocation.
I use BND but have been considering replacing it VFIDX or ETF equivalent......
Does the brokerage insurance protect you if your account is hacked?
Good question, new investor with 500k, ty
I have researched this extensively the last 3 years and the answer appears to be “usually”.
The best strategies to avoid finding out is to change your passwords at least annually, use an authentication app or passkey when possible, and avoid SMS for 2FA.
Also use an authentication app or passkey with your email account and bank.
Finally, lock down your phone’s SIM card and Port Out option.
Better idea. Don’t get a financial advisor is the first place.
O-H ...
I. O.
I have two accounts with Fidelity. One is an IRA, managed. The managed account is Fidelity proprietary funds. The other is a regular brokerage account that I manage and is all Index funds. They are kicking my ass. Thinking about letting them manage the brokerage account.
Good luck Monday night. THE Ohio State University
Just tell them to sell everything and that I’m transferring my money out
Just did it last week
Gave the advisor 2 years and they couldn’t beat the S&P
Jesus, no. Transfer your funds elsewhere if necessary, but unless you want a nightmare tax bill, don’t sell everything if you have a brokerage account. Blanket statements like this are why no one should take investment advice from strangers on the internet.
@ you do if it’s all taxed deferred, or you just transfer
You don’t have to pay tax.
I fired my financial advisor in Fidelity and just had him put my money in an target retirement fund.
Smart!
Bad idea
Go Irish 🍀
❤
Headline January 17, 2025: Vanguard to Pay More Than $100 Million to Resolve Violations Related to Target Date Retirement Funds .
Another example of Vanguard losing sight of the best interests of small investors. Aren't these target funds actually a fund of funds where you get double charged for fees?
Fyi, not sure where you got the title from, but the lawsuit applies to taxable accounts
Don’t tempt me :)
I know that's right 😊haha ha
Fidelity FZROX it's has no fees. It sounds to good to be true?
Rob has a separate video on that.
I love this fund. Been in it nearly since inception
Virtually identical to VOO (S&P 500) except VOO does slightly better than FZROX.
It has one distribution per year, in December, even though it receives dividends from the basket of stocks it owns throughout the year.
@marcyan5399 it’s a fine fund. The only downside I see is that it can only be held in a Fidelity account. If you move to another brokerage firm you’ll need to sell it. All their proprietary zero cost funds work that way as I understand it.