my Roth IRA has VOO, SCHD, SCHG and others, some individual stocks. i plan to re balance at 60 as I keep growth and add into SCHD, DRGO, JEPI and JEPQ to live off of dividends and contribute more.
Have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.
I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more, creating a snowball effect that allows you compound over time.
guess you are new, adhering to well established structure from a professional, even as a rookie, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased in the past year while participating behind a top performer. I put in 65k few years back, now effectively remits over hundred k annually and increasing.
I've been watching several channels and websites for a couple of years, and you, Rob, are top of my list for finding the truth in investing for retirement. No big solicitation and no lies. Thank you, and God bless you, sir.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@SuoncyCharlotte The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
ROB💪❤: Love your videos... Your integrity and clarity is unsurpassed... Please do NOT listen to these other commenters suggesting you do a video every day ! That is foolish... Keep it "fun" for you... Too easy to burn out once it become an obligation ! 🙏 John Bogle is smiling down upon you ✝
Mr. Bogle never recommended international stocks and would have never approved of the target date marketing nonsense. Most of the funds recommended were not in place until after he retired.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
Carol Vivian Constable 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..
I think a big challenge for many Americans will be in the going concern of Social Security. It is running out of money and the trade-offs to keep it solvent are politically unpopular. Social Security was meant to be the backstop to an individual's retirement portfolio, and with it gone, many elderly Americans will fall into significant hardship. The choice is one among bad alternatives: retirees receive less, taxpayers pay more, or the US becomes bankrupt. What is harder to predict is where the equilibrium of prices will be at in the future. In other words, how far would inflation go. The aging and slow-growing US population necessarily means that consumption over time will decrease. Lower consumption could mean a few things: (1) lower overall demand, which could mean that prices fall; (2) however, if prices fall then certain goods are no longer financially viable, which could mean that these products will no longer be available, or available as rare and expensive for those who could afford it. In other words, the choices available to American consumers will shrink. (3) As a result, overall supply might also shrink, which could mean that prices may remain stable or increase even though demand falls. Therefore, it's hard to see where prices go in the long term. However, regardless of where prices go, a couple of things are certain: (a) overall decrease in economic output means lower overall taxes raised by the US Government, which means even lesser money available to fund Social Security and pay US debt obligations (Treasuries); and (b) overall decrease in economic output also means as a whole, the US stock market would decrease in value. Taken together, your own retirement portfolio in the long run is screwed. A way out might be to devalue the US currency, which makes more dollars for Americans to buy domestically, but if goods are imported (and America imports a significant amount of its goods), they will become more expensive. In summary, if you're in the last couple of decades in your life, you're probably fine, but your children and children's children are likely to be in a bad place when they reach your age.
Hi Rob, I’m a HUGE fan, and wholeheartedly agree with one of the previous commenters from several years ago, that you are a National Treasure. As an attorney myself (with (some) grey hair), I absolutely LOVE the repeated, obligatory, qualifiers 🤣🤣🤣…. “These are funds that I own, I’M NOT SAYING YOU SHOULD”…..”I’m NOT a financial advisor…”… etc.🤣❤. What a PITA that things have to be this way, but c’est la vie…😬. Thank you for all of your work educating, informing, and inspiring, without advocating. You are the single BEST source of financial information I’ve run across and I often re-watch/listen to your videos multiple times.
Thank you Rob. Just echoing others but true. The best investment education, content and knowledge sharing videos by a mile. Thank you for your time and dedication to our community.
After watching many of your videos and others over the last 4 months. I have finally been able to unwind the mess of funds that my past advisor had me wrapped into. I had well over 50 different funds, and now I have been able to consolidate down to 7 funds with the majority of them in the 3 core funds you mentioned in this video. I finally feel I have a handle on what I am investing in versus the mess of funds that made it basically impossible to summarize my investment strategy without spending hours and hours reviewing all the different funds I was in. Thanks again for all the great advice and videos. Especially with some of the recent market turmoil, it is comforting to feel in more control of my investments and strategies going forward!
@@JO091715 Ditto. If I only had that damn time machine I could go back and tell my younger self to stop depending on an advisor, and do your own homework. :)
I honestly think that advisor created complexity is there to protect make people think they need help. I inherited a mutual fund of mutual funds from my Dad's advisor. makes no sense. very inefficient.
Congrats on simplifying your portfolio! Consolidating down to just a few core funds can make a huge difference in understanding and managing your investments. How do you feel this new strategy aligns with your long-term financial goals? Are there specific areas you're still refining or looking to optimize?"
Thanks Rob! Vanguard's target retirement income fund (VTINX) has approximately 17% in a short term inflation protected Tips fund plus the other four funds. Also, these funds generally have capital gains due to adjustments in allocations per their strategy.
another reason to have separate bond and stock funds is you can sell them separately. If stocks are down and bonds are up, you can sell your bonds to pay your bills.
This is quite educational. It's crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.
These uncertainties will always be there. Thing is, every once in a while, the market does something so stupid it takes your breath away. If you’re not ready for it, you should’t be in the market business. or get you a skilled practitioner.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors' and hear-says, it got the best of me in the year 2020 and had me holding worthless positions in the market. I had to revamp my entire portfolio through the aid of my financial advisor, before I started seeing any significant results happens in my portfolio. Been using the same advisor since then and I’ve scaled up almost a million within 2 years. Whether a bullish or down market, both makes for good profit, it all depends on where you’re looking…
Not bad at all. I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market. Could this coach that guides you help?
These uncertainties will always be there. Thing is, every once in a while, the market does something so stupid it takes your breath away. If you’re not ready for it, you should’t be in the market business. or get you a skilled practitioner.
I started investing recently just to get an understanding of the process using a small amount of money and I decided to do this allocation: 55% VOO 25% VXUS 10% VWO 10% VBR I would like to hear anyone's thoughts on these choices. I basically followed Rob's 6 fund portfolio minus retail and bonds. I'm feeling okay with 100% stocks for the moment and I don't understand what the retail fund is exactly so I left those out. Thanks for any feedback. :)
I do understand this approach and it is for sure good way but a believe that VOO is all you need and I personaly buy individual stocks when I see discount like tech in 2022 ann retail recently etc also I believe that real estate is great way to diversify so having few rentals would be amazing.
Rob - it seems to me that an additional benefit to using 2 or 3 funds instead of a single target date or life strategy fund, (for a retiree) is that you can not only control when and how much to balance the funds, you can also decide to take a distribution from the common stock fund if it’s up 20% over the past year OR if stocks are down 10% and bonds are flat to up a bit, take a distribution from bonds and give stocks a year or more to recover. Can’t have that flexibility using a single fund. Great content and a lot of it over the past five or so days. Not to mention a love session Thursday on New Retirement. Pace yourself Rob, it’s only Tuesday.
Or like Rob would say, if it's in a retirement account it does not matter what you sell if you just rebalance as needed. In a taxable account however, there are advantages.
This is exactly what I’ve come to realize with the Wealthfront automated investing portfolio I have that includes several stock and bond funds within it. You can’t selectively withdraw from it. It’s a taxable account I planned to use in early retirement before tapping into my retirement accounts. It will automatically rebalance but that doesn’t seem to avoid the pitfall of selling equities in a down mkt.
Hello Rob, People already commented about your good work. I think you should show us comparing one, two ,and three funds portfolio with portfolio analyzer with real number.
Love having 100% VT for my brokerage account; maintain market-cap US and International without needing to re-balance and triggering taxable events For retirement accounts, currently also VT, but will probably shift to an Index Target Date in the future based on my desired Stock/Bond allocation for simplicity Simpler is better IMO, naturally encourages leaving emotions out and allows more time to focus on income and other more impactful ventures
This is the video I’ve been waiting for! Loves the content and understood it. Can you do a video to explain more about tips and how they can be worked into a core portfolio?
VNQ is a stop loss fund. NOT BUY AND HOLD. I held that for over 2 decades, Down about 15% over 20 years. Considering I could have invested that money for 20 years instead of it sitting there and ending up down 20% is A BIG ASS LOSS... Much bigger than the 20%. 20 Years of lost investment return.
I don’t understand. Did you reinvest (and take into account) the dividends? You’re broker probably will only show you the change in price and not total returns so that’s why it may show that you’ve lost money. VNQ has actually returned around 7% annualized if you reinvested dividends.
I agree that VNQ has been a break-even proposition, as it lost 27% in value over the past five years against a 4% annual dividend. However, its value has increased by 7% over the past 6 months, so it is becoming kinda attractive again.
@@phd_angel I errored because Alight (a greedy crooked 401K manager -- $13 fee to trade ETFs) replaced Fidelity as Raytheon's 401K manager. They set cost basis of all securities for all employees, retirees, former employees, to value on the day they took over. See response to @DevilsClaw for details. If we are entering a recession, I do not consider that a positive for VNQ. The fed lowering interest rates (with increase in inflation) may not help VNQ enough.
@5:55, Rob says "there is a limitation" with the fixed allocation funds, e.g. if you wanted a 50:50 portfolio "you couldn't do that, at least with Vanguard funds." But for a 50:50 fixed allocation portfolio, why not just buy equal quantities of VSCGX (60:40) and VSMGX (40:60)? Similarly, can't any fixed allocation between 80:20 and 20:80 be achieved with a simple mix of those two? Thanks
Isn't a set and forget portfolio 100% VFINX or SPY, then buy monthly especially when the SPX is down. So to lock in the outperformance. OK strategy Mr Berger?
ROB💪🏾🫵🏽👏🏾Love your videos…Your Loyalty, Integrity and clarity are unsurpassed…don’t listen to the HATERS…keep it up! John Boyle is smiling down on you brother… I copied most of this message from another sender because I like it so much…
Bob, I think a long time portfolio made with a broad index stock and bonds, you must reallocate over time, when you are closer to retirement ( last 10 yrs approx ). A pure stock portfolio can crash at 90% the day before retirement. It will never happened if you rebalance.
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
Great info! Just subscribed. It would be good to talk about the 10 year track record (increase %) on these funds. Also, international funds in recent times haven’t performed great so best to watch the amount allocated to them on the funds you select.
I liked the risk/returns of the TSP L2025 fund but I didn't want it to change to the lifestyle fund when I retired next month so I researched what funds the 2025 fund was invested in and then changed my individual investment to match.
Regarding VT. What backtest or other data supports having 37% in non US stock holdings being “optimal total return” strategy ..??That ratio of foreign stock holdings “seems high” in my estimation anyways; based on investing experience since ~ 1995.
I owned QCSTIX which was TIAA-CREF Stock r3 which basically the same as VT. 65 USA and 35 international. I wish i didn't because international totally underperformed!
Bingo! I’ve not seen a lot of years that international has outperformed; granted does happen sometimes and will again from time to time. But do those occurrences warrant a 37% allocation to foreign stocks ??? I think not. I’ve seen portfolio models in last 10-15 years run 18-23% That seems much more appropriate
VT does not use a fixed allocation between US stocks and international stocks. The allocation is not based on any backtest, but on the current free float market capitalization of each stock, independently from where the company is based. Therefore, the allocation of US vs ex-US will change over time, pretty much as the allocation, say, between tech stocks and consumer staples would automatically change based on market valuations.
Just discovered your channel with this video -- I was able to think about my situation and I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $90K per year but nothing to show for it yet.
I think that is a brilliant idea, I tried managing my stock portfolio by myself and I lost 50% of my savings in a very short period. That prompted me to hire a financial advisor. Since then I have made up to $680K in returns.
I have worked with a few financial advisors before now but i ultimately settled for Celia Kathleen Martel. She is SEC regulated and licensed in US. You can easily look her up.
looking at those target date fund equivalents here in the uk and they are crazy conservative. it says they plan to be approximately 30% equities 70% bonds a few years after the target date. right now the 2065 fund is 20% bonds. i don't know what 40 year period bonds beat equities for so why have any this early. seems like picking your own allocation over time is the best solution.
Thanks for sharing. I think for me I prefer mutual funds - large cap. Mid cap small cap and international growth mutual funds. Also if I can’t find a good growth mutual Find I have also out $ in mid cap index and small cap index
You briefly mentioned it, but TAX efficiency is very important and the target date funds Don't do it as you mentioned, also for ROTH ira's you want the most aggressive growth. Fidelity's total bond : FBND has outperformed BND for a while now. I include insurance "CD" also .. MYGA's.. as part of my bond allocation, as well as Baby bonds.. preferred stock with fixed maturity date.. as a hybrid bond/stock (one could use a fund like PFFA also) . WHY is it no one says to first use a retirement software like New Retirement and see what Rate of Return meets your financial goals.. then set your allocations accordingly..? IF you are about to retire, and find that 5-6% for next 20 years will meet your goals.. then lower your growth/risk assets.
Great insights on tax efficiency and diversification strategies! Your approach to bond allocation is quite thorough. How do you see the role of tools like New Retirement shaping the way investors balance growth and risk as they approach retirement?
My only suggestion to what is an absolutely marvelous video is to explain "why" these funds work. You might want to explain to novice investors that you are trying to capture the entire market of stocks, not choose individual winners and avoid losers. You are investing in an asset class, and doing so as cheaply and completely as possible. The same goes with the bond funds you highlighted. Again, a very good video, Rob. Your clarity is amazing (from an old Vanguard Diehard then Boglehead).
Dear Mr.Berger, since i am an EU citizen, we dont have the possibility to buy the funds you mentioned. The main problem for us is that we dont have possibility to buys shares of any kind of total US stock market (this one we substitute with VUSA that is Vanguard SP500 index fund or similar like SPYL or something like that) but i really can find anithing close to the US international stocks fund. Can you help me with this ? (regarding bonds we have choices so these one is covered for 3-fund portfolio)
That may not be ideal IMO...Best to only do it when "in the mood..." Keeping it "fun"... Focusing on family... Too easy to burn out once it become an obligation ! I have seen that with too many other TH-camrs... ...
Rob, really enjoyed this video, was just wondering what you suggest for Tips fund the Target date funds use short term Tips, but I thought you were recommending intermediate term Tips funds?
i am retired with a teachers pension. My husband still works with about 10 years left to work with a 401k. We alos have Roths. What asset allocation would you recommend as I know we are way out of balance right now? Thanks so much
I'd opt for VTI, VEA and BND. I don't like emerging markets, mainly because of the exposure to companies controlled by China and other unreliable dictatorships. That's why I haven't held VXUS for many years.
Hi Rob i am retired 2 years ago open Fidelity Brokerage account put all money on one year CD including IRA (interest was good back then) and used earning on my annual expenses (Property tax; Federal & State income tax and big vacation) now Feds cut off rates any advice. Thanks Michael
I’m very interested in the Lifestrategy funds specifically the 40/60 and 60/40. Can anyone explain why Morningstar gives 4 stars to the 40/60 and 3 stars to the 60/40,and does it matter?
Can you perhaps touch on what the benefits are of having bonds in a portfolio? I have some but they’re easily the worst performing part of my portfolio and I’m just trying to understand what purpose they serve in the makeup of the portfolio.
A better way to think about TIPS is that it protects against *unexpected* inflation. Regular bond price reflects the expectations of the market. Since the market is often wrong (no udy knows anything 😊) there is nothing wrong with going half and half. Or even all TIPS and increase your equities allocation a hair to take the risk there
@@theotherview1716 Just like the S&P 500 or total market funds....the bigger a company is, the higher percentage of that company is represented in the index. VT does the same thing, but takes into account the entire world instead of just the US
@@theotherview1716 VT is cap-weighted, so as the relative market capitalizations of the component stocks change over time, VT tracks those changes. So if the US stocks begin to underperform ex-US, the ex-US allocation within VT will increase to reflect the newly increased relative market cap.
@@theotherview1716 VT does not use a fixed allocation between US stocks and international stocks. The allocation is only based on the free float market capitalization of each stock, independently from where this company is based.
I have not checked, but do the underlying funds also have fees? Some of the retirement date funds can be very expensive. My daughter in law had one with a 75bp fee that I think invested directly in securities, so I told her to move it to an SP 500 index fund, much cheaper and actually better returns.
This video is a goldmine for anyone looking to build a rock-solid investment portfolio! Rob Berger breaks down complex investment strategies into easy-to-digest steps. Whether you're a seasoned investor or just starting out, this video is a must-watch. I'm definitely giving this a closer look. Has anyone else found this helpful?
Only problem with the allocation funds are you have to sell entire segments. If stocks are up and bonds down you can’t pick which to sell. They are all grouped together.
I retired at 70, am now 71. Just moved the majority of my assets from an advisor to Fidelity (in kind) after watching your videos for 6 months! Felt good but now I'm faced with transitioning 25 funds to a core portfolio during a period of increased uncertainty in the market and am nervous. My Fidelity "advisor" (they assigned to me) gave me suggestions. Question is, is now the time to be doing all that transitioning? Does it matter what I sell, stock or bond funds to start? Is it better to wait til the fed does whatever it's going to do with interest rates, or til after election when there's more clarity. It's my life savings and I don't want to do anything too stupid 😊. Any thoughts are much appreciated!
Bonds held in 401K or Trad IRA (tax deferred), usually equities in Roth for tax free growth, and when rebalancing the taxable account you just buy the underweight fund with future contributions as to not create a taxable event by selling the overweighted fund
@@kaykhen9853 in recent years international stocks have not done as well as US. However there have been periods where international actually outperformed US. I look at VXUS as an easy way to diversify and capture the global market. It holds something like 9000-10000 stocks
Saving something is always better than saving nothing. The irony is that it's harder to invest when you're young, but that's also when it's most beneficial in the long run to do so. Last year I convinced a cash strapped coworker to put $5 dollars in a Roth IRA every pay period. It's not much but by the end of the year she began to see some small growth. As a result she has now moved that to $15 a pay period. She's young enough that if she increases contributions a little bit each year, after 35 years or so she'll look back at that and consider that to be one of the wisest moves of her career.
I have a 100% stock portfolio. In my mid-40's. I however have a pretty good pension coming. To me, that is my bond allocation. I'm not wasting my time and money on bonds.
@Rob, would you suggest me to purchase Vanguard Target Retirement funds into Roth IRA account or individual brokerage account (non-tax advantage) ? What about if I have already met my Roth contribution limit for year 2024, what would you suggest then? Thanks in advance.
Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.
I believe the safest strategy is to diversify your investments. Instead of putting all your money into a single asset, consider distributing it across various asset classes such as bonds, real estate, and international stocks. If you're not confident in your financial knowledge, consulting a financial advisor is recommended.
I also went 100% S&P 500 about 34 years ago. At the time I had about $6K. Now 34 years later, my portfolio is $3.5 million. Never tried to time the market.
That’s amazing! I just wanted to simplify and reduce costs. Also, I’m playing catchup. Thanks for sharing. I’m delighted for you. I love Vanguard, plan to stick with them. I wish I could bring my work Pension over. Maybe in time I can. Also, thanks to Rob, your vids are educational and life changing. Really appreciated.👏👏👏
Hi Rob. Is that the links to your content? As I cannot see it on my notifications bar. Thanks anyway. I have subscribed to your vids and enjoy them very much. 🤝
Hi Rob, I have no more room on my tax deferred accounts. Does it make sense to invest in a brokerage account having to pay taxes and fees? I know most people do it but it seems to eat away at the profits just from dividends alone. Its this question that has kept me awake at night. Voo vti vgt in a brokerage account. Could you give me your 2 cents on this please?
Things appear strange right now. The value of the US dollar is declining due to inflation,As someone with retirement funds I'm concerned about the impact of inflation on my savings. Despite the dip in the market I still thank you for level headed financial advice. I start investment with $11k and since following Clara Brandon for few weeks now I've gotten $19k in my portfolio.
Tou pay expense on the main fund and then you pay more expenses on the funds that are inside of this fund. I wonder what is real expense to have this type of fund?
Great content. For a lifetime investment top 2 must-haves are diversity and quality. You only covered diversity. Do you have any suggestion that adds some basic quality filters such as profitable, cash flow positive, debt to equity ratio etc. The filters used by SCHD are great, so I would rather put all my money in SCHD and its international brother SCHY plus some physical gold and real estate; and no bonds because fiat has to be devalued in western world, plus trump would do anything to weaken USD as he thinks that worthless currency would drive exports. One thing he misses is that you can't out-do chinese with weakened currency, because americans would never work for a lower wage than a typical chinese, so he can't brings us jobs by devaluing currency
Interesting. I’m familiar with SCHD but not SCHY. What mix of the two do you do? I also like the absence of bonds. If you were in your 60s do you think this strategy would be sufficient for yourself?
@@BruceChavers SCHY is the international version of SCHD with similar quality filters applied. International stocks have under performed US for quite some time but that may come to an end and US stocks may underperform international in the next decade especially if USD takes a hit. With US debt exploding the most likely loser will be USD in next decade, thats why SCHY may do better than SCHD, lets do 50/50. SCHD, SCHY, physical gold, and real estate covers all bases, especially given exploding debt, FED losing independence to politicians and populism running wild in USA. This path of populism with politician pressured central bank is very common in places like Argentina, Turkey, Venezuela, which all suffer from high inflation and currency getting trashed
IVV, QQQ, MGC, IJR,MDY, EEM,EFA, ICSH, AGG, IEF. I hold each of these in 10% increments and rebalance once a year. It covers the entire world market and have been doing this (sometimes different funds) since 1987. I’m 70 now been retired since I was 53 and will start withdrawing at 72
Why is that the "right" allocation? MGC is 82% identical to IVV and QQQ is 46% Identical to IVV. So you may own 30% or more of the companies that overlap. Is that you mean to happen why? VT will always have the same balance as the entire market with a single fund for example (or VTI if you want US only). I don't know that your choice is good or bad for you or others, but it makes it hard to understand how much of specific asset classes you own
@@sixstringsdaddy2477 I wanted 30% large cap US stock with variation. The year end reallocation indicates which sector of US large cap performed best. The underperformers get more funds at year end as my basic philosophy is”Every dog gets its day” I don’t know if I’m absolutely correct but at year end I like how it works out.
my Roth IRA has VOO, SCHD, SCHG and others, some individual stocks. i plan to re balance at 60 as I keep growth and add into SCHD, DRGO, JEPI and JEPQ to live off of dividends and contribute more.
I reinvest my ETFs dividends 100% and will do so for years growth.
Have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.
I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more, creating a snowball effect that allows you compound over time.
Would it be sensible to mirror these sets you mentioned. I'm looking into it
guess you are new, adhering to well established structure from a professional, even as a rookie, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased in the past year while participating behind a top performer. I put in 65k few years back, now effectively remits over hundred k annually and increasing.
I've been watching several channels and websites for a couple of years, and you, Rob, are top of my list for finding the truth in investing for retirement. No big solicitation and no lies. Thank you, and God bless you, sir.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@SuoncyCharlotte That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@JulianaBondtsG My advisor is *MARGARET MOLLI ALVEY*
You can look her up online
@@SuoncyCharlotte The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
🎉 ROB BERGER JUST SLINGING OUT BANGERS THE LAST FEW DAYS 🎉 KEEP ‘EM COMING!
ROB💪❤: Love your videos... Your integrity and clarity is unsurpassed... Please do NOT listen to these other commenters suggesting you do a video every day ! That is foolish... Keep it "fun" for you... Too easy to burn out once it become an obligation ! 🙏 John Bogle is smiling down upon you ✝
Mr. Bogle never recommended international stocks and would have never approved of the target date marketing nonsense. Most of the funds recommended were not in place until after he retired.
I wish i had access to videos like this 25 years ago. Excellent information Rob.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
Carol Vivian Constable 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..
I think a big challenge for many Americans will be in the going concern of Social Security. It is running out of money and the trade-offs to keep it solvent are politically unpopular. Social Security was meant to be the backstop to an individual's retirement portfolio, and with it gone, many elderly Americans will fall into significant hardship. The choice is one among bad alternatives: retirees receive less, taxpayers pay more, or the US becomes bankrupt.
What is harder to predict is where the equilibrium of prices will be at in the future. In other words, how far would inflation go. The aging and slow-growing US population necessarily means that consumption over time will decrease. Lower consumption could mean a few things: (1) lower overall demand, which could mean that prices fall; (2) however, if prices fall then certain goods are no longer financially viable, which could mean that these products will no longer be available, or available as rare and expensive for those who could afford it. In other words, the choices available to American consumers will shrink. (3) As a result, overall supply might also shrink, which could mean that prices may remain stable or increase even though demand falls. Therefore, it's hard to see where prices go in the long term.
However, regardless of where prices go, a couple of things are certain: (a) overall decrease in economic output means lower overall taxes raised by the US Government, which means even lesser money available to fund Social Security and pay US debt obligations (Treasuries); and (b) overall decrease in economic output also means as a whole, the US stock market would decrease in value. Taken together, your own retirement portfolio in the long run is screwed. A way out might be to devalue the US currency, which makes more dollars for Americans to buy domestically, but if goods are imported (and America imports a significant amount of its goods), they will become more expensive. In summary, if you're in the last couple of decades in your life, you're probably fine, but your children and children's children are likely to be in a bad place when they reach your age.
Thanks for sharing your past and current holdings. Also, I love that you really have simplified. We're making progress in doing that.
Hi Rob, I’m a HUGE fan, and wholeheartedly agree with one of the previous commenters from several years ago, that you are a National Treasure. As an attorney myself (with (some) grey hair), I absolutely LOVE the repeated, obligatory, qualifiers 🤣🤣🤣…. “These are funds that I own, I’M NOT SAYING YOU SHOULD”…..”I’m NOT a financial advisor…”… etc.🤣❤. What a PITA that things have to be this way, but c’est la vie…😬. Thank you for all of your work educating, informing, and inspiring, without advocating. You are the single BEST source of financial information I’ve run across and I often re-watch/listen to your videos multiple times.
Thank you Rob. Just echoing others but true. The best investment education, content and knowledge sharing videos by a mile. Thank you for your time and dedication to our community.
After watching many of your videos and others over the last 4 months. I have finally been able to unwind the mess of funds that my past advisor had me wrapped into. I had well over 50 different funds, and now I have been able to consolidate down to 7 funds with the majority of them in the 3 core funds you mentioned in this video. I finally feel I have a handle on what I am investing in versus the mess of funds that made it basically impossible to summarize my investment strategy without spending hours and hours reviewing all the different funds I was in.
Thanks again for all the great advice and videos. Especially with some of the recent market turmoil, it is comforting to feel in more control of my investments and strategies going forward!
I have done exactly the same and should have done this so much earlier
@@JO091715 Ditto. If I only had that damn time machine I could go back and tell my younger self to stop depending on an advisor, and do your own homework. :)
50 are you kidding me ... "money in motion costs money" & "Money Doesn't Grow on Fees"
I honestly think that advisor created complexity is there to protect make people think they need help. I inherited a mutual fund of mutual funds from my Dad's advisor. makes no sense. very inefficient.
Congrats on simplifying your portfolio! Consolidating down to just a few core funds can make a huge difference in understanding and managing your investments. How do you feel this new strategy aligns with your long-term financial goals? Are there specific areas you're still refining or looking to optimize?"
Thanks Rob! Vanguard's target retirement income fund (VTINX) has approximately 17% in a short term inflation protected Tips fund plus the other four funds. Also, these funds generally have capital gains due to adjustments in allocations per their strategy.
Thank you for sharing.
another reason to have separate bond and stock funds is you can sell them separately. If stocks are down and bonds are up, you can sell your bonds to pay your bills.
This is quite educational. It's crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.
These uncertainties will always be there. Thing is, every once in a while, the market does something so stupid it takes your breath away. If you’re not ready for it, you should’t be in the market business. or get you a skilled practitioner.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors' and hear-says, it got the best of me in the year 2020 and had me holding worthless positions in the market. I had to revamp my entire portfolio through the aid of my financial advisor, before I started seeing any significant results happens in my portfolio. Been using the same advisor since then and I’ve scaled up almost a million within 2 years. Whether a bullish or down market, both makes for good profit, it all depends on where you’re looking…
Not bad at all. I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market. Could this coach that guides you help?
These uncertainties will always be there. Thing is, every once in a while, the market does something so stupid it takes your breath away. If you’re not ready for it, you should’t be in the market business. or get you a skilled practitioner.
I really have learned at lot from your videos, thank you for continuing to make these
I started investing recently just to get an understanding of the process using a small amount of money and I decided to do this allocation:
55% VOO
25% VXUS
10% VWO
10% VBR
I would like to hear anyone's thoughts on these choices. I basically followed Rob's 6 fund portfolio minus retail and bonds. I'm feeling okay with 100% stocks for the moment and I don't understand what the retail fund is exactly so I left those out. Thanks for any feedback. :)
Been really enjoying the uptick in content, thanks!
I do understand this approach and it is for sure good way but a believe that VOO is all you need and I personaly buy individual stocks when I see discount like tech in 2022 ann retail recently etc also I believe that real estate is great way to diversify so having few rentals would be amazing.
Rob - it seems to me that an additional benefit to using 2 or 3 funds instead of a single target date or life strategy fund, (for a retiree) is that you can not only control when and how much to balance the funds, you can also decide to take a distribution from the common stock fund if it’s up 20% over the past year OR if stocks are down 10% and bonds are flat to up a bit, take a distribution from bonds and give stocks a year or more to recover. Can’t have that flexibility using a single fund.
Great content and a lot of it over the past five or so days. Not to mention a love session Thursday on New Retirement.
Pace yourself Rob, it’s only Tuesday.
This was my thinking as well.
Or like Rob would say, if it's in a retirement account it does not matter what you sell if you just rebalance as needed. In a taxable account however, there are advantages.
This is exactly what I’ve come to realize with the Wealthfront automated investing portfolio I have that includes several stock and bond funds within it. You can’t selectively withdraw from it. It’s a taxable account I planned to use in early retirement before tapping into my retirement accounts. It will automatically rebalance but that doesn’t seem to avoid the pitfall of selling equities in a down mkt.
Hello Rob, People already commented about your good work. I think you should show us comparing one, two ,and three funds portfolio with portfolio analyzer with real number.
Love having 100% VT for my brokerage account; maintain market-cap US and International without needing to re-balance and triggering taxable events
For retirement accounts, currently also VT, but will probably shift to an Index Target Date in the future based on my desired Stock/Bond allocation for simplicity
Simpler is better IMO, naturally encourages leaving emotions out and allows more time to focus on income and other more impactful ventures
This is the video I’ve been waiting for! Loves the content and understood it. Can you do a video to explain more about tips and how they can be worked into a core portfolio?
Absolutely crushed it, Sir Berger.
VNQ is a stop loss fund. NOT BUY AND HOLD. I held that for over 2 decades, Down about 15% over 20 years. Considering I could have invested that money for 20 years instead of it sitting there and ending up down 20% is A BIG ASS LOSS... Much bigger than the 20%. 20 Years of lost investment return.
I don’t understand. Did you reinvest (and take into account) the dividends?
You’re broker probably will only show you the change in price and not total returns so that’s why it may show that you’ve lost money.
VNQ has actually returned around 7% annualized if you reinvested dividends.
I agree that VNQ has been a break-even proposition, as it lost 27% in value over the past five years against a 4% annual dividend. However, its value has increased by 7% over the past 6 months, so it is becoming kinda attractive again.
@@phd_angel I errored because Alight (a greedy crooked 401K manager -- $13 fee to trade ETFs) replaced Fidelity as Raytheon's 401K manager. They set cost basis of all securities for all employees, retirees, former employees, to value on the day they took over. See response to @DevilsClaw for details.
If we are entering a recession, I do not consider that a positive for VNQ. The fed lowering interest rates (with increase in inflation) may not help VNQ enough.
@5:55, Rob says "there is a limitation" with the fixed allocation funds, e.g. if you wanted a 50:50 portfolio "you couldn't do that, at least with Vanguard funds." But for a 50:50 fixed allocation portfolio, why not just buy equal quantities of VSCGX (60:40) and VSMGX (40:60)? Similarly, can't any fixed allocation between 80:20 and 20:80 be achieved with a simple mix of those two? Thanks
Isn't a set and forget portfolio 100% VFINX or SPY, then buy monthly especially when the SPX is down. So to lock in the outperformance. OK strategy Mr Berger?
ROB💪🏾🫵🏽👏🏾Love your videos…Your Loyalty, Integrity and clarity are unsurpassed…don’t listen to the HATERS…keep it up! John Boyle is smiling down on you brother…
I copied most of this message from another sender because I like it so much…
Bob, I think a long time portfolio made with a broad index stock and bonds, you must reallocate over time, when you are closer to retirement ( last 10 yrs approx ). A pure stock portfolio can crash at 90% the day before retirement. It will never happened if you rebalance.
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I have definitely drawn inspiration from your videos formulating my investing approach. Thank you for sharing your knowledge.
Great info! Just subscribed. It would be good to talk about the 10 year track record (increase %) on these funds. Also, international funds in recent times haven’t performed great so best to watch the amount allocated to them on the funds you select.
I liked the risk/returns of the TSP L2025 fund but I didn't want it to change to the lifestyle fund when I retired next month so I researched what funds the 2025 fund was invested in and then changed my individual investment to match.
Excellent video. To the point and solid investment ideology.
Regarding VT. What backtest or other data supports having 37% in non US stock holdings being “optimal total return” strategy ..??That ratio of foreign stock holdings “seems high” in my estimation anyways; based on investing experience since ~ 1995.
I owned QCSTIX which was TIAA-CREF Stock r3 which basically the same as VT. 65 USA and 35 international. I wish i didn't because international totally underperformed!
Bingo! I’ve not seen a lot of years that international has outperformed; granted does happen sometimes and will again from time to time. But do those occurrences warrant a 37% allocation to foreign stocks ??? I think not. I’ve seen portfolio models in last 10-15 years run 18-23% That seems much more appropriate
VT does not use a fixed allocation between US stocks and international stocks. The allocation is not based on any backtest, but on the current free float market capitalization of each stock, independently from where the company is based. Therefore, the allocation of US vs ex-US will change over time, pretty much as the allocation, say, between tech stocks and consumer staples would automatically change based on market valuations.
Just discovered your channel with this video -- I was able to think about my situation and I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $90K per year but nothing to show for it yet.
It’s important to do your own research and consult with a financial advisor before making any investment decisions.
I think that is a brilliant idea, I tried managing my stock portfolio by myself and I lost 50% of my savings in a very short period. That prompted me to hire a financial advisor. Since then I have made up to $680K in returns.
I have worked with a few financial advisors before now but i ultimately settled for Celia Kathleen Martel. She is SEC regulated and licensed in US. You can easily look her up.
I love ETFs and I keep contributing
The flood of spam in the comments is annoying... and detracts from the experience.
Yeah, it's terrible. How can they not find a way to delete these? They're all the same.
Thanks, Rob! Can you please expound which funds can be held long term in a brokerage account, considering tax consequences?
$VTI or &”$VOO and stocks that don’t pay high dividends.
looking at those target date fund equivalents here in the uk and they are crazy conservative. it says they plan to be approximately 30% equities 70% bonds a few years after the target date. right now the 2065 fund is 20% bonds. i don't know what 40 year period bonds beat equities for so why have any this early. seems like picking your own allocation over time is the best solution.
Thanks for sharing. I think for me I prefer mutual funds - large cap. Mid cap small cap and international growth mutual funds. Also if I can’t find a good growth mutual
Find I have also out $ in mid cap index and small cap index
You can do 60-40 and 40-60, half and half which will be 50-50. Others can be linear combination of 2 of these , X+Y. Cheers
I wish you could have listed my investment choices AOA and AOR - I have 50% in each of these ETF to arrive at my 70:30 Stocks to Bond ratio.
Thats a great allocation!
You briefly mentioned it, but TAX efficiency is very important and the target date funds Don't do it as you mentioned, also for ROTH ira's you want the most aggressive growth.
Fidelity's total bond : FBND has outperformed BND for a while now. I include insurance "CD" also .. MYGA's.. as part of my bond allocation, as well as Baby bonds.. preferred stock with fixed maturity date.. as a hybrid bond/stock (one could use a fund like PFFA also) .
WHY is it no one says to first use a retirement software like New Retirement and see what Rate of Return meets your financial goals.. then set your allocations accordingly..? IF you are about to retire, and find that 5-6% for next 20 years will meet your goals.. then lower your growth/risk assets.
Great insights on tax efficiency and diversification strategies! Your approach to bond allocation is quite thorough. How do you see the role of tools like New Retirement shaping the way investors balance growth and risk as they approach retirement?
Thank you for this sensible approach 🙌💯
Great content as always
I share your content with a Facebook group on a consistent basis
In the UK TD Retirement funds cost 0.24 and the LS finds 0.22.
Why the difference Vanguard???
Bonds are conservative until interest rates go up so you need to keep an eye on them.
Bonds are buy and hold just like stocks. Going in and out of bond funds results in selling low and buying high.
Thanks Bob. Very informative. Learning more each episode.
My only suggestion to what is an absolutely marvelous video is to explain "why" these funds work. You might want to explain to novice investors that you are trying to capture the entire market of stocks, not choose individual winners and avoid losers. You are investing in an asset class, and doing so as cheaply and completely as possible. The same goes with the bond funds you highlighted. Again, a very good video, Rob. Your clarity is amazing (from an old Vanguard Diehard then Boglehead).
How do you see the role of these diversified funds evolving for investors as market dynamics continue to shift?
Dear Mr.Berger, since i am an EU citizen, we dont have the possibility to buy the funds you mentioned. The main problem for us is that we dont have possibility to buys shares of any kind of total US stock market (this one we substitute with VUSA that is Vanguard SP500 index fund or similar like SPYL or something like that) but i really can find anithing close to the US international stocks fund. Can you help me with this ? (regarding bonds we have choices so these one is covered for 3-fund portfolio)
Great job Rob, short and concise. What are some other TIPS funds besides the Vanguard one mentioned.
Great advice for everyone. I share these along with your book with my adult children. Let's hope they listen. 😂
How do you add tips? Is there a fund for that?
Thanks for all the great content, Rob! You should consider posting a new video every day!
That may not be ideal IMO...Best to only do it when "in the mood..." Keeping it "fun"... Focusing on family... Too easy to burn out once it become an obligation ! I have seen that with too many other TH-camrs... ...
Why would he want to do a video every day? Your fun hobby now becomes more than a full time job.
@@Abraham.Lincoln22 👍And, it inevitably will also impact the "quality" of videos...
@@LJ-jq8og Just spreading a little enthusiasm in my own goofy way! I love your ideas too! Thanks for the comments!
@@thekarltonkrill 👍 Nothing wrong with that ! 😊
I’m building mine for my retirement but also for my children’s inheritance.
Rob, really enjoyed this video, was just wondering what you suggest for Tips fund the Target date funds use short term Tips, but I thought you were recommending intermediate term Tips funds?
Most target date funds use intermediate bonds
I'm confused, which is better for no tax till retirement? Roth IRA or traditional IRA ?
Please help !!
i am retired with a teachers pension. My husband still works with about 10 years left to work with a 401k. We alos have Roths. What asset allocation would you recommend as I know we are way out of balance right now? Thanks so much
I'd opt for VTI, VEA and BND. I don't like emerging markets, mainly because of the exposure to companies controlled by China and other unreliable dictatorships. That's why I haven't held VXUS for many years.
Thanks for posting this comment. I’ve been underwhelmed by VXUS for some time. Will take a look at VEA.
Hi Rob i am retired 2 years ago open Fidelity Brokerage account put all money on one year CD including IRA (interest was good back then) and used earning on my annual expenses (Property tax; Federal & State income tax and big vacation) now Feds cut off rates any advice. Thanks Michael
I’m very interested in the Lifestrategy funds specifically the 40/60 and 60/40. Can anyone explain why Morningstar gives 4 stars to the 40/60 and 3 stars to the 60/40,and does it matter?
Can you perhaps touch on what the benefits are of having bonds in a portfolio? I have some but they’re easily the worst performing part of my portfolio and I’m just trying to understand what purpose they serve in the makeup of the portfolio.
Depends on your age. If you’re young don’t have bonds or just do 10%
Rob. You mentioned percentages for a few of your investments. Would you mind telling your percent investment in the TIPS fund? Thanks!
A better way to think about TIPS is that it protects against *unexpected* inflation. Regular bond price reflects the expectations of the market. Since the market is often wrong (no udy knows anything 😊) there is nothing wrong with going half and half. Or even all TIPS and increase your equities allocation a hair to take the risk there
I'm happy with the Vanguard Life Strategy Growth fund.
VT is a great fund. The allocation between US and International will shift around depending on the market
How so?
@@theotherview1716it’s market cap weighted across the world
@@theotherview1716 Just like the S&P 500 or total market funds....the bigger a company is, the higher percentage of that company is represented in the index.
VT does the same thing, but takes into account the entire world instead of just the US
@@theotherview1716 VT is cap-weighted, so as the relative market capitalizations of the component stocks change over time, VT tracks those changes. So if the US stocks begin to underperform ex-US, the ex-US allocation within VT will increase to reflect the newly increased relative market cap.
@@theotherview1716 VT does not use a fixed allocation between US stocks and international stocks. The allocation is only based on the free float market capitalization of each stock, independently from where this company is based.
I have not checked, but do the underlying funds also have fees? Some of the retirement date funds can be very expensive. My daughter in law had one with a 75bp fee that I think invested directly in securities, so I told her to move it to an SP 500 index fund, much cheaper and actually better returns.
Higher expense target date funds are actively managed.
If you use the indexed version of target date funds they are generally 10 basis points or lower
These are all have very low fees.
This video is a goldmine for anyone looking to build a rock-solid investment portfolio! Rob Berger breaks down complex investment strategies into easy-to-digest steps. Whether you're a seasoned investor or just starting out, this video is a must-watch. I'm definitely giving this a closer look. Has anyone else found this helpful?
Does this advice/funds work for people who are at or in retirement? Or is this advice for people who a decade or so from retirement?
Target date funds work in retirement because they get progressively more conservative
They could be both.
Thoughts on fidelity zero expense ratio? Are they good enough for a Roth ira
Only problem with the allocation funds are you have to sell entire segments. If stocks are up and bonds down you can’t pick which to sell. They are all grouped together.
I retired at 70, am now 71. Just moved the majority of my assets from an advisor to Fidelity (in kind) after watching your videos for 6 months! Felt good but now I'm faced with transitioning 25 funds to a core portfolio during a period of increased uncertainty in the market and am nervous. My Fidelity "advisor" (they assigned to me) gave me suggestions. Question is, is now the time to be doing all that transitioning? Does it matter what I sell, stock or bond funds to start? Is it better to wait til the fed does whatever it's going to do with interest rates, or til after election when there's more clarity. It's my life savings and I don't want to do anything too stupid 😊. Any thoughts are much appreciated!
9:12 Rob… if bonds are only held in a IRA/roth… how is rebalancing achieved with a brokerage account?
Bonds held in 401K or Trad IRA (tax deferred), usually equities in Roth for tax free growth, and when rebalancing the taxable account you just buy the underweight fund with future contributions as to not create a taxable event by selling the overweighted fund
I love your videos. VTTSX value has only gone from $24-$52 over the span of 10 years. What do you say about this? Thank you so much to guide me.
I keep it simple.
70% VTI, 15% VXUS, 15% AVUV. Im only 33 & ill add bonds in my mid/late 40s
VXUS has gone from $36 to about $64 in a span of 10 years. Is it a good return?.
@@kaykhen9853 in recent years international stocks have not done as well as US.
However there have been periods where international actually outperformed US.
I look at VXUS as an easy way to diversify and capture the global market. It holds something like 9000-10000 stocks
@@kaykhen9853 assuming what you said is true, an investment 10 years ago would have almost doubled which is good
You are too young for such a lazy portfolio.
Simple is gold, so you can stick with it. Great strategy.
best etf for future withdrawels or sales for tax purposes in a traditional IRA when I am 60 yrs old in the future?
Would you have a different asset alloc at retirement if half your income is sourced from rental income?
Superb episode.
Should you change your asset allocation during recessionary periods? Especially with markets being at all time highs?
Saving something is always better than saving nothing. The irony is that it's harder to invest when you're young, but that's also when it's most beneficial in the long run to do so. Last year I convinced a cash strapped coworker to put $5 dollars in a Roth IRA every pay period. It's not much but by the end of the year she began to see some small growth. As a result she has now moved that to $15 a pay period. She's young enough that if she increases contributions a little bit each year, after 35 years or so she'll look back at that and consider that to be one of the wisest moves of her career.
Rob, could you do a video on RMD requirement tables ?
I am 100% SP500 at 50 years old. It looks risky based on this video. Let see what happens another 5-7 years. Then I play safer perhaps.
I have a 100% stock portfolio. In my mid-40's. I however have a pretty good pension coming. To me, that is my bond allocation. I'm not wasting my time and money on bonds.
@Rob, would you suggest me to purchase Vanguard Target Retirement funds into Roth IRA account or individual brokerage account (non-tax advantage) ? What about if I have already met my Roth contribution limit for year 2024, what would you suggest then? Thanks in advance.
Target date funds are not good in a Brokerage. Best in a 401k. I don’t like Target date funds.
@@kimappreciateslife Thanks Kim!
Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.
I believe the safest strategy is to diversify your investments. Instead of putting all your money into a single asset, consider distributing it across various asset classes such as bonds, real estate, and international stocks. If you're not confident in your financial knowledge, consulting a financial advisor is recommended.
Thank you Rob
I have rebalanced from the Life Strategy and gone all in on the S&P500. Using my ISA (UK). Hoping to add the All global market very soon.
I also went 100% S&P 500 about 34 years ago. At the time I had about $6K. Now 34 years later, my portfolio is $3.5 million. Never tried to time the market.
That’s amazing! I just wanted to simplify and reduce costs. Also, I’m playing catchup. Thanks for sharing. I’m delighted for you.
I love Vanguard, plan to stick with them. I wish I could bring my work Pension over. Maybe in time I can.
Also, thanks to Rob, your vids are educational and life changing. Really appreciated.👏👏👏
I’m sticking with VOO and BSV.
Hi Rob. Is that the links to your content? As I cannot see it on my notifications bar.
Thanks anyway. I have subscribed to your vids and enjoy them very much.
🤝
Great video, thanks
What do you do if you have a dated retirement fund for 2022? And you are retired. Move it as suggested above or?
A target date fund for an already passed year gradually adjusts your investments to be more appropriate for someone who is already retired.
the complacency is mind boggling
Hi Rob, I have no more room on my tax deferred accounts. Does it make sense to invest in a brokerage account having to pay taxes and fees? I know most people do it but it seems to eat away at the profits just from dividends alone. Its this question that has kept me awake at night. Voo vti vgt in a brokerage account. Could you give me your 2 cents on this please?
do some research online
@@kimappreciateslife most useful comment to date on Robs channel. 👏👏👏
Thx Rob.
Things appear strange right now. The value of the US dollar is declining due to inflation,As someone with retirement funds I'm concerned about the impact of inflation on my savings. Despite the dip in the market I still thank you for level headed financial advice. I start investment with $11k and since following Clara Brandon for few weeks now I've gotten $19k in my portfolio.
Tou pay expense on the main fund and then you pay more expenses on the funds that are inside of this fund. I wonder what is real expense to have this type of fund?
Great content. For a lifetime investment top 2 must-haves are diversity and quality. You only covered diversity. Do you have any suggestion that adds some basic quality filters such as profitable, cash flow positive, debt to equity ratio etc. The filters used by SCHD are great, so I would rather put all my money in SCHD and its international brother SCHY plus some physical gold and real estate; and no bonds because fiat has to be devalued in western world, plus trump would do anything to weaken USD as he thinks that worthless currency would drive exports. One thing he misses is that you can't out-do chinese with weakened currency, because americans would never work for a lower wage than a typical chinese, so he can't brings us jobs by devaluing currency
Interesting. I’m familiar with SCHD but not SCHY. What mix of the two do you do? I also like the absence of bonds. If you were in your 60s do you think this strategy would be sufficient for yourself?
@@BruceChavers SCHY is the international version of SCHD with similar quality filters applied. International stocks have under performed US for quite some time but that may come to an end and US stocks may underperform international in the next decade especially if USD takes a hit. With US debt exploding the most likely loser will be USD in next decade, thats why SCHY may do better than SCHD, lets do 50/50. SCHD, SCHY, physical gold, and real estate covers all bases, especially given exploding debt, FED losing independence to politicians and populism running wild in USA. This path of populism with politician pressured central bank is very common in places like Argentina, Turkey, Venezuela, which all suffer from high inflation and currency getting trashed
@@sumitomoO0O Thanks so much. I like it!
IVV, QQQ, MGC, IJR,MDY, EEM,EFA, ICSH, AGG, IEF. I hold each of these in 10% increments and rebalance once a year. It covers the entire world market and have been doing this (sometimes different funds) since 1987. I’m 70 now been retired since I was 53 and will start withdrawing at 72
Why not qqqm instead of qqq? Unless your doing CC strategy.
@@russellhorlacher8868 Didn’t know about it but will look into it since it’s 25% cheaper. Thanks for the info.
Why is that the "right" allocation? MGC is 82% identical to IVV and QQQ is 46% Identical to IVV. So you may own 30% or more of the companies that overlap. Is that you mean to happen why? VT will always have the same balance as the entire market with a single fund for example (or VTI if you want US only). I don't know that your choice is good or bad for you or others, but it makes it hard to understand how much of specific asset classes you own
@@sixstringsdaddy2477 I wanted 30% large cap US stock with variation. The year end reallocation indicates which sector of US large cap performed best. The underperformers get more funds at year end as my basic philosophy is”Every dog gets its day” I don’t know if I’m absolutely correct but at year end I like how it works out.
Rob - you owned John Deere at one point if I remember correctly. Why did you sell?
Just don’t see the point of international funds and especially international bond funds..
USA doesn't always do well. Historically, international stocks have actually outperformed American stocks
@@WhiteChocolate74 Not for a very long time..
@@DK-pr9ny I mean, as recently as 2000-2013ish the US underperformed
@@WhiteChocolate74 12 years ago isn’t very recent lol.
It sounds like you’re describing the Coffeehouse Portfolio. 40% US stocks 40% Bonds and 10% International and 10% REITs.
No bonds please 😮😢
Bonds are useless
Very sound advice.