Why Every Investor Should Own This Fund!
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- เผยแพร่เมื่อ 3 ก.ค. 2024
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This kind of content is why the show is so valuable. People who don’t have a lot of money can get great free advice. Advice that is often only available to those who already have a lot of money. You guys are doing a great public service 👍
Thanks Joe 👍
RIP Jack Bogle
One of the hardest lessons we must learn in investing is that good investing is boring.
No doubt Joel 👍
I love how Bo was on the edge of his seat for this episode rather than being so excited. 👍🏼👏🏼👏🏼👏🏼
My favorite part of Jack Ryan season 2 is when Jack is asked what individual stocks he recommends. Jack replies back... what you need to do is find a low cost S&P 500 index fund.
Nailed it 👍
Opened a roth ira because of this show this year and on course to max it out...buying Fidelity's FXAIX (S&P 500 index fund because of Warren Buffet's advice
Probably one of the best channels on TH-cam for personal finance. Love your integrity to provide open and honest information without putting your own interests first love it.
I forgot to add that if someone have bought $10,000 of the Vanguard 500 fund when founded in 1976 he or she would have over $650,000 today. About a 10.5% rate of return. No guarantees for tomorrow, but a safe bet that if a young person put their retirement money in the 500 or total market funds that they will have a financially secure retirement.
I got goose bumps when Brian started describing index funds. I was in large cap index funds back in 08 during a time I was financialy strapped and the fund made me huge gains. When things got better I included small and mid caps and could not be happier! 😁💰
Me too, but I held an even broader diversified index fund at the time, and still do. Vanguard's Total Stock Market fund which holds everything (large/mid/small). You get it all in one low cost index fund. It's the way to go.
@Bryan J Look into the Russell 1000 Growth index. It has all those exposures, and screens for greater than average growth potential.
@@Oivey2000 I would love to just do that, but there are tax considerations and lock of options in my 401k that make me not able to
@@dirtymike3329 Remember that your 401(k) is not the only vehicle you have to save for retirement. A lot of people don't have those options within their 401(k) so my suggestion would be to invest enough in your 401(k) to get the company match. You don't say how old you are, but if you have at least 15-20 years to go till retirement, go with the equity option in your plan. Then, open a Roth IRA with either Vanguard (my favorite) or Fidelity and max it out, if you can, or if you can't put as much as you can into it. Put it in a Total Stock Market Index fund or, better yet, a Target Retirement Fund that coincides with your anticipated retirement date. That way you can diversify outside of your 401(k) & get tax free growth. And if your 401(k) offers a Roth option, go for that as well.
@Brian J FNILX has performed well, FZROX as well.
Now that I'm quarantined, I look forward to your videos & comedic banter every Friday. Thank you.
I have been a subscriber to your channel for a few years now. I absolutely love this video! I am 50 and lead a group of younger employees at a pharmaceutical company in NC. I preach to these youngsters all the time what I have learned from your great videos. I urge them to start building their “army of dollar bills” as soon as they can, and to subscribe to your channel. I also encourage them to invest in the S&P 500 Index fund in our 401K. Now I have the perfect video to reference to help them understand why. Thanks for all you do!
Thank you Scott - day made 👍
I’m am grateful for you sharing your knowledge!
I have been using Vanguard ETF funds in my taxable account since the are even more tax efficient their mutual fund equivalents. My holding period is forever.
Good information guys, index funds are the way to go for the vast majority of investors. Will be interesting to see if they can continue to grow in popularity and exceed actively managed funds in the near future.
I do 100% index funds for my 401k (that I max out), 75% index funds and 25% individual REITs, and 10% index funds for my taxable brokerage account. I focus on dividend growth/value for my taxable brokerage account, otherwise I would use mostly index funds for that too. Unfortunately, I haven't found any low cost index funds that use tenants of dividend growth investing and value investing in one fund with a low fee.
Nice video! 2020 was a rough year for me as I lost my job as a college teacher due to the pandemic. I got introduced to Ms, Gardner, I opened up about challenges I was facing here in Norway, during my time working with her, I was able generate weekly returns on my investment.
This is still a window-shopping market. But there are a lot of intriguing stocks to watch from a variety of sectors. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
I’m trying to create long term wealth to set towards property one day . How can i reach out to her? she could be of great help
@ROSEGARDNERBIS
I’ll try reach out to her after my work hours, with all the positive words I hear, this should be worth a try
I remember when Bob Brinker was talking about how great SPDR's and index mutual funds were back in the mid-1990's.
You guys have a way of perfectly timing your vids. I have a roth with stocks and etfs and was wondering if I should keep the etfs. Your video helped me immensely, and I made sure I have the vanguard s&p 500 etf.
You can actually be down in a fund and still have to pay taxes if it’s in a normal brokerage acct. Your overall fund can be down and you don’t take those losses until you sell that equity but if they sold things that gained, you pay the taxes on the gains that you sold but you don’t write off the losses on the losers if you didn’t sell them.
Excellent show guys!!!!
Great show! Thanks. I do not know how much of a trend this is, but my 401k has default funds, but also allows transfer to a brokerage link account where lower fee investments are also offered.
Question :where are my 12000 $ stimulus from SSI? I am hungry....
I have the majority of my funds in a large growth mutual fund stock. Yes, I've been paying 0.65% annually, but I have no problem doing that since I'm seeing an annualized return 14%+. Yes, this year has hurt, but that's pretty much across the board. It'll bounce back and I'll keep raking everything in.
You mean annualize return of 14-0.65% right?
@@sixstringsdaddy2477 Yes, that 14%+ that I'm getting every year is the return and then whatever that return is each year, the 0.65% gets subtracted out. In the end, picking good mutual funds you'll net larger than index funds' returns.
I want to set up a family investment club or group. What steps should I take to accomplish this goal. And can I use index funds to build our portfolio.
Following Jim Cramer's rule putting $10k in an ETF with fees around 0.1% you get that great market return. if you then look at investing more and the ETF has an annual fee and shares have no ongoing fee at all (but with a 0.2% spread on buy/sell price as is currently available), in that case the advice to minimise fees would suggest buying the share as it is basically fee free. On any particular stock it is not certain to put you out in front but statistically speaking there is a very marginal edge to buying the stock here, as you could expect on average to get a market return with that buy/sell difference spread over however long you own the shares and the fund guaranteed to be taking 0.1% every year. But if you buy a range of stocks you have a better shot but then you are essentially your own index fund. Seems like that would have a slight edge IF you buy and hold for a long time. Probably not worth worrying about unless you have more than $1M to put in though.
Love fidelity
Fnilx
Thanks my dudes
About mutual funds distributing dividends - isn’t it solved by getting an accumulating fund?
I have one holding in my pension. A Global All Cap tracker. I'm in the UK so don't want only US exposure, and I'm young so I'm happy to be 100% in equities.
Always Vanguard your money 💰
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There’s too many people in the original vanguard 500 fund so they are no longer open. The similar ones that have opened up, for some reason, have lower returns. American growth fund has 13.47% returns since inception compared to 5.47% for Vanguard 500 Index Fund Admiral Shares. I am funding both since you guys advise doing the low cost index funds, but somehow I find my net return is higher with the CG American fund. I work at CG so I also pay lower costs for the mutual fund due to employee discount
Do you mean AGHTX? If so, do you know that it has an 0.65% expense ratio, and a 5.75% load. Impossible to make money in that fund.
I'm thinking about ditching my "financial advisors" from NM. They sold me disability insurance and have been really nice to me but I don't think they have my interest in mind. Wanted to sell me whole life, only buy american funds, never any index, idk if my money is doing all it could or that they are showing me best available for me as much as best for them...
ETF's For the win!!!
Whoa! Less than 5 years ago Brian Preston said that actively managed was better than indexing for smaller companies because small companies were under researched. Sounds like he is learning on the fly.
VIKING FAN 5 years ago is a long time. Especially if you’re someone in the financial world experiencing constant innovation and changes. Nothings wrong with learning and making adjustments it’s the people who do not make changes that struggle.
Hey Brian and Bo, just wondering what you guys think of the index fund bubble? There's been talk about it, specifically from Michael Burry. Would it be possible to hear both of your thoughts on it in an upcoming video/podcast?
Thanks. Still appreciate your show even though I'm in Canada, so some of the tax stuff doesn't really apply to me!
Couldn’t happen
You said the ave tax rate was 23% but wouldn't you use the ave cap gains rate 15%
How do you guys feel about the NASDAQ QQQ?
40% of my portfolio Voo, and 30% of my portfolio is on VTI, the rest are individual stocks, other agressive etfs, etc etc
If you had them all in VOO or all in VTI it would compound faster than having half of each
From what I understand, having both VOO and VTI in same account is redundant and unnecessary but do what you wanna do
I have the fidelity zero index funds in my Roth IRA.
They use a proprietary index that hasn't tracked correctly with total market returns. Not sure why. You might consider FSKAX with Fidelity (ER of .01) as it seems to track the index more correctly.
The Zero funds aren't proven yet.
@@colin1818 They're doing just fine and will in the future as long as the market does.
@@southrichmondtofl - Eh, they've had a tracking error relative to the indexes. That's why they're underperformed (mildly) relative to other market funds. I'll stay away until they get that dialed in.
So should I sell my individual stocks to purchase the index funds or should I save and continue with index from now on?
Do both.
Instead of investing in VTSAX which requires minimum 3k to start, would the ETF (VTI) be just as good? The ETF is a lot cheaper to get into.
Cyn City yes. You are able to auto invest with VTSAX.
re: Expense Ratios - If you're already in a index fund with a higher expense ratio compared to the Vanguard/Fidelity equivalent. You'd suggest to sell that fund and buy into the other? Am I hearing that right? (what about the capital gains cost?) Thanks guys!
I think it's situationally dependent, if you're young and have 30 years of investing ahead then yes it makes sense to sell and switch. If you're older, this is the perfect time to pay capital gains because the market is down. But, nothing wrong with stopping contributions to a higher fund and just starting a vanguard fund.
@@dustindodge5974 - And I'm somewhere in the middle (40 YO). So I have another 25 years at least.
@@BradGarland I'm an excel nerd so I would build a spreadsheet to see what capital gains vs 20yrs of a higher expense ratio looks like
Definitely situational. Down markets are a great time to get rid of legacy holdings that in the past had capital gains. You also have the opportunity to quit throwing money into the high cost funds and send new dollars into the low cost alternatives. Make the high cost appreciated holdings part of your annual charitable giving strategy. Lots of opportunities 👍
I hear a lot from Brian and Bo about index funds but barely ever hear about ETF's. What are the thought about the Index fund vs. ETF? Just some curiosity from a financial planner standpoint...?
ETFs are primarily built off of indices. Index investments can come in several forms... mutual funds, ETFs. We use both 👍
@@MoneyGuyShow Awesome. K.I.P. - Knowledge is Power! Thanks!!!
Mutual funds are fine for your 401k. But not for your taxable accounts. Do not have mutual funds in your taxable accounts because you'll pay capital gains whereas ETFs are fine in your taxable account because they have no Capital games
The think is individual stocks grows much faster then etfs
Please do a podcast on ARK funds. I am a big boglehesd but I am intrigued by kathy woods, she is amazing.
She is a sales woman , stay away. Her funds are going to explode when things go south
the S&P 500 from my 401k as a fee of 1% then i get about another 1.5% on top of that management fee
I'm 2 months late but that's absolute robbery
What do you think about moving my ROTH IRA with actively managed funds to Schwab/Vanguard etc next year when I turn 59.5 years old? That way I am not paying taxes on my growth in the current ROTH. I don't need the money anytime soon since I have a military monthly pension.
You can do a Roth to Roth transfer at any time. You want to keep the money in a Roth account longer than forever!
Your current Roth custodian might try to whack you with a bunch of fees, one fee per fund usually. Before you transfer, move all money there to just one of their funds, and then do a transfer. Then you can end up with a smaller fee.
Call Vanguard/Schwab, and tell them you want to do a custodian to custodian transfer of your Roth accounts. They will guide you from there. Sounds like a great decision to me!
@@daveschmarder-1950 Thanks for the feedback, I will look into it. May make the move once I see recovery in my current portfolio to keep from incurring loses.
Roth IRAs grow tax free no matter who the custodian is 👍
I am an exclusive ETF investor ✋
ETFs are slightly more tax efficient than admiral shares index funds
Warren Buffett recommends a 90/10 portfolio in that 90% is invested in a low cost index fund like the S&P 500 and 10% in short-term government bonds. What are both your thoughts on breaking up that 90% to include international, small cap, and mid cap index funds too? Will a bond index fund do if a short-term government bond index fund is not available?
Just buy VTSAX or VTI for small mid and large cap
@@wread1982 I am 100% in VTI for my Roth IRA
VOO!
I run a spdr s an p 500 index, s and p 600 index and s and p 400 index
Love your content .Wath about index bubble ? It is possible? It sounds to good to be true? Wath do you guys think?
Wouldn’t ever happen
Are index funds and mutual funds the same thing?
Mutual funds can be index funds. Mutual fund is the vehicle. The index is the investment 👍
@@MoneyGuyShow thanks. So if 90% of index funds outperform the manager, should we focus solely on indexes and not mutual funds - essentially ditch the manager and save money on fees?
What are your thoughts when someone like Michael Burry says there is an index fund bubble?
Ben Felix and the plain bagel have good videos on this . Long story short, he’s wrong and don’t worry.
Don’t listen to michael burry
Hey I’m 23 and I have a Roth IRA, individual stocks and I’m about to be eligible for work 401k. What’s some advice you’d have for me? Looking to save 15% at work and fund the other two accounts as well. Thanks!
Tyler Wise If your employer offers a match to your contributions in the 401k, contribute to get the match. Then, contribute to the Roth IRA. If you max out the IRA contribution, go back and contribute the rest to the 401k.
20 years ago, I put money for my daughter in Growth Fund of America. If I am not mistaken, her investment has outperformed the S and P by 2% per year over that time.
After I made 10k return, that’s the only time I started picking individual stocks .... what do you think of that ?
Index funds are simple for simple people. Nothing wrong with that. However for us that study the market daily as a way of life. Index funds make little sense. Why buy the whole (winners and losers), when you can study and pick the winners and avoid the losers. 2 sides of the same coin. Neither wrong, some of us prefer to drive 100mph while others go 50mph. 50 might be safer, but some of us are race car drivers when it comes to the market.
Im 9% up for the year, even during this, already. Why? Shake and bake Ricky Bobby!
I remember the first time I did options I doubled my money in two weeks. If only I stopped there. That beginners luck led me to believe I was good at options. I very quickly learned that options are volatile and highly sensitive to timing. When you stated how easy it was to pick winning stocks and avoiding the losers I could not help but think of my options experience. Congratulations on your good luck so far in 2020, but over time I would put my money into a low-cost index fund. You can accuse us of being simple but over the long-term you may come to appreciate the humbling and wisdom that experience creates. Thanks for the watch and comment 👍
@@MoneyGuyShow It's not as hard as it people make it out to be. I literally have been investing in the same Big 15 or so for 2 decades. Dump mass amounts in 2002, 2009, 2020, into JnJ, Microsoft, Coke, P&G, MMM, IBM, McDonald's, Disney and so on. Steadily trickle more on the years between. It has literally been that simple. People want to make it difficult by over thinking the entire thing. Yea I might get "lucky" here and there by getting in early on companies such as Netflix, but if you didn't see streaming becoming the new thing back then you weren't doing your homework, as I stated. While others crash, hit the gas! Hell, maybe my way is even more simple if you can just stick to the plan.
@@drbenjaminstacker7744 Disney and 3M didn’t age well over past 3 years. Hopefully you sold at the top !
What's with the southern accent all of a sudden? Is it just me ?
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Nice try fed I'm still not paying my taxes
What about social distancing? You two should be at separate tables, 6' apart, right? Not 1-2' apart with your mike's pointed towards each other. Just an observation. BTW, I do like ETFs, I pick TQQQ, SOXX, as my two favorites.
Bye, Felicia!
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Are you guys supposed to be 6 feet apart unless this was taped 2 to 3 months ago LOL!!
You = 🤡
"This one investment, could change your entire life." When I hear statements like this, I immediately turn and run the other way.
Do you realize you could have done this video in 2 minutes instead of 40? I understand the need to talk as if the more you talk the better we learn or the better you teach but what it actually does is make me less likely to watch your videos and questions my need to stay subscribed. Think about it please. I am now 3 minutes in and am checking out.
Larry Hawes then go make a video doing just that
Bye Felicia!
I totally get it and am very happy you all have 40 minutes to spare (I truly mean that) as we ramble on running circles around the topic. I'm just saying I'd prefer getting to it and moving on. Just a suggestion.
Larry send us your address and we will get the refund check right out 🙄
We might not be your cup of tea - No worries and well wishes 👍
They usually do short clips for people short on time. I’m sure they will do the same here