How to Create a 3 Fund Portfolio

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How to Create a 3 Fund Portfolio | A Beginner's Guide

Рет қаралды 484,941

Rob Berger

Күн бұрын

Пікірлер: 721

@DavidFo4 8 күн бұрын

I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio of $450k dwindle away is such an eye -sore.

@Hannaa22 8 күн бұрын

there are tons of cool stocks in different industries to watch. You don't have to act on every forecast. I suggest teaming up with a financial adviser who can help you pick the right times to buy and sell the stocks or ETFs you're eyeing. They can give you some solid advice to make smart moves.

@hirvingpetagna 8 күн бұрын

That's awesome to hear! Having a skilled adviser to guide your day-to-day investment decisions, especially with their expertise in long and short positions, risk management, and access to exclusive information, can really make a difference. It's no surprise you've seen such impressive returns, netting over 2.8 million in over 2 years. Keep up the great work with your adviser!

@DavidFo4 8 күн бұрын

bravo! I've been getting suggestions to consider financial advisory, but where and how to find someone reputable has been challenging, mind if I look up the advisor guiding you please?

@hirvingpetagna 8 күн бұрын

I don't comfortably throw recommendations around on the internet, but I've been working with Nancy Magaret Delony. God ! she's brilliant! I'm sure there are others who are good.

@DavidFo4 8 күн бұрын

Thanks for sharing. I curiously searched for her full name and her website popped up first thing. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.

@NicholasBall130 3 ай бұрын

I was told to spread my money across different things like stocks and bonds to protect my $750k retirement savings. Now, with the markets being shaky, should I keep adding money to my portfolio or consider other options?

@StocksWolf752 3 ай бұрын

True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

@EleanorBaker474 3 ай бұрын

In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.

@StacieBMui 3 ай бұрын

My partner’s been considering going the same route, could you share more info please on the advisor that guides you?

@EleanorBaker474 3 ай бұрын

Sonya Lee Mitchell maintains an online presence that can be easily found through a simple search of her name on the internet.

@crystalcassandra5597 3 ай бұрын

She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.

@williamyejun8508 Жыл бұрын

Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $70K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.

@jamescomb1170 Жыл бұрын

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.

@jameswood9772 Жыл бұрын

@@jamescomb1170 I completely agree. I have been consistent with my profit regardless of the market conditions. I got into the market early in 2019 and the constant downtrends and losses discouraged me, so I sold off. I got back in December 2020 and this time with guidance from an investment adviser who was recommended by a colleague

@Jack51971 6 ай бұрын

HOLD hold hold...just leave them!

@jackgoldman1 3 жыл бұрын

Why does this guy seem so honest and trustworthy? Nice presentations.

@pablouribe1522 2 жыл бұрын

I cannot believe this is free. Is just unbelievable you can get this for free. Outstanding work. Happy i found out this youtube channel.

@KreysHealth Ай бұрын

Thai is bad advice s&p is better

@justinpenticuff4102 8 ай бұрын

You should have millions of subscribers. Clear, intelligent, transparent and refreshing! Much appreciated.

@russthompson4296 2 ай бұрын

So similar to what Fed workers have for their TSPs and it WORKS.

@kamsingh6924 3 жыл бұрын

Finally a KZfaqr offering great, sincere, simple to understand financial advice w/o ego, partiality or personal gain. Big thanks

@brianmcg321 2 жыл бұрын

You mean besides the credit cards he's selling?

@couldbe8348 2 жыл бұрын

But why the need for bond funds

@starmorpheus 2 жыл бұрын

@@brianmcg321 You think this channel is a charity?

@ihasmax Жыл бұрын

You have one of the very best finance and investing channels on KZfaq and deserve way more subscribers. So sick of all the finance bros! You’re a breath of fresh air

@aslamhawa3753 2 жыл бұрын

Thanks for such simplicity. Where were you when I was 50 years old. It’s time to educate my children.. Thanks again

@kevinquinn7645 2 жыл бұрын

I did some sensitivity testing using Portfolio Visualizer on the Bogle Three Fund portfolio. Turns out that while the Mid Cap Value Index has a lower return than Small Cap Value, it also has a substantially lower standard deviation. So instead of having 40/10 Total Market/Small Cap Value mix and going for 30/20 Total Market/Mid Cap Value mix you can have a higher CAGR and a lower standard deviation. In fact, it's the same StDev as only investing in the Total Market for US stocks with a better Best Year (not surprising) and a better Worst Year.

@es330td 11 ай бұрын

Rather than look at CAGR and STDev over a long period, use the tab on Portfolio Visualizer to compare rolling three and five year numbers.

@MrMaxamillion67 2 жыл бұрын

Great video, about one year ago I moved my investments over to Vanguard. The Edward Jones advisor had me in 9 different funds averaging over a 1 percent expense ratio and all were front load fees. Now I am in 4 different funds and I am saving on fees and have the extra working for me not going to the advisor.

@Noah4evaa Жыл бұрын

How’s it going with vanguard? Thinking of switching myself!

@MrMaxamillion67 Жыл бұрын

@@Noah4evaa So far I am happy with them. When I retired I am going to stay with Vanguard.

@jerimas Жыл бұрын

Hi Rob, I’m coming to this video in the middle of the night as I watch over my newborn son. I’ve been thinking a lot about the future and seeing your deep dive and the thought process behind your choices is amazing. Thank you for taking the time to walk us through this and to provide the links as additional guidance. This is all amazing stuff! You’ve got a whole new subscriber!

@acrobizer1238 3 жыл бұрын

I’m 53 with this breakdown... 50%. S&P 500 passive index 30% Small Cap passive index 20% Int passive Index YTD: 16%

@acrobizer1238 3 жыл бұрын

I just posted up the last comment with asset allocation. Question...what do you think of bonds at this time? They seem worthless, especially with the threat of inflation now a days...thoughts?

@ghostmane2643 2 жыл бұрын

This was one of the best financial videos I've ever watched. Thank you so much.

@royjones59344 3 жыл бұрын

Excellent advice. Investing to me is like losing weight both are simple but not easy. Your temperament is the most important part.

@nk2012 Күн бұрын

True. If I had to choose just one fund to invest forever it would be Berkshire Hathaway. And to lose weight buy a commercial versaclimber. Done and done.

@ElCatrinMuerto 3 жыл бұрын

been using M1 for a couple months now and definitely enjoying it. There is a rebalance feature but one thing to keep in mind this will create a taxable event. If you just adjust the percentages you want in each ticker it will eventually balance itself as you invest money into it without creating a taxable event. Amazing feature!

@Tbay007 2 жыл бұрын

You can create a roth ira or a traditional ira with M1 Finance. So that the taxable events won't happen when you re-balance.

@LoveThatRod Жыл бұрын

You are experiencing tax events because you are in a Brokerage account and not in a Tax Deferred account - like an IRA or 401(k).

@KurtisB Жыл бұрын

@@Tbay007 What if their Roth IRA is already maxed out so this is a secondary brokerage account?

@ildefonsovilar 2 жыл бұрын

My ROTH IRA Is actually a 3 fund portfolio! FXAIX 50% FTIHX 25% and FREL 25%

@bslorbust 2 жыл бұрын

How is the portfolio doing? I was considering these funds. Would you consider fzrox over fxaix

@purewonka 8 ай бұрын

I'm more of a four stock guy. I revile fees. 4 and done. DCA monthly regardless of price. AAPL, MO, TSLA and UNH. I don't trade. I buy for life.

@stevechovan1696 5 күн бұрын

You just validated my Monte Carlo analysis I’ve been doing and got my best performance with the Buffet strategy.

@frankofva8803 3 жыл бұрын

Excellent presentation. I am planning on retiring from Federal service in 2022, keeping 5 years of expenses in the TSP G Fund and rolling the rest into an IRA. You’ve given me much “food for thought”.

@seetheforestthroughthetrees Жыл бұрын

That is such a great plan. It's tough to set aside funds to earn peanuts when the market is roaring. I know you wrote this a year ago (before the market decline). One of THE biggest risks to a retiree's portfolio is a significant loss at the onset of retirement because the funds can't "grow" back if you have to spend them. If you carved out 5 years worth of expenses and put them in the G fund prior to retiring and prior to the worst start to a year for a 60/40 portfolio ever, you were able to mitigate one of the biggest retirement planning risks. Did you execute your strategy?

@frankofva8803 Жыл бұрын

@@seetheforestthroughthetreesI apologize for not getting back sooner with an update. I retired May 31, 2022. I actually changed my original plan a bit. Since I have a pension that more than covers expenses, I don’t need to have 5 years in the G Fund. Actually, I’m more aggressive so I have 20% G and 80% in Schwab’s S&P index SWPPX. I don’t plan on making any withdrawals until I turn 62 (in 2 years) and that amount will be approximately 3.3% of my balance. So far so good. I’m up about 16% overall since retiring. Thanks.

@mucusofwanderhome6945 3 жыл бұрын

I have always run 85% total market mutual funds and 15% bonds. I can tell ya after 20 years of investing I wish I would have had 0% bonds . leaving gains on the table. I would have used a dividend reinvestment fund instead if I knew any better.

@somchai9033 3 жыл бұрын

Long term treasuries outperformed the S&P 500 the past twenty years from 2000-2020 and so did gold.

@Austden 3 жыл бұрын

@@somchai9033 that has been possible only because bond yields - and inflation in the overall economy - have generally been declining for the last 20 years. This will not be possible to continue going forward.

@sunaxes 3 жыл бұрын

In a growing economy with almost no inflation (maybe some deflation), equities do very well and outperform bonds. I recommend to check growth and price trends to understand in which environment you are and to balance accordingly. There is no perfect ratio of bond/equity, it is changeable based on the two above conditions.

@glamoc0000 3 жыл бұрын

I'm 41 years old. 100% in either SWPPX or Fidelity 500. Over 600k of it in my retirement account. Plan to do so until at least 55. However, I do have a retirement plan that I coinvest with my employer which I cannot move unfortunately. Regardless of one's age and the amount of money at stake, can't see why someone would have more than 6-7 years worth of living money in bonds....

@news2383 2 жыл бұрын

I mean retirement accumulation portfolio sure. For actually spending anytime soon. Not a good idea

@rudged123 3 жыл бұрын

You should do a book review of J.L. Collin's The Simple Path to Wealth. In it he distinguishes between investing when you are employed and when you no longer work. During the growth phase, he advocates putting everything in a stock index fund that tracks the S&P, which he points out has significant international exposure because so many of the S&P companies are international. During the preservation stage, he sees a place for bond to reduce volatility when regular contributions to one's retirement plans are no longer being made.

@rob_berger 3 жыл бұрын

I read his book years ago. A review is a good idea. The problem with a 100% stock portfolio is that it can underperform say a 90/10 portfolio over a very long time period. That said, we are in unchartered waters with the current bond market.

@rob_berger 3 жыл бұрын

I should add that I agree that the S&P 500 companies operate throughout the world. However, I see no reason to ignore 85% of the GDP in the world. Yes, the U.S. has been the dominant economy since WWII, but should we make a bet that it will continue in that role for the next 50 years?

@rob_berger 3 жыл бұрын

My 3-Fund Portfolio Article: robberger.com/three-fund-portfolio/

@chipsndiptrio 3 жыл бұрын

Hi ya Rob . . . have you posted your "notes" from this presentation yet? If so, where can I find them? Thanks for all you do as well!!!

@rob_berger 3 жыл бұрын

@@chipsndiptrio Here you go: robberger.com/three-fund-portfolio/

@chipsndiptrio 3 жыл бұрын

@@rob_berger Thanks much. Please send your bill to my wife's attention.

@rob_berger 3 жыл бұрын

@@chipsndiptrio :) The best things in life are priceless!

@donh8223 3 жыл бұрын

@@rob_berger The biggest thing that confuses me when investing for the long haul is why you need to be diversified at all. Why would anyone need anything other than one good total market index fund? I mean, let's compare 2 funds, one is 100% SWTSX and the other one is 80% SWTSX and 20% Bonds. OK, so the market goes down 30%, how does that help the fund with 20% bonds? Sure, fund number 2 with 20% bonds doesn't go down as much, but if you're investing for the long term, you're not gonna touch that money anyway, right? And that means you're gonna miss out on lots of upside growth when the market recovers if you've got 20% bonds, right? Is it just a matter of helping people sleep at night? Or something else? What am I missing?

@the_wiki9408 2 жыл бұрын

You are doing 50% US total stock and 30% Total world stock ratio. That is 62.5% US / 37.5% World. Vanguard has a Total World Stock Index (VT) That already essentially combines these two funds with a 60/40 split. So you could get to essentially the same place with only 2 funds, VT and BND.

@MRkriegs 6 ай бұрын

Hes talking about what a traditional 3 fund portfolio would be.

@johnbrown1851 2 жыл бұрын

You're like the wise uncle I never had, Rob! Appreciate the education ✌️

@emilj726 Жыл бұрын

Great video! I have a 3 fund portfolio with Schwab: SWPPX-S&P 500, SWMCX-US MID-CAPS and SWSSX- SMALL-CAPS. I just have it automated where monthly I contribute equal amount to each index.

@byuvar 5 ай бұрын

VOO performs slightly better than SWPPX

@cvinthe2255 2 жыл бұрын

I thoroughly enjoyed this video. I wish I had been taught this back when I started investing. Thank you for taking the time to explain this investing approach clearly. The tempo, tone and graphics of your delivery are perfect. There is no fluff or unnecessary information. You now have a new subscriber.

@stevencarlyle 3 жыл бұрын

Very helpful for a single woman who is starting to invest in her children's future. I will recommend your channel to others. I love the page "portfolio visualizer".

@andyk4972 2 жыл бұрын

Fantastic context Bob…. Presented in an exceedingly kind and forgiving way. Thank you.

@torchy187 3 жыл бұрын

VTI has you covered. No need for international. Bonds are going to be making very little as interest rates rise.

@MRkriegs 6 ай бұрын

🙈🙈🙈

@niklaslehner996 Ай бұрын

Just would like to note that for most European investors a two fund portfolio is already tax efficient, 1 global stock ETF and 1 bond ETF in your functional currency or global.

@remowilliams7569 3 жыл бұрын

Vanguard Wellington fund and Vanguard Wellesley Income (50/50) crushes the 3 fund portfolio with 5% less volatility. All without the need to ever rebalance. Also generates 4x as much income as the 3-fund portfolio.

@stephanien6237 2 жыл бұрын

What are you basing this on? The Wellington fund is not even 4 years old yet (inception November 2017). So you are basing their returns of this fund only 4 years of data?! Also, the expense ratio of the Wellington fund is about 8.5 time higher than the Vanguard total stock market index fund-0.34% for Wellington vs 0.04% for VTSAX! This will eat away at your personal return year after year. Please show your data comparing portfolio returns on $10k for 1, 3, 5, 10 years and longer (which unfortunately you can’t with such a young fund) and account for the drag of the extra expense ratio. Show *with data* that your 50:50 split *crushes* the three fund portfolio, please. I would love to be convinced… I’d love to see the side by side comparison of your 50:50 vs Rob’s 50:30:20 in terms of personal return. Short term and long term.

@1amanomad 2 жыл бұрын

@@stephanien6237 the Wellington I believe is one of if not the oldest funds around. There is data going back to the 1920’s. I would like to hear Rob’s opinion on those funds.

@devin1053 11 ай бұрын

Explained clearly and accurately. Was having some confusion around bonds until watching this. Thank you!

@baybay7898 3 жыл бұрын

Your videos are all straightforward and to the point. Will recommend your channel to my daughter who is just started her career.

@ericjuli6576 3 жыл бұрын

I've been emulating this with VOO VXF VXUS and BND. Added the VXF to get some mid-small cap exposure. Happy with is so far.

@JoeC5050 3 жыл бұрын

long term returns of VTI is same as VOO+VXF. Last year VXF did well and many will tend to use small caps. For simplicity VTI+VXUS+BND is just fine.. sometimes I feel VUG+VXUS+BND is fine

@ericjuli6576 3 жыл бұрын

@@JoeC5050 I wasn’t very clear. I use VXF to overweight mid/small cap (compared to VTI

@alex182618 2 жыл бұрын

Clear video. I personally do not understand bonds, emerging markets, or small caps. But S&P 500, Russell 1000, Utility index, and international developed market I understand and feel comfortable with. The reason why I don’t understand emerging market is because it includes the most ancient civilizations such as China, India, and others. These civilizations have been existing for thousands of years and yet they are “emerging markets.” I don’t buy it.

@user-be1tz1pk6u 6 ай бұрын

Rob, your videos are both, timeless and priceless: please keep them coming!

@IVMTAB 2 жыл бұрын

I can’t believe I just now found your channel on KZfaq. Thank you for sharing your great knowledge. Subscribed.

@jimclark5037 Жыл бұрын

I wish youtube existed with this advice when I was a kid in the 80s and my HR department told me I had a 401k! My father was a machinist and mother a nurse, they knew about savings bonds and cds ... investing in the stock market was something the rich people did and was completely foreign to me

@magical1717 2 жыл бұрын

Just found your channel yesterday, your videos are so helpful to a newer investor in 50’s. Would love some more videos on getting started late to investing:) Thank you!

@staceys1870 Жыл бұрын

I am in my 50s and a new-ish investor as well. Do you have any other good references to pass on to me? Thank you!

@tomgaynor3702 2 жыл бұрын

You are an advisor for the everyman! Great job!

@robertdewar1752 3 жыл бұрын

This guy is correct imho. The lower the number of funds (or in my case investment trusts) the better, although i would have 4 as a minimum and 8 as a maximum. It is also a lot easier to get in when prices are low after corrections, crashes etc. Also, for this reason don't forget to hold some cash.

@teresaramos1719 2 жыл бұрын

Thank you for that..wish someone had explained this to me 20 years ago. ❤

@aaronbell5743 7 ай бұрын

I asked my money manager why not have a 2/3 fund index portfolio. Here was his reply, would love to get your take Rob. Because that's not a diversified portfolio. There are dozens of indexes that exist. If you only pick one or two of them chances are at some point in time you're going to be extremely disappointed. People are their own worst enemies and if they don't have a good investing experience they are not going to stick with their investments. We spend more time counseling our clients on having the right behavior when markets tank than we do anything else.

@mistermatsuda 3 жыл бұрын

Bogleheads love this combo. I use a 2 fund portfolio, VTSAX and VBTLX. I was 100% VTSAX initially, now 70/30.

@crimsonpearl4686 2 жыл бұрын

What the hell is a "boglehead"???

@geoffgordon9569 2 жыл бұрын

@@crimsonpearl4686 financial followers of the late Jack Bogle. Founder of the Vanguard Group of mutual funds.

@emue229 3 жыл бұрын

Yes but this 3 fund portfolio earns 1.75% yearly yield, which can be taxable. So that doesn't serve well for desired growth of money

@mjiles85 2 жыл бұрын

Thank you for the research you do for these super in depth videos. I'm new to the channel and I've been enjoying learning from you. Thank you.

@gardeningandgrowing6357 3 жыл бұрын

Great video Rob. Very informative as are all of your videos. I wish I had seen this years earlier.

@urbanart7325 3 жыл бұрын

How would you edge the market? Would you buy gold? What are best non correlating investments to stocks?

@mrberhalter191 Жыл бұрын

Diversifying my investments into different assets maximized my profits for me, and also getting a proper management for my investments helped too. My weekly profits increased to over $30,000 when I started investing in dividend stocks, index funds, cryptocurrencies, REITS, and stocks From various sectors in the market.

@rodolfo-gh6rh Жыл бұрын

Diversification is definitely key, Investing means long term, it means exposing your funds into different asset classes and not just cash but rather inflation beating asset classes. It's a process and it takes patience.

@mrberhalter191 Жыл бұрын

It’s definitely not an easy process, and i agree a lot of patience and discipline too is needed.

@carltube628 Жыл бұрын

I just want to know, how do you manage your portfolio properly? I’ve been learning how to invest in stocks and crypto but it’s been challenging managing them.

@mrberhalter191 Жыл бұрын

I’m very intentional when it comes to managing my investments, I don’t do it alone because I’ve made a lot of mistakes, I usually work with financial advisors experienced in managing funds and investments, currently I do all my investments with William Stanley PJ.

@davidlancer6237 Жыл бұрын

@@mrberhalter191 Your portfolio is properly diversified I must say, and this would compensate for volatilities in the market.

@timeveritt3659 Жыл бұрын

Very nice. Have been a Vanguard boglehead for decades. Would have been very helpful if you compared the n-fund portfolios in Portfolio Visualizer and explained the difference in standard deviation and sharpe ratio between them. The risk adjusted returns is a big reason to build out the portfolio as you have done with asset classes known to reduce risk due to how much correlation there is between them. Really good stuff though. Enjoy watching your videos and well done explanations.

@jaydee5799 3 жыл бұрын

I'm in Canada with some USD in a tax-deferred account... wasn't sure how to deploy my cash but this video helps! Thanks again Rob, really appreciate your pragmatic and detailed explanation to deploy a logical (and very simple) strategy. Keep up the great work, you are doing a good service.

@kevinhaskins6619 2 жыл бұрын

Thanks Rob.... 5-Fund portfolio for the taxable, 6-Fund portfolio for the Roths.

@izik6894 3 жыл бұрын

Fantastic content! Exactly what I was looking for. You should have millions of views by now. Anyways Thank you!

@lw9936 3 жыл бұрын

I like this topic and that's what i was looking for. thanks Rob!

@justforfunphotography01 3 жыл бұрын

Can you do a video or offer advise to someone who has already retired but does not plan on making any withdrawls for another 10 to 15 years with no more money going in to the plan? Can you point me in the right direction? I just ran into your videos and really enjoy the information and presentation.

@brettbonifay9620 2 жыл бұрын

Best video I’ve seen that breaks down the 3 fund/ETF portfolio. Just sent to our 3 kids - 1 in high school, 1 in college and 1 about to graduate college. Fingers crossed they follow the advise. We have Schwab and TSP accounts - wish they had a one button rebalance option as well. Great feature in M1 Finance. Thanks for the insightful videos

@raziel2215 2 жыл бұрын

I have TSP, love M1 been using it for over 2 years and open an account for all my 5 kids, hopefully the follow too.

@raheelakhtar7 9 ай бұрын

They’re all in Crypto 😂 (hopefully not)!

@DMS20231 6 ай бұрын

I don’t really get investing in bond funds. I’ve never seen them do particularly well even when they’re doing okay. And when they suck they truly suck.

@joshuabettin276 Жыл бұрын

I was very sceptical as I saw the title of the video but it made me curious and at the end it was a video worth watching.

@CandaceHoskins-RodanandFields 2 жыл бұрын

Lol, love the "it's not broken. Let's get back to the portfolio." Thank you for the information.

@emayhand 2 жыл бұрын

Rob, this is so good! You've earned a new subscriber in myself. Thank you for putting it where us goats can get it!

@jonathanrolon7457 3 жыл бұрын

I’m confused I literally just watched a video of yours calling indexed funds for losers and then you say that they outperform. Unfortunately, trying to sound less harsh here, there are several funds that outperform indexed funds. Please, be careful not to misinform and confuse retail investors. Your advice is POWERFUL.

@guillermomartin8248 3 жыл бұрын

Which funds were those?

@ebelen1 3 жыл бұрын

Finding your videos to be very thought-provoking for me as someone preparing for an early retirement. What I appreciate is that you make some complex ideas much easier to understand. Thanks for what you do!

@Weirlive 3 жыл бұрын

Love M1 Finance.. it’s just so easy to use

@ryanferran3431 2 жыл бұрын

I really liked the info on reits in tax savings account. I’m learning so much on KZfaq, thanks for what you do.

@MikeBrownphx Жыл бұрын

Great video. Thank you for taking the time to put this together. I've been torn on should I buy the top ten large cap stocks or go with an ETF. The diversification a ETF/Mutual can provide is unbeatable and in today's world cheep too.

@imdoc7872 2 жыл бұрын

My 401 k is in an aggressive mixed which has large, mid, small caps with fixed rate and bond portfolio. It has gotten me about 12-14% returns. I just opened a deferred comp plan which I’ve allocated 90% into an index that mimics the s&p 500 and 10% in short term treasury bonds. I cant wait until next year to compare my deferred comp to my 401k. Good video btw mate

@1499Erick 3 жыл бұрын

Just found your channel. So far this may be one of my favorite videos of yours. It really highlights the main aspects of investing, be diversified and keep it simple.

@user-vf1yz6uq9s 10 ай бұрын

Hi Rob. What about investing in technology, say something like QQQ, instead of international stock VXUS. I realize there is a lot more volatility, but QQQ has performed well over time.

@Jack51971 6 ай бұрын

I am 62. Everywhere you go what do you see? Computers and cell phones. Do you see the companies you take for granted Walmart? Home Depot? Apple computers? Mastercard? Chipotle? United Health Group? You buy these stocks and hold them 5 10 or 15 years or more. You do not panic sell or trade excessively. If you buy 10 good companies and hold 10 years you will be fine. Some of thise 10 may tank but the others will do so well you will forget the laggards. Warren Buffet is 90 and made most of his wealth the last 30 years. How do I know these things! Making mistakes and learning. Stay the course...when the market tanks buy more shares and hold!!!❤️🙏😊

@davidknecht Жыл бұрын

Rob, great stuff. Two questions: 1) Why are bonds worth having in any long-term portfolio? In Jeremy Siegel's book Stocks for the Long Run (6th ed., pg 42), he shows how over any 10+ year holding period stocks' real returns historically outperforming bonds. Additionally, any historical analysis of a stock/bond portfolios always includes that magical bond bull run from 1980 to 2008 where interest rates dropped from 20% to 0.25%. A period of time that is not likely to be repeated anytime soon where interest rates just came down, down down and bond prices just went up, up , up. Lastly, while I have not run the numbers, I would be willing to bet that the weighted average financial leverage index (ROE/ROA) (not financial leverage ratio) for the aggregate of all S&P 500 companies is greater than 1.0 (which would explain Siegel's graph). If true, that means that in the aggregate all companies are getting a higher ROE than ROA. That means they are using their debt capital to get a higher shareholder return than they are paying debt holders to borrow their money. That means if I can choose whether to invest in their equity or their debt, I should choose their equity, not their debt. Question 2) Why do I need any foreign equity exposure if I buy an S&P 500 index fund? The estimated revenue from all S&P 500 companies is 30%, according to SPIVA. Why would I want more foreign exposure than that? I would love to hear your take on both of those topics. I value your intellect and research. Keep it up. Thank you.

@clintonbaker947 2 жыл бұрын

Fantastic exactly what I was looking for. Thanks Rob

@yannip2083 3 жыл бұрын

Excellent video, Rob! You are THE BEST!

@mikeabuckner 3 жыл бұрын

Excellent video. I look forward to every new video. I am early in retirement, and now wish I have taken a similar approach to the one shown in this video. I have several brokerage accounts. I have ended up with too many individual investments. I use a spreadsheet to keep track of it all. My best returns have come from simple broad funds that are left alone. My main uncertainty these days is allocation of bonds in low yield and rising rate environment. Thanks again for your great work.

@mruback3 3 жыл бұрын

Rob: Before I ask my question, I want to say that I am a big fan. However, I do have a question about holding bonds in a portfolio. Bond coupons are at an all-time low. When bond coupons revert back to a normal level (like 5%) the value of the underlying bonds will suffer. With that as background, help me to understand how bonds (or a bond index fund) can help a portfolio.

@linkbelt111 2 жыл бұрын

Sounds to me like you already know the answer, you’re just looking for reassurance?

@Bokescreek 2 жыл бұрын

I'm hoping Rob will respond to this question--it's my question, too.

@kevinbarry3723 2 жыл бұрын

@@Bokescreek It's my question also.

@michaelmoreton5042 2 жыл бұрын

At the moment, Bonds are just VERY slightly better than putting your money beneath the matress.

@drunkmasterOK 2 жыл бұрын

still no answer (( @rob berger please be so kind to say a word )

@JoeKoppel 3 жыл бұрын

Thanks Rob, this video is very helpful. I just implemented the 5-Fund Portfolio

@jalmiah1 2 жыл бұрын

I’ve been thinking about simplifying my approach to investments ( someone in their 60's) and like the 3 to 6 fund approach. More on the the topic of investments paths for this age group would be fantastic!

@robertvittetoe6158 2 жыл бұрын

I’m in the same boat. I have managed retirement accounts that I don’t ever need to touch. I want to leave them where they are and start new investments on my own. These investments I start on my own will be taxable accounts. I started this month with Vanguard VFIAX. $3000 initial investment and $200 a month for now. I just turned 62 and plan to start social security at 65 with half of it going to these new investments. I just don’t know where to go from here. Not sure if this 3 fund strategy is the same for taxable accounts. Advice for folks in our age group would be great!

@mrwelch2004 2 жыл бұрын

Great advice. I'm hammering this type of advice into my kids in their early 20s.

@ankitgupta2180 2 ай бұрын

Such an excellent video. Great simple presentation. Thank you Rob!

@gerilaforte1266 11 ай бұрын

Do sensible; just love that you share your wealth of knowledge and information! 😊

@rjb7260 Жыл бұрын

This information is extemely valuable at my point in life age 62. Your style of teaching is so calming and simple *in a good way it keeps my attention! AWESOME Video Rob!

@samuelsantiago3229 2 жыл бұрын

Unless you’re ready to retire, buying bonds is like putting your money to sleep.

@marshallhosel1247 Жыл бұрын

Thoughts on 5 fund approach: BND (Total US market bond), VOO (Large cap blend), VTV (Large Cap Value), VYM (High DIV yield fund), VBR (Small cap value). 20% each. Value weighted and more US focused. 35 year investment horizon.

@rob_berger Жыл бұрын

You're making a BIG bet on value. I love value, but you've effectively got 60% weighted to value (VYM is a value fund).

@SumOneSomewhere Жыл бұрын

Thank you! This was the most informative video I have found. Subbed

@AlexLewisLnk Жыл бұрын

Thanks the great explanation. You're videos have been so infomative for me. I have started using your 6-fund pie for my genereal investing and implimented the same philosophy with my 401k Funds. I'm using the 120 age rule to calculate the bond percentage, then calculate the equity percentages from the ratio of just the equity funds in the 6-fund pie. Since my 401k does not have a Real Estate Fund, I replaced it with a Mid Cap Blend fund.

@kellymorvant 2 жыл бұрын

Great show Rob! Thank you very much for sharing your knowledge.

@sethw997 2 жыл бұрын

Oh yeah👍.. watched your VTI vs VOO vid. Made my choice. Bought a couple books.. Like to learn about M1 finance.

@chuckfoster1945 Жыл бұрын

I like your approach. Straight forward & sinple.

@TheMatadore 5 ай бұрын

Nearly every company in the S&P 500 is a global company. International funds have NEVER outperformed the S&P 500 over the all time.

@spiritjourneyme1 3 жыл бұрын

You are wonderful, thank you very much. So glad I found you!

@JosephDickson 3 жыл бұрын

My Roth IRA 5 Fund portfolio is similar. VOO, VO, VB, VNQ, BND at 20% each, dollar cost averaging in weekly. My regular brokerage account is a bit more haphazard at the moment but I'm thinking of settling on... VTI, VTIP & VWO. Currently that brokerage accounts has 11 investments, Decision fatigue has set in and the result is me overthinking which one of those gets the deposit.

@allenschroers7116 8 ай бұрын

Good info on 3 - 6 fund portfolios. I was reluctant to enter my SSN to create an M1 account just so I could access your portfolio samples.

@racsob73 Жыл бұрын

This is the best content you have created.

@mmabagain 2 жыл бұрын

How about a 2 fund portfolio? VT- Total World Stock and BNDW- Total World Bond

@martinhanson4342 2 жыл бұрын

Just found your channel--so I have a lot of "catching up to watch!" I currently have a financial planner that I am paying a pretty penny to--I knew it was too much before I watched your episode on fees eating your retirement savings--so looking into M1, which I had never heard of before I found your channel. We are in retirement for 2 years now. Can you do an episode that would address a "3 Fund Portfolio" for those of us already in retirement? Thanks for sharing your insight with us wanna-be financial experts.

@Tbay007 2 жыл бұрын

I have my funds at 75%(US), 20%(international), and 5% (bonds). This is because I am younger, and I am not planning on touching it until 20 years from now. You will want to adjust the percentages the older you get though.

@DrGoldieMD 2 жыл бұрын

This video was incredibly helpful. Thank you.

@bridgecross Жыл бұрын

This might be a silly question, but; if you find a single mutual fund that has the same balance of investments as the portfolio you want, is there functionally any difference? example: Vanguard has very low expense funds like VBAIX 60/40 or VWENX 60/32/8 if you want a slice of international equities. If you buy a single fund, it seems to be the ultimate auto-pilot. The fund managers rebalance the investments. You don't need to do it manually, or set up a robo-advisor (with additional fees and terms that might change).