The Barefoot Investor on Index Funds (what Scott Pape REALLY thinks)

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Күн бұрын

In this video we do a deep dive into the various Index Fund portfolios that the Barefoot Investor has constructed and recommended over the years. For those of you aren’t familiar with The Barefoot Investor, well it's one of the most popular personal finance books in Australia, in fact it's currently #1 best selling book in personal finance.
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Who is The Barefoot Investor?
The Barefoot Investor is now one of Australia's most trusted finance experts, frequently speaking on national TV to provide advice to everyday Australians.
In a nutshell The Barefoot Investor is a no-BS guide to taking control of your personal finances with very simple and practical steps that all Australians can follow. One of the main lessons that Scott shared in the book was to: Automate your retirement planning by investing in Index Funds.
What are Index Funds?
An index fund is just a simple way to invest in a large collection of stocks. An index fund might have thousands of different individual stocks in it but you only have to make one purchase to own a portion of all of them. In a world without index funds, if you wanted to have say a thousand different stocks in your portfolio you’d have to make 1000 separate purchases. If you’re paying $10 per trade that would cost you $10,000 alone just buying the companies, on top of also taking you a lot of time!
Using an index fund is way simpler than trying to self-manage a portfolio of thousands of different companies, constantly trying to re-balance weightings every day. And the best feature of an index fund is in its name, it's the fact that it passively tracks an index. An index is a set of “investment instructions” that the fund needs to abide by, for example an index fund that tracks the ASX200 is tracking the performance of the 200 largest companies listed in Australia on the ASX.
All opinions expressed in the video and this description are for entertainment only. You should consult a licensed professional before buying any securities, stocks, cryptocurrency or digital assets. Everything in this KZfaq channel is for entertainment only.

Пікірлер: 85

@michaelcollins9327 2 жыл бұрын

I love your videos, Michael. I appreciate your thoughts which come across as clear and easy to follow. I will continue to follow you as we move forward in this uncertain world.

@sebastianpabon4688 2 жыл бұрын

Well done Michael. Thanks for sharing this information. I love that you are clear and very insightful, with no fluffiness. Well done and keep it up!

@michael_ko 2 жыл бұрын

🙏 thank you

@lachlandudley7478 2 жыл бұрын

Just started watching these vids recently and they are very well put together. I really appreciate your insights and effort.

@michael_ko 2 жыл бұрын

thanks for watching!

@ThreeTwentyTech 2 жыл бұрын

I love your insight towards ETF's and I enjoy how they are explained in much simpler terms to someone like me who doesn't have the best understanding of investing terminology. If you don't mind me asking, how much have you invested into your ETF portfolio?

@adriankmita 2 жыл бұрын

Thanks for the great video! Great to see a refresher on the idiot grandson portfolio. I think the idea behind the portfolio was dividend income for the long term… so you would never have to sell down your shares. There is no way that could be done with 75% invested in international shares. That is relying on speculation of the share price. You’d also have to sell down shares for income, which would reduce your principal and be subjected to CGT. This defeats the purpose of the portfolio. Keep up the videos. They’re great.

@kabipara3893 2 жыл бұрын

Michael your videos are very easy to flow and understandable with no jargons.. keep up good work 😀

@michael_ko 2 жыл бұрын

Appreciate it!

@aleishahutchings3135 2 жыл бұрын

Thanks for making these videos Michael. Love your content 🥰

@michael_ko 2 жыл бұрын

My pleasure!

@tadz3921 2 жыл бұрын

Fantastic Michael. Just subscribed. Is it wise to invest in overseas index funds considering tax in AU? Do any of these come with franking credits?

@misschristiner 2 жыл бұрын

Hi Michael, I’ve been enjoying your videos. I think the two fund portfolio makes total sense. What do you think about diversifying to specialised ETFs such as ethical and sustainability ETFs and cyber security ETFs? Would love to hear you talk more about these. Thank you!

@JakeMarcin 2 жыл бұрын

Excellent video as always Michael, really good background info on everything

@michael_ko 2 жыл бұрын

Much appreciated!

@liamnguyen2206 2 жыл бұрын

Thanks for your insight as always, Michael! Commenting for the algorithm :D

@michael_ko 2 жыл бұрын

thank you!

@FlavouredFinger 2 жыл бұрын

Love your videos Michael! It would be really good to see you talk about some of the more ethical ETF's and maybe even compare them to some of the big ones that have stake in companies like BHP and the big 4 etc

@michael_ko 2 жыл бұрын

Thanks 😀 Planning to do an ethical investing video soon!

@pnh165 2 жыл бұрын

I agree! I was thinking about this while watching the video. :)

@ElizabethSarah-cl3sc 10 ай бұрын

Smaller, speculative stocks have endured a historically weak stretch. Investors are betting that a turnaround is finally in the works. I’ve lost about $320k within a few months, how do i take advantage of the market turnaround?

@ThomasWilliam-sw8ms 10 ай бұрын

There are many interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell stocks.

@ElizabethSarah-cl3sc 10 ай бұрын

@@ThomasWilliam-sw8ms Having an investment adviser is the best way to go about the stock market right now, especially for near-retirees, I've been in touch with a coach for a while now mostly and I made over $800K within a short time

@ThomasWilliam-sw8ms 10 ай бұрын

@@ElizabethSarah-cl3sc That's impressive! I could really use the expertise of these advisors. how can I get to your advisor?

@ElizabethSarah-cl3sc 10 ай бұрын

@@ThomasWilliam-sw8ms renowned for her proficiency and expertise in the financial market, *KRISTIN GAIL CUNNINGHAM* my financial advisor, holds a broad understanding of portfolio diversification and is recognized as an authority in this domain.

@ThomasWilliam-sw8ms 10 ай бұрын

@@ElizabethSarah-cl3sc Thank you, I just checked her out and I have sent her an email. I hope she gets back to me soon.

@kevinvo6144 2 жыл бұрын

Great summary of all that the Barefoot is known for in terms of shares investing. My thoughts on Barefoot was almost exactly like yours: Says index funds are the best, then goes on to recommend an LIC, and then runs a stock-tip subscription :S. I still recommend his book to beginners, but I always stress that it's a very BEGINNER book, and aimed to try and make things as easy as possible for those who suck with money. Not to mentioned he's skewered the market to AFIC and Hostplus due to the popularity of his book.

@grahamerae3502 Жыл бұрын

Hi mate whate do you think of the asx 200 bought through commsec pocket

@samuelburmeister1358 2 жыл бұрын

Always insightful, thanks 😊

@michael_ko 2 жыл бұрын

My pleasure!

@snoringdragon1980 10 ай бұрын

Hi, could you explain cause i am lay man. Do we buy those 5 stocks of etfs or do we use 5 accounts for that etfs?

@RossellaFanelli 2 жыл бұрын

You’re great such great values from your videos

@DarcyStephens 2 жыл бұрын

Great vids, easy to learn and listen. Keep going my friend

@michael_ko 2 жыл бұрын

Thanks will do!

@alexanderemslie7475 Жыл бұрын

Thanks

@Ryan-dz3jo 2 жыл бұрын

Nice work

@DdHaryaty 2 жыл бұрын

Thanks Mike. It broke down the Idiot grandson really well. Really made me think about simplifying my non super portfolio further!. Would you say Idiot grandson allocations are more income generating?. Hoping to partially retire in 6-10 years so looking to make non super portfolio more income generating and super mainly growth . What are your thoughts?. Thanks again:)

@adamporetti5983 2 жыл бұрын

Hey Michael, love your work, keep it up!! Have you thought of doing a vid on the thematic ETFs setting the world on fire at the moment "ARK Invest"? I'd love to hear your opinions on them from an Australian perspective.

@michael_ko 2 жыл бұрын

For sure! Been following Cathie for a while, I’ll see what I can do ;)

@johndarwin7937 2 жыл бұрын

Than you Michael I think your work is excellent. I would like to all one further dimension to your comments. If you are building a portfolio with the purpose of living an income in A$ you should consider having a portfolio primarily in A$. I certainly do think having a fund with partial in US or China or EU assets but hedged back into the A$. What do you think? John Darwin

@armon9555 2 жыл бұрын

Can you do a video on the best ways for minors to invest? I just want to put a few grand in a long term ETF but it seems so complicated as it pertains to tax implications and the such. It would be fantastic if you could provide some of your insight in this regard.

@user-vx6vb3jx1j 2 жыл бұрын

VAS and VGS are my main holdings. not regretting so far.

@michael_ko 2 жыл бұрын

Can't go wrong

@kostakollaras9099 2 жыл бұрын

Awesome video bro

@michael_ko 2 жыл бұрын

Appreciate it, thanks for watching!

@miniplop1696 2 жыл бұрын

Hi Michael, just wanted to ask, which would you say is a 'better' portfolio to have: VAS/ VGS (40/60) or VDHG?

@michael_ko 2 жыл бұрын

Both great simple options, can’t go wrong with either. Only thing to note is VDHG has a 10% allocation to bonds, which is probably the main thing to consider

@miniplop1696 2 жыл бұрын

@@michael_ko to you, how important is that really?

@michelleliny 2 жыл бұрын

Can you talk about more about invest for kid? The implication on dividends, tax, etc.

@rodneymaslovsky4756 2 жыл бұрын

I have been watching you videos for a while, and currently running with 6 ETF's with nearly equal share across them all, (VHY, NDQ, VAS, A200, WDIV, IVV) yes there is some overlap (VAS-A200) and probably a little too much Aus %. I am thinking to add in a REIT specific ETF but need to do more research.

@scenicrider4667 2 жыл бұрын

Throw in VAP and your set…

@rodneymaslovsky4756 2 жыл бұрын

@@scenicrider4667 ok thanks, I will do some more research on this one,

@michael_ko 2 жыл бұрын

Up to you whether you want to add an REIT or not, either way your portfolio is looking good, as its filled with low fee index ETFs!

@cavemanworld5019 2 жыл бұрын

Are there any good investment products that attract low fees and low brokerage fees if a regular contribution is made per month, eg $500 per month? In NAB, it will cost $15 per transaction for ETF exactly like share trading).

@jackdavidson8604 2 жыл бұрын

Depends what ETFs you want to buy into. Commsec pocket has low brokerage fees, as does open trader (both CHESS).

@Annietheapple 2 жыл бұрын

Another great video! I currently hold VDHG using SelfWealth, but if I start using a different broker like Pearler are there any downsides to having multiple? Also, since I already own VDHG how does this impact if I want to start buying a 2 fund portfolio? Would it change my weightings? Thanks!!

@adriankmita 2 жыл бұрын

Two different brokers would only affect you if you were reinvesting shares with a DRP. They would be under 2 different HIN numbers (obviously it’s also one extra holding to work out income for at tax time) If you were adding the 2 etf portfolio like VAS and VGS on top of that, you would just be adding more growth opportunity long term but also increased volatility in the short to medium term. Basically you’d have less bonds which tend to smooth out the volatility. But with interest rates so low, more allocated to shares could be good. As long as you don’t need the invested money in the short term.

@cynthiakk5966 2 жыл бұрын

Excellent video and better than barefoot investor.

@michael_ko 2 жыл бұрын

Glad you liked it

@Prabhjotsingh-kp6lq Жыл бұрын

Hey man. Where are you gone

@pokeypickle3 2 жыл бұрын

I think VGS is much better than IOO. Management fee of 0.18% IOO at 0.40%, that fee is similar to an Active ETF, not a passive ETF tracking only 100 companies.

@pokeypickle3 2 жыл бұрын

@Elliott 😂 thanks, I was typing too quick and got letters mixed up. Fixed.

@pokeypickle3 2 жыл бұрын

@Elliott you don’t realise how times I say EFT when I really mean ETF. At least I get my codes correct when I buy and sell.

@pokeypickle3 2 жыл бұрын

Your two ETFs portfolio is much better than Pape’s portfolio. Even the allocation % is way better. My mistake in my personal portfolio was not buying VGS until 3 weeks ago. I am hoping to make VGS my core holding over time while my AUS exposure makes my satellite holdings.

@dannnsss8034 2 жыл бұрын

It's not "his" portfolio. It's a very common portfolio 🤦

@johnathanjoestar7129 2 жыл бұрын

Audio is a little out of sync but good content

@kwhatofit 2 жыл бұрын

What if I’m lazy and just want to dollar cost average monthly into VDHG lol.

@michael_ko 2 жыл бұрын

VDHG & chill, never a bad option

@kwhatofit 2 жыл бұрын

@@michael_ko thanks bro. Great video as always.

@dannnsss8034 2 жыл бұрын

The question is, how much AUSTRALIAN index to INTERNATIONAL index.

@rick7081 2 жыл бұрын

Michael I don’t understand why dhhf trades at about $30 compared to vdhg at twice that. Can you offer any insight ?

@michael_ko 2 жыл бұрын

Hey Rick, it's just the unit price of the listed stock. It doesn't really mean anything. Main things to focus on are just the underlying holding allocations!

@Undvne 2 жыл бұрын

I'd love to see an ETF that delves into sustainable technologies etc. The problem I find when looking for one is that if you follow the ASX500 etfs a lot in my opinion are unethical. Would love to hear your thoughts

@w0mblemania 2 жыл бұрын

Ethics are different for every person. One year ago, most people would see investments in the arms industry as unethical. But right now, those arms companies are helping to save people's lives in Ukraine. Investments are about making money. How you do it is really up to you. And keep in mind that "ethical funds" still exist to make people money. They just do it under the guise of environmentalism or fair-trade or whatever. It's still just business.

@w0mblemania 2 жыл бұрын

I really did not get in to the Barefoot Investor stuff. It seemed too gimicky, unrealistic, glib, repetitive. Seems to me that the *real* advice in the book is to ... make money by writing books about investment, and selling them to hopeful people. Barefoot basically says: - buy and own your own home. - double your income. - invest, retire, have a glass of wine each night. So, go buy a home, double your income, live well. That's all there is to it...

@aleighholden8462 Жыл бұрын

Your explanation is realistic and straight to the point . On the other hand there are many ways of manipulating the market . I am glad as a small investor , that I am putting my hard earned savings into the most , better said the only transparent market there is day trading . Big Thanks to Stella Louis for helping me gain over 4BTC with his method lately ..

@Debbiemoris7652 Жыл бұрын

As a beginner in the markets , your best bet is getting an experienced mentor to guide and help you make the right decisions , specifically someone who can handle your capital and help you grow your portfolio

@susannelson350 Жыл бұрын

@@Debbiemoris7652 sure.. that's why I invested with Ms Stella Louis into assets like cryptocurrency and some stocks

@michaelericboney6156 Жыл бұрын

@@susannelson350 You're right,.. her Strategy minimizes risk and maximizes profits . Trading with Stella Louis has been incredible throughout the last few months , and I would recommend her strategy to any one ..

@Margaret_Ruth Жыл бұрын

I stopped applying for a grant loan to pay bills ever since I got her ref, indeed Ms Stella has been a help to me and my entire family

@jamesnalley4629 Жыл бұрын

I always attend her. business seminars in New York every year , she's one of the. best in the game ..