SCHD income, VTI core and QQQM growth. % as follows. 50, 40, 10. I'm 74 and have been investing in stock mkt for 50 yrs. This is my actual portfolio since retiring in 1999. Good investing to all. Fish.
With some hand waving, SCHD (effectively US large cap Value) + QQQM (effectively US large cap Growth) = VTI (effectively US large cap blend). Not going to hurt anything, but it makes little sense to hold all 3. We actually jokingly refer to this as the "RUclips 3 Fund Portfolio" because the accidental mental accounting is so rampant.
The only 2 ETF's i ever need are VT and BNDW. They cover both stocks and bonds, and give me maximum diversification, all at market cap weight. It's beautiful
Leverage was a significant issue with people using margin when buying stock when the U.S. Stock Market plummeted in 1929.Thanks for another great video.
@@DK-pr9ny Got*. Recency bias. Both large cap value and small cap value have greater expected returns than large cap growth. Plus, again, VGT is already inside VOO at a relatively huge weight. No need to overweight it further, particularly for a retiree. I personally actually diversify AWAY from tech because that's what my human capital is in. Lastly, remember past returns do not indicate future performance.
@@OptimizedPortfolio one question, JEPI and JEPQ make money if market is going side ways. what happens at a 10-20% crash? it will crash as well or goes sideways since it is covered calls?
I've sort of compared those tangentially in the videos I did specifically about some of those individual covered call funds like QYLD, JEPI, etc. I'll also do a video on dividends sometime on the future that will touch on this idea.
Love the content but wish you had delved deeper into the high income funds vs selling shares conundrum. 64, retired and current pf has similar allocations but more high income components than share sellers...not sure where that lands on the risk spectrum given you prefer the latter.....thanks
I have JEPI, JEPQ, BSTZ and going to add SVOL and TLTW for massive dividends. Last I will add SPHD, DIVO and QQQ. I am then done and will never touch it again. Makes my house payment now!
What's your opinion of the Vanguard Life Strategy Etfs? You can do 80/20 60/40 or 40/60 dist or acc. Looks pretty handy. Also what about the new ishares ibonds? Pretty easy to build a bond ladder although the composition tends to lean more towards corporate bonds.
I like those products for simplicity. iShares also recently launched the first target date ETFs that I did a video on. I also did one on their asset allocation fund AOR.
I switched to gld from gldm and vfitx for govt and got the time frame back to 2011, honestly the returns and metrics are pretty bad compared to vanguard's Wellesley and retirement fund vtinx, which funds did you use to get 10 and 25 year returns? Thanks
@@EmmanuelChaves92 Depends on your personal goal(s), risk tolerance, and time horizon. I delved into asset allocation in a separate video here: ruclips.net/video/H3xgPGQiLYo/видео.html
These videos don’t have a lot of purpose if you’re 60 years old ready to retire you have a portfolio filled with positions that if you sell you get killed in Taxes how are you able to utilize this strategy without getting slaughtered in taxes?
How's that? 1) Most retirees are in a low tax bracket, which would apply for a Traditional IRA. 2) A Roth IRA would have no tax implications. 3) In a taxable account, qualified dividends and sold positions would be taxed as long term capital gains. 4) Interest from treasury bonds is free from state taxes. What assets and account types did you have in mind with a lower tax burden?
@@OptimizedPortfolio not true on the los tax bracket come visit Florida. And your stating the obvious about IRAs. And why would you put all your money in low tax products in a IRA? And some of your ideas don’t leverage an IRA. Two topics existing investment strategy and new cash. And why would someone sell great positions in a ira paying big dividends for these ideas?
@@sss1st Use more precise verbiage and complete sentences. Can't understand what you're saying. Again, if you have assets or account types in mind that magically have a lower tax burden, let me know. Best of luck.
@@OptimizedPortfolio you video is ok some interesting positions but the strategy would be awful on many levels. You are over simplifying it when you could make more realistic content.
@@sss1st For the 3rd time, feel free to enlighten me with your specific ideas of why my proposed ideas are "awful on many levels" and what would be superior instead of just making vague criticisms. You're also obviously welcome to simply not watch my videos and make your own that are "more realistic."
What ETFs (or mutual funds) are in your retirement portfolio? Let me know in the comments.
SCHD income, VTI core and QQQM growth. % as follows. 50, 40, 10. I'm 74 and have been investing in stock mkt for 50 yrs. This is my actual portfolio since retiring in 1999. Good investing to all. Fish.
With some hand waving, SCHD (effectively US large cap Value) + QQQM (effectively US large cap Growth) = VTI (effectively US large cap blend). Not going to hurt anything, but it makes little sense to hold all 3. We actually jokingly refer to this as the "RUclips 3 Fund Portfolio" because the accidental mental accounting is so rampant.
Great concept explanations and ETF ideas. Thanks!
The only 2 ETF's i ever need are VT and BNDW. They cover both stocks and bonds, and give me maximum diversification, all at market cap weight. It's beautiful
Indeed, simplicity is nice. I actually discussed that exact portfolio here: ruclips.net/video/_jBhC83yiH8/видео.html
@@OptimizedPortfolio oh wow! right on man, we think alike!! I can't say every boglehead or index fund investor likes these.
@@doomshallot4203 Agreed, I think they get overlooked too often.
Believe it's too conservative but to each their own. SCHD is good alternative to bonds
VT, SCHD, VOO
Thanks for watching!
Fantastic segment !!
Thanks, Sean!
Leverage was a significant issue with people using margin when buying stock when the U.S. Stock Market plummeted in 1929.Thanks for another great video.
Thanks, David!
@@OptimizedPortfolio You are most welcome!
VOO + GLDM and chill in retirement.
Thanks for sharing!
What the heck. You deserve at least 100k subs.
Hah thanks, Raj! :)
Another great analysis!
Thanks, Christian!
What about schd / VYM / and VIG ?
I found this video to be quite informative.
Glad to hear it!
VOO, SCHD, VGT, AVUV, AVIV, VICI, FBND. You need to add a little tech in your breakdown.
The market is already over 1/4 tech and sector bets are just stock picking lite. No thanks.
@@OptimizedPortfolio Hard to deny the returns you get from VGT vs. VOO though..
@@DK-pr9ny Got*. Recency bias. Both large cap value and small cap value have greater expected returns than large cap growth. Plus, again, VGT is already inside VOO at a relatively huge weight. No need to overweight it further, particularly for a retiree. I personally actually diversify AWAY from tech because that's what my human capital is in. Lastly, remember past returns do not indicate future performance.
I found this video to be quite educational
Glad to hear it!
Excellent 🙏🏼🙏🏼
Thanks, Andre!
@@OptimizedPortfolio one question, JEPI and JEPQ make money if market is going side ways. what happens at a 10-20% crash? it will crash as well or goes sideways since it is covered calls?
@@andreattai7481 Goes down also. See my video posted today about covered call funds.
What about the income funds? A comparison between income funds and selling shares would be interesting.
I've sort of compared those tangentially in the videos I did specifically about some of those individual covered call funds like QYLD, JEPI, etc. I'll also do a video on dividends sometime on the future that will touch on this idea.
@@OptimizedPortfolio Great looking forward to it!
Love the content but wish you had delved deeper into the high income funds vs selling shares conundrum. 64, retired and current pf has similar allocations but more high income components than share sellers...not sure where that lands on the risk spectrum given you prefer the latter.....thanks
Maybe I'll make a future video on that topic. Thanks for the suggestion.
Why do you recommend short-term TIPs but intermediate term (non-TIP) Treasuries?
Because inflation is experienced over the short term.
I have JEPI, JEPQ, BSTZ and going to add SVOL and TLTW for massive dividends. Last I will add SPHD, DIVO and QQQ. I am then done and will never touch it again. Makes my house payment now!
Thanks for sharing, Robert!
GREAT video! Very very helpful summary! Thank you !
Glad it was helpful!
Nice to know the fees but would be VERY NICE to also KNOW the DIVIDENDS being PAID?
Dividend yield changes constantly and dividends are a net zero event, but thanks for the feedback.
How about QYLD or covered call ETFs?
I've covered some of those in other videos on the specific funds themselves, like QYLD here: ruclips.net/video/Tl92gZ9-bIE/видео.html
Not a fan personally.
What's your opinion of the Vanguard Life Strategy Etfs? You can do 80/20 60/40 or 40/60 dist or acc. Looks pretty handy. Also what about the new ishares ibonds? Pretty easy to build a bond ladder although the composition tends to lean more towards corporate bonds.
I like those products for simplicity. iShares also recently launched the first target date ETFs that I did a video on. I also did one on their asset allocation fund AOR.
Thanks for the hard work. What is the 10 year average return for this simple portfolio thank you.
Thanks for watching! Average 10-year rolling return of roughly 6.8% over the past 25 years for the complex one and 6.4% for the simplified version.
@@OptimizedPortfolio What mutual funds or ETFs did you use to get this result? The ETFs you gave in your example aren't that old.
I switched to gld from gldm and vfitx for govt and got the time frame back to 2011, honestly the returns and metrics are pretty bad compared to vanguard's Wellesley and retirement fund vtinx, which funds did you use to get 10 and 25 year returns? Thanks
???
Why not use the Vanguard small cap value funds? Much lower fees.
www.optimizedportfolio.com/small-value-showdown/
Great video!! Do think is it going be a good option for a Roth IRA portfolio? How do you consider balancing 60/40 in case of young investor?
Thanks! These will be fine in a Roth IRA. I'm not sure I understand your 2nd question.
I was just wondering instead of 60/40, use this as 90/10 portfolio.. do you think that make sense this change for a young investor?
@@EmmanuelChaves92 Depends on your personal goal(s), risk tolerance, and time horizon. I delved into asset allocation in a separate video here: ruclips.net/video/H3xgPGQiLYo/видео.html
Retires need higher dividends, not growth?
Nah.
VGSH over GOVT.
why? why short instead of intermediate? he has always said that duration of bonds should match duration of portfolio
2 different things. One is short and the other intermediate.
I wish youtube would allow showing downvote count. I'm curious.
98% Likes and 364 of those so that makes 7 Dislikes.
Vtsax
Thanks for watching!
These videos don’t have a lot of purpose if you’re 60 years old ready to retire you have a portfolio filled with positions that if you sell you get killed in Taxes how are you able to utilize this strategy without getting slaughtered in taxes?
How's that? 1) Most retirees are in a low tax bracket, which would apply for a Traditional IRA. 2) A Roth IRA would have no tax implications. 3) In a taxable account, qualified dividends and sold positions would be taxed as long term capital gains. 4) Interest from treasury bonds is free from state taxes.
What assets and account types did you have in mind with a lower tax burden?
@@OptimizedPortfolio not true on the los tax bracket come visit Florida. And your stating the obvious about IRAs. And why would you put all your money in low tax products in a IRA? And some of your ideas don’t leverage an IRA. Two topics existing investment strategy and new cash. And why would someone sell great positions in a ira paying big dividends for these ideas?
@@sss1st Use more precise verbiage and complete sentences. Can't understand what you're saying. Again, if you have assets or account types in mind that magically have a lower tax burden, let me know. Best of luck.
@@OptimizedPortfolio you video is ok some interesting positions but the strategy would be awful on many levels. You are over simplifying it when you could make more realistic content.
@@sss1st For the 3rd time, feel free to enlighten me with your specific ideas of why my proposed ideas are "awful on many levels" and what would be superior instead of just making vague criticisms. You're also obviously welcome to simply not watch my videos and make your own that are "more realistic."
Great concept explanations and ETF ideas. Thanks!
Thanks so much, Greg!