A barbell strategy including 5-8 years treasury funds in short, intermediate , short term tips and 70% stocks would let me sleep well through bear markets. See John Clements blogs as he uses VT for stocks. Vanguard Wellington 2/3 stock or Wellesley 1/3 stock have also had a very long track of outstanding performance
That barbell strategy sounds like a reasonable strategy to me, thanks for sharing! I have a family member that has been using the Wellington funds at vanguard and has done very well. I still don't like active funds, but they seem to be some of the best :)
Hearing this makes gold sound like a more reliable way of preserving one's wealth while still getting a modest growth increase. Historically speaking, gold has never experienced a fifty percent drop like stock and bond markets.
Agree, I think gold is a reasonable option for preserving wealth. I do own gold and will likely increase my allocation some in retirement. I don't currently count it in my asset allocation, since I consider it more like an alternate emergency fund at present.
B.R. Yes, you are correct, but it costs money to buy AU and it costs a commission to sell gold. when you look at whole scheme of things VTSAX and or VBIAX are better ways to go. For long term VBIAX, Vanguard Balanced Index Fund is probably best, followed by VTSAX. For shorter terms, say 3-5 years, VWIAX is probably way togo.
Gold miners provide dividends. Even W Buffet stays away from it. Used to have 5% allocation. Didn’t work as a hedge for inflation. Will take my chances with VTI.
Great video Nick; thanks so much. I agree that the probable best way to go is a three-fund portfolio. It takes a little more effort but should result in a higher rate of return over the years. I'd probably go Vanguard's VTSAX (for US Stocks); VBTLX (Or maybe VSCSX in an interest rate increasing market) and Vanguard's Total International Stock Market Index Fund (VTIAX, I believe is the Ticker). Alternatively, do you have any feelings Re: the following traditional Balanced Funds: VWENX, VWIAX, FBALX, FPURX, DODBX, and let's throw in Price's PRWCX. Oh, I suppose we could add Oakmark's OAKBX, but I think overall the choice is between VWENX and FBALX (or Fidelity's FPURX). In a traditional balanced fund I think I'd probably convert over from VWENX or FBALX to Vanguard's VWIAX when one attains age of 65 or so! Again, great video Nick; thanks so much.
Those balanced funds are all actively managed. Of the lot, I like the Vanguard funds the most (managed by Wellington). They have performed very well, but who knows if that will continue. I really like the LifeStrategy funds for a balanced strategy, but would mimic them myself with a three-fund portfolio (using the funds you mentioned). Thanks for watching and the feedback!
you are probably better off financially with the 3 fund portfolio. I agree with Nick here 100%. Look at funds like VTSAX and VBTLX or VSCSX. The extra couple hundredths percent saved on fees with the 3 fund portfolio will add up to thousands over one's investment horizon
@@nickdoyle-achievefinancial2464 , another strong possibility would be VBIAX, Vanguard Balanced Index Fund. Annual fee is very low, 0.07%, around 1/2 that of the Wellington managed funds (VWIAX and VWENX)..
Hi Franklin, I should make a video on this since it would take a bit to fully explain. The TLDR is I think it's a good strategy if it makes you feel more comfortable. I personally don't see a great benefit to it versus just managing your overall asset allocation in a way that produces a similar allocation, but I think it helps some people feel more comfortable. I do think it increases risk of trying to market time / tinker. If I were to use the bucket strategy, I would create rules to follow as to how I would manage it to reduce risk of behavioral mistakes.
Strong man, you are obviously making a point re: 100% Tesla? Obviously you would not be 10-% Tesla but if you were, well, good call, good guess, and hopefully you had a large amount in TSLA! Good post Strong Man.
Thanks for watching everyone! Here are some follow-up videos:
Inflation Protected Securities Explained [TIPS & I Bonds]: ruclips.net/video/aPU5z-NEc_w/видео.html
Three-Fund Portfolio [The BEST Portfolio!]: ruclips.net/video/R81Z-obeB3s/видео.html
Asset Allocation Explained [Modern Portfolio Theory]: ruclips.net/video/QTgvWPAihIc/видео.html
A barbell strategy including 5-8 years treasury funds in short, intermediate , short term tips and 70% stocks would let me sleep well through bear markets. See John Clements blogs as he uses VT for stocks. Vanguard Wellington 2/3 stock or Wellesley 1/3 stock have also had a very long track of outstanding performance
That barbell strategy sounds like a reasonable strategy to me, thanks for sharing! I have a family member that has been using the Wellington funds at vanguard and has done very well. I still don't like active funds, but they seem to be some of the best :)
Thank you, always good information!!!
Thanks Jul!
Thanx buddy!
You're welcome, thanks for your support!
Hearing this makes gold sound like a more reliable way of preserving one's wealth while still getting a modest growth increase. Historically speaking, gold has never experienced a fifty percent drop like stock and bond markets.
Agree, I think gold is a reasonable option for preserving wealth. I do own gold and will likely increase my allocation some in retirement. I don't currently count it in my asset allocation, since I consider it more like an alternate emergency fund at present.
But when you add in the fee to buy AU and sell it I don't think you are as far ahead as you would be with a 3-Fund portfolio.
B.R. Yes, you are correct, but it costs money to buy AU and it costs a commission to sell gold. when you look at whole scheme of things VTSAX and or VBIAX are better ways to go. For long term VBIAX, Vanguard Balanced Index Fund is probably best, followed by VTSAX. For shorter terms, say 3-5 years, VWIAX is probably way togo.
Gold miners provide dividends. Even W Buffet stays away from it. Used to have 5% allocation. Didn’t work as a hedge for inflation. Will take my chances with VTI.
another brilliant video
Thanks, I'm glad you liked it!
Nick's materials are not only sound financially but as well they flow from his Genuine interest in helping others attain success. I trust Nick 100%.
Great video Nick; thanks so much. I agree that the probable best way to go is a three-fund portfolio. It takes a little more effort but should result in a higher rate of return over the years. I'd probably go Vanguard's VTSAX (for US Stocks); VBTLX (Or maybe VSCSX in an interest rate increasing market) and Vanguard's Total International Stock Market Index Fund (VTIAX, I believe is the Ticker). Alternatively, do you have any feelings Re: the following traditional Balanced Funds: VWENX, VWIAX, FBALX, FPURX, DODBX, and let's throw in Price's PRWCX. Oh, I suppose we could add Oakmark's OAKBX, but I think overall the choice is between VWENX and FBALX (or Fidelity's FPURX). In a traditional balanced fund I think I'd probably convert over from VWENX or FBALX to Vanguard's VWIAX when one attains age of 65 or so!
Again, great video Nick; thanks so much.
Those balanced funds are all actively managed. Of the lot, I like the Vanguard funds the most (managed by Wellington). They have performed very well, but who knows if that will continue. I really like the LifeStrategy funds for a balanced strategy, but would mimic them myself with a three-fund portfolio (using the funds you mentioned). Thanks for watching and the feedback!
Great Video Nick,🔥 would you prefer 3 Fund Portfolio or a Target Date Fund? Thanks!
Thanks! I like the three-fund portfolio. Lower fees, more flexible, and tax optimization :)
you are probably better off financially with the 3 fund portfolio. I agree with Nick here 100%. Look at funds like VTSAX and VBTLX or VSCSX. The extra couple hundredths percent saved on fees with the 3 fund portfolio will add up to thousands over one's investment horizon
@@nickdoyle-achievefinancial2464 , another strong possibility would be VBIAX, Vanguard Balanced Index Fund. Annual fee is very low, 0.07%, around 1/2 that of the Wellington managed funds (VWIAX and VWENX)..
i think i like the lifestrategy fund better than the target date
I would prefer them for myself too.
What do you think of a 3 bucket strategy in retirement?
Hi Franklin, I should make a video on this since it would take a bit to fully explain. The TLDR is I think it's a good strategy if it makes you feel more comfortable. I personally don't see a great benefit to it versus just managing your overall asset allocation in a way that produces a similar allocation, but I think it helps some people feel more comfortable. I do think it increases risk of trying to market time / tinker. If I were to use the bucket strategy, I would create rules to follow as to how I would manage it to reduce risk of behavioral mistakes.
Balanced Fund? Target Retirement Fund? Pfffft. I'm 100% Tesla. Have fun being POOR while I collect my 10X Tendies going forward.
Guess I'll be poor and retired while you're reading 10ks and working :-p
when GM/Ford/Porsche/TM and a few others get cranked up in E vehicles you can kiss TSLA goodbye.
Strong man, you are obviously making a point re: 100% Tesla? Obviously you would not be 10-% Tesla but if you were, well, good call, good guess, and hopefully you had a large amount in TSLA! Good post Strong Man.