The biggest lesson I learned in 2023 about the stock market is that nobody knows what will happen next, so practice some humility and low a strategy with a long-term edge.
Nobody knows anything; You need to create your process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
@@RodericksCurrys Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
@@CardenasasZoellers My CFA MARGARET MOLLI ALVEY, is a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone navigating the financial market.
I reviewed a portfolio of a family member managed by an “RIA” - had 55 tickers and performed as well as 85% cash /15% SP500 over the last 10 years. The fees, taxes, and opportunity cost for it all was an extraordinary sum
Lump Sum vs. Monthly Pension - I just did this for greater than $2M, and I never imagined how stressful it would be. However, Rob did a great video on the psychology of receiving large lump sums of money. This decision requires an amazing amount of pre-planning. Best
Started working on simplifying a few years ago when a few childhood friends passed in their early 50's, trying to make life easier for the other half if something happens to me. Rolled both TSP and WA Pers2 into an IRA and started making Roth conversions. While I liked TSP funds it was their withdrawal and inheritance rules that caused me to leave. The WA Pers2 would be non inflation adjusted for 11 years since I retired at 54 and it would not pay out till 65. Over the past 3 years I went from 5 retirement accounts, 3 taxable, down to 2 Roth's. Closed multiple old bank accounts and Credit Cards. Went from 3 investment companies to one. While I did it to make it easier for her it made me realize how much time/effort was wasted chasing pennies.
Great Video Rob. I really like this format. I don't think you can ever go "in depth" enough! Early in the video you were worried about getting in the weeds. Get in there! :)
I really appreciate your sharing your own portfolio--it makes things real. (What would be even more helpful as we all sit here comparing our allocations to yours is the size of your portfolio--but I realize that would be inappropriate.) Thanks again for your good work.
My 401(k) has been in one large cap equities fund for a long time. Now I'm less than ten years from retirement, so I'm starting to put money in a bond fund as well so that I'm closer to my 80/20 target when I eventually pull the trigger.
@@rapfreak7797 I am a newbie getting ready to do my first Roth Conversion can you please explain why you would not want to have bonds in your Roth? I understand this would be the last account to take money from so it has plenty of time for growth.
@@karenduplease The purpose of a Roth conversion is to reduce RMDs/taxes. You want your lowest yielding investments (bonds) in your IRA because this account drives RMDs.
Haha!!! Every time my husband settles a case, my question to him is never how much money, but it is always, "how many bankers boxes can we get rid of?!!".
Great content Rob. I simplified all my accounts. I’m doing some forward thinking here to protect my wife should something happen to me. We now have a “gone fishing” portfolio.
Rob asks by break out into 3 funds (i.e. Lge Growth SCHG, Lge Value SCHD, Lge Blend SWPPX). Simple: I want to weight a little more towards Growth right now, so I have more in SCHG. And in the future, if I choose to weight towards value, I'll move to SCHD. It gives me a modicum of control instead of a 50/50 blend.
The pension vs lump sum was of interest. Isn’t there a rule of thumb on lump bs payment? Like a 6% rule? Would have loved to see that gone over with an explanation.
Nice vid! Here's one for the hive mind. I've been consolidating my retirement portfolio for the past 6 months. I am down to consolidating bond funds which at the peak, my advisor had me in 5! I am increasingly falling out of favor with bond funds due to returns, lack of visibility and control, inability to hold the underlying positions to maturity, preservation of principal, etc. I am now looking to ladder with direct investment in treasuries, CDs of varying duration. I'm of course getting push back from my advisory firm as they only structure this type of investment for amounts of $500k or greater! Suggestions? 🤔
there are tools on the web for CD and/or bond ladders. CDs are cash. Returns on that WILL change. Multiple Bond funds (so many!) is ridiculous. Treasuries are best. Durations should match account duration. Multiple funds (between say long and intermediate) is to dial in duration.
[6:52] I noticed you said your stock allocation was going to be 40% for both of the IRA funds. Are you changing your overall allocation or just in these funds?
I missed the first part of the live stream. I have reduced the number of funds but still have more than needed. I also have my current 401k plus 3 seperate rollover IRAs. I will certainly rollover my 401k when I retire. I have VTIP, BSV, VCIT and money market fund. I am thinking dividing BSV between VTIP and VCIT. Do you keep equal amounts between VTIP and BND?
Everyone has their own strategy, but I dumped BND earlier in the year. Bonds have been horrible! I use 2-3 funds in my accounts: SPLG, QQQM are the main ETF's. Some SCHG as well. SCHG yield is at 31% and I bought the dip in Aug & Sept with NVDA and now I'm up 35%....my only individual stock. Buy and hold is not the way to go in this market. Risk management is the only option to maximize.....take profits and reinvest. Being conservative in this bull market isn't a smart move IMO., but do your thing and good luck!
Great discussion Rob. I just wonder . Would your simplified portfolio outperformed your earlier more “complex portfolio “ on the run up to retirement. I’m actual doing the same but I am finding hard to sell stocks and factor funds that have served me well.
I sold out of my winning stocks and took the gains. I find myself tempted to buy them again. I bought some JPM and now feel like I should sell again and keep my ETFs. I manage my son's account and he has one mutual fund (FXAIX) and is up 26% for 1 year and after selling all my stocks I'm up 18%. I don't mess with my son's account but I'm always fiddling with my investments. Hopefully I can leave my account alone and let it grow in the 3 ETFs I own.
content suggestion SWHAB .. there investment income tab has all the wrong info as far as current year income made to date and also 2023 income made and 3 customer service people with Swhab agreed and I am talking fixed income only so it should be simple but there putting out false data !
I always look forward to your live shows Rob. I cannot always make it live due to work, but I always look forward to your videos in my feed. Thank you for all that you do 🙏 Hopefully we can get that Oregon v OSU rematch (Championship maybe…?) Go Ducks! 🦆💚
The S&P is setting up for a massive draw down. Might not be this year, next year, or 3 years from now but it's coming and it will destroy a lot of portfolios
Roth Conversion vs Capital Gains Harvesting? To stay under the 0% CG cap, I can either do a Roth Conversion of about $35k or do some CG harvesting in my brokerage account to reset my investment basis, and again up to about $35k. Any opinion of direction.
I just stick to our plan VIIX,VTI,VWENX and VFORX IRAs. VTI, VIEIX & VXUS for Roths. 68% stock 23% bonds 9% cash. We have one pension no debt we will start to spend down once my wife retires in 2 years at 61 or 62 y/o. Then we both will collect SS 62 y/o.
The biggest lesson I learned in 2023 about the stock market is that nobody knows what will happen next, so practice some humility and low a strategy with a long-term edge.
Nobody knows anything; You need to create your process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
@@RodericksCurrys Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
@@AnthonysBrowns Could you kindly elaborate on the advisor's background and qualifications?
@@CardenasasZoellers My CFA MARGARET MOLLI ALVEY, is a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone navigating the financial market.
@@AnthonysBrowns I just ran an online search on her name and came across her website; pretty well educated. thank you for sharing.
Hi Rob! Im 30 and have 2 funds in my 401k and Roth IRA. Both are the same. 75% VTSAX + 25% VTIAX. Love listening to you!
I reviewed a portfolio of a family member managed by an “RIA” - had 55 tickers and performed as well as 85% cash /15% SP500 over the last 10 years. The fees, taxes, and opportunity cost for it all was an extraordinary sum
Lump Sum vs. Monthly Pension - I just did this for greater than $2M, and I never imagined how stressful it would be. However, Rob did a great video on the psychology of receiving large lump sums of money. This decision requires an amazing amount of pre-planning. Best
Started working on simplifying a few years ago when a few childhood friends passed in their early 50's, trying to make life easier for the other half if something happens to me. Rolled both TSP and WA Pers2 into an IRA and started making Roth conversions. While I liked TSP funds it was their withdrawal and inheritance rules that caused me to leave. The WA Pers2 would be non inflation adjusted for 11 years since I retired at 54 and it would not pay out till 65.
Over the past 3 years I went from 5 retirement accounts, 3 taxable, down to 2 Roth's. Closed multiple old bank accounts and Credit Cards. Went from 3 investment companies to one. While I did it to make it easier for her it made me realize how much time/effort was wasted chasing pennies.
Great Video Rob. I really like this format. I don't think you can ever go "in depth" enough! Early in the video you were worried about getting in the weeds. Get in there! :)
Would love to see the backdoor Roth
Oh lord... I saw it happen live! Rob became a "VT and chill" reddit Boglehead! :)
I really appreciate your sharing your own portfolio--it makes things real. (What would be even more helpful as we all sit here comparing our allocations to yours is the size of your portfolio--but I realize that would be inappropriate.) Thanks again for your good work.
My 401(k) has been in one large cap equities fund for a long time. Now I'm less than ten years from retirement, so I'm starting to put money in a bond fund as well so that I'm closer to my 80/20 target when I eventually pull the trigger.
Good plan. Just make sure that if you’re doing any Roth you don’t contribute bonds there
@@rapfreak7797 I am a newbie getting ready to do my first Roth Conversion can you please explain why you would not want to have bonds in your Roth? I understand this would be the last account to take money from so it has plenty of time for growth.
@@karenduplease The purpose of a Roth conversion is to reduce RMDs/taxes. You want your lowest yielding investments (bonds) in your IRA because this account drives RMDs.
@@DennisBryant-dp4cy Thank you.
Haha!!! Every time my husband settles a case, my question to him is never how much money, but it is always, "how many bankers boxes can we get rid of?!!".
Great content Rob. I simplified all my accounts. I’m doing some forward thinking here to protect my wife should something happen to me. We now have a “gone fishing” portfolio.
would love to know your 'gone fishin" portfolio
Me too!
optimized portfolio did a blog post on it
Berger Boy is back!!!
Rob asks by break out into 3 funds (i.e. Lge Growth SCHG, Lge Value SCHD, Lge Blend SWPPX).
Simple: I want to weight a little more towards Growth right now, so I have more in SCHG. And in the future, if I choose to weight towards value, I'll move to SCHD. It gives me a modicum of control instead of a 50/50 blend.
I have 2 funds. Equities in XEQT and then an emergency fund/short term in CASH ETF
I need to simplify mine as well.
VT and chill bro.
Just curious as to what stock to bond allocation you plan on having when you're 65, do you plan on reducing your stock allocation? Thank you.
@rob how about a segment on solo v Sep IRAS, pros cons reporting requirements etc.
I know this is off topic of the 3 fund portfolio, but what are your thoughts on Palantir?
The pension vs lump sum was of interest. Isn’t there a rule of thumb on lump bs payment? Like a 6% rule? Would have loved to see that gone over with an explanation.
Let's go Rob!
Nice vid! Here's one for the hive mind. I've been consolidating my retirement portfolio for the past 6 months. I am down to consolidating bond funds which at the peak, my advisor had me in 5! I am increasingly falling out of favor with bond funds due to returns, lack of visibility and control, inability to hold the underlying positions to maturity, preservation of principal, etc. I am now looking to ladder with direct investment in treasuries, CDs of varying duration. I'm of course getting push back from my advisory firm as they only structure this type of investment for amounts of $500k or greater! Suggestions? 🤔
there are tools on the web for CD and/or bond ladders.
CDs are cash. Returns on that WILL change.
Multiple Bond funds (so many!) is ridiculous. Treasuries are best. Durations should match account duration. Multiple funds (between say long and intermediate) is to dial in duration.
[6:52] I noticed you said your stock allocation was going to be 40% for both of the IRA funds. Are you changing your overall allocation or just in these funds?
But if you are buying tips aren’t they inflation protected so why worry about duration other than to match your cash flow needs?
I missed the first part of the live stream. I have reduced the number of funds but still have more than needed. I also have my current 401k plus 3 seperate rollover IRAs. I will certainly rollover my 401k when I retire. I have VTIP, BSV, VCIT and money market fund. I am thinking dividing BSV between VTIP and VCIT. Do you keep equal amounts between VTIP and BND?
Great content
With Tips in a tax advantaged account don't you miss out on the state tax exemption, is it not big enough to worry about?
Always have 5 or so years of living expenses in fixed income and the rest in one broad index fund.
This is as simple and safe as it gets.
Thanks again for your videos!!
Everyone has their own strategy, but I dumped BND earlier in the year. Bonds have been horrible!
I use 2-3 funds in my accounts: SPLG, QQQM are the main ETF's. Some SCHG as well.
SCHG yield is at 31% and I bought the dip in Aug & Sept with NVDA and now I'm up 35%....my only individual stock.
Buy and hold is not the way to go in this market. Risk management is the only option to maximize.....take profits and reinvest.
Being conservative in this bull market isn't a smart move IMO., but do your thing and good luck!
Yeah same thoughts re bonds
Great discussion Rob. I just wonder . Would your simplified portfolio outperformed your earlier more “complex portfolio “ on the run up to retirement. I’m actual doing the same but I am finding hard to sell stocks and factor funds that have served me well.
I sold out of my winning stocks and took the gains. I find myself tempted to buy them again. I bought some JPM and now feel like I should sell again and keep my ETFs. I manage my son's account and he has one mutual fund (FXAIX) and is up 26% for 1 year and after selling all my stocks I'm up 18%. I don't mess with my son's account but I'm always fiddling with my investments. Hopefully I can leave my account alone and let it grow in the 3 ETFs I own.
8:29 they do say look at what people do rather than what they say to find out what they really think.
content suggestion SWHAB .. there investment income tab has all the wrong info as far as current year income made to date and also 2023 income made and 3 customer service people with Swhab agreed and I am talking fixed income only so it should be simple but there putting out false data !
Excellent teaching!
Thanks for the video.
I always look forward to your live shows Rob.
I cannot always make it live due to work, but I always look forward to your videos in my feed. Thank you for all that you do 🙏
Hopefully we can get that Oregon v OSU rematch (Championship maybe…?) Go Ducks! 🦆💚
The S&P is setting up for a massive draw down. Might not be this year, next year, or 3 years from now but it's coming and it will destroy a lot of portfolios
Roth Conversion vs Capital Gains Harvesting? To stay under the 0% CG cap, I can either do a Roth Conversion of about $35k or do some CG harvesting in my brokerage account to reset my investment basis, and again up to about $35k. Any opinion of direction.
Why not go to index mutual funds and forget the hassle.
Because they are not tax efficient in after tax accounts and it would not make for a very good show lol
Great idea!
What happens when Stocks in your roth account become worthless of have substantial losses
I just stick to our plan VIIX,VTI,VWENX and VFORX IRAs. VTI, VIEIX & VXUS for Roths. 68% stock 23% bonds 9% cash. We have one pension no debt we will start to spend down once my wife retires in 2 years at 61 or 62 y/o. Then we both will collect SS 62 y/o.
What do you mean by spend down?
@robberger. Hi Rob Would you keep TIPS fund with enough COLA adjusted SS and pension Thanks