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Money Market Accounts/CD interest rates will drop down to 1% or even 0% in late 2025, right? I'd like to DCA out of bonds into a large cap growth index fund during the next recession. 20% VUG 15% VTI 5% BTC ETF 20% SCHD 10% VIGI 30% Long-term Bond ETF - OR - Total Market US Bond ETF (Which types of bonds tend to best maintain value during a recession?)
@NolanGouveia, what would a 1M dollar three ETFs portfolio look like if the three tickers in 2022 were SPXS, SOXS and SQQQ from January through December that year? 🤔
The 3 ETF portfolio is great because it’s so easy to manage. You’re basically diversified across stocks, bonds, and international markets, and you don’t have to constantly watch the market. As for rebalancing, I usually do it once a year. I don’t want to tinker with it too often, but I also don’t want things to drift too far from my target allocation
I think annual rebalancing is a good rule of thumb for most people. It keeps things simple. You’re not trying to time the market, but you’re making sure that your portfolio doesn’t become too heavily weighted in one asset class. For example, if stocks have a great year, your stock ETF might become a much bigger part of your portfolio than you originally intended, which could increase your risk
That’s exactly why rebalancing is important. Without it, your portfolio can become too aggressive or too conservative over time, depending on what’s been performing well
I’ve heard of the 5% rule. It makes sense, especially when one part of your portfolio is outperforming. But do you guys think there’s a perfect time to rebalance to maximize profit? Like, should we be doing this more often when the market is volatile or maybe after a big run-up?
Timing the market is tricky. The thing with rebalancing is it’s more about maintaining your risk level than trying to squeeze out extra profit. If you try to rebalance based on market conditions, you could end up getting it wrong and hurting your returns. Sticking to a regular schedule or percentage-based rule is usually better.
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had $50,000 to create a strong investment portfolio, which stocks would you choose for better returns?
Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.
I agree. Based on my personal experience working with an investment advisor, I currently have $385k in a well-diversified portfolio that has seen exponential growth. It's not just about having money to invest in stocks; you also need to be knowledgeable, persistent, and have the strength to hold on during market fluctuations
I would like to ask, how did you achieve it? I've been trying to stick with index funds. I feel these new interest rate hikes could crash the economy. I'm looking for a better investing strategy, as I have a lump sum that inflation is steadily eating up.
My CFA, Judith Lynn Staufer 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 looking to navigate the financial market..
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
*I had problem comprehending trading in general. I tried watching other RUclips trading channels, but they made the concepts more complicated. I was almost giving up until when i discovered content and explain everything in detail. The videos are easy to Follow*
I've been making a lot of looses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies
Im all in with s&p 500+ schg since i dont need the money i am investing right now, got atleast 10k reserve just in case the market drops + emergency fund with HYSA and continuing DCA everytime i receive my paycheck, road to building my empire!
I have a 3 fund portfolio. I want to keep them for now. 50% 25 and 25 what I always do to keep them rebalanced is I always put money on the one behind. I’ve learned a lot from you. Thanks so much for your videos and teaching me how to be a better investor
Now, the election is over. DID you miss out on the bull run? Bitcoin is at it's ATH now and all I can say is thank you to this channel and Julianne Iwersen Niemann, for keeping me informed.
you are lucky, One of the most brillian investing advice i have ever gotten on youtube came from watching an interview with Julianne Iwersen Niemann. Indeed, A solid investment strategy is like a well-planted tree-it can withstand storms and still grow strong
I know this lady you just mentioned. Julianne Iwersen Niemann is a portfolio manager and investment advisor. She gained recognition as an employee of neuberger berman; a renowned investor she is. Julianne Iwersen Niemann has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get
I am a fan of organic rebalancing how you described at the end. There is little reason to incur taxes to rebalance when you can just be a *little* patient and bring it back into range by buying the underweight holding.
i'm 57years old and already have $670,000 saved and I'm about to retire in two years but I'm worried about rising inflation. Is this enough for a very good comfortable retirement,I’m looking at investing in estates and stocks maybe
Got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. I've been fortunate enough to achieve a 10x return compared to my previous efforts as a DIY investor, summing up nearly 85% ROI as of today.. My best so far!!
I've stuck with Melissa Terri Swayne for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
That’s what I do to rebalance - add more money to the ETF that is short.✅ End of year approaching, would you please make a video about tax loss harvesting: what is it, why people do it or don’t do it, and how to do it?
I love that you made this video. I’ve been investing for a couple years now and what you teach is what I was trying to go for. It’s great that now I have more direction. Even though I’m still decades from retiring I have wondered how to effectively tackle rebalancing. You seem to perfectly put out videos that answers my questions as I need them.
I rebalanced this May adding a substantial amount of SCHD plus adding to my existing positions in VGT and VOO. I have a very high percentage in individual stocks which I made the decision to cut or add to anything under 10k. I also was able to increase my weekly contributions to build out new positions quickly without moving anything I do not want to sell. It's worked extremely well so far and situated to weather any bumps ahead with increased dollar cost averaging. I prefer to rebalance when everything is going well in the markets.
Free advice: If your young go aggressive with either QQQ or VGT. Your time horizon is long and can withstand larger drops to historically outperform voo or schg/d
I’m in both VGT and QQQ, at about a 2:1 ratio in terms of allocation. I understand there is overlap but I think they both cover different companies that I want to capture growth from, thoughts?
It depends. For me I am 48 and im about 25% Vgt I can afford the drop in the event it occurs I have something to fall back on. I never factor in social security but in 11 years at 59 my monthly pensions will be about $5,000 per month
I set up a taxable brokerage account with M1 Finance using the 3-fund portfolio as my “pie”, where I can specify the percentages for each fund. Every Monday, I automatically invest money, and M1 buys the fund with the lowest percentage in my pie, making it easy and automated!
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@lennoxmutterick6434 However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
I'm pretty well balanced already and today was another new high. It kinda freaks me out to see the market roar like this. I don't own any SCHD, but considering selling some shares of my holdings and buying SCHD, essentially creating a safer(?) holding in case the market drops.
Active rebalance: selling something which is too large to buy something else which is too small Passive rebalance: adding new money or dividends to something too small without selling anything I like to look often but rebalance only when my target range is exceeded. In other words, if my target is 20%, I might define my range as +/- 5% or a range of 15% to 25% and only do an active rebalance if it gets outside that range. I use a wider range such as +/- 10% in taxable accounts and try to balance harvesting losses with harvesting gains.
@Professor G, I watch your videos over and over and each time, I learn new nuggets of information.❤️ Thank you for talking about the Cash portion of investing, $ held in HYSA. I’m a nerd, so I have an excel spreadsheet for my investments. I include calculations With my EF $, and Without. I have heard people talk about the cash portion, but I haven’t seen them include it within the context of investing. Also, I enjoyed seeing your examples of the $1 mil portfolios, and the difference that the different asset allocations had on the bottom line. Asset allocation and risk tolerance make a Big difference. Thank you for the visual and explanation of your example.
Great timing, as I consider rebalancing my NVDA runup to 18% of my portfolio, at age 64, in a tax deferred account. I have the 3 fund portfolio in my traditional IRA, but with FTEC instead of SCHG. Backtesing indicates that SCHG slightly outperformed FTEC and VGT... similar ETF's. A good problem to have indeed! I set a limit order today for NVDA at 140, but it didn't quite get there. I plan to sell 44% .
1. Retirement accounts are easy. Sell to rebalance without any real tax consequences. 2. Brokerage-sell when needed and pay the taxes (not preferred). Rebalance by buying the funds that are underweighted. This avoids selling shares and triggering tax liability; the downside is that it doesn’t work for people not in a position to buy more shares. 3. Strategies he left out: 1) turn dividend reinvesting off. Buy more of the underweight funds with the net dividend proceeds. 2) For those spending out of their portfolios, sell shares of the overweight funds.
Just take the 20-25 percent gain while the markets go up. When your market gains critically outperform your contributions in one ETF just sell some shares of it. Take a little bit of a profit once in a while. Redistribute the profit in a slower less volatile dividend ETF but keep contributing. Its not rocket science.
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.
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 advisor 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.
That's awesome to hear! Having a skilled advisor 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 advisor!
I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Just a couple comments: the drawdown on a growth overweight portfolio is unrealized and actually provides for an opportunity for more profit in the long run if you’re dollar cost averaging the entire period or making it a point to increase investment allocations during down turns (Buying at a discount). You’re not technically saving 100k if you don’t realize your position and cash out or sell those shares. This assumes the market will go back up later and of course you don’t need the money right away. Another technique is to drip dividends and use growth reallocations periodically to increase share count. I would only recommend doing this if you’re keeping a very close eye on growth cost basis or reallocating at new all time highs.
My current holdings in my retirement account are: VOO SCHD and QQQM and in my tax free savings account I am holding vfv (canadian version of voo) I am currently hesitating on changing QQQM for SCHG in my retirement account and adding QQC (same thing as QQQM) in my tax free savings account.
Great video. With rate cuts due recession is less likely but exagenous factor geopolitical tensions can percipitate downward pressure on the economy and result in stagflation.
Appreciate all of your content, particularly the 3-fund portfolio strategy for investing. GREATLY simplified my ETFs from 8 down to 3 based on your age-based recommendations. Now all of the dividends and reinvestments have more impact. Let's go!
Great video Professor. This is information that should be taught in high schools especially since Social Security will be insolvent soon! Thanks for sharing.
Thanks, Professor! I’m having fun in my retirement building to this age balanced and diversified 3-Fund ETF. With three purchases of about $10,000 each (one SCHG and two pre-split SCHD) I am halfway there since July. I was wondering once it is built, how to add to it. I hadn’t thought about rebalancing it.
i did M1 finance 33% Vti, 33% schd and 34% qqqm and put in 125 a week. it buys what ever is lower like what you are suggesting to rebalance automatically.
Ftec and schg either one held from 1-1-2022 to 1-1-2024 still outperformed schd with dividends reinvested. Let alone if you kept investing while at the lows or even double down which is what you should do instead.
I started the 3 fund plan based on your earlier video, however I went with VUG for my growth bucket. Does it make sense to now add SCHG and have the percentage based on the two added together or stick with VUG? Thank you, great info again!
Hi, I love and follow this system. Recently I had a friend who suggested instead just to go heavy on XEQT long term. Any feedback? I thought about checking the overlap as XEQT is more of an all-in-one. With thanks
Just turned 27 with 200k net worth. I’m a school teacher. Fidelity brokerage account: FSELX, Nividia, SCHG, VIG, and FXAIX Roth IRA: VOO, SCHD, FBGRX, and FOCPX
Hi i love your videos. in previous videos you suggested QQQ, is SCHG better? i started my 3 ETF strategy with QQQ, SCHD and VOO, should i change to SCHG instead of QQQ?? or can i have both in that third?? Thank you
The market can shift directions in an instant, with indexes often flipping from a bear market to a bull market just when the news is at its bleakest and investor sentiment is at its lowest."
"For the average person, these strategies can be quite demanding. In reality, it’s the professionals-armed with the right skills and expertise-who successfully navigate and execute such complex tasks."
@@RosalynCharles-d8x Could you share the name of the consultant who has been helping you with your investments? And if you don’t mind, how can I get in touch with them?"
@@BeachyRichard She seems incredibly knowledgeable and well-versed. I did some research and found her website-thanks for pointing me in the right direction!" Thank you.
I would be interested in your take on the momentum ETF SPMO - I am looking at this ETF over SCHG due to the potential market correction on the horizon... Currently keeping SCHD & $$ & was going to use SPMO as my large cap & XMMO as my mid cap Thoughts? - oh i see you covered this one recently, watching now sweet! You rock Professor!
Great information Professor G. I will make sure to keep this all in mind with my investments! I actually didn't know that my 401K/403B would not be taxed when I sell off to redistribute my funds. This is such good information!
Rebalancing when investing in broad market funds is kind of a moot point….these funds quite often turn over their holdings and rebalance themselves. Also rebalancing in an accumulative stage has been shown time and time again to lead to diminished returns. Sure in 2022 SCHD only dropped 3% as opposed to 32% for SCHG….yet SCHG is up 91% from the start of 2023 compared to SCHD being up a mere 14%. If you look out over 5 years it’s even more drastic, 150% for SCHG and 57% for SCHD. You missed an entire double of your money. Rebalancing in a de cumulative stage like retirement is essential, but don’t squash your long term compounding to feel warm and cozy in a bear market lol If the market tanks go deploy that cash. Your returns are 10 fold from there.
Greetings from Lisbon Professor! Since I am not an american investor, uncle Sam bites 30% of my dividends. As much as I like and invest in SCHD, the dividend tax is rough. Is there an ETF that reinvest internally the dividends, so I don`t take the tax hit? Thanks and keep up the good work.
Thanks for great info! In a future video, can you discuss tax loss harvesting. This never makes sense to me, you sell something for a gain say, $3000 and sell something else for a loss say, $3000. Net $0. This just doesn't make sense. You want to have gains and not net $0 to make profits so this strategy seems pointless.
You also need to also understand if it's long-term or short-term gain / loss. If you have a 3,000 short-term gain, selling a 3,000 long-term loss will not help with your taxes. Tax loss harvesting is just a strategy to reduce or minimize your taxes. When you need to sell stocks to pay bills, it's best to do that as tax efficient as possible.
In my taxable acct I’ve been pretty much following the 3 fund portfolio but now that Schd had that juicy split is there harm in loading up on that primarily?
How close are you to retirement? Do you think you want more than 33% SCHD? I'm retired, so I have a lot more than 33%. I'm 70% dividend investments and 30% growth. But I'm only at the ratio because that's what comfortably pays my bills.
It does not matter if it goes down ,if you have 15+ years till retirement go with growth for a better return in overall. I have 75 percent in FSPGX and 24 % in s and p 500
Thats true if you dont care about paying bills with your dividends and are only concerned with total returns. For me thats why I do a mixed method of growth and dividends.
Just make sure you have a large enough emergency savings in case you need funds from growth ETFs. Some market downturns last a lot longer than 2022. If you get laid off during a downturn, it could take longer to find the next job. Companies tend to slow hiring. Rebalancing during the last 5 to 10 years before retirement is key if you plan on buying more dividend ETFs or stocks. Take some profits during the highs, especially when the value stocks are at lows. Q3 2023 was a great example.
Well, there are 4 Bitcoin ETF's now to invest in. I invested 5% of my money in one and up 42%. There is a lot of noise if you hold Bitcoin ETF, so you need to ignore it.
Thank you so much for this great video! The visual aid really helps me in this case. I just bought some QQQM, SCHD and already had my VBIAX mutual funds, as well as VDADX mutual and then some international exposure mutual funds. We have, money wise, a more small number starting at 14k, but what is your advice for me, since I plan to increase my income substantially, and plan to diversify more?
@@NolanGouveia Thanks for the clarification professor! Whats the reason to synonymously have both if you don't mind me asking? Diversification within Growth?
Professor, are there any Schwab specific mutual funds you would recommend in place of the ETF's you listed or would you stick with the ETFs? This would be in a ROTH IRA.
Hi professor thx for the info as always, following your 3 ETF port since begining of the year and its really nice, my strat about rebalance is that i track how much i invested in each etf no matter the growth, im 50% Voo and 20%-20% SCHG n D and 10% on BRKB-APPL-MSF-ONON i always follow that rule except for stocks that not every month i buy em all i pick the better in price..... should i care more about rebalancing including the growth??
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Money Market Accounts/CD interest rates will drop down to 1% or even 0% in late 2025, right? I'd like to DCA out of bonds into a large cap growth index fund during the next recession.
20% VUG
15% VTI
5% BTC ETF
20% SCHD
10% VIGI
30% Long-term Bond ETF - OR - Total Market US Bond ETF
(Which types of bonds tend to best maintain value during a recession?)
@NolanGouveia, what would a 1M dollar three ETFs portfolio look like if the three tickers in 2022 were SPXS, SOXS and SQQQ from January through December that year? 🤔
The 3 ETF portfolio is great because it’s so easy to manage. You’re basically diversified across stocks, bonds, and international markets, and you don’t have to constantly watch the market. As for rebalancing, I usually do it once a year. I don’t want to tinker with it too often, but I also don’t want things to drift too far from my target allocation
I think annual rebalancing is a good rule of thumb for most people. It keeps things simple. You’re not trying to time the market, but you’re making sure that your portfolio doesn’t become too heavily weighted in one asset class. For example, if stocks have a great year, your stock ETF might become a much bigger part of your portfolio than you originally intended, which could increase your risk
That’s exactly why rebalancing is important. Without it, your portfolio can become too aggressive or too conservative over time, depending on what’s been performing well
I usually rebalance whenever my asset allocation drifts by more than 5% from the target. It keeps me disciplined.
I’ve heard of the 5% rule. It makes sense, especially when one part of your portfolio is outperforming. But do you guys think there’s a perfect time to rebalance to maximize profit? Like, should we be doing this more often when the market is volatile or maybe after a big run-up?
Timing the market is tricky. The thing with rebalancing is it’s more about maintaining your risk level than trying to squeeze out extra profit. If you try to rebalance based on market conditions, you could end up getting it wrong and hurting your returns. Sticking to a regular schedule or percentage-based rule is usually better.
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had $50,000 to create a strong investment portfolio, which stocks would you choose for better returns?
Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.
I agree. Based on my personal experience working with an investment advisor, I currently have $385k in a well-diversified portfolio that has seen exponential growth. It's not just about having money to invest in stocks; you also need to be knowledgeable, persistent, and have the strength to hold on during market fluctuations
I would like to ask, how did you achieve it? I've been trying to stick with index funds. I feel these new interest rate hikes could crash the economy. I'm looking for a better investing strategy, as I have a lump sum that inflation is steadily eating up.
My CFA, Judith Lynn Staufer 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 looking to navigate the financial market..
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
*I had problem comprehending trading in general. I tried watching other RUclips trading channels, but they made the concepts more complicated. I was almost giving up until when i discovered content and explain everything in detail. The videos are easy to Follow*
I've been making a lot of looses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies
I will advise you should stop trading on your own if you keep losing.
If you can, then get a professional to trade for you i think that way your assets are more secure
I'd recommend JUDY, ARIANNA her profit is great even when there's a dip
Im all in with s&p 500+ schg since i dont need the money i am investing right now, got atleast 10k reserve just in case the market drops + emergency fund with HYSA and continuing DCA everytime i receive my paycheck, road to building my empire!
I have a 3 fund portfolio. I want to keep them for now. 50% 25 and 25 what I always do to keep them rebalanced is I always put money on the one behind. I’ve learned a lot from you. Thanks so much for your videos and teaching me how to be a better investor
Now, the election is over. DID you miss out on the bull run? Bitcoin is at it's ATH now and all I can say is thank you to this channel and Julianne Iwersen Niemann, for keeping me informed.
you are lucky, One of the most brillian investing advice i have ever gotten on youtube came from watching an interview with Julianne Iwersen Niemann. Indeed, A solid investment strategy is like a well-planted tree-it can withstand storms and still grow strong
I know this lady you just mentioned. Julianne Iwersen Niemann is a portfolio manager and investment advisor. She gained recognition as an employee of neuberger berman; a renowned investor she is. Julianne Iwersen Niemann has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.
I’ve heard of her
How can i reach her, if you don't mind me asking?
her name is 'JULIANNE IWERSEN NIEMANN'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get
No rebalancing needed. VOO and chill.
Yeah but why not add some other funds that have the potential to outperform it, maybe 10-20% 🤷🏾♂️
@ I have VGT and SCHD as well. Any suggestions?
I am a fan of organic rebalancing how you described at the end. There is little reason to incur taxes to rebalance when you can just be a *little* patient and bring it back into range by buying the underweight holding.
i'm 57years old and already have $670,000 saved and I'm about to retire in two years but I'm worried about rising inflation. Is this enough for a very good comfortable retirement,I’m looking at investing in estates and stocks maybe
comfortable retirement depends on your lifestyle... you should consult with a fiduciary to explore options.
Got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. I've been fortunate enough to achieve a 10x return compared to my previous efforts as a DIY investor, summing up nearly 85% ROI as of today.. My best so far!!
Pls how can I reach this expert, I need someone to help me manage my portfolio
I've stuck with Melissa Terri Swayne for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info.
That’s what I do to rebalance - add more money to the ETF that is short.✅
End of year approaching, would you please make a video about tax loss harvesting: what is it, why people do it or don’t do it, and how to do it?
Good call!
I agree that tax loss harvesting needs a video.
I just put $100k in nvidia in 2020 and a millionaire now! 👍🏽😅
Of course you did I bourght 1000 bitcoin for a dollar each now I'm a billionaire 😂
@@fionnaighhessey131 Hahahahaha!
Help payoff my student loans? 😅
I love that you made this video. I’ve been investing for a couple years now and what you teach is what I was trying to go for. It’s great that now I have more direction.
Even though I’m still decades from retiring I have wondered how to effectively tackle rebalancing. You seem to perfectly put out videos that answers my questions as I need them.
So happy you find value in the videos! That’s why I do what I do!
I rebalanced this May adding a substantial amount of SCHD plus adding to my existing positions in VGT and VOO. I have a very high percentage in individual stocks which I made the decision to cut or add to anything under 10k. I also was able to increase my weekly contributions to build out new positions quickly without moving anything I do not want to sell. It's worked extremely well so far and situated to weather any bumps ahead with increased dollar cost averaging. I prefer to rebalance when everything is going well in the markets.
One of your BEST videos ever Nolan! Thanks so much!
I appreciate that!
One of the best investment channels I've come across. Thank you so much for the solid, straightforward advice!
This is the topic that I was hoping that you would cover! Thanks a million! OSS!
OSS!! 🙏
Free advice: If your young go aggressive with either QQQ or VGT. Your time horizon is long and can withstand larger drops to historically outperform voo or schg/d
I’m in both VGT and QQQ, at about a 2:1 ratio in terms of allocation. I understand there is overlap but I think they both cover different companies that I want to capture growth from, thoughts?
Really? I'm into low risk
It depends. For me I am 48 and im about 25% Vgt I can afford the drop in the event it occurs I have something to fall back on. I never factor in social security but in 11 years at 59 my monthly pensions will be about $5,000 per month
I set up a taxable brokerage account with M1 Finance using the 3-fund portfolio as my “pie”, where I can specify the percentages for each fund. Every Monday, I automatically invest money, and M1 buys the fund with the lowest percentage in my pie, making it easy and automated!
That's so cool! Once I reach 10k in one of my transferrable accounts I can't wait to try that out!
Yeah, stinks they have a platform fee, but after 10k it is waived. It is a super cool platform that does this so well
That's interesting.
3 fund portfolio Roth IRA. Mutual Fund: VFIAX ETFs: VYM and VUG.. seems to be doing well
Good stuff!
Roth IRA 50%VTI, 25%QQQM, 25%SCHG.
Brokerage 50% VTI, 30%SCHG, 20%SCHD.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@lennoxmutterick6434 However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@caseycantrell-gh6fg Oh please I’d love that. Thanks!.
@@lennoxmutterick6434 Clementina Abate Russo is her name.
Lookup with her name on the webpage.
My ROR in 2022 with dividend growing stocks was 7.83%. My overall ROR since 2014 is 9.75%. I am happy with that.
Where is the best place to buy schd in the Uk ? Especially buying in GBP ?
This is so awesome thank you, i'm 22 and watch all ur videos!
Amazing that you’re taking it serious at 22!!
I'm pretty well balanced already and today was another new high. It kinda freaks me out to see the market roar like this. I don't own any SCHD, but considering selling some shares of my holdings and buying SCHD, essentially creating a safer(?) holding in case the market drops.
Active rebalance: selling something which is too large to buy something else which is too small
Passive rebalance: adding new money or dividends to something too small without selling anything
I like to look often but rebalance only when my target range is exceeded. In other words, if my target is 20%, I might define my range as +/- 5% or a range of 15% to 25% and only do an active rebalance if it gets outside that range. I use a wider range such as +/- 10% in taxable accounts and try to balance harvesting losses with harvesting gains.
@Professor G, I watch your videos over and over and each time, I learn new nuggets of information.❤️
Thank you for talking about the Cash portion of investing, $ held in HYSA. I’m a nerd, so I have an excel spreadsheet for my investments. I include calculations With my EF $, and Without. I have heard people talk about the cash portion, but I haven’t seen them include it within the context of investing.
Also, I enjoyed seeing your examples of the $1 mil portfolios, and the difference that the different asset allocations had on the bottom line. Asset allocation and risk tolerance make a Big difference. Thank you for the visual and explanation of your example.
Thankyou so much for this thoughtful feedback!
Great timing, as I consider rebalancing my NVDA runup to 18% of my portfolio, at age 64, in a tax deferred account. I have the 3 fund portfolio in my traditional IRA, but with FTEC instead of SCHG. Backtesing indicates that SCHG slightly outperformed FTEC and VGT... similar ETF's. A good problem to have indeed! I set a limit order today for NVDA at 140, but it didn't quite get there. I plan to sell 44% .
1. Retirement accounts are easy. Sell to rebalance without any real tax consequences.
2. Brokerage-sell when needed and pay the taxes (not preferred). Rebalance by buying the funds that are underweighted. This avoids selling shares and triggering tax liability; the downside is that it doesn’t work for people not in a position to buy more shares.
3. Strategies he left out: 1) turn dividend reinvesting off. Buy more of the underweight funds with the net dividend proceeds. 2) For those spending out of their portfolios, sell shares of the overweight funds.
SCHG recovered faster from its drawdown than VOO, 12 months vs 15 months for VOO according to Portfolio Visualizer.
This is one of the most important videos you have ever made. Great job!
I appreciate that! Thankyou
I’m moving my stocks to buy more SCHD. I hope it works long term
Just take the 20-25 percent gain while the markets go up. When your market gains critically outperform your contributions in one ETF just sell some shares of it. Take a little bit of a profit once in a while. Redistribute the profit in a slower less volatile dividend ETF but keep contributing. Its not rocket science.
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.
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 advisor 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.
That's awesome to hear! Having a skilled advisor 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 advisor!
I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
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.
Professor, I thought you would pick QQQM instead of SCHG.
I actually hold both but both are almost exactly the same so either one is great!
Thanks Professor G! I like to add money to rebalance 😊😊😊
I was curious about the rebalancing of a brokerage account, thanks for the valuable information!
You’re welcome!
Just a couple comments: the drawdown on a growth overweight portfolio is unrealized and actually provides for an opportunity for more profit in the long run if you’re dollar cost averaging the entire period or making it a point to increase investment allocations during down turns (Buying at a discount). You’re not technically saving 100k if you don’t realize your position and cash out or sell those shares. This assumes the market will go back up later and of course you don’t need the money right away.
Another technique is to drip dividends and use growth reallocations periodically to increase share count. I would only recommend doing this if you’re keeping a very close eye on growth cost basis or reallocating at new all time highs.
My current holdings in my retirement account are: VOO SCHD and QQQM and in my tax free savings account I am holding vfv (canadian version of voo) I am currently hesitating on changing QQQM for SCHG in my retirement account and adding QQC (same thing as QQQM) in my tax free savings account.
I am curious about this as well, I am holding QQQM and thinking about changing it over to SCHG. I hold QQC in my TFSA
All of those growth funds are pretty similar so sticking with your favorite one is fine!
I would go for it, no point in having 2x times the same exact etf right? If I do this then my tfsa would be VFV+QQC and my RRSP would be VOO SCHG SCHD
@@NolanGouveia thanks professor, you da man!
That is exactly what I have. VOO, SCHD and QQQM.
I tried all 3 tickers in portfolio visualizer from January 2022 using $1M. 100% in each of the ETF's showed that SCHG still outperformed.
Thank you. I was waiting for this video to drop all weekend. I will go and rebalance my portfolio.
No. Don't ruin your life savings by listening to some random fool on the internet
@@etvowFool? He’s a professor
very solid video again sir
Thanks!
Useful information thank you 😊
How to rebalance is a great content! Thank you!
Thanks!
Another great video!
Thankyou!
Great analysis 🎉
Thankyou!
It's too bad we do not teach financial education in schools to survive in today's society. Thank you for sharing the knowledge.
Great video. With rate cuts due recession is less likely but exagenous factor geopolitical tensions can percipitate downward pressure on the economy and result in stagflation.
Appreciate all of your content, particularly the 3-fund portfolio strategy for investing. GREATLY simplified my ETFs from 8 down to 3 based on your age-based recommendations. Now all of the dividends and reinvestments have more impact. Let's go!
This makes me so happy!
85% BIL and 15% XDTE
Later on when rates drops drastically then maybe one can add AGG very small positions
Great video Professor. This is information that should be taught in high schools especially since Social Security will be insolvent soon! Thanks for sharing.
Thankyou!
Thanks, Professor! I’m having fun in my retirement building to this age balanced and diversified 3-Fund ETF. With three purchases of about $10,000 each (one SCHG and two pre-split SCHD) I am halfway there since July. I was wondering once it is built, how to add to it. I hadn’t thought about rebalancing it.
i did M1 finance 33% Vti, 33% schd and 34% qqqm and put in 125 a week. it buys what ever is lower like what you are suggesting to rebalance automatically.
Rebalance = more schd
Very useful information. Hey Professor, would you consider a video talking about emerging market ETF(s)? -Nick
Thanks Nick! I’ll think about it
G, awesome advice! My 2 fund portfolio consists of VGT/SCHD ....
Solid funds!
Dont leave visa and pepsi out of the game professor😂😂and O. Oh yeah
keep pumping out those financial informational video Professor G!!!!
Can you do a video on JEPQ ? Thank you
Professor, can you recommend specifically a high yield place to put your cash PLEASE
I like capital one 360 best personally
"While others fail" 😂😂
Haha. Glad I wasn't the only who picked up on that. Such a sinister thing to say 😂
Ftec and schg either one held from 1-1-2022 to 1-1-2024 still outperformed schd with dividends reinvested. Let alone if you kept investing while at the lows or even double down which is what you should do instead.
SCHD does not out perform the sp500!!
I just saw over 100% return in one day on my psil position 😆. Im in around $7.80 a share only had 150 shares. But she's sitting at $17.50 overnight.
I started the 3 fund plan based on your earlier video, however I went with VUG for my growth bucket. Does it make sense to now add SCHG and have the percentage based on the two added together or stick with VUG?
Thank you, great info again!
No VUG and schg are almost identical
@NolanGouveia how about QQQM ? Would you recommend to switch over from QQQM to SCHG in my 3 fund portfolio?
@@james7298 no qqqm is very much similar to VUG and schg as well so just choose one
Returns are zero till one clicks sell button. Only fixed income is dividends
Would like to see what the professor thinks of a port composed of DGRW,SCHD,SCHG at equal percentages
The professor likes that portfolio too!
@@NolanGouveianice hahaha have that set in my robinhood Roth IRA on auto for the past few months
I’m still considering between SCHG and QQQM professor, I can’t decide which etf I should choose at this young age
Both are great and very similar!
QQQM
Hi, I love and follow this system. Recently I had a friend who suggested instead just to go heavy on XEQT long term. Any feedback? I thought about checking the overlap as XEQT is more of an all-in-one. With thanks
What should us overseas investors do? I cant access those funds in Ireland!
Can you take a look at BIP? Thank you
Just turned 27 with 200k net worth. I’m a school teacher. Fidelity brokerage account: FSELX, Nividia, SCHG, VIG, and FXAIX Roth IRA: VOO, SCHD, FBGRX, and FOCPX
Hi i love your videos. in previous videos you suggested QQQ, is SCHG better? i started my 3 ETF strategy with QQQ, SCHD and VOO, should i change to SCHG instead of QQQ?? or can i have both in that third?? Thank you
QQQM and schg are synonymous (almost the same thing)
@@NolanGouveia Thank you so much!! Keep up the good work!!!
The market can shift directions in an instant, with indexes often flipping from a bear market to a bull market just when the news is at its bleakest and investor sentiment is at its lowest."
"For the average person, these strategies can be quite demanding. In reality, it’s the professionals-armed with the right skills and expertise-who successfully navigate and execute such complex tasks."
@@RosalynCharles-d8x Could you share the name of the consultant who has been helping you with your investments? And if you don’t mind, how can I get in touch with them?"
@@ColeShara Her name is Sophie Kathryn Jones. If you look her up, you’ll find all the details you need to reach out and schedule an appointment."
@@BeachyRichard She seems incredibly knowledgeable and well-versed. I did some research and found her website-thanks for pointing me in the right direction!" Thank you.
I would be interested in your take on the momentum ETF SPMO - I am looking at this ETF over SCHG due to the potential market correction on the horizon... Currently keeping SCHD & $$ & was going to use SPMO as my large cap & XMMO as my mid cap Thoughts? - oh i see you covered this one recently, watching now sweet! You rock Professor!
I really like SPMO and XMMO yes!
Hey....what happened to QQQM.....thought that was your growth etf
I like both schg and qqqm interchangeably
Great information Professor G. I will make sure to keep this all in mind with my investments! I actually didn't know that my 401K/403B would not be taxed when I sell off to redistribute my funds. This is such good information!
That’s great man I’m glad you learned that today!
Can you share your plan for 2025 if the market tanks?
If the market tanks, just load up on SDOW, SOXS, SPXS and SQQQ until the correction or crash is over! 😉💯💙⏰💰
Another great video! Thk u very much.
Thanks!
Prof. G, have you switched over to SCHG from QQQM?
No I like both!
Rebalancing when investing in broad market funds is kind of a moot point….these funds quite often turn over their holdings and rebalance themselves.
Also rebalancing in an accumulative stage has been shown time and time again to lead to diminished returns. Sure in 2022 SCHD only dropped 3% as opposed to 32% for SCHG….yet SCHG is up 91% from the start of 2023 compared to SCHD being up a mere 14%. If you look out over 5 years it’s even more drastic, 150% for SCHG and 57% for SCHD. You missed an entire double of your money.
Rebalancing in a de cumulative stage like retirement is essential, but don’t squash your long term compounding to feel warm and cozy in a bear market lol If the market tanks go deploy that cash. Your returns are 10 fold from there.
I like the dividend reinvest that my 401k didnt have where i lost out to company stock .now learning here is more important
I appreciate this video
Thankyou!
ADX is a sleepy winner averages 25% return each year.
Hello Professor. What’s your thoughts on $FDVV please as compared to $SCHD.
Great question! Video coming out on this next week!
Greetings from Lisbon Professor! Since I am not an american investor, uncle Sam bites 30% of my dividends. As much as I like and invest in SCHD, the dividend tax is rough. Is there an ETF that reinvest internally the dividends, so I don`t take the tax hit? Thanks and keep up the good work.
Thanks for great info!
In a future video, can you discuss tax loss harvesting.
This never makes sense to me, you sell something for a gain say, $3000 and sell something else for a loss say, $3000. Net $0. This just doesn't make sense. You want to have gains and not net $0 to make profits so this strategy seems pointless.
You also need to also understand if it's long-term or short-term gain / loss. If you have a 3,000 short-term gain, selling a 3,000 long-term loss will not help with your taxes.
Tax loss harvesting is just a strategy to reduce or minimize your taxes.
When you need to sell stocks to pay bills, it's best to do that as tax efficient as possible.
In my taxable acct I’ve been pretty much following the 3 fund portfolio but now that Schd had that juicy split is there harm in loading up on that primarily?
How close are you to retirement? Do you think you want more than 33% SCHD?
I'm retired, so I have a lot more than 33%. I'm 70% dividend investments and 30% growth. But I'm only at the ratio because that's what comfortably pays my bills.
It does not matter if it goes down ,if you have 15+ years till retirement go with growth for a better return in overall. I have 75 percent in FSPGX and 24 % in s and p 500
Mitigating risk is never a bad move
@@NolanGouveia I agree
Thats true if you dont care about paying bills with your dividends and are only concerned with total returns. For me thats why I do a mixed method of growth and dividends.
Just make sure you have a large enough emergency savings in case you need funds from growth ETFs. Some market downturns last a lot longer than 2022.
If you get laid off during a downturn, it could take longer to find the next job. Companies tend to slow hiring.
Rebalancing during the last 5 to 10 years before retirement is key if you plan on buying more dividend ETFs or stocks. Take some profits during the highs, especially when the value stocks are at lows. Q3 2023 was a great example.
@charlielipthratt7291 thanks a lot for the advice but I have a good job in the health field and emergency fund for at least 8 months
Should i have exposure to bitcoin in my portfolio?
That’s up to you!
Well, there are 4 Bitcoin ETF's now to invest in. I invested 5% of my money in one and up 42%. There is a lot of noise if you hold Bitcoin ETF, so you need to ignore it.
@@raykrv6a
If it's up 42% that's great, why you still saying to ignore it
Thank you so much for this great video! The visual aid really helps me in this case. I just bought some QQQM, SCHD and already had my VBIAX mutual funds, as well as VDADX mutual and then some international exposure mutual funds. We have, money wise, a more small number starting at 14k, but what is your advice for me, since I plan to increase my income substantially, and plan to diversify more?
Professor G, why did you switch from QQQM to SCHG?
I didn’t switch, I’ve always used them synonymously and have always said they are equal! I like them both a lot
@@NolanGouveia Thanks for the clarification professor! Whats the reason to synonymously have both if you don't mind me asking? Diversification within Growth?
Why not Fidelity growth pool for the growth instead?
You can do that sure
Professor, are there any Schwab specific mutual funds you would recommend in place of the ETF's you listed or would you stick with the ETFs? This would be in a ROTH IRA.
Hi professor thx for the info as always, following your 3 ETF port since begining of the year and its really nice, my strat about rebalance is that i track how much i invested in each etf no matter the growth, im 50% Voo and 20%-20% SCHG n D and 10% on BRKB-APPL-MSF-ONON i always follow that rule except for stocks that not every month i buy em all i pick the better in price..... should i care more about rebalancing including the growth??
It’s going to have to take in to consideration your overall goals
Thank you
When did you change from QQQM TO SCHG
I like both
Any opinion on these YieldMax ETF’s?
What would be a good Canadian traded equivalent
I'm thinking in my 401k to go 50% large cap value. 20% growth. 20% target date {2030) and 10% monet market.
Would a SCHD/G work with VTI instead of VOO? Or is VOO the better option?
VTI and VOO are definitely interchangeable and both great options!
@@NolanGouveia is there a real estate stock or etf you’d recommend for real estate exposure?