One of the few positives for beginning my investing at Edward Jones…the huge annual capital gains distributions from their mutual funds kept the capital gains taxes very low when I moved/converted to a three fund portfolio.
Here's a topic (slightly on topic for this video) that you might want to discuss. I am retired, married, and 75 years old (ugh). My wife is 10 years younger and knows little about investing. I am in the process of setting up our investments (taxable and untaxable) so that she will have to do as little as possible at the moment she becomes my successor and that she has to do next-to-nothing to handle her investments in the future. Thanks for your many helpful and informative videos. Cheers.
I totally agree with Ron. In addition, which asset categories should be considered in taxable versus non taxable, including HSA accounts, and how to set them up to permit rebalancing. I’ve looked all over, and found suggestions for what goes where, but it gets complicated and doesn’t explain how to rebalance if one gets far “out of kilter”. Are there some “rules” that are less critical than others. I have the same issue with complementary vegetables and rotating crops in my garden - when I try to make the map, it gets super messy. Thanks!
I appreciate your knowledge. We have lots of great Canadian RUclipsrs who share investment advice but I have yet to come across a good one who is seasoned like you, most are quite young and years away from retirement. Thanks so much.
if these assets are held in a taxable account, one possible explanation for duplication of similar funds would be that the advisor is tax-loss harvesting. promptly reinvesting in a second investment, similar but different to the one being sold, to put a capital loss on the investor's tax ledger.
Great analysis! I don't see a good good reason for the duplication either. I could see some reasons that I disagree with: tilt towards ~active management, commissions on selling certain funds, making it appear more sophisticated, etc. Maybe the advisor has a good one? Definitely understand and get it under control before getting locked in!
Rob, thank you so much for the video. I appreciate you doing this. I'd like to simply my fund (11 to 5) in my Roth IRA account. I think it does not have tax complications, but what would be a good time of doing so (such as market-down or up)? Also, I'd like to change my target-date funds to low-cost index funds due to the fee. When would be a good time to do so? Thank you for what you do.
Here's my entire portfolio for the past decade: 1. VTI 2. VOO 3. QQQ It performs like no other, and I still keep on contributing the same amount (same date, same time, every time) even during our current market correction.
I'm curious why did you choose to invest solely in ETFs and not mutual funds? For example, it would be better to invest in a mutual fund for retirement accounts and an ETF for taxable accounts.
@@tuilatui8205 VTI just gives you some additional exposure and diversification. In practice they’re going to have next to identical performance. Can’t go wrong with either.
@@DanielThomasArgueta VTI for example has a lower expense ratio than its mutual fund equivalent (VTSAX). And then there’s the issue of minimum initial investment when it comes to mutual funds. VTSAX needs an initial investment amount of $3000. At the end of the day many people might just prefer the flexibility to trade funds like a stock throughout the day.
Hi Rob, thanks for this video. When I got access to my pension management portal I have to admit I maybe went a bit wild investing in different funds and now I want simplify to 3-4 funds. Is it wise to just transfer everything over in one go, at any point in time, to get the balance of funds you want or will there be draw backs to this? (30yo less than 100k currently invested) I suppose I’m asking for some elaboration on the point made at the end of the video. Thanks
I just cut my taxable account in half. 42 positions down to 21. 4 ETFs and 17 stocks. I found myself spending hours on research. I couldn’t do it anymore.
I just got into investing myself just weeks ago. I have done like you said tons and tons of researching. I had around 18 at the start then that number went up to 36 or 38. I was like that is a crazy amount like me scale back I went down go 24. Now am back up to 28, but I refuse to do anything more with it except pay into it over a six months to a year. I have a total market, a small cap, mid cap, and several etfs like qqqm and qqqj along with several singular stocks.
@@connordutton674 The only advice I have is to stick to high-growth, quality companies. Ask yourself, why do I invest in the company? If you can't answer that question, get out of it.
I had to get my Rob Berger fix today. I mean, I really like Jim Cramer. I just can't understand what he's saying while he's saying it. Still worth listening to Cramer, though. I'm not dwelling on the balances in my accounts, and I'm certainly not reacting, I just need a bit of common sense talk.
@@afridgetoofar1818 A bit grating as an entertainer. Yes. Sure. But I don't react and take action based on what any one person says. Not even Rob Berger. The real Rob Berger, that is, not the fake Rob Berger commenting here.
My guess, the advisor wants it to appear he is doing a complicated job and/or he is getting kickbacks from these fund families. I can't think of any other reason to have such similar funds in a portfolio.
Hi, good subject to cover. When reallocating/cleaning up ETF funds is it okay to do this if the ETF is held less than a year? or should I do this "cleaning" up or consolidating at its anniversary? I want to redo my portfolio to eliminate duplication. I have a taxable account that needs consolidating.
Thanks for the helpful videos Rob. My situation falls into what you described as handcuffed. I would love to simplify my after tax portfolio but not very willing to take on the tax implications from selling investments made over 10 years ago, some longer. My current plan is to just hold them until I retire and income goes down, but that is not very satisfying. Any other suggestions?
why bother paying extra taxes to make your portfolio look pretty? I actually like it, some have slight different allocations which keeps things diversified in their own way.
I have 25 funds with several near duplicates, mostly so when I rebalance I know each one is exactly 4% of my total. Is there a negative to having multiple similar funds, apart from clutter?
I sometimes do this when I invest in active funds, in order to diversify between two funds that I think are great quality, but I can't pick between the two. An example is TEM and FEML for my emerging market active funds. Would you advise against this?
@Rob with the current market rollercoaster, would you recommend keeping three worth of income in cash. I just retired and I just want to be in the safe side. Thaoughts
3 months or years? 3 months is certainly reasonable. 3 years, for me, is too much, assuming one has a significant amount (say 30% or more) in fixed income.
One possible reason to have more funds is because there are differences in the stocks held even though it may be the same asset class. An example would be VYM and SCHD, both of which are large cap "value" (dividend-focused) funds but have some potentially non-insignificant differences in their core holdings. Another reason may be to have more flexibility for future dollar cost averaging and rebalancing. For example, splitting between growth/value (e.g., VUG and VYM), large/medium/small cap or combinations thereof. That way one can focus on growth or value funds for dollar cost averaging when that particular sector has been beaten down (since they don't always move in accord).
![How to Invest as You Near Retirement [Rate my Portfolio Series]](http://i.ytimg.com/vi/Fc6BTuXE0fE/mqdefault.jpg)
Only started investing a year ago, used the market downturn to simplify into a three fund portfolio without paying much at all in capital gains.
One of the few positives for beginning my investing at Edward Jones…the huge annual capital gains distributions from their mutual funds kept the capital gains taxes very low when I moved/converted to a three fund portfolio.
Here's a topic (slightly on topic for this video) that you might want to discuss. I am retired, married, and 75 years old (ugh). My wife is 10 years younger and knows little about investing. I am in the process of setting up our investments (taxable and untaxable) so that she will have to do as little as possible at the moment she becomes my successor and that she has to do next-to-nothing to handle her investments in the future.
Thanks for your many helpful and informative videos. Cheers.
I totally agree with Ron. In addition, which asset categories should be considered in taxable versus non taxable, including HSA accounts, and how to set them up to permit rebalancing. I’ve looked all over, and found suggestions for what goes where, but it gets complicated and doesn’t explain how to rebalance if one gets far “out of kilter”. Are there some “rules” that are less critical than others. I have the same issue with complementary vegetables and rotating crops in my garden - when I try to make the map, it gets super messy. Thanks!
I appreciate your knowledge. We have lots of great Canadian RUclipsrs who share investment advice but I have yet to come across a good one who is seasoned like you, most are quite young and years away from retirement. Thanks so much.
Well done Rob, as usual.
Would be really interesting to hear the advisor's response.
Rob - nice analysis, provides an understandable approach of how to streamline/simplify a portfolio. Thank you!
How do you not have more subscribers?
Great Video!!!
if these assets are held in a taxable account, one possible explanation for duplication of similar funds would be that the advisor is tax-loss harvesting. promptly reinvesting in a second investment, similar but different to the one being sold, to put a capital loss on the investor's tax ledger.
My first thought was the two similar funds were used to tax loss harvest one and buy the other
Thank you so much for the very informative videos. Would it be possible to provide the links to the tools you are using Rob?
Great analysis! I don't see a good good reason for the duplication either. I could see some reasons that I disagree with: tilt towards ~active management, commissions on selling certain funds, making it appear more sophisticated, etc. Maybe the advisor has a good one? Definitely understand and get it under control before getting locked in!
Great video Rob. I had similar experience few years ago.
Rob, thank you so much for the video. I appreciate you doing this. I'd like to simply my fund (11 to 5) in my Roth IRA account. I think it does not have tax complications, but what would be a good time of doing so (such as market-down or up)? Also, I'd like to change my target-date funds to low-cost index funds due to the fee. When would be a good time to do so? Thank you for what you do.
Here's my entire portfolio for the past decade:
1. VTI
2. VOO
3. QQQ
It performs like no other, and I still keep on contributing the same amount (same date, same time, every time) even during our current market correction.
I'm curious why did you choose to invest solely in ETFs and not mutual funds? For example, it would be better to invest in a mutual fund for retirement accounts and an ETF for taxable accounts.
@@tuilatui8205 I'd go with VTI over VOO.
@@tuilatui8205 VTI just gives you some additional exposure and diversification. In practice they’re going to have next to identical performance. Can’t go wrong with either.
@@DanielThomasArgueta VTI for example has a lower expense ratio than its mutual fund equivalent (VTSAX). And then there’s the issue of minimum initial investment when it comes to mutual funds. VTSAX needs an initial investment amount of $3000.
At the end of the day many people might just prefer the flexibility to trade funds like a stock throughout the day.
I wish I had jumped on he QQQ train a few years ago. It’s too late to get on board.
Hi Rob, thanks for this video. When I got access to my pension management portal I have to admit I maybe went a bit wild investing in different funds and now I want simplify to 3-4 funds. Is it wise to just transfer everything over in one go, at any point in time, to get the balance of funds you want or will there be draw backs to this? (30yo less than 100k currently invested) I suppose I’m asking for some elaboration on the point made at the end of the video. Thanks
I just cut my taxable account in half. 42 positions down to 21. 4 ETFs and 17 stocks. I found myself spending hours on research. I couldn’t do it anymore.
I just got into investing myself just weeks ago. I have done like you said tons and tons of researching. I had around 18 at the start then that number went up to 36 or 38. I was like that is a crazy amount like me scale back I went down go 24. Now am back up to 28, but I refuse to do anything more with it except pay into it over a six months to a year. I have a total market, a small cap, mid cap, and several etfs like qqqm and qqqj along with several singular stocks.
@@connordutton674 The only advice I have is to stick to high-growth, quality companies. Ask yourself, why do I invest in the company? If you can't answer that question, get out of it.
Yet, DFA invest differently from the other index funds.
Rob thanks so much really enjoy your videos! Any thoughts on VGT? Is it worth it if you’re already into an s&p index fund?
I wish they can show this video in high school, atleast to college students
I had to get my Rob Berger fix today. I mean, I really like Jim Cramer. I just can't understand what he's saying while he's saying it. Still worth listening to Cramer, though. I'm not dwelling on the balances in my accounts, and I'm certainly not reacting, I just need a bit of common sense talk.
Please don’t listen to Jim Cramer. He’s an entertainer and not someone to be taken seriously.
@@afridgetoofar1818 A bit grating as an entertainer. Yes. Sure. But I don't react and take action based on what any one person says. Not even Rob Berger. The real Rob Berger, that is, not the fake Rob Berger commenting here.
Rob please do a recession proof portfolio pleaseee I am thinking staples, health, utilities value
Rob did a video on the Ray Dalio? All weather portfolio. Not the highest grossing portfolio but seems to be very stable as promised.
My guess, the advisor wants it to appear he is doing a complicated job and/or he is getting kickbacks from these fund families. I can't think of any other reason to have such similar funds in a portfolio.
Hi, good subject to cover. When reallocating/cleaning up ETF funds is it okay to do this if the ETF is held less than a year? or should I do this "cleaning" up or consolidating at its anniversary? I want to redo my portfolio to eliminate duplication. I have a taxable account that needs consolidating.
Definitely try to clean up the 1+ year holdings first, or else you’re literally giving way close to 20%.
How much is Paul being charged for his 11 funds? Just curious.
Another great video Rob!
Thanks for the helpful videos Rob. My situation falls into what you described as handcuffed. I would love to simplify my after tax portfolio but not very willing to take on the tax implications from selling investments made over 10 years ago, some longer. My current plan is to just hold them until I retire and income goes down, but that is not very satisfying. Any other suggestions?
Bob, I'll do a video on this topic. I'm working through it myself and do have some solutions.
why bother paying extra taxes to make your portfolio look pretty? I actually like it, some have slight different allocations which keeps things diversified in their own way.
I have 25 funds with several near duplicates, mostly so when I rebalance I know each one is exactly 4% of my total. Is there a negative to having multiple similar funds, apart from clutter?
I sometimes do this when I invest in active funds, in order to diversify between two funds that I think are great quality, but I can't pick between the two. An example is TEM and FEML for my emerging market active funds. Would you advise against this?
Beware of scammer pretending to be Rob Berger in the replies.
Hi Rob. Thanks for all you doing. Can you please talk about TZA ? Did the ETF reach it basecamp after it summit its Everest in 2008 ?
@Rob with the current market rollercoaster, would you recommend keeping three worth of income in cash. I just retired and I just want to be in the safe side. Thaoughts
3 months or years? 3 months is certainly reasonable. 3 years, for me, is too much, assuming one has a significant amount (say 30% or more) in fixed income.
@@rob_berger i actually meant three years in case of a long dip in the market. I kind of not trusting the market now and I just retired two years ago.
One possible reason to have more funds is because there are differences in the stocks held even though it may be the same asset class. An example would be VYM and SCHD, both of which are large cap "value" (dividend-focused) funds but have some potentially non-insignificant differences in their core holdings. Another reason may be to have more flexibility for future dollar cost averaging and rebalancing. For example, splitting between growth/value (e.g., VUG and VYM), large/medium/small cap or combinations thereof. That way one can focus on growth or value funds for dollar cost averaging when that particular sector has been beaten down (since they don't always move in accord).