It's not how much you make, but how you manage it. I realized that even high earners can retire broke, while modest income earners can build wealth. Living below your means and adopting a frugal lifestyle is the foundation of financial freedom. I'm celebrating my own milestone - hitting $1 million last year - and cheering on everyone striving for financial independence
congrats on reaching such an impressive feat! Should I prioritize saving or allocating a significant portion of my salary to stocks for long-term growth?
@donhug consider allocating a significant portion to stocks for long-term growth and a smaller portion to savings for emergency funds and short-term goals.However, it's essential to consult a financial expert to determine the ideal allocation based on your individual circumstances and craft a tailored plan aligned with your goals.
I agree! I've found that having a plan, even when circumstances change, has been instrumental in my financial journey.Starting work at 19, buying my first home at 28, and seeking professional guide after a layoff at 36 helped me navigate my financial growth.
@ric-morris I love hearing about financial wins! As someone Working towards financial stability, I'd really appreciate any advice or recommendations for a trusted financial expert.
I work with Glen Howard Chester and is NY-based. He can appropriately create a personalized plan for you, properly allocate and keep you informed on available market opportuinities. Just search the name & check if he meets your requirements, You’d find necessary details to work with to set up an appointment.
I'm 54, retired, and I've had my money in S&P 500 funds (100℅ stock) since I started investing. I have made a great deal of money with my FA Kathie and I see no reason to change. The S&P 500 has made an average of 9.8% returns over the past 100 years. International and Bond funds are losers in my opinion because they don't make much money. This is just my amateur opinion which may not work for everyone
Finding FAs like Kathie Daisy Bosco who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thanks for sharing, I just looked her up on the web because this is equality important to me, and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
@SherriMiles-f4i Generally, to succeed, you need to be able to spot someone trying to use the comments section to con the great unwashed into losing their money to an unknown individual on the back of fake individuals. But this wouldn't be you, would it?
I partial transfer my workplace pension that has low performance to a SIPP regularly - keeping my workplace pension active with employer contributions. My SIPP is all in Vanguard FTSE Global All Cap and growing so much better than workplace(Adventurous level) pension. Leaving me plenty of time to go running 🙂 S and S ISA's are more disorganised with a few global ETF's and tech, semiconductor and defence ETF's sprinkled for a bit of healthy anxiety
The problem with a multi asset fund recently is that equity and bonds crashed at the same time. At least with a two fund portfolio in drawdown you can decide what one to sell, and give more time for the worst one to recover.
I would never invest in a Vanguard Life Strategy fund, they are too heavily weighed towards the UK. Around 24% whereas the UK is only about 3.9% in world funds.
Good point. I'm a little bit kicking myself for not pointing that out tbh. Hopefully I did make it clear that other mixed asset funds are available if you don't want to do any rebalancing yourself. The most important point is to actively choose your funds rather than leaving it to the platform provider to choose for you
Great video Diane. I've recently just changed my portfolio to a one fund approach, from having four funds previously. I was finding myself tinkering with it far too much, so ditched three, and switched the one remaining fund to another provider that isn't as easy to access, so I avoid checking it all the time
@@DianneSullivan If you can’t help but check your portfolio daily & have the one fund a good tip is, just check the actual fund itself outside of your investment account on Google. You’ll see the daily % increase / decrease, have an idea, but, without logging into your account.
bonds offer poor returns over 10+ years horizon. They are more useful for shorter time horizons where you dont want the volatility. But for 10+ years, the data proves that bonds are a very poor investment for the long term
not every workplace pension schemes have hundreds of funds to choose from. I worked for a large corporate & they only had 2 lifestyle funds - neither of which provided very good returns due to overreliance on bonds and the UK market.
Good point. Some people in this situation open a SIPP that has more choice, then regularly move amounts over from workplace pension to avoid losing employer contributions.
Where are you getting a blended global equity fund that replicates a global funds current weighting for 0.06%? Even DIY once you've incorporated the developed world funds, most pushing you above 0.06% at the outset adding emerging markets will give you a much higher blended OCF than 0.06%
@@BaileyMxX It’s not a blended global equity fund, that’s too expensive. If you want everything, you have to pay the higher fees. I only include the S&P 500 for the North American fund, which makes up 60+ % of the total fund. SPDRs fund ticker SPXL only changes u 0.03%. Then u can add in Vanguards developed Europe, Japan, Emerging Markets at their rough allocation. My sector weighting is pretty much weighted the same, though the individual components will be different, in the same way MSCI has different allocations than FTSE global. When you’re dealing with that many stocks, it really isn’t going to make a big difference as long as the sector exposure is weighted correctly.
Sounds like you gave it thought. But for the life of me, why would you do that? UK has historically proven bad performance. Why not go fully in the 1 world for equity? I would understand UK bonds, for FX purposes. Or maybe UK smallcap if you expect UK to outperform.
Yes, exactly the sort of passive fund that should give you a diverse mix of equities or bonds depending on what type of ETF it is. The only challenge you will have is if you want a mix of equities and bonds
My workplace pension is changing to Scottish widows now and I need to select where to invest my money. The stronger growth come from a shariah law fund at almost 40% last year growth. I am not Muslim but this is the best performing fund out of the 30 I can choose from. Any views please?
Past performance is no indicator of future performance. Having said that, I do have several clients that have opted for one standard global fund with a percentage going into the Shariah fund and tell me they are happy with that
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can i find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like Deborah Lynn Dilling I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.
The problem with the vanguard 80/20 fund is that it has 19% in the uk index market, when in reality the uk makes up only about a 4% of global markets. Why this is,I have no idea. Hence I prefer just a global tracker plus a bond/ money market fund on the side.
Vanguard platform so all vanguard funds, so I use the vanguard ftse all cap index (income) and an allocation of the vanguard money market fund as I am quite close to early retirement. But please dont assume this is the right thing to do. We are all different and there are plenty of other global funds and mm funds out there.
@@johndoh539 thanks . I have a world fund. Just interested in comparing to what others use. I don't have a money market fund. Alot is cash in my sipp so I am interested in a liquid alternative to cash.
@@DianneSullivanwell I am still accumulating so when I add new funds I just allocate accordingly. However when I do stop adding new money then I will have to watch it closer and maybe just allocate the dividends to suit until I start withdrawing.
It's not how much you make, but how you manage it. I realized that even high earners can retire broke, while modest income earners can build wealth. Living below your means and adopting a frugal lifestyle is the foundation of financial freedom. I'm celebrating my own milestone - hitting $1 million last year - and cheering on everyone striving for financial independence
congrats on reaching such an impressive feat! Should I prioritize saving or allocating a significant portion of my salary to stocks for long-term growth?
@donhug consider allocating a significant portion to stocks for long-term growth and a smaller portion to savings for emergency funds and short-term goals.However, it's essential to consult a financial expert to determine the ideal allocation based on your individual circumstances and craft a tailored plan aligned with your goals.
I agree! I've found that having a plan, even when circumstances change, has been instrumental in my financial journey.Starting work at 19, buying my first home at 28, and seeking professional guide after a layoff at 36 helped me navigate my financial growth.
@ric-morris I love hearing about financial wins! As someone Working towards financial stability, I'd really appreciate any advice or recommendations for a trusted financial expert.
I work with Glen Howard Chester and is NY-based. He can appropriately create a personalized plan for you, properly allocate and keep you informed on available market opportuinities. Just search the name & check if he meets your requirements, You’d find necessary details to work with to set up an appointment.
I'm 54, retired, and I've had my money in S&P 500 funds (100℅ stock) since I started investing. I have made a great deal of money with my FA Kathie and I see no reason to change. The S&P 500 has made an average of 9.8% returns over the past 100 years. International and Bond funds are losers in my opinion because they don't make much money. This is just my amateur opinion which may not work for everyone
How did you manage to succeed? I want to invest more wisely because I have a lump sum that inflation is slowly depleting
Finding FAs like Kathie Daisy Bosco who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thanks for sharing, I just looked her up on the web because this is equality important to me, and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
The thoughts and ideas here are remarkable
@SherriMiles-f4i
Generally, to succeed, you need to be able to spot someone trying to use the comments section to con the great unwashed into losing their money to an unknown individual on the back of fake individuals. But this wouldn't be you, would it?
I partial transfer my workplace pension that has low performance to a SIPP regularly - keeping my workplace pension active with employer contributions. My SIPP is all in Vanguard FTSE Global All Cap and growing so much better than workplace(Adventurous level) pension. Leaving me plenty of time to go running 🙂 S and S ISA's are more disorganised with a few global ETF's and tech, semiconductor and defence ETF's sprinkled for a bit of healthy anxiety
The problem with a multi asset fund recently is that equity and bonds crashed at the same time. At least with a two fund portfolio in drawdown you can decide what one to sell, and give more time for the worst one to recover.
I would never invest in a Vanguard Life Strategy fund, they are too heavily weighed towards the UK. Around 24% whereas the UK is only about 3.9% in world funds.
Good point. I'm a little bit kicking myself for not pointing that out tbh. Hopefully I did make it clear that other mixed asset funds are available if you don't want to do any rebalancing yourself. The most important point is to actively choose your funds rather than leaving it to the platform provider to choose for you
Great video Diane. I've recently just changed my portfolio to a one fund approach, from having four funds previously. I was finding myself tinkering with it far too much, so ditched three, and switched the one remaining fund to another provider that isn't as easy to access, so I avoid checking it all the time
Well done! I can't help checking my own every day on the phone apps so introducing some friction is a good approach..
@@DianneSullivan
If you can’t help but check your portfolio daily & have the one fund a good tip is, just check the actual fund itself outside of your investment account on Google.
You’ll see the daily % increase / decrease, have an idea, but, without logging into your account.
bonds offer poor returns over 10+ years horizon. They are more useful for shorter time horizons where you dont want the volatility. But for 10+ years, the data proves that bonds are a very poor investment for the long term
not every workplace pension schemes have hundreds of funds to choose from. I worked for a large corporate & they only had 2 lifestyle funds - neither of which provided very good returns due to overreliance on bonds and the UK market.
Good point. Some people in this situation open a SIPP that has more choice, then regularly move amounts over from workplace pension to avoid losing employer contributions.
Having multiple funds to similarly (not exact) replicate a global equity index for a fraction of the cost. You can get as low at 0.06% TER
Where are you getting a blended global equity fund that replicates a global funds current weighting for 0.06%?
Even DIY once you've incorporated the developed world funds, most pushing you above 0.06% at the outset adding emerging markets will give you a much higher blended OCF than 0.06%
@@BaileyMxX It’s not a blended global equity fund, that’s too expensive. If you want everything, you have to pay the higher fees. I only include the S&P 500 for the North American fund, which makes up 60+ % of the total fund. SPDRs fund ticker SPXL only changes u 0.03%. Then u can add in Vanguards developed Europe, Japan, Emerging Markets at their rough allocation. My sector weighting is pretty much weighted the same, though the individual components will be different, in the same way MSCI has different allocations than FTSE global. When you’re dealing with that many stocks, it really isn’t going to make a big difference as long as the sector exposure is weighted correctly.
I have kept it simple. 3 funds, 1 world, 1UK and 1 bond. I know I am over weight UK, about 4x, but I am fine with this.
Sounds like you gave it thought. But for the life of me, why would you do that? UK has historically proven bad performance. Why not go fully in the 1 world for equity? I would understand UK bonds, for FX purposes. Or maybe UK smallcap if you expect UK to outperform.
What do you think of global ETF ?
Yes, exactly the sort of passive fund that should give you a diverse mix of equities or bonds depending on what type of ETF it is. The only challenge you will have is if you want a mix of equities and bonds
My workplace pension is changing to Scottish widows now and I need to select where to invest my money. The stronger growth come from a shariah law fund at almost 40% last year growth. I am not Muslim but this is the best performing fund out of the 30 I can choose from. Any views please?
Past performance is no indicator of future performance. Having said that, I do have several clients that have opted for one standard global fund with a percentage going into the Shariah fund and tell me they are happy with that
@@DianneSullivan thank you Dianne for your input.
I’m 100% in on Trump Media and Technology Group and Crypto! 🚀
Wave bye bye to your money then.
Hell yeah!!!
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can i find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like Deborah Lynn Dilling I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
The problem with the vanguard 80/20 fund is that it has 19% in the uk index market, when in reality the uk makes up only about a 4% of global markets.
Why this is,I have no idea.
Hence I prefer just a global tracker plus a bond/ money market fund on the side.
would you mind stating which ones you buy John and platform used. Thanks
Hi John, - good point re Vanguard. How regularly do you find you need to rebalance between your global tracker and your money market fund?
Vanguard platform so all vanguard funds, so I use the vanguard ftse all cap index (income) and an allocation of the vanguard money market fund as I am quite close to early retirement.
But please dont assume this is the right thing to do. We are all different and there are plenty of other global funds and mm funds out there.
@@johndoh539 thanks . I have a world fund. Just interested in comparing to what others use. I don't have a money market fund. Alot is cash in my sipp so I am interested in a liquid alternative to cash.
@@DianneSullivanwell I am still accumulating so when I add new funds I just allocate accordingly.
However when I do stop adding new money then I will have to watch it closer and maybe just allocate the dividends to suit until I start withdrawing.