I was advised to diversify my portfolio among several assets such as stocks and bonds since they can protect my portfolio for retirement of about $170k. I need advice: Do I keep contributing to my portfolio in this unstable market or do I look into alternative sectors?
The strategies are quite rigorous for the regular-joe. As a matter of fact, they are mostly successfully carried out by experts who have had a great deal of skillsets and knowledge to pull such trades off.
That is very correct. Having the right financial expert is invaluable. My portfolio is well matched for every season of the market and recently it has hit 80% rise from early last year. I and my CFP are aiming for a 6 figure ballpark goal.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’TERESA L. ATHAS’’ for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I’m 32 and investing for the first time in my life. I have started contributing to my 401K and opened a Roth IRA with automatic contributions, but my question is, does asset allocation really matter at first, or perhaps I am just overthinking as a beginner?
I'm in line with having an advisor oversee my day-to-day investing cos, my job doesn't permit the time to analyze stocks myself. I got fully invested since the covid-outbreak, and thankfully, my 6 figure portfolio has 5X in barely 5 years, amassing nearly $1m as of today.
@@arlenehill4ril good gains! who is the professional guiding you please? enthused about investing for my eventual retirement but dont know how to go about it, for now I only invest in my 401k through my employer and gains are quite slow
Karen Lynne Chess is my FA. Just google the name and you’d find necessary deets to work with. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
excellent share, curiously inputted Karen Lynne Chess on the internet, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
All financial topics are made complex by experts on purpose - so that the average folk are scared of managing their money and pay the experts to do it instead. Average $500/month into SCHD + QQQ for 40 years and you WILL have dividend income plus total return to retire just fine. No fintechbabble with insane complexity.
I agree with your comments about bond funds but I think your headline about being “lied to” and asset allocation being a “scam” is completely untrue. Those words don’t apply to the real issues you raise.
I retired in 2022. Maybe i just got lucky. You are looking at 2022 like it is the norm. I had 65 stocks and 35 treasuries in 2022. Rebalanced when market dropped a few percent each month. Only lost about 10% overall and rode the recovery through 2024 for a nice gain. Simple strategy is best.
Your point 2 and 3 are not about asset allocation, but about market timing. I did not find that video to be about asset allocation. Speaking about asset allocation and just considering stocks (represented by the S&P 500) and bonds is not clarifying or explaining anything about what is asset allocation. Speaking about asset allocation should at lest saying something about the Fama French 3 or 5 factor model.
If you use a bond fund, you can also look at the average time to maturity. A medium-time-to-maturity bond fund gives up some gains but is also much safer in terms of avoiding medium- and longer-term losses compared with a long-time-to-maturity bond fund.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
Agreed, the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around 300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
this is huge! mind if I look up the advisor that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
Finding financial advisors like Sophia Maurine Lanting 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.
Thank you for putting this out, it has rekindled the fire to my goal... was able to spot Sophia Maurine Lanting after inputting her full name on the web, she seems highly professional with over a decades of experience.
Excellent video. Agree that "asset alloction" is a scam. In fact, given the likelihood that most 65 year olds will live onto their 80s. Any allocation into bonds is likely to be a loosing proposition. Only disagreement is with last comment about buying individual stocks. This strategy is another looser as no-one can time or predict the performance of individual stocks. My strategy is to build cash reserves and T-bills, and let the equities run in low cost broad based ETFs. If you need dividend income a dividend equity fund (SCHD) would be a good choice
Seems like the 60/40 approach is dead and needs to be rethought. I am currently a no bond investor but I do buy high yield options ETFs like SPYI, QQQI, JEPQ, and FEPI along with SP500 index and growth stocks.
Great video as always! I like how you illustrated how certain bond funds performed in different monetary and market conditions, and how some bond funds take on higher risk. I think most people just feel obligated to invest in total bond funds because it’s what ‘you’re supposed to do.’ I find bonds to be boring investments, but still necessary to a degree. I have my portfolio at around 12% bonds and the rest in stocks. I also love SCHD as a resilient and stable ETF that pays solid dividends that can help during corrections, etc. Though not a bond fund (obviously), I think of it as my best ‘bond’ fund, so to speak. Thank you for your channel and pointing out the many flaws in strategy and mindset throughout the investment world.
I have all my assets in stocks, money market, and cash. I am holding two years of expenses in cash and money market. I think this is more than enough diversification to last until we are 90.
TLT is not considered a "safe" asset. A 50/50 SP500/Long UST portfolio prior to 2022 was a great mix for 40 years. Now the question becomes, is the long term the stock/bond relationship broken, and will we see more 2022s? Or was 2022 an anomaly? You really didn't describe asset allocation in the broader sense, you spoke only of the stock/bond allocation model.
None of the four are problems with asset allocation. They are problems with emotional (or blind) investing. Further the 2022 decline was an outlier and a crazy example to pretend is how things normally go. This video is irresponsible.
Hi there - I hear what you are saying. I hope you watch the full video at some point. The case I am making in this video is that Asset Allocations oversimplify a concept and cause investors to lose touch with their most prized and vulnerable possession - their wealth. As an analogy - imagine a world (this is happening) where doctors can prescribe Ozempic universally for weight loss. As a result, doctors no longer need to learn or retain their nutrition knowledge - because Ozempic "works"! In that scenario, who benefits? 1st - Big pharma - because they get a permanent client who relies on their drug to maintain their weight for the rest of their life (ahem with side effects). 2nd - Overworked doctors who can now spend less time focusing on retaining or increasing their nutrition knowledge. Who suffers? The consumer - they become an "annuitized" customer, and they lose touch with having their own influence on their health because they can now rely on this drug that "works". Asset Allocation as a concept is similar. There is a whole generation of advisors and retirees who now know very little about the underlying elements and risk factors of their investments. Now they have to rely on trust and on the word of brokerage companies (who annuitize fees off of Asset Allocation related material, and who conveniently produce that material and advocate for the use of Asset Allocation as a tool). Mal incentives abound in this scenario and when I look at this with a critical eye, my inference is that this material is in the best interest of parties (brokerage companies and lazy financial advisors) who want a dependent and vulnerable population so that that population follows their advice out of fear... Maybe a controversial opinion, but that is currently the one I hold. I am certainly open to changing that opinion and willing to engage in dialog with parties who would like to discuss this issue! Thanks for watching the video. Eric
You do know that bond results in 2022 are mathematically predictable, right? Further, interest rates were so low that the near universal opinion was that an interest rate increase would happen. The only thing at all unusual about 2022 was that it came at the end of a 40 year down-trend in interest rates. Yes, that is an unusual situation, but yet predictable.
Nothing you said was a problem with asset allocation. There were problems in the type of assets held. You are perfectly free to own short term tips when bonds are priced too high.
But most of the time bonds don’t go down when stocks go down. For a retired person investing in stocks should not be one hundred percent. Asset allocation IS the way to go. I prefer fixed index annuities as my bond equivalent. In a down year for the market the return is zero , no loss. In an up year I get some of the gain. That gain is credited to my principal and never lost. It might be appropriate for someone in their seventies. It’s worked well for me for fifteen years. Real estate is an asset worth considering. There are many ways to invest without being a landlord. He might not get a commission or fee on real estate so he may not mention this.
Yeah. This one was tricky for me. I absolutely agree with and concede that asset allocation should be individualized depending on pensions, social security fixed income from real estate, etc. But I’m left puzzled as to how to combat this particular problem you presented: hold bonds when interest rates are high and sell when they’re low. And then keep some individual stocks in your equities? Anyway, I think this is one where an advisor would have to help out and I wonder how costly that would be and if it would be worth it? Is the savings worth the cost of advisory fee? Possibly. But would like to see real examples as to how this would work and how much you save by adding all this complexity. I just heard that in 2022 it would have been better to have had a stock portfolio but that’s because interest rates were still low, I guess, and bonds lost out? Or is it just better overall to be heavier on stocks?
The comment on having individual stocks in equities seemed to be geared to the strategy of “direct indexing”, where rather than holding an stock index ETF/fund you instead hold several stocks (50-80+) that together behave similarly to the index. The “advertised “ advantage of doing this is that you can better do tax-loss harvesting and realizing gains that offset each other, and you also don’t pay expense ratios since it is individual stocks. With an ETF you cannot play with its individual components (you can harvest losses only when the entire index goes down). I personally don’t like this approach because first you need to free the cash to buy the individual stocks if you are already invested in funds or other stocks (and incur taxes) and then your portfolio becomes very complex and therefore needs to be managed by your advisor, who uses computer algorithms and charges you an AUM fee. And of course, if you want to take it back and manage it yourself, it is either to complex to manage or expensive to disentangle (taxes for selling the stocks) to bring it back to a more manageable portfolio.
Asset allocation is a great approach to write research papers. You mean the same approach is not as useful for real people in a real world? Shocking! (not)
Your definition of asset allocation (stocks and bonds only) is strange. No mention of gold, cash, trend strategies, carry strategies, commodities, long/short strategies, crypto, etc., let alone global equity diversification.
Sorry but this came across as a rather self serving sales pitch for your services without you providing any proof points of your approach and suggestions actually having shown better results over a period of time for your clients. This comes across as a pitch I can get at your average local bank branch from every other financial professional suggesting active management of a portfolio. If you had actually shown real life examples and proof of you achieving significantly better performance at the end of your video than maybe I could stand to be convinced. Now you have achieved the opposite with me.
I was advised to diversify my portfolio among several assets such as stocks and bonds since they can protect my portfolio for retirement of about $170k. I need advice: Do I keep contributing to my portfolio in this unstable market or do I look into alternative sectors?
The strategies are quite rigorous for the regular-joe. As a matter of fact, they are mostly successfully carried out by experts who have had a great deal of skillsets and knowledge to pull such trades off.
That is very correct. Having the right financial expert is invaluable. My portfolio is well matched for every season of the market and recently it has hit 80% rise from early last year. I and my CFP are aiming for a 6 figure ballpark goal.
Could you kindly elaborate on the advisor's background and qualifications?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’TERESA L. ATHAS’’ for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
I’m 32 and investing for the first time in my life. I have started contributing to my 401K and opened a Roth IRA with automatic contributions, but my question is, does asset allocation really matter at first, or perhaps I am just overthinking as a beginner?
There’s a lot to decide on… most times it is better as a beginner to delegate your day-to-day investing to a well experienced advisor
I'm in line with having an advisor oversee my day-to-day investing cos, my job doesn't permit the time to analyze stocks myself. I got fully invested since the covid-outbreak, and thankfully, my 6 figure portfolio has 5X in barely 5 years, amassing nearly $1m as of today.
@@arlenehill4ril good gains! who is the professional guiding you please? enthused about investing for my eventual retirement but dont know how to go about it, for now I only invest in my 401k through my employer and gains are quite slow
Karen Lynne Chess is my FA. Just google the name and you’d find necessary deets to work with. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
excellent share, curiously inputted Karen Lynne Chess on the internet, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
All financial topics are made complex by experts on purpose - so that the average folk are scared of managing their money and pay the experts to do it instead. Average $500/month into SCHD + QQQ for 40 years and you WILL have dividend income plus total return to retire just fine. No fintechbabble with insane complexity.
I agree with your comments about bond funds but I think your headline about being “lied to” and asset allocation being a “scam” is completely untrue. Those words don’t apply to the real issues you raise.
I agree. I’ve seen people follow traditional asset allocation models and still loose money
And I've seen people with actively managed portfolios also lose money. And you pay 1% or more to *maybe* do better. No thanks.
I retired in 2022. Maybe i just got lucky. You are looking at 2022 like it is the norm. I had 65 stocks and 35 treasuries in 2022. Rebalanced when market dropped a few percent each month. Only lost about 10% overall and rode the recovery through 2024 for a nice gain. Simple strategy is best.
Buying individual corporate bonds or CDs may be an option in the short term. It seems like it is the bond fund that is the problem due to duration.
Duration is a killer if you do not understand it......
Your point 2 and 3 are not about asset allocation, but about market timing. I did not find that video to be about asset allocation. Speaking about asset allocation and just considering stocks (represented by the S&P 500) and bonds is not clarifying or explaining anything about what is asset allocation. Speaking about asset allocation should at lest saying something about the Fama French 3 or 5 factor model.
If you use a bond fund, you can also look at the average time to maturity. A medium-time-to-maturity bond fund gives up some gains but is also much safer in terms of avoiding medium- and longer-term losses compared with a long-time-to-maturity bond fund.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
Agreed, the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around 300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
this is huge! mind if I look up the advisor that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
Finding financial advisors like Sophia Maurine Lanting 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.
Thank you for putting this out, it has rekindled the fire to my goal... was able to spot Sophia Maurine Lanting after inputting her full name on the web, she seems highly professional with over a decades of experience.
Excellent video. Agree that "asset alloction" is a scam. In fact, given the likelihood that most 65 year olds will live onto their 80s. Any allocation into bonds is likely to be a loosing proposition. Only disagreement is with last comment about buying individual stocks. This strategy is another looser as no-one can time or predict the performance of individual stocks. My strategy is to build cash reserves and T-bills, and let the equities run in low cost broad based ETFs. If you need dividend income a dividend equity fund (SCHD) would be a good choice
Great content.
Thanks for your video! I was fortunate in 2022 to have a solid cash position so I wasn’t forced to sell stocks or bonds.
Seems like the 60/40 approach is dead and needs to be rethought. I am currently a no bond investor but I do buy high yield options ETFs like SPYI, QQQI, JEPQ, and FEPI along with SP500 index and growth stocks.
Great video as always! I like how you illustrated how certain bond funds performed in different monetary and market conditions, and how some bond funds take on higher risk. I think most people just feel obligated to invest in total bond funds because it’s what ‘you’re supposed to do.’ I find bonds to be boring investments, but still necessary to a degree. I have my portfolio at around 12% bonds and the rest in stocks. I also love SCHD as a resilient and stable ETF that pays solid dividends that can help during corrections, etc. Though not a bond fund (obviously), I think of it as my best ‘bond’ fund, so to speak. Thank you for your channel and pointing out the many flaws in strategy and mindset throughout the investment world.
Thanks so much for the kind words and glad you enjoyed the video.
So what would you recommend instead of BND for the safe part of a portfolio?
I have all my assets in stocks, money market, and cash. I am holding two years of expenses in cash and money market. I think this is more than enough diversification to last until we are 90.
TLT is not considered a "safe" asset. A 50/50 SP500/Long UST portfolio prior to 2022 was a great mix for 40 years. Now the question becomes, is the long term the stock/bond relationship broken, and will we see more 2022s? Or was 2022 an anomaly? You really didn't describe asset allocation in the broader sense, you spoke only of the stock/bond allocation model.
It's really just about inflation. Inflation is a killer of long-term bond funds.
None of the four are problems with asset allocation. They are problems with emotional (or blind) investing. Further the 2022 decline was an outlier and a crazy example to pretend is how things normally go. This video is irresponsible.
Hi there -
I hear what you are saying.
I hope you watch the full video at some point.
The case I am making in this video is that Asset Allocations oversimplify a concept and cause investors to lose touch with their most prized and vulnerable possession - their wealth.
As an analogy - imagine a world (this is happening) where doctors can prescribe Ozempic universally for weight loss. As a result, doctors no longer need to learn or retain their nutrition knowledge - because Ozempic "works"!
In that scenario, who benefits? 1st - Big pharma - because they get a permanent client who relies on their drug to maintain their weight for the rest of their life (ahem with side effects). 2nd - Overworked doctors who can now spend less time focusing on retaining or increasing their nutrition knowledge.
Who suffers? The consumer - they become an "annuitized" customer, and they lose touch with having their own influence on their health because they can now rely on this drug that "works".
Asset Allocation as a concept is similar. There is a whole generation of advisors and retirees who now know very little about the underlying elements and risk factors of their investments. Now they have to rely on trust and on the word of brokerage companies (who annuitize fees off of Asset Allocation related material, and who conveniently produce that material and advocate for the use of Asset Allocation as a tool).
Mal incentives abound in this scenario and when I look at this with a critical eye, my inference is that this material is in the best interest of parties (brokerage companies and lazy financial advisors) who want a dependent and vulnerable population so that that population follows their advice out of fear...
Maybe a controversial opinion, but that is currently the one I hold. I am certainly open to changing that opinion and willing to engage in dialog with parties who would like to discuss this issue!
Thanks for watching the video.
Eric
You do know that bond results in 2022 are mathematically predictable, right? Further, interest rates were so low that the near universal opinion was that an interest rate increase would happen. The only thing at all unusual about 2022 was that it came at the end of a 40 year down-trend in interest rates. Yes, that is an unusual situation, but yet predictable.
Agree
Nothing you said was a problem with asset allocation. There were problems in the type of assets held. You are perfectly free to own short term tips when bonds are priced too high.
But most of the time bonds don’t go down when stocks go down. For a retired person investing in stocks should not be one hundred percent. Asset allocation IS the way to go. I prefer fixed index annuities as my bond equivalent. In a down year for the market the return is zero , no loss. In an up year I get some of the gain. That gain is credited to my principal and never lost. It might be appropriate for someone in their seventies. It’s worked well for me for fifteen years. Real estate is an asset worth considering. There are many ways to invest without being a landlord. He might not get a commission or fee on real estate so he may not mention this.
Great content! 100% spot on.
Yeah. This one was tricky for me. I absolutely agree with and concede that asset allocation should be individualized depending on pensions, social security fixed income from real estate, etc. But I’m left puzzled as to how to combat this particular problem you presented: hold bonds when interest rates are high and sell when they’re low. And then keep some individual stocks in your equities? Anyway, I think this is one where an advisor would have to help out and I wonder how costly that would be and if it would be worth it? Is the savings worth the cost of advisory fee? Possibly. But would like to see real examples as to how this would work and how much you save by adding all this complexity. I just heard that in 2022 it would have been better to have had a stock portfolio but that’s because interest rates were still low, I guess, and bonds lost out? Or is it just better overall to be heavier on stocks?
The comment on having individual stocks in equities seemed to be geared to the strategy of “direct indexing”, where rather than holding an stock index ETF/fund you instead hold several stocks (50-80+) that together behave similarly to the index. The “advertised “ advantage of doing this is that you can better do tax-loss harvesting and realizing gains that offset each other, and you also don’t pay expense ratios since it is individual stocks. With an ETF you cannot play with its individual components (you can harvest losses only when the entire index goes down).
I personally don’t like this approach because first you need to free the cash to buy the individual stocks if you are already invested in funds or other stocks (and incur taxes) and then your portfolio becomes very complex and therefore needs to be managed by your advisor, who uses computer algorithms and charges you an AUM fee. And of course, if you want to take it back and manage it yourself, it is either to complex to manage or expensive to disentangle (taxes for selling the stocks) to bring it back to a more manageable portfolio.
Interesting but the real question is how are your plans to kill Superman coming along?
Long term bond is not safe asset
Asset allocation is a great approach to write research papers. You mean the same approach is not as useful for real people in a real world? Shocking! (not)
Your definition of asset allocation (stocks and bonds only) is strange. No mention of gold, cash, trend strategies, carry strategies, commodities, long/short strategies, crypto, etc., let alone global equity diversification.
Even on the stock side, there was no mention of small cap vs large cap, growth stock versus value stock.
Agree. And real estate, opportunities in many different ways.
Sorry but this came across as a rather self serving sales pitch for your services without you providing any proof points of your approach and suggestions actually having shown better results over a period of time for your clients.
This comes across as a pitch I can get at your average local bank branch from every other financial professional suggesting active management of a portfolio.
If you had actually shown real life examples and proof of you achieving significantly better performance at the end of your video than maybe I could stand to be convinced. Now you have achieved the opposite with me.
Dude must be struggling getting clients. Turning into a total huckster.
Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️
I'm 37 and have been looking for ways to be successful, please how??
Sure, the investment-advisor that guides me is..
Mrs Kathy lien
Same, I met Kathy lien last year for the first time at a conference in Wilshire, after then my Life has changed for good.God bless Kathy lien
Her services is the best, I got a brand new Lambo last week and paid off my mortgage loan thanks to her wonderful services!