How to Create a 3 Fund Portfolio | A Beginner's Guide

[@Mitchell.Holland]

I currently have 75% SCHD and 25% SCHG Roth IRA. Brokerage account is SCHD, VGT, VUG, alongside some individual stocks! Just passed 500K from an initial 75K startup in 2022. I am 43 and I plan on working until 50 hope to be at ~$1M soon enough

[@larrydimon7811]

I lost a lot chasing individual stocks and I feel pretty stupid for not understanding how investing works. I have a double major in economics but I’ve been trying to make sense of the market. Well done on profits!

[@knockoutlightz]

Nice. I'm doing some research on VUG & SCHD now, seems like very solid choices. Congrats on nearing retirement. 7 years will fly.....unless of course you hate your job lol....

[@henrymitchell9717]

@@Mitchell.Holland That's a lot of money in 2 years!

[@Mitchell.Holland]

Love my job. Over 25 years as a mechanic for a Major Airline. Great company. Just wish I knew about the financial markets years ago. But still with a good CFA I am doing great. It's a nice hands-off way to approach it. *Lina Dineikiene* manages my funds and she has a great team. I conservatively follow her recommendations and market entry and exit points, and tbh this system makes investing fairly simple for me.

[@FirstIdrinkCoffee]

My future wife has QQQM and XLK (similar performance in comparison to VGT) in her DGI portfolio and she has been really happy with the performance! I think VGT, SPYG or SCHG, VTI, XLK, and QQQM (or QQQ) are amazing for long term growth and performance!

[@justinpenticuff4102]

You should have millions of subscribers. Clear, intelligent, transparent and refreshing! Much appreciated.

[@jackgoldman1]

Why does this guy seem so honest and trustworthy? Nice presentations.

[@BaffySchenck]

One of the most briIIiant investing advice i have ever gotten on youtube came from watching an interview with Julianne Iwersen Niemann on CNBC. Indeed, A solid investment strategy is like a well-planted tree-it can withstand storms and still grow strong

[@bahijarhafiri]

That's great advice! Julianne Iwersen Niemann's perspective on investments as a long-term growth strategy, much like a well-planted tree, is a solid analogy. A good investment strategy should be resilient enough to endure market fluctuations while still growing over time. It's essential to have a strong plan that balances risk and reward, much like cultivating a tree that thrives even in tough conditions. Working with a seasoned expert like Julianne can help ensure your financial decisions lead to sustainable growth.

[@YadaniL-g8k]

Mind if I ask you recommend this particular professional you use their service? i need all the guidance I can get.

[@BaffySchenck]

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.

[@YadaniL-g8k]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@sent7127]

LOL. Okayyyyyyy

[@ihasmax]

You have one of the very best finance and investing channels on KZbin and deserve way more subscribers. So sick of all the finance bros! You’re a breath of fresh air

[@lisa941]

Rob I want to thank you. I just discovered you a few weeks ago. I pulled my money from my financial guy who gave me an over complicated portfolio. I’m going solo and slimming down to your simple 3 fund portfolio. I hope you keep doing what you’re doing-A mitzvah for your followers! I am beyond grateful. I have learned so much.

[@aslamhawa3753]

Thanks for such simplicity. Where were you when I was 50 years old. It’s time to educate my children.. Thanks again

[@FelixThompson-h4d]

How can I make good profit as a beginner starting with $50,000 ~ir0

[@Fiona-v9p]

As a beginner, it's essential for you to have a guardian to keep you accountable. I'm guided by Amanda Katherine Nakitare

[@Catherine-b1i]

Don't rush in rather seek expertise like Amanda Katherine. Growing a port-folio is complex

[@DelilahWilliams-z1p]

I racked up so much losses trying it on my own. Amanda really saved me from myself

[@George-u1v]

Finding someone truly skillful is hard. I'm happy to see that a lot of people found Amanda

[@Dominic-y6e]

Same here. Amanda managing myportfolio was my best decision. Gotten more than half a million since

[@acrobizer1238]

I’m 53 with this breakdown... 50%. S&P 500 passive index 30% Small Cap passive index 20% Int passive Index YTD: 16%

[@acrobizer1238]

I just posted up the last comment with asset allocation. Question...what do you think of bonds at this time? They seem worthless, especially with the threat of inflation now a days...thoughts?

[@TheAzmountaineer]

@@acrobizer1238 3 Years later - things maybe a little better now, due to the recent reduction of the interest rate by a half %. If reductions continue, things should be better. But if the Fed is wrong and interest rates go back up, then bonds still make no sense - at least to me.

[@ghostmane2643]

This was one of the best financial videos I've ever watched. Thank you so much.

[@ildefonsovilar]

My ROTH IRA Is actually a 3 fund portfolio! FXAIX 50% FTIHX 25% and FREL 25%

[@bslorbust]

How is the portfolio doing? I was considering these funds. Would you consider fzrox over fxaix

[@Jillyshrum]

I anticipate positive growth in the markets for 2025, and I'm considering investing $220k in stocks for my retirement plan due to recent rate cuts. Could you provide guidance on executing this investment safely? Additionally, are there any crucial tips or changes I should be mindful of in the current financial landscape?

[@kelvingates-b2y]

If you're new to investing or don't have much time, it's best to get advice from an expert. Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.

[@Jeffcraparo]

Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.

[@EggrollsBaby]

@@Jeffcraparo @Jeffcraparo Your invt-adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same invt-adviser and how I can get in touch with them?

[@Jeffcraparo]

One of the most well-known people in her field is my CFA, Anne Marie Holt. I advise doing more study on her qualifications. She is a great resource for anyone trying to understand the financial industry because of her many years of experience.

[@EggrollsBaby]

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.

[@purewonka]

I'm more of a four stock guy. I revile fees. 4 and done. DCA monthly regardless of price. AAPL, MO, TSLA and UNH. I don't trade. I buy for life.

[@ElCatrinMuerto]

been using M1 for a couple months now and definitely enjoying it. There is a rebalance feature but one thing to keep in mind this will create a taxable event. If you just adjust the percentages you want in each ticker it will eventually balance itself as you invest money into it without creating a taxable event. Amazing feature!

[@Tbay007]

You can create a roth ira or a traditional ira with M1 Finance. So that the taxable events won't happen when you re-balance.

[@LoveThatRod]

You are experiencing tax events because you are in a Brokerage account and not in a Tax Deferred account - like an IRA or 401(k).

[@KurtisB]

@@Tbay007 What if their Roth IRA is already maxed out so this is a secondary brokerage account?

[@MrMaxamillion67]

Great video, about one year ago I moved my investments over to Vanguard. The Edward Jones advisor had me in 9 different funds averaging over a 1 percent expense ratio and all were front load fees. Now I am in 4 different funds and I am saving on fees and have the extra working for me not going to the advisor.

[@Noah4evaa]

How’s it going with vanguard? Thinking of switching myself!

[@MrMaxamillion67]

@@Noah4evaa So far I am happy with them. When I retired I am going to stay with Vanguard.

[@williewonka6694]

Well done! Low expense index funds are the way to go. No need to pay more than 0.06% annual expense on any fund.

[@jerimas]

Hi Rob, I’m coming to this video in the middle of the night as I watch over my newborn son. I’ve been thinking a lot about the future and seeing your deep dive and the thought process behind your choices is amazing. Thank you for taking the time to walk us through this and to provide the links as additional guidance. This is all amazing stuff! You’ve got a whole new subscriber!

[@CallsignEskimo-l3o]

I did some sensitivity testing using Portfolio Visualizer on the Bogle Three Fund portfolio. Turns out that while the Mid Cap Value Index has a lower return than Small Cap Value, it also has a substantially lower standard deviation. So instead of having 40/10 Total Market/Small Cap Value mix and going for 30/20 Total Market/Mid Cap Value mix you can have a higher CAGR and a lower standard deviation. In fact, it's the same StDev as only investing in the Total Market for US stocks with a better Best Year (not surprising) and a better Worst Year.

[@es330td]

Rather than look at CAGR and STDev over a long period, use the tab on Portfolio Visualizer to compare rolling three and five year numbers.

[@finesgomez4154]

What does CAGR mean? And what is meant by a sensitivity test? Thank you much. I'm learning and found your post very interesting.

[@CallsignEskimo-l3o]

@@finesgomez4154 CAGR - Compound Annual Growth Rate. Sensitivity testing is making small changes and observing the result.

[@andyk4972]

Fantastic context Bob…. Presented in an exceedingly kind and forgiving way. Thank you.

[@russthompson4296]

So similar to what Fed workers have for their TSPs and it WORKS.

[@frankofva8803]

Excellent presentation. I am planning on retiring from Federal service in 2022, keeping 5 years of expenses in the TSP G Fund and rolling the rest into an IRA. You’ve given me much “food for thought”.

[@seetheforestthroughthetrees]

That is such a great plan. It's tough to set aside funds to earn peanuts when the market is roaring. I know you wrote this a year ago (before the market decline). One of THE biggest risks to a retiree's portfolio is a significant loss at the onset of retirement because the funds can't "grow" back if you have to spend them. If you carved out 5 years worth of expenses and put them in the G fund prior to retiring and prior to the worst start to a year for a 60/40 portfolio ever, you were able to mitigate one of the biggest retirement planning risks. Did you execute your strategy?

[@frankofva8803]

@@seetheforestthroughthetreesI apologize for not getting back sooner with an update. I retired May 31, 2022. I actually changed my original plan a bit. Since I have a pension that more than covers expenses, I don’t need to have 5 years in the G Fund. Actually, I’m more aggressive so I have 20% G and 80% in Schwab’s S&P index SWPPX. I don’t plan on making any withdrawals until I turn 62 (in 2 years) and that amount will be approximately 3.3% of my balance. So far so good. I’m up about 16% overall since retiring. Thanks.

[@Sebastian-i1n3j]

Rob, your videos are both, timeless and priceless: please keep them coming!

[@royjones59344]

Excellent advice. Investing to me is like losing weight both are simple but not easy. Your temperament is the most important part.

[@nk2012]

True. If I had to choose just one fund to invest forever it would be Berkshire Hathaway. And to lose weight buy a commercial versaclimber. Done and done.

[@mucusofwanderhome6945]

I have always run 85% total market mutual funds and 15% bonds. I can tell ya after 20 years of investing I wish I would have had 0% bonds . leaving gains on the table. I would have used a dividend reinvestment fund instead if I knew any better.

[@somchai9033]

Long term treasuries outperformed the S&P 500 the past twenty years from 2000-2020 and so did gold.

[@Austden]

@@somchai9033 that has been possible only because bond yields - and inflation in the overall economy - have generally been declining for the last 20 years. This will not be possible to continue going forward.

[@sunaxes]

In a growing economy with almost no inflation (maybe some deflation), equities do very well and outperform bonds. I recommend to check growth and price trends to understand in which environment you are and to balance accordingly. There is no perfect ratio of bond/equity, it is changeable based on the two above conditions.

[@glamoc0000]

I'm 41 years old. 100% in either SWPPX or Fidelity 500. Over 600k of it in my retirement account. Plan to do so until at least 55. However, I do have a retirement plan that I coinvest with my employer which I cannot move unfortunately. Regardless of one's age and the amount of money at stake, can't see why someone would have more than 6-7 years worth of living money in bonds....

[@news2383]

I mean retirement accumulation portfolio sure. For actually spending anytime soon. Not a good idea

[@williamyejun8508]

Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $70K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. 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.

[@jamescomb1170]

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.

[@jameswood9772]

@@jamescomb1170 I completely agree. I have been consistent with my profit regardless of the market conditions. I got into the market early in 2019 and the constant downtrends and losses discouraged me, so I sold off. I got back in December 2020 and this time with guidance from an investment adviser who was recommended by a colleague

[@Jack51971]

HOLD hold hold...just leave them!

[@johnbrown1851]

You're like the wise uncle I never had, Rob! Appreciate the education ✌️

[@emilj726]

Great video! I have a 3 fund portfolio with Schwab: SWPPX-S&P 500, SWMCX-US MID-CAPS and SWSSX- SMALL-CAPS. I just have it automated where monthly I contribute equal amount to each index.

[@byuvar]

VOO performs slightly better than SWPPX

[@cvinthe2255]

I thoroughly enjoyed this video. I wish I had been taught this back when I started investing. Thank you for taking the time to explain this investing approach clearly. The tempo, tone and graphics of your delivery are perfect. There is no fluff or unnecessary information. You now have a new subscriber.

[@ericjuli6576]

I've been emulating this with VOO VXF VXUS and BND. Added the VXF to get some mid-small cap exposure. Happy with is so far.

[@JoeC5050]

long term returns of VTI is same as VOO+VXF. Last year VXF did well and many will tend to use small caps. For simplicity VTI+VXUS+BND is just fine.. sometimes I feel VUG+VXUS+BND is fine

[@ericjuli6576]

@@JoeC5050 I wasn’t very clear. I use VXF to overweight mid/small cap (compared to VTI

[@IVMTAB]

I can’t believe I just now found your channel on KZbin. Thank you for sharing your great knowledge. Subscribed.

[@the_wiki9408]

You are doing 50% US total stock and 30% Total world stock ratio. That is 62.5% US / 37.5% World. Vanguard has a Total World Stock Index (VT) That already essentially combines these two funds with a 60/40 split. So you could get to essentially the same place with only 2 funds, VT and BND.

[@MRkriegs]

Hes talking about what a traditional 3 fund portfolio would be.

[@paulscozzari1787]

Bonds and international have underperformed U.S. stocks index funds for last 15 yrs. 100% U.S. stocks is way to go.

[@stevencarlyle]

Very helpful for a single woman who is starting to invest in her children's future. I will recommend your channel to others. I love the page "portfolio visualizer".

[@stevechovan1696]

You just validated my Monte Carlo analysis I’ve been doing and got my best performance with the Buffet strategy.

[@devin1053]

Explained clearly and accurately. Was having some confusion around bonds until watching this. Thank you!

[@teresaramos1719]

Thank you for that..wish someone had explained this to me 20 years ago. ❤

[@OchoVerde]

I subscribed to the 'video'! And I watched the entire thing!

[@CandaceHoskins-RodanandFields]

Lol, love the "it's not broken. Let's get back to the portfolio." Thank you for the information.

[@joshuabettin276]

I was very sceptical as I saw the title of the video but it made me curious and at the end it was a video worth watching.

[@robertdewar1752]

This guy is correct imho. The lower the number of funds (or in my case investment trusts) the better, although i would have 4 as a minimum and 8 as a maximum. It is also a lot easier to get in when prices are low after corrections, crashes etc. Also, for this reason don't forget to hold some cash.

[@kevinhaskins6619]

Thanks Rob.... 5-Fund portfolio for the taxable, 6-Fund portfolio for the Roths.

[@ivancolandrea9583]

So just looked this up today. M1 showed over the 5 year period the hypothetical 3 fund portfolio outperformed all the other fund's, including his 6 fund. By at least 6%. Interesting

[@racsob73]

This is the best content you have created.

[@allen65marathon]

Good info on 3 - 6 fund portfolios. I was reluctant to enter my SSN to create an M1 account just so I could access your portfolio samples.

[@alex182618]

Clear video. I personally do not understand bonds, emerging markets, or small caps. But S&P 500, Russell 1000, Utility index, and international developed market I understand and feel comfortable with. The reason why I don’t understand emerging market is because it includes the most ancient civilizations such as China, India, and others. These civilizations have been existing for thousands of years and yet they are “emerging markets.” I don’t buy it.

[@clintonbaker947]

Fantastic exactly what I was looking for. Thanks Rob

[@remowilliams7569]

Vanguard Wellington fund and Vanguard Wellesley Income (50/50) crushes the 3 fund portfolio with 5% less volatility. All without the need to ever rebalance. Also generates 4x as much income as the 3-fund portfolio.

[@stephanien6237]

What are you basing this on? The Wellington fund is not even 4 years old yet (inception November 2017). So you are basing their returns of this fund only 4 years of data?! Also, the expense ratio of the Wellington fund is about 8.5 time higher than the Vanguard total stock market index fund-0.34% for Wellington vs 0.04% for VTSAX! This will eat away at your personal return year after year. Please show your data comparing portfolio returns on $10k for 1, 3, 5, 10 years and longer (which unfortunately you can’t with such a young fund) and account for the drag of the extra expense ratio. Show *with data* that your 50:50 split *crushes* the three fund portfolio, please. I would love to be convinced… I’d love to see the side by side comparison of your 50:50 vs Rob’s 50:30:20 in terms of personal return. Short term and long term.

[@1amanomad]

@@stephanien6237 the Wellington I believe is one of if not the oldest funds around. There is data going back to the 1920’s. I would like to hear Rob’s opinion on those funds.

[@mruback3]

Rob: Before I ask my question, I want to say that I am a big fan. However, I do have a question about holding bonds in a portfolio. Bond coupons are at an all-time low. When bond coupons revert back to a normal level (like 5%) the value of the underlying bonds will suffer. With that as background, help me to understand how bonds (or a bond index fund) can help a portfolio.

[@linkbelt111]

Sounds to me like you already know the answer, you’re just looking for reassurance?

[@Bokescreek]

I'm hoping Rob will respond to this question--it's my question, too.

[@kevinbarry3723]

@@Bokescreek It's my question also.

[@michaelmoreton5042]

At the moment, Bonds are just VERY slightly better than putting your money beneath the matress.

[@drunkmasterOK]

still no answer (( @rob berger please be so kind to say a word )

[@rudged123]

You should do a book review of J.L. Collin's The Simple Path to Wealth. In it he distinguishes between investing when you are employed and when you no longer work. During the growth phase, he advocates putting everything in a stock index fund that tracks the S&P, which he points out has significant international exposure because so many of the S&P companies are international. During the preservation stage, he sees a place for bond to reduce volatility when regular contributions to one's retirement plans are no longer being made.

[@rob_berger]

I read his book years ago. A review is a good idea. The problem with a 100% stock portfolio is that it can underperform say a 90/10 portfolio over a very long time period. That said, we are in unchartered waters with the current bond market.

[@rob_berger]

I should add that I agree that the S&P 500 companies operate throughout the world. However, I see no reason to ignore 85% of the GDP in the world. Yes, the U.S. has been the dominant economy since WWII, but should we make a bet that it will continue in that role for the next 50 years?

[@remi418]

⁠​⁠@@rob_bergerregarding the last comment. Dont you think it’d be possible to adjust the portfolios based on how the world evolves and rip the benefits while they exist rather than limiting ourselves right off the bat? BTW this is a superbly clear video. Thank you

[@phillyboylaboy]

Hello sir, do you have a video for people close to retirement. A portpolio for income stream in retirement ?

[@baybay7898]

Your videos are all straightforward and to the point. Will recommend your channel to my daughter who is just started her career.

[@SumOneSomewhere]

Thank you! This was the most informative video I have found. Subbed

[@torchy187]

VTI has you covered. No need for international. Bonds are going to be making very little as interest rates rise.

[@MRkriegs]

🙈🙈🙈

[@procheeseburger_2]

Love M1 Finance.. it’s just so easy to use

[@jaymetheaccountant]

Hi Rob - two years plus later do you still recommend the M1 Finance app? Really intrigued by it's flexibility. Would this be a good place to roll my entire Retirement Portfolio to?

[@lesliem2041]

Following

[@aaronbell5743]

I asked my money manager why not have a 2/3 fund index portfolio. Here was his reply, would love to get your take Rob. Because that's not a diversified portfolio. There are dozens of indexes that exist. If you only pick one or two of them chances are at some point in time you're going to be extremely disappointed. People are their own worst enemies and if they don't have a good investing experience they are not going to stick with their investments. We spend more time counseling our clients on having the right behavior when markets tank than we do anything else.

[@sethw997]

Oh yeah👍.. watched your VTI vs VOO vid. Made my choice. Bought a couple books.. Like to learn about M1 finance.

[@imdoc7872]

My 401 k is in an aggressive mixed which has large, mid, small caps with fixed rate and bond portfolio. It has gotten me about 12-14% returns. I just opened a deferred comp plan which I’ve allocated 90% into an index that mimics the s&p 500 and 10% in short term treasury bonds. I cant wait until next year to compare my deferred comp to my 401k. Good video btw mate

[@gupanki]

Such an excellent video. Great simple presentation. Thank you Rob!

[@gardeningandgrowing6357]

Great video Rob. Very informative as are all of your videos. I wish I had seen this years earlier.

[@urbanart7325]

How would you edge the market? Would you buy gold? What are best non correlating investments to stocks?

[@mistermatsuda]

Bogleheads love this combo. I use a 2 fund portfolio, VTSAX and VBTLX. I was 100% VTSAX initially, now 70/30.

[@crimsonpearl4686]

What the hell is a "boglehead"???

[@geoffgordon9569]

@@crimsonpearl4686 financial followers of the late Jack Bogle. Founder of the Vanguard Group of mutual funds.

[@gerilaforte1266]

Do sensible; just love that you share your wealth of knowledge and information! 😊

[@getthereg]

Hello, I’m interested in moving money from my tsp into a similar 3 fund portfolio with vanguard, I was just seeking some advice on whether or not this was a good idea?

[@mjiles85]

Thank you for the research you do for these super in depth videos. I'm new to the channel and I've been enjoying learning from you. Thank you.

[@justforfunphotography01]

Can you do a video or offer advise to someone who has already retired but does not plan on making any withdrawls for another 10 to 15 years with no more money going in to the plan? Can you point me in the right direction? I just ran into your videos and really enjoy the information and presentation.

[@BernardoLSM]

Great work on all your videos. Would love to get your take on looking at rolling returns to compare portfolios in a future video

[@lw9936]

I like this topic and that's what i was looking for. thanks Rob!

[@amardeepchawla4052]

just found your this video. I am thankful to you for the clarity and information shared.

[@RyanRockman77]

I really liked the info on reits in tax savings account. I’m learning so much on KZbin, thanks for what you do.

[@jimclark5037]

I wish youtube existed with this advice when I was a kid in the 80s and my HR department told me I had a 401k! My father was a machinist and mother a nurse, they knew about savings bonds and cds ... investing in the stock market was something the rich people did and was completely foreign to me

[@emayhand]

Rob, this is so good! You've earned a new subscriber in myself. Thank you for putting it where us goats can get it!

[@yannip2083]

Excellent video, Rob! You are THE BEST!

[@brettbonifay9620]

Best video I’ve seen that breaks down the 3 fund/ETF portfolio. Just sent to our 3 kids - 1 in high school, 1 in college and 1 about to graduate college. Fingers crossed they follow the advise. We have Schwab and TSP accounts - wish they had a one button rebalance option as well. Great feature in M1 Finance. Thanks for the insightful videos

[@raziel2215]

I have TSP, love M1 been using it for over 2 years and open an account for all my 5 kids, hopefully the follow too.

[@raheelakhtar7]

They’re all in Crypto 😂 (hopefully not)!

[@magical1717]

Just found your channel yesterday, your videos are so helpful to a newer investor in 50’s. Would love some more videos on getting started late to investing:) Thank you!

[@staceys1870]

I am in my 50s and a new-ish investor as well. Do you have any other good references to pass on to me? Thank you!

[@margaretbowen5607]

I just found your channel and want to thank you for a really good video. I have watched many videos that talk about finance and give no real info just jibber jabber. Anyway I just want to say thank you!

[@rob_berger]

Glad it was helpful!

[@izik6894]

Fantastic content! Exactly what I was looking for. You should have millions of views by now. Anyways Thank you!

[@marshallhosel1247]

Thoughts on 5 fund approach: BND (Total US market bond), VOO (Large cap blend), VTV (Large Cap Value), VYM (High DIV yield fund), VBR (Small cap value). 20% each. Value weighted and more US focused. 35 year investment horizon.

[@rob_berger]

You're making a BIG bet on value. I love value, but you've effectively got 60% weighted to value (VYM is a value fund).

[@jaydee5799]

I'm in Canada with some USD in a tax-deferred account... wasn't sure how to deploy my cash but this video helps! Thanks again Rob, really appreciate your pragmatic and detailed explanation to deploy a logical (and very simple) strategy. Keep up the great work, you are doing a good service.

[@samraat3424]

If I have a shorter time horizon of ten years, is the 3-fund approach appropriate?

[@naelueplays1047]

To me yes

[@angakingtutube]

Wow, thank you! You've given me a great idea that 3-fund porfolio works! However, I'd like a high income 3 (or 4 or 5 ) fund porfolio in combinations with my existing dividend paying REITs, BDCs and some growth tech stocks. I'm currently working on Roth Conversions over the next 5 years or so. I'm not a fan of Vanguard due to their low dividend yield. I prefer these high income ETFs: JEPI, JEPQ and SPHY.

[@chuckfoster1945]

I like your approach. Straight forward & sinple.

[@HB-yq8gy]

Another excellent voice of common sense reason.

[@spiritjourneyme1]

You are wonderful, thank you very much. So glad I found you!

[@bridgecross]

This might be a silly question, but; if you find a single mutual fund that has the same balance of investments as the portfolio you want, is there functionally any difference? example: Vanguard has very low expense funds like VBAIX 60/40 or VWENX 60/32/8 if you want a slice of international equities. If you buy a single fund, it seems to be the ultimate auto-pilot. The fund managers rebalance the investments. You don't need to do it manually, or set up a robo-advisor (with additional fees and terms that might change).

[@edf2953]

Very informative video Rob. Great job! Thanks for sharing…Ed

[@MontyPearce]

Hi Rob. What about investing in technology, say something like QQQ, instead of international stock VXUS. I realize there is a lot more volatility, but QQQ has performed well over time.

[@mrwelch2004]

Great advice. I'm hammering this type of advice into my kids in their early 20s.

[@AbsalomMcVey-i1f]

Rob: A Suggestion: Define your pertinent terms &/or philosophies at the beginning of a segment. For example, at the beginning of your discussion RE investing in indexes, it would have helped to define an index investment. Additionally, some viewers seemed to not understand the definitions (plural), in that video, of success. In this video, the definition of investing success is also important. Your unstated definition here is the unrealized value of an individual's portfolio. However, I'm 79, have been retired since 54, and I'm investing in equities that have growth, but (secure) dividends are very important. So I do recognize including investment philosophy/goals in this video would not be 'good' making the overall philosophy/goal clear would be. That being said, would really appreciate a video RE a dividend oriented portfolio that the dividends would: exceed inflation, without using MLPs; focus on dividends; and have low risk. FYI, I am heavy in ENB (read over invested). ;-}

[@AbsalomMcVey-i1f]

I should add I'm also invested in ABBV, HTGC, ETO, IRM, OHI, MPW, IBM, DUK, & SO - and others. Average yearly dividend yield is 6.27%.

[@AbsalomMcVey-i1f]

OK,OK... I just found your video and now have discovered your videos. ;-} And I'll now watch your videos RE dividends, including where you disparage dividends. One thing I like about dividends is the ability to realize cash without having to realize a gain/loss. And in this time of falling market prices, that's a good thing (with apologies to Martha Stewart).

[@kellymorvant]

Great show Rob! Thank you very much for sharing your knowledge.

[@emue229]

Yes but this 3 fund portfolio earns 1.75% yearly yield, which can be taxable. So that doesn't serve well for desired growth of money

[@retirementmillions6533]

GOOD JOB INFO. WELL DONE. THANK YOU SO MUCH MR BOB

[@whatoyou]

This an incredible finance video. Thank you very much.

[@mwscuba]

im in the uk and find this very useful at 51 im doing a 70 FTSE global all cap,20 S&P 500 and i 10 life strategy fund (all vanguard uk )

[@DrGoldieMD]

This video was incredibly helpful. Thank you.

[@davidknecht]

Rob, great stuff. Two questions: 1) Why are bonds worth having in any long-term portfolio? In Jeremy Siegel's book Stocks for the Long Run (6th ed., pg 42), he shows how over any 10+ year holding period stocks' real returns historically outperforming bonds. Additionally, any historical analysis of a stock/bond portfolios always includes that magical bond bull run from 1980 to 2008 where interest rates dropped from 20% to 0.25%. A period of time that is not likely to be repeated anytime soon where interest rates just came down, down down and bond prices just went up, up , up. Lastly, while I have not run the numbers, I would be willing to bet that the weighted average financial leverage index (ROE/ROA) (not financial leverage ratio) for the aggregate of all S&P 500 companies is greater than 1.0 (which would explain Siegel's graph). If true, that means that in the aggregate all companies are getting a higher ROE than ROA. That means they are using their debt capital to get a higher shareholder return than they are paying debt holders to borrow their money. That means if I can choose whether to invest in their equity or their debt, I should choose their equity, not their debt. Question 2) Why do I need any foreign equity exposure if I buy an S&P 500 index fund? The estimated revenue from all S&P 500 companies is 30%, according to SPIVA. Why would I want more foreign exposure than that? I would love to hear your take on both of those topics. I value your intellect and research. Keep it up. Thank you.

[@AlexLewisLnk]

Thanks the great explanation. You're videos have been so infomative for me. I have started using your 6-fund pie for my genereal investing and implimented the same philosophy with my 401k Funds. I'm using the 120 age rule to calculate the bond percentage, then calculate the equity percentages from the ratio of just the equity funds in the 6-fund pie. Since my 401k does not have a Real Estate Fund, I replaced it with a Mid Cap Blend fund.

[@martinhanson4342]

Just found your channel--so I have a lot of "catching up to watch!" I currently have a financial planner that I am paying a pretty penny to--I knew it was too much before I watched your episode on fees eating your retirement savings--so looking into M1, which I had never heard of before I found your channel. We are in retirement for 2 years now. Can you do an episode that would address a "3 Fund Portfolio" for those of us already in retirement? Thanks for sharing your insight with us wanna-be financial experts.

[@MikeBrownphx]

Great video. Thank you for taking the time to put this together. I've been torn on should I buy the top ten large cap stocks or go with an ETF. The diversification a ETF/Mutual can provide is unbeatable and in today's world cheep too.

[@samuelsantiago3229]

Unless you’re ready to retire, buying bonds is like putting your money to sleep.

[@alexandrakritzman938]

This was so helpful. Thank you.

[@pstratt1294]

Excellent video Rob!