World's Simplest 2-Fund Portfolio: VTSAX + VBTLX + Cash

[@tycmathews]

So glad I found your channel . You made personal finance so simple!

[@FlaschDJ]

I liked your opening quote “greatest enemy of a good plan is a dream of a perfect plan” so much, I subscribed.

[@Eb74]

I am a HUGE fan of JL Collins, your advice sounded so similar so I started watching your videos. I see why now. :) Thank you for sharing that you read his book and I look forward to more of your content.

[@radsoup89]

This seems like the most straight forward honest way to approach a portfolio. I really need this simplicity. Thanks so much for sharing!

[@timothythompson4036]

I agree simpler is better. Many of these "financial sdvisors" want to make this too complicated. I used to be 100% in a stock mutual fund. When I hit 59 years old, I switched out to 11% in bonds. During the bid market crash in 2022 that really helped stabilize my portfolio. Bonds have done poorly for the last 10 years. But, that market is turning for the better.

[@732002]

Excellent content, early 60s 1-2 years from retirement. 60% VTSAX, 20% VBTLX, 20% FMFXX money market fund. I know that is a lot for MMF but the bond funds did not provide the stability recently that I'm looking for.

[@24hourgmtchannel64]

My current 3.25% $250k 4 year bank CD comes due at the end of this month. I'm renewing it at the same bank for 59 mos. at 4.85%. That's 4.85% with no market risk FDIC monthly income of $1k per month I'll add to cover my living expenses in early retirement. This represents 15% my conservative\bond\cash portion of my portfolio. I'll take a FDIC bank CD's near 5% any day of the week over a bond fund.

[@jimbobjim2310]

Synchrony 5.15%

[@pinkorganichorse]

Except you pay taxes on CDs.

[@eby6114]

So your going to let inflation overwhelm your safe investment

[@24hourgmtchannel64]

@eby6114 this question always bewilders me. That amount makes up part of my 40% fixed investments. The other 60% of my portfolio is in stock mutual funds. I'm 59 and sure hope others understand the extremely important aspect of diversification, especially past 40.

[@timothythompson4036]

Bond interest is going up. All the investment money could soon flow into the stock market.

[@RogerArm231]

Thanks!

[@TaeKimFinancialTortoise]

Your welcome! Thank you!

[@jktaylor2007]

Do you have a video on the transition period? That is, is there a strategy for selling stocks to buy bonds and adjust your portfolio when it’s time?

[@sarkiskopushyan]

Man your videos are really the best I’ve seen !! Thank you !

[@Apollo65]

This sounds like JL Collins - The Simple Path to Wealth

[@Narsuitus]

Thank you for the video. I started investing back in the 1970s. Two months ago I liquidated my ½ million-dollar stock/bond portfolio to buy my second dream home. I must now start a new investment/savings program. Your two-fund portfolio is a good way to start.

[@Chedda3000music]

Thanks for this. I’m in my 30s and I think I’m going to go 100% in VTSAX for the next decade, then reallocate when I get to my late 40s.

[@_Delta_P_]

100%. No no no. Grab sp500 index funds in as well. Look up warren buffets outlook on this. If you want to get rich. Sp500

[@shepsean1]

@@_Delta_P_ why is SPY better than VTSAX?

[@loljk9443]

@@_Delta_P_ vtsax is 99% made up of the S&P 500.

[@midwestbd7144]

@@_Delta_P_ there’s very little difference between the two but Vanguard also offers an index fund and etf that mirrors the S&P

[@-los-7291]

I just opened my account. Let's go 🎉

[@jamesabell2083]

Thanks Tae, I’m still conflicted about purchasing bond funds. Wouldn’t you do better just buying short-term T-Bills directly from the government?

[@rjahn3000]

Excellent this is the way to go, start young and buy these funds monthly. It took me 40 years to figure this out after investing in all kinds of assets and stocks. This way you don't have to think you just dollar cost average in to the funds and forget about it. Thanks great video I wish knew this when I was 20.

[@tmcche7881]

How did _bonds smooth out a rough ride in stocks,_ 2022? How about speaking to how long it will take to recover from 2022 bond losses.

[@brucehenrikson]

For your Roth buy SCHD and reinvest dividends.

[@n_amy_n]

Tae, thanks so much for this. I decided to come back and watch this, and I had forgotten that you had included "phase of life" investment mix recommendations. 75/25 looks right for our situation now. Thanks, again! NB

[@arravolleyball]

VBTLX has negative returns over the 5 years. How exactly does VBTLX work? Are you supposed to just get dividends, or do you eventually sell the shares?

[@zionfoster8219]

I’m 23 and I work at vanguard and this is pretty much how our 401k works, we offer the target retirement plan in 5 years intervals (2025,2030 and so on) and it transitions from more of a stock at a younger age to more bonds as we get closer to retirement. The balance for me being 23( 90 stock & 10 bonds). That will change as I age

[@fortyofforty5257]

Do you like Balanced Index fund at all, if 60/40 is the right mix for an investor?

[@YoonHangKimMD]

Makes sense - there are two big classes -stocks, bond (of course cash reserve)...

[@DigitalAssetNews]

Great video. Simple is best.

[@lindamaag3541]

As a couple we became fully retired one year ago 2021. October 2020 my husband wanted to go to 8 years of cash, incase the world went into a repeat of the Great Depression. I was absolutely in agreement, I love the mix of cash, stocks, bonds, and CDs etc. Since going to about 1/5 of our retirement funds to cash, I would often read that cash was a mistake by the TV and internet professionals. Of course I did not agree with them, some portion of cash is King in our minds. By spring of 2021 the professionals were advocating cash for a coming recession. A little late in my mind. I just found Mr Kim, love his thought. Keep it simple and save!!! Ree

[@MikeEldridgeCRPC]

That worked out great for you both, as cash is paying quite well these days.

[@girliedog]

Is VTI and VTSAX the same type of ETF? What is the difference? Asking due to my VTI holdings.

[@madelinegonzalez4487]

Hi Tae, Question. What is the equivalent of VTSAX and VBLTX in TIAA? That is the plan my employer works with. I do have a separate Roth IRA that has funds invested in VTSAX and VBLTX but would like to replicate the funds in TIAA.

[@Jlee-SgT]

I have started with SCHD & Voo to go long run. Should i consider add SWTSX or vtsax?

[@IFearlessINinja]

I have a simpler 1-fund portfolio. It's the best because I'm young, risk tolerant, and extremely lazy

[@tylersanders2388]

Tbh a 1 fund portfolio with an s&p 500 index fund will outperform 90% of investors

[@rayr6278]

All in on AMC let's go boyz

[@jeremyleonbarlow]

SCHD if you invest in that your entire working life, by the time you are ready to retire you should be able to live in the dividends, assuming you are putting 60% of your earnings into investments like you should.

[@Roman-uc3bs]

Qqq

[@AlexM-jd2ro]

Covid can stop you in your tracks and make you an old man in a matter of days...never take anything for granted...

[@AJ-rc5lr]

This is especially true for people in mid 30s such as myself, the best portfolio is the simplest one you can have, so many people think it's so simple that they are having doubts if that simple portfolio is enough for retirement, but let me tell you from my experience in the market for 15 years. I have tried all sorts of investment / trading, from options, swing, day trade, you name it I quit all those in 2016 and i went full 3 fund portfolio and have been investing in 3 fund portfolio ever since, and yes, though returns may not be crazy, but i have been the happiest ever since i did that, i don't stress, i don't get overworked! i enjoy my life more with such simple portfolio and knowing that i own the total stock market, i am just at peace

[@racheldufresne1853]

I’m retired so what do I do with my 403b? Am I stuck leaving it there or is there anyway to take that money and invest it in index funds?

[@jaycee4528]

@Rachel Dufresne Coincidentally my 403b is invested in what the OP suggested...VTSAX (80%), VBTLX (10%) except I wanted a bit more international exposure so I added VTIAX (10%) = total portfolio. Depends on what financial investment companies your school district selected and whether those vendors sold you mutual funds or annuities. Unfortunately, teachers have been exploited for years! State and local unions have allowed these well known financial companies, who are not fiduciaries (i.e. supposed to act in our best interest), to come into our schools and sell us products to fatten their wallets not ours. Most teachers don't realize this. I was lucky enough to have a father, an average blue collar worker, who was interested in finances and building wealth, to educate me. I started saving for my own retirement and opened a ROTH IRA that I fully funded yearly. The measly limitations the government allowed was better than investing in high cost mutual funds or annuities. So for years I maxed out a ROTH IRA and refrained from investing in a 403b to avoid exploitation until my school district selected a vendor who offered low cost Vanguard mutual funds (hence portfolio above). This, along with my pension, SS, Roth IRA, and stock portfolio I started decades ago thanks to my father, I'm confident about retirement when the time comes. My suggestion...carefully look at what you're invested in before leaving as many of these vultures sold products with astronomical closed end fees. Another suggestion..look up 403b wise. It's a nonprofit organization, helping K-12 teachers since 2000. Hope this helps!

[@racheldufresne1853]

@@jaycee4528 thanks

[@paulscozzari1787]

In Sept of 2015. I put 10K in each of these funds: VBTLX (bond fund), VTSAX (total market fund) and VTIAX (Total international Stock fund). Today, my VBTLX holding is worth $10,696. VTSAX is worth $23,200, and VTIAX is worth $15,000. I sure wish I had put it all in VTSAX!

[@jwc3104]

I did something very similar to this, and my result is same. It even outperforms others despite the stock taking beatings over the last year. To me, you don't need to put too much on Bond and International. Just stick to US market. You'll do good.

[@ghjong001]

That's entirely the wrong investing mentality. Don't chase returns - decide on what your risk tolerance is, and diversify to try and capture market risk as a whole. Why were you 33% bonds, and 50/50 US/International? Was there a good reason for that split, or did you just decide to evenly split your contributions between them because you didn't know what you wanted to do?

[@shawnakavan6600]

How about gold ETF / precious metals or REITS? Any place for them in the portfolio? Great video by the way

[@LG123ABC]

You might consider a high yield online savings account for the cash portion of your portfolio. Ally Bank just raised the interest they are paying on savings to 3.25%. You won't get rich, but every little bit helps.

[@wholeNwon]

And Vanguard US Treasury MM Fund is at 3.98%. Their Federal MMF is 4.3%. Check writing is available.

[@John1925T]

In june 2024 some stocks experts are saying stocks that will skyrocket by year end 2024. Stocks like MRNA. BBY. UPST. PARA, SQQQ. TDOC.❤❤

[@DrMikeTh]

Thanks Tae, very helpful

[@catmando4448]

Hello. What do you think about interest rates going up in the near and distant future? How will this impact the stock market? Are we heading toward a crash any time soon? Thank you.

[@TheRealAbrahamLincoln]

He would tell you that no one can predict a stock market crash. In act he has told us this in prior videos. Don't try to time the market, it is a waste of time.

[@melvinrivera8589]

Great video. The biggest mystery to me is still international. You make a sound explanation on VTSAX giving International exposure indirectly, yet almost all financial books have a different take on this and strongly advise investors to include international funds. Which is it?

[@taylorharris4273]

VTIAX VTSAX international sibling.

[@MTtroutfisher406]

Remember - most of the S&P500 companies are multinational so investing in international/emerging market funds is often not an advantage. 🤔

[@melvinrivera8589]

@@MTtroutfisher406 my thoughts exactly. Yet many experts don’t fully buy into this notion.

[@MikeEldridgeCRPC]

Direct international exposure would obviously be stronger than indirect exposure. The problem is the s&p 500 has outperformed international funds but a substantial amount for 30 some years. Some people think international is somewhat "due" to outperform domestic stocks, and the us market if inflated. While others, like myself, just don't believe that will be the case for any significant period of time. International funds just seem to always underperform. There seems to be no use for them.

[@ideapowerfulweapon]

IMO.... you could pick anything that's broad and stick with it....even SCV. You'll get times where one is doing better than the other but will do ok. Gotta watch for Japan like bubbles though but hard to do on large market like US and when it does bubble it grows out of it after several years.

[@lolololo3726]

That video is so spot on, I just ordered the "Simple path to wealth" by JL Collins 😁

[@SunnyTravel5]

why a mutual fund instead of voo etf?

[@ianscianablo8507]

Alarmingly informative. Bravo!!!

[@lesbolstad]

Can't believe you joined the LIV Tour

[@csmilinich]

My new 401k is with Principal…what do you recommend for them? I’m not sure what the equivalent would be. Any help is appreciated!

[@Polostar79]

I have my 401k with Principal. I’m invested primarily in the Fidelity S&P 500 fund.

[@csmilinich]

@@Polostar79 I didn’t realize you could get Fidelity funds with Principal…thanks for the info.

[@hCVpQlDWnzMVJaROBfPXPilIzLRZGp]

The simplest portfolio is a target date fund. Your portfolio is highly concentrated in the US market. According to Vanguard, the US market is forecasted to return only 4.7%-6.7%, while non-US markets are expected to return 7%-9%. Every investor's equity should have around 40% exposure to non-US markets.

[@Kyle-kr8ed]

Vanguard has been saying this for years. Nobody, not even Vanguard, knows what the future holds. Just pick a strategy and stick to it

[@AK-47ISTHEWAY]

I prefer a Global Balanced Fund of Funds that does NOT adjust its allocation over time to get more conservative. That is the simplest and most perfect portfolio for me and my tolerance.

[@sublyme2157]

Great video, Tae. Ever since learning about John Bogle and the loyal boglehead family, I've been a huge fan of Vanguard's index funds. All my retirement savings (IRA and 401K) are in Vanguard index funds. Simply the best!

[@ObiePower]

Tae, what's your thoughts on VTABX?

[@williambaldwin9346]

How much do you need to start one of these, and how much to actually make money on it every year?

[@koyamamoto5933]

Why use mutual funds vs ETFs? Sometimes mutual funds generate capital gains in a down market due to sales of shares.

[@miken7629]

Bond funds were never meant for zero interest rates. Bonds that were bought before 2008, had ever increasing market values as interest rates went down to zero. People that bought bond funds before 2008 were getting interest plus capital gains, but had to sell in 2021 to lock in gains. People that were buying bond funds in recent years were buying funds that contained bonds with inflated market values, much higher than bond payoff value. They were buying future loss. Most people had no idea of the market values of bonds in their funds. You have to follow the 10yr interest rate to know when to buy & sell bond funds. You cannot blindly buy bond funds and you cannot count on them for security.

[@hankhamelin329]

Bond funds, in my opinion, is "old school" Instead of investing in a product that continues to slowly LOSE money, put that same money in CD's at different institutions to take advantage of FDIC insurance. Guaranteed to make at least SOMETHING and not lose anything. Again just my opinion but bond funds are NOT what they used to be.

[@dougturk7116]

You cannot make money with any CD as they are always less than inflation. You can only reduce the loss of true value.

[@miken7629]

@@dougturk7116 Maybe you are looking at CD's wrong. A person needs multiple streams of income and CD, Bonds, Closed End Funds, Dividend Stocks, all do that. We all need income and income investments are the only things I invest in. CD's are just a part of the picture. The key is having enough diversified income to cover your living expenses plus extra income to reinvest for the future. As long as my investments cover my expenses and still growing, I am OK with that.

[@dougturk7116]

@@miken7629 Hey, it’s your money so if you’re happy with investing in CDs to beat inflation that’s all that matters!

[@billyjefferson3594]

@@hankhamelin329 you don’t know what you’re talking about

[@adamgardner5113]

I have been researching for months on how to invest, and this was the most valuable piece of information yet. Fantastic. Thank you

[@kevinheinz9819]

Not sure I follow the Netflix example for the index fund? it wasn't a top 500 company for the 20 yrs you mention it had 23,000% growth? thus it wasn't in in the index fund until it already soared?

[@jo-annguthur7314]

This is great advice but what if you’re Canadian? What to do?

[@Go_Horns2024]

Outstanding video

[@jacoblamptey1936]

Please, what are the equivalents on Trading212? Thanks

[@photography-dx5dw]

Great insight Tae. Can you create a video of the best value Funds in light of the current banking crisis? Would you use a position in a precious metal fund as a hedge?

[@kindlee3468]

I invest with webull and the 2 ticker symbol is not avilable.. help

[@namita9031]

thank u for emphasizing cash the good old way cash is always king like u said gives u peace of mind luv it Tae

[@steveballa6831]

Hi Tae, Thank you for putting this video together! I prefer to keep it simple as well, and VTSAX is my main holding, since I’m still in the wealth accumulation phase. I would be 100% VTSAX, but the 401(k) doesn’t have that as an option, or a total stock market fund in general. For that account, I’m 100% in a mutual fund that tracks the S&P 500, and I believe the expense ratio is 0.02%.

[@roy.mclean]

I've always avoided bonds because they are somewhat complicated to trade. With interest rates going up a little more before we expect the Fed to lower rates would it make sense to invest in bond funds now by dollar cost averaging for when they start to go down. Once the Fed lowers rates would the value of the bond fund increase because they hold bonds at a higher rate than currently available?

[@masoncnc]

What is the point of VTSAX transaction costs vs. VTI???

[@brianlebreton7011]

Is there an ETF version to this approach vive mutual funds?

[@timothyhargadon752]

I have had a Vanguard 500 Index and Vanguard Primecap Funds for many years. The problem I have now is how to withdraw from an index fund in the most tax efficient way. My financial advisor and my accountant can't give me an answer. Vanguard has no idea because their records don't go back far enough. But fund shares are taxed differently depending on how long they are/were held. I don't want to trigger an audit because I just closed my eyes and hit the withdraw button. Withdrawing from mature index funds might be a good subject for a new video. Thanks for this video it was very well done.

[@RavenRaven-se6lr]

Might look into this

[@teambigv]

This may be a stupid, question, but what good does having 10-20% in bonds do for your portfolio? It doesn't seem to offer much safety

[@ThhVkk]

You could live a couple of years off that if the market crashes.

[@MikeEldridgeCRPC]

@@ThhVkk The real benefit to bonds, and treasuries in particular, is the negative correlation to the returns of stocks. So when one is up, the other is down, making for a somewhat smoother ride. Since 2008 rates have been extremally low, making bonds look like horrible options. But up until 2008, treasuries were paying 5-6% for 10 yrs and were viable options to counter weight your stock portfolio. If you are young bonds probably shouldn't be in your portfolio. If you are near retirement or in retirement they may serve a more limited purpose than they once did. Also, rates are up right now so bonds can be more attractive, but most likely that will be gone in a couple years and we will be back to low rates.

[@sneakyquick]

The most important thing is low fees. Most funds dont outperform the index fund. Just biy a index fund

[@yosifgebreal5266]

You doing great job!!!

[@denisedenise9530]

Why be in stocks and bonds at the same time? Depends on the interest rates

[@alicebenard5713]

I began my investment journey at the age of 38, primarily through hard work and dedication. Now at the age of 42, I am thrilled to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity

[@blessingpaul5484]

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

[@SophiaBint-wj8wn]

This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?

[@alicebenard5713]

Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.

[@KatherineAnderson-lm8bw]

Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

[@ConnieGriffith-u4z]

I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?

[@daveweir1721]

Sounds like John Bogle- great advice

[@bryan61-b2y]

Intermediate bonds are a no go for me. I'll only hold tbills, less them 3 years, at this point because we didn't really know what's going to happen with interest rates.

[@TheKev507]

What about a vanguard target date for even simpler investing? Only .08 expense ratio vs .04-.05 for the funds recommended here

[@franwex]

Why not just move the fund allocation each year yourself?

[@TheKev507]

@@franwex that’s kind of the point, why would someone want to manually change it each year? Especially if you want to help friends or family who aren’t interested in learning to manage it themselves. The video title said “world’s simplest” but I’m proposing something that seems simpler.

[@franwex]

@@TheKev507 then in that case-it is better to have a target date fund. The price difference is rather small and worth it for that person.

[@groberts1780]

Fine for tax deferred accounts (401, IRA, Roth IRA, etc.). Not great for taxable ("brokerage") accounts due to potential tax surprise from distributions.

[@franwex]

@@groberts1780 I assumed we were talking retirement accounts too. That’s a really good point, haha.

[@mariolee8932]

You can also put your cash in certificate deposits and treasury bills. This gives you the opportunity to get your cash to grow. Using a CD ladder, you can choose CDs that mature every 3 months.

[@wholeNwon]

Interest rates on them have improved in the past year but they were very poor for more than a decade.

[@blockaderunner]

CDs are taxed by the state?

[@wholeNwon]

@@blockaderunner If your state has an income tax, yes.

[@peterl2767]

Great content 😃

[@tracyspellman2181]

What about international exposure?

[@TheRealAbrahamLincoln]

I am pretty sure he already addressed this in this video, if not he addressed it in another video. If you are in the total stock market fund, you are plenty exposed to the international market.

[@moodahs]

Excellent content...

[@MarkSpohr]

Great advice. I have been doing almost exactly this for many years and it has proven to be a solid strategy.

[@shammohdali9844]

Great sharing...For roboadvisor managed funds (Wahed for my case), so I should set up two funds based on risk profiling - 1st for aggressive funds (equity, ETF's)and the 2nd for conservative type funds (bonds/ sukuks). As for cash, I have been investing in Malaysian government managed unit trust funds with guaranteed capital preservation and also in Employee Provident Fund (EPF) with guaranteed min 2.5% yearly dividend.

[@junexdallas1]

Did u just read the Simplest Path to Wealth? That's exactly what this book recommends :-)

[@rcox54321]

Occam’s Razor, good stuff.

[@C22_]

This video is phenomenal. Fucking bravo.

[@avs-forum]

What about ETF equivalents?

[@wholeNwon]

Of course.

[@geoffgordon596]

Both VTSAX and VTBLX are available as ETF’S (BND & VTI). Is there a reason why you prefer the mutual funds? 15:06

[@SuzanneU]

The person who replied to you is probably a scammer.

[@BW-nz5vt]

Index Bubble ....true/false...your thoughts?

[@TheWeekendYogurt]

What about a 2 fund portfolio of VTSAX and VTIAX?

[@fmxmyway]

90/10

[@lbottroff]

Great video!

[@jacielsuarez2368]

Love it!

[@vandematram8205]

Excellent details

[@frederickamartinez]

how about instead of total bond, buy tbills ladder

[@franwex]

Hmm. Wouldn’t you be better off with duration for long term? Tbills are good for a couple of years.

[@automat8]

Thank you!

[@papabear4066]

Excellent advice

[@OscarWithC]

why just the USA i know USA has been performing really good and is about 60% of a global stock market index, USA is still one country and therefore makes it a risk to just own one country?

[@hdanna823]

I have this same setup

[@WwEN1GM4wW]

I love your videos

[@mccoyji]

Shiiiiiit, when the 20s i was rich AF but really broke AF. Took a lot of saving in 30s to get back. Best pay is 40 and 50s. If you can remain employed.

[@bkozulla5841]

Under 40? Bonds not necessary. Also, why not etf versions?

[@Sar0]

Agree . I'm 100% in vtsax in my late 40s. I Won't add bonds until late 50s and it'll be 5 percent every 5 years and stop 15% . 85/15 will be my retirement balance

[@doncooper2344]

This video is OK but misleading on a couple of points. First holding US stocks with international operations is not the same as holding international stocks. The PE valuations are not the same. For some periods international stocks outperform domestic stocks and sometimes US stocks outperform. Given the difference in cost is not that great, splitting the equity between domestic and international would be a better idea. Vanguard has copious research on this point. Second is that Treasuries are better at providing stability than corporate bond funds. This is due to the "heads I win tails you lose" aspect of corporate bond. If interest rates go up you lose. That's the same for both corporate and Treasuries (with the exception of some savings bonds) However if interest rates go down you lose with corporate bonds because the company will call them. The government won't. So with corporate bonds you have downside but little upside. Third is that the best life cycle plan -- if running out of resources is an issue -- is to decrease the allocation to stocks before retirement and to then increase the allocation to stocks during retirement. This is well established but largely ignored by financial planners who invariably ignore the research and advocate increasing the bond allocation during retirement. These are important issues but following his advice would be better than spending a lot of time trying to devise the "perfect" investment allocation.

[@alexanderkrichevsky9194]

Could you please clarify why one would need cash? Bonds can serve the same purpose as a cushion while earning something. If you need money for emergency expenses pay them with a Credit Card, order the sale of the bonds (may take a week or two to actually get cash). Then pay back the Credit Card debt in full before the grace period lapses. Wouldn't it be better to keep your one year worth of expenses in bonds rather than in cash?

[@salguodrolyat2594]

Some expenses may be too great to pay with a credit card or would not accept credit cards at all.🤔

[@captainmo3064]

My two funds. S&P 500 and Small Cap both Vanguard. All equity. And no debt. I also have cash. I can afford the all equity approach because I don’t plan on using the money for another 15-20years. Will switch to some bonds in retirement.

[@stevensamuels3158]

Need international exposure!

[@davidbrooks8809]

What about ETF'S

[@surfererek]

I’m wondering why you would by a total stock index fund over the S&P 500 index fund. I’ve always believed the 500 was better but I don’t know why or why not.

[@ld4974]

The Total Market fund is 80% S&P 500 and also includes a component that mimics the other 20% of the market. The returns of the two funds have historically been pretty much the same so either would work, however, the Total Market fund is more diversified.

[@blockaderunner]

@@ld4974 yep Bogle's little red book showed that it was a fraction of a percentage better with an S&P 500 fund over the Total Market at around 9% over 80 years, BUT he did mention in that book from 5 or so years ago that he expected Much lower returns over the 2020s, like 6%

[@eyeman03]

I watch my share of KZbin videos but rarely comment. Been investing > 20 yrs. and have done well with the KISS (Keep it Simple Stupid) method. This is a fantastic video that emphasizes this point. Great job, Tae.