Top 10 Investment Portfolios Better Than Yours

[@TaeKimFinancialTortoise]

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[@rubydear89]

I signed up but there is only a list of titles that lead to the video not actual guide

[@nobeliefisok9174]

Please explain your methodology. Are you rebalancing each year, or are these buy once and forget it? Also, Need to know for each what index you are getting. For instance Warren buffet's method is S&P500 + short term bonds. You cant substitute a total market fund or a total bond market fund in that. Needs to be S&P500 + short term bonds.

[@nobeliefisok9174]

I guess you might also calculate the average yearly return then 1^x times $10k.

[@Brecherbernd]

When they all have fancy portfolios, but you're just a chill guy holding VT

[@jpsantosss]

@@Brecherbernd you’ll be richer than most with global diversification. There’s no guarantee the US will continue to outperform for decades. Seems very unrealistic

[@arkitectoor]

You will lose with only VT. Just a matter of time.

[@brucestiles6477]

I like the 1-Fund approach of a Total Stock Market Index Fund. Extremely low expenses, and you cannot break it by not rebalancing.

[@JohnDoe-xr5is]

Retired CFP here. These 'one size fits all' portfolios ignore risk tolerances, goals and time tables . They're a good place to start, but a person must customize to their individual needs.

[@SantaBarbaraAlberto]

Retiree here, 10 yrs in. Not really. The majority (80%-90%)of the people don't need it. They just need a plan. CFPs mostly serve the upper 10% and some in the upper next 10% (80%).

[@Iamjacob-x3o]

I reinvest my ETFs dividends 100% and will do so for years growth.

[@DeysiNunez-fz3vg]

I am so big on stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. I would love to maintain a similar effective approach on ETFs.

[@Iamjacob-x3o]

I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more, creating a snowball effect that allows you compound over time.

[@Duxbury-o8d]

I live in California, have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.

[@Iamjacob-x3o]

tbh I keep compounding, adhering to well established structure from a professional, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased in the past year while participating behind a top performer. I put in 65k few years back, now effectively remits over hundred k and increasing.

[@Paulreal-s2w]

Duxbury a lot of people let their dividends ride for the long-term given its solid returns effects overtime

[@Angel-nu7fm]

Most here are too young to remember the 3 year bear market from 2000 to 2002. Bonds were returning well during those times while stocks tanked continually. This video doesn't show the benefits fully of bonds, especially for older or retired folks. This is why a year before I retired, I moved a big chunk to a boring little 5% MYGA. I remembered too many people having to go back to work in their 70s or delay retirement because they weren't invested in an age/situation appropriate manner. I'd love to see you do a video on that - bond and dividend funds to generate income in retirement while maintaining and/or growing principle.

[@NormanOkada]

In my personal opinion young people don’t need bonds in their portfolio because they have a long time horizon. However if they are risk averse I would recommend 80 to 90% in stocks. As they get older maybe a 70/20 stocks to bonds portfolio for the long term. 60/40, coffee house used to be recommended long term. I think it all depends on if you have a pension like a military pension which you could use as your bond fund.

[@thomasschott4068]

Even old people shouldn't be buying bonds, there is just far more profit and opportunity in divided stocks and ETFs like SCHD. You will average 5-10% in bear market plus earn a 3.3% dividend.

[@Angel-nu7fm]

@@thomasschott4068 Thomas, remember 2000-2002? Bonds made money, stocks had double digits losses 3 years in a row. Bonds are for stability, which retirees need. Not understanding your point. Most older folks can't ride out a protracted bear.

[@thomasschott4068]

@ who invests worried about a bear market coming? You clearly don’t understand. SCHD makes 10% average for a ten year period including bear markets, plus 3.3% dividend per share that’s your safety. You’ll get paid that 3.3% as long as you own the fund. Far better than bonds

[@thomasschott4068]

@@Angel-nu7fm old people need to be buying bitcoin. Best performing asset, not even a debate. It will hit $1M within 5-10 years

[@poesybeat]

1-Fund to build wealth, Dalio (or similar) to preserve wealth. It’s up to you when to switch based on your investment goals and time horizon.

[@kathyokinaga9888]

Best video I've seen- straight forward and gives me what I need to feel better about how I'm investing.

[@meeravenkatesan1191]

This is an absolutely brilliant video in how it simply compared and contrasted their performance over 30 years. I really appreciate it!

[@grumpyoldguy6117]

There are 18 plus variations of portfolios, enjoyed your spin of at least 10. Beginners get a birds eye view, the DIY get a benchmark and the lookie lous stop and think. Great presentation.

[@michaelkern7942]

This was an awesome investment comparison, keep up the good work! Seem we always complicate things, that we have the inside scoop/or feeling. Hindsight proves that simplicity really seems to be the answer.

[@Mileko-fv5pb]

I just want to say thank you. Granted it not much but following you. My savings accounts are going about a 1k per month. And when I pay off my car in 4 months(trying to pay it off sooner) I can invest half that money as well. You are a true inspiration

[@70qq]

main takeway : any of these portfolios did good and are way better than not investing or just putting money in CDs or MM ......... also , Paul Merriman has a ton of portfolios and that one you showed was from several years ago ... his 4-fund and 2-fund portfolios are much better performers and much more popular in the last 5-10 year ... Paul Merriman is a national treasure to investing and a good teacher who teaches for free in retirement on his youtube channel ... his quilt charts are very useful to an inexperienced investor just starting ... best of luck to you all , but invest !

[@retiredandroaming]

This is useful for the specific comparison of a single lump sum investment prtfolio with no withdrawals. But I suggest that this is NOT the "normal" way that the average investor invests, which is likely a monthly contribution into a 401(k), thus taking advantage of the dips in the market when prices are low. Also, the main focus here is clerly for those who are NOT nearing retirement, assuming that the investor does not need to withdraw funds to actually pay for living expenses - because if that's the case, then the sequence of returns risk would prioritize stability over total 30-year returns. The winners here would likely become the worst portfolio choices, while the losers may be the best portfolio choice, in this use-case.

[@madbrainmakesnosense8229]

Best comparison Video i have seen so far! Thanks for that.

[@kentfaver]

Thanks Tae - this is one of the most thorough analysis I have seen in this area. The one missing ingredient IMO is the lack of exposure to solid, dividend paying companies - such as Schwab's SCHD. It is amazing how adding this to the mix not only diversifies your portfolio, but also gives you a dividend kicker of 2% or so over time. The S&P has been very strong, and very volatile over the past 30 years due mostly to tech. Thanks again.

[@AlexRodriguez-t9h]

We now live in an advanced world, working hard to achieve a greater goal. the world gets boring when you don't share plans and ideas. so a month before i received my pension, i got introduced to an advisor and from that day onward, my life never remained the same.

[@QuyNguyen-kf6xx]

Hello Tae Kim! Always,waiting for your new videos and love them!!!! Thank a million!!!!

[@martinyeager7948]

Great comparison of ten portfolio for people to use to chose their own style. I appreciate the return history and the volatility. People should pick or develop a strategy but most importantly continue to invest. Also, remember an emergency fund is not a part of your "investment" portfolio even if it is in a High Yield Savings Account or CDs.

[@WealthyChronicle]

Crazy how some people manage to invest smarter while I'm over here debating Starbucks vs Dunkin' stocks 😂

[@johnsarti9565]

Great video! I like that they went in order of best to not so best kind of. The only correction as its called the All Weather Portfolio.

[@kevinreynolds8783]

VTI (ETF) is VTSAX (mutual fund) with lower expense ratio

[@shawnm.9320]

In some ways, you are comparing apples and oranges. Portfolios that are all or almost all stock index funds will outperform portfolios that include bond funds. While younger people may want an all-stock portfolio, as you get older, you will want more bond funds and will expect lower returns for the security and the ability to withdraw no matter what the market is doing.

[@Angel-nu7fm]

Exactly. A chart which showed what happened to stocks vs bonds from 2000 to 2002 would show their benefit, especially as you move closer to retirement.

[@NotThatKraken]

Short-term bonds and total bond index are not interchangeable. T-Bills never lose value, but total bond funds definitely can.

[@billwinter8386]

Nicely done. Of course, you could do an entire episode on just the coach potato variants as there are 8-10 of them.

[@kasmstamps1897]

I had a diversified portfolio but wasn't happy with the returns. Liquidated everything and started again. Main thesis is disruption (which includes AI & crypto). Couple of tweaks but ended up with: 40 Tesla 20 US Grow/Mag7 10 Palantir 10 MicroStrategy 10 Bitcoin 10 REIT I can give this a 5 year runway but in 10-20 years I think I'll be very happy. My gains this year😎 and that this basically since July. August had a dip but time in beats not in.

[@JoeDiLillo]

Great video showing the "Less is more" philosophy!

[@cappehnkrunch]

Wouldnt the value of these multi fund strategies be that they force you to buy low? You never sell until retirement, so every month when you buy more Investments you look at the total balance of each of the funds and buy the ones that are most below the desired ratio. And in retirement you do the reverse. Selling down the funds doing better to achieve the desired ratio. Essentially automating buy low, sell high.

[@RxChuck61686]

Here's my strategy that beats all of those: 80% S&P500 (SPY) and 20% 2x leveraged NASDAQ-100 (QLD). I will mention that the worst year might be the worst of any strategy but overall it will give you the best performance, hands down.

[@davidbrooks8809]

Need more information..I'm interested

[@RxChuck61686]

@@davidbrooks8809 It's pretty straight forward: Invest 80% in SPY and 20% in QLD. Both are excellent ETFs.

[@kiltedpiper98]

Fantastic breakdown. Thank you. Great summary

[@BW-kv9wj]

25% VOO, 25% VTI, 50% VGT. You’re welcome

[@redsavedthegame451]

Great overview of the many portfolio options that experts have proposed!

[@DrMikeTh]

Thank you Tae for your efforts & very helpful analysis. I have been using JL Collin’s suggestion, the VTI. Very pleased.

[@trackguy4038]

Dave Ramsey recommends load funds with 5.75% commission that are actively managed and not as tax efficient

[@FunStuffBuddy]

Dave Ramsey uses American Funds. I’d love to see a review of his performance/fees vs index funds :).

[@jimjackson4256]

Me too!

[@jimskatr103]

He does international too

[@MurderMostFowl]

He’s not exactly a very good person to advise on the stock market since 90% of his money is from real estate

[@FunStuffBuddy]

@ LOL, I’ve thought this same thing

[@TheLethargicAge]

What a sophisticated strategy-bet on every horse in the race, all the good and all the crap. I prefer individual stocks, but if i had to pick a single ETF, I would go with QQQ

[@PenniP]

Great video for this numbers nerd! I loved this!

[@CalebCrossman-m9u]

Investing in mutual funds provides a well-structured and diversified way to grow wealth, with professional fund managers handling the details. Though there are some fees and limitations to consider, the advantages-such as broad diversification, expert management, and easy accessibility-make mutual funds a favored option for reaching various financial objectives.

[@mathieuchartre1627]

Great video! I loved the comparisons.

[@Azel247]

I should have gone with the all charizard portfolio. Buy all the 1st edition charizards back in the 1990s and I would have beat all of those portfolios today.

[@ELconomics101]

Top of the morning and happy holidays coach TK

[@bgt54rfvcde32wsxzaq1]

Thanks for the breakdown. Warren Buffet is the G.O.A.T. 🏆

[@Sajeev02]

Jack Bogle is the GOAT of common investors!!

[@stuartkelly4812]

K.I.S.S. Keep It Simple Stupid and avoid deworsification! Aggressive growth/equity oriented investing when you're in your working years always seemed like a good idea. As I've gotten older I've appreciated the reduced volatility of bonds/non correlated assets though. Great comparison of strategies, new subscriber 😊

[@Panda-gu9wz]

Excellent presentation, practical and unbiased.

[@michaelr3025]

Such interesting content and a great idea to compare and do a quick validation of the different portfolio ideas / philosophies. Though, noting that for us in the 60% of investing world (and 97% of population), the references to US investing would be a moot point. Perhaps a more relatable viewpoint would be 'domestic' or 'near-market' stocks, wherever that might be. For us, investing in US carry FX risk. For me, it's been largely favourable in the last 10 years but likely to turn the other way around for the mid-term future (if not even long term). That's an aspect we all need to check because it will heavily influence our returns.

[@mikev9578]

Great advice for very passive investors. I prefer stocks over funds and I don’t hold any bonds

[@alexw2689]

Are you including the cashflow from the REITs in your analysis or only the cash value or the actual company? Not trying to over complicate things but that makes a difference.

[@NiranjanBendre]

Loved that you did backtest but I would have loved to see some small amount of DCA to replicate real life scenario.

[@tedpoe1]

Take, when you tracked the multi-fund portfolios, did you rebalance them or did you buy and hold them all? Just curious.

[@KennyDrobnack]

Great video! However I feel like not including Paul Merriman's two fund portfolio is doing him a big disservice. Basically pairing a small cap value fund with target date retirement fund. This gets you US stock, international stocks, bonds, and the aggressive growth from small cap value without the complexity of the full 13 fund portfolio.

[@bigtime911]

Excellent video😊

[@tellmekazumba4480]

Love the comparison. My fundamental issue is that you take stock in 2024 after a massive decade long bull run in global and particularly US equity. Maybe also take 1985-2015 as a comparison.

[@davidbrooks8809]

Great Information. .I like the 3 fund

[@jeffreyharrison4045]

Loved episode. Thanks

[@Theophile-eliet]

33% SCHD to cover my expenses with dividends, 33% DGRO to growth with less volatility than the SP500, 33% VOO for growth for my long term capital gain.

[@nunyabidness1972]

Not bad! Better than most of the "genius" portfolios in the video! I use SCHD and DGRO instead of bonds. Use VOO/SCHG/XLK tiered combo for growth. I just can't get impressed looking at bond returns, and idea that the bottom can't fall out of them is also FALSE! Lol

[@frankray3912]

Great information. Although I’m not sure any of these portfolios would be good if you are near or in retirement. Hypothetically, what might you recommend? Thanks

[@ErictheCleric1]

Great hair and advice, as usual, man. Been a subscriber for about a year, and it was because of you that I opened a credit card and my Vanguard account for a Roth IRA and Brokerage account. You're my free finance advisor, lol. You should definitely write a book or E-book and put in your essential teachings on different topics like "Simple Path To Wealth," not just for passive income but to get the wisdom out there. I would buy it in a heartbeat.

[@trackguy4038]

Awesome video!!! Plenty of research!

[@twhite8308]

🧡Love🧡this🧡video🧡

[@vicb7341]

Nice video. I like Buffet's portfolio. However, I adjust my ST bond holdings higher based on whether the market is overvalued based on the Wilshire 5000 index. In bearish times like now, I went 70% dry powderish: floating rate ETFs (bonds with credit default swaps), but mainly any short term bonds with averages under 1 year, preferably 3 months + money markets. On the equity side, it's S&P 500 index, Canadian dividend aristocrats ETFs (no withholding tax as I'm in Canada, tech VGT and global infrastructure ETFs. I like CIF, a Canadian ETF. Probably a ton on similar ones in U.S.. Bullish markets / after a correction, planning on going 80% equity and 20% ST income...same instruments as mentioned before. I have zero trust for LT bonds.

[@dlg5485]

The presence of bonds is what kills the performance of any portfolio that contains them. This is why I don't hold any bonds and won't until after I retire, and maybe not even then as a larger cash reserve coupled with all stocks would likely perform better. A well diversified 100% stock portfolio will almost certainly outperform a one-fund stock portfolio over the very long term.

[@lawrenceellison2972]

Excellent Video. You did a lot of work to get this data. All of it is gold…. I invested a Vangard all one fund for 30 years, pretty aggressive. My results were pretty close to your calculation. I just switched to a Vangard (Warren Buffett 90/10 type) portfolio. Slightly less aggressive to take off the amount of risk. Good advise and proven profitable. Thanks.

[@AverageGoddess222]

I would love a tutorial on how you did these calculations so I can test my own strategy!

[@scottwhitt8588]

Great video!

[@steviet6878]

I keep it simple for my 401k. 100% VINIX. Which just the S&P500. Doing alot better than retirement plan they put me in by default. In it for the long haul. I look at down markets as a sale on stocks. Keep buying

[@josephsmith4009]

Love you Tae, but you caricature the Ray Dalio strategy here. Private equity and private real estate returns cannot be proxied by things like REITs because of the illiquidity premium the former have generated historically. You need to ask yourself why endowments (including Yale's that you mention but don't account for) have a healthy allocation to private equity. Are they all dumb and underperforming the S&P 500? Or are they taking advantage of their long-term time horizon to get paid for illiquidity?

[@IakonaWayne]

ray dalio's is the best.

[@ContrarianExpatriate]

50% VOO and 50% VXF is my strategy because VTI is too heavily weighted with S&P 500 stocks.

[@saurabhkulkarni2177]

I use VT and BNDW global stocks and bonds, let market cap decide which country/stocks will be pushed up the list

[@joepushman4171]

For Paul Merriman, he has different investment portfolios depending on how aggressive you want to be. The one shown here is the least aggressive.

[@Kalarandir]

Who would have though that the age old advice of "keep it simple stupid" would be the best.

[@John-vh1fk]

In my taxable, I have a 3 fund portfolio but no bonds. I keep bonds in my tax advantaged account. I simulate a total us market with VFIAX and VEXAX so I can adjust how much is allocated to large vs mid/small, then I have VTIAX for the international portion. Right now at 60/20/20

[@adarshguptak]

30% Gold and Silver 40% VOO + VTI 30% SCHD 10% VGT + VUG + VBR

[@punisher6659]

Good video

[@dianediliberto1876]

Thank you.

[@FrankBurgos]

this This was a great video

[@MagdaleneButler-m5p]

I'm excited to dive into the world of investing, but I could really use some guidance along the way. Do you have any tips or recommendations for where I can find some solid assistance? I'm eager to learn!

[@peterl2767]

Great info 👍 👌 👏

[@Anthony-ok1zc]

my preferred 80% s&p500/20% bond index

[@ASquires-wc8ii]

VOO and done

[@adarshguptak]

Which program do you use to generate your graphics? I'd love to use it to design my research presentations.

[@martinyeager7948]

Could you go a step further with the volatility of these portfolios that show the average number of years to return to level. I.e., In retirement I try to keep two years of cash available so that if my portfolio is down, I don't have to touch it for two years until it recovers and can use my cash. Three years may be safer and allow me to continue to take a risker Stock/Bonds mix. My cash use to be in a CD ladder but I have moved to a Money Market Fund which is simpler and provides about the same short term interest return. Thank you.

[@KennethWilson-i7h]

Thanks for the breakdown! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). Could you explain how to move them to Binance?

[@withwilltheresaway3802]

Great video - thank you for the information! Everyone should have a Money Market Fund in their 401k, 403b, or Traditional/Roth IRA account, so when there is a catastrophic event like a pandemic, war or other natural disaster you transfer/park everything into it. Then get back in the market when things start to get better. But you need to watch the market everyday while this is happening. This is not trying to time the market. It's mainly for extreme situations such as March 2020 then getting back in the market in April 2020.

[@wrs09]

Math doesn’t add up. Invest &10k from 1994 to 2024 yields $200k with 10% returns. You will need to contribute in those years to have $200k

[@se2103]

Is IWF, total market enough?

[@redherringklug4731]

Love your content! Question: In this video, did you calculate the 30 year returns with any rebalancing? I find we can lower volatility and improve returns in the portfolios with multiple funds that move independently (that is I believe the purpose of the complexity). During both accumulation and withdrawal phase, we have this opportunity to rebalance. It is essentially automatically selling high (withdrawal phase) and/or buying low (accumulation phase). I find this gives an extra 0.5-1.0%% return for the cost of annual rebalancing, with lower portfolio volatility. What do you think?

[@CristhianPalomo-r6j]

It's really needful as a beginner investor not to settle for videos alone, or you will see yourself losing all your money just like me when I newly started trading with these videos here on KZbin.

[@gmo709]

Own the world. Could just buy VT. More diversification and less country concentration. I still enjoy individual stock research on the side...small %. Depending on time frame, adjust that asset allocation. If 30 yrs+ , go 100% stocks. Stocks win long. It is all ab asset allocation. That drives returns long term. Or if you cant stomach swings, go w more bond weighting and cash.If ypu enjoy individ stocks...make sure to read, learn, and only buy quality companies at a good margin of safety.

[@brycegardner6171]

Did you happen to look at the 7 Twelve portfolio by Craig Israelsen?

[@Pooptropolis]

Also bottom line: investing is better than not investing. 😊

[@briansamaniego-howard1806]

I try to go s&p500, and a high yield savings. But I'm only 34, so lots of time.

[@MH-lg1iu]

It's hard to beat the SP500.

[@stark5353]

There seems to be an inverse relationship between returns and portfolio complexity. Take note, guys.

[@cnewt00]

Thank you for changing your haircut. The former was distracting

[@jimborad7490]

I call my portfolio the "No Brain" portfolio. just TSLA,MSTR and Bitcoin. Doing well by DCAing since the scamdemic.

[@D-Harb]

I currently have VTI, SMH, and SCHD.. Im about to go VTI, SMH, SCHD, and FBTC (Fidelity Wise Origin Bitcoin Fund). Idk I'm going to do equal parts or 40% VTI, 20% SMH, 20% SCHD, and 20% FTBC....

[@chiefenumclaw7960]

I got $5 dollars and a pair of socks from my Grandma Marv for Christmas. Which of the Top 10 Investment Portfolios is right for me?

[@DEEZEEMTB]

All really depends on your age. My strategy is not the same as my sons and it shouldn’t be.

[@evarlast]

I have at least 3 strategies ;)