One of my accounting professors in undergrad told us in a class that unless we want to go into trading and have access to a hedge fund's resources, just DCA into index funds, and we should take that time we would spend watching the charts and use that time to learn three things. One thing that's useful, one thing that's interesting, and one thing that's just plain fun.
@@kyleblackburn9058. Hedge funds actually have legal mechanisms to manipulate the market to squeak extra profit, a individual person doesn’t have the resources to do the same.
So about 68% of my portfolio is in passive index funds and ETFs VFTAX, VOO, VTI among others. I make use of an F.A Lisa Rosa Cavanagh. It’s pleasant for me this way, these are suitable steps for seeking greater cash flow on long term trends.I feel like even if 20% of my portfolió underperforms, I’ll still generate income from having a diverse portfolio. Better than spending my money on an expensive shoe or vacation lol.
Hi Tae! My name is Brian and since I’ve discovered your channel you’ve inspired me to also want to teach people financial literacy as it is the cause of so much financial pain and stress in this country. Recently, I have wrote two financial books. The first one is about how to create and manage a personal budget, understand positive vs negative debt, how to dig yourself out of negative debt and avoid it, and how to understand the credit score system. I feel that my books can really help your subscribers. It’s not a get rich quick scheme, or a course, or coaching or any crap like that. My second book is all about how to invest. More specifically, how to understand the most common types of investment accounts and the assets they have/can be purchased. They are both straight to the point and direct just like you are. I would be honored to give you copies and have you read them and know your honest thoughts. I want truly want to help people and of course help myself too. We’ll all trying to make it and increase our income. I won’t post the links here or the title because I would like your permission first. I hope you see this message. Take care brotha. 👍🏽
I fired Edwards Jones and moved everything to Vanguard because of your channel. I love your videos, and my 13 year old daughter is now texting me asking if I saw the new "Tortoise" video! But she tells me I can't spend $200 on a haircut like he does😊
I did something similar over 10 years ago. I was with Edward Jones, and they are a total rip-off. I ended up moving all my money over to Charles Schwab. They have their own low-cost index funds that don't charge a front-end sales load.
Personally i find that index funds are perfect for IRAs, 401Ks and other tax exempt investing accounts, and ETFs are perfect for taxable brokerage accounts.
For the tax part: Vanguard I believe still has the sole ability from the SEC to rebalance the fund without incurring any cap gains or losses to the holders. All ETF versions of the funds from each of these companies also have this feature, but only Vanguard for now has it for the mutual funds. I believe DFA is requesting the SEC to let them do this too, as the patent for Vanguard to do this expired recently.
Your insights are awesome and much appreciated! Question: when you've put time in the market, at what point can you withdraw your profits? Is it at a certain amount of years from your initial investment or on a needs/wants basis? (if you have addressed in a previously, I thank you in advance for pointing me in the right direction ☺)
Depends on your investment goals. Are you a trader (short term) or investor (long term)? If your mutual fund is a part of your IRA, there is a certain age you have to wait to withdraw the funds without penalty (usually 59.5 years old). If you have your own taxable brokerage account and you are investing in a mutual fund or ETF, you can cash out whenever you want.
Tae- huge fan of the content. I saw in one of your older videos that you have a rental property? Isn't this the anti Boglehead thing to do? I'm genuinely curious here, not judging. I was under the impression that the stress and trouble of being a landlord goes against most of the things and ideas I see in your videos.
You have to do your own research. There was a study conducted several years ago about millionaires, with a net worth of over 5 million. Through the study, it was determined that only 10% of those millionaires got rich in the stock market. Another 10% inherited their wealth, and 80% built their wealth through starting businesses and/or real estate investing. Owning a business and investing in income producing real estate has always been the best way to build wealth in America.
Actively managed funds do have a higher expense ratio but the returns listed are after the expense is taken out. The returns are what you look at. If an index fund has 0 expense ratio and an Actively managed has 1% and both show 10% returns over 10 years then they both performed the same. The 1% didnt hurt you any.
There's some information you're leaving out, like the fact that most actively managed mutual funds charge a 5.75% front-end sales load, so you are immediately starting out at a disadvantage. And that sales charge gets taken out every single time you put money in. I worked for a company that only had Class-A Share actively managed mutual funds inside of their 401k. That should have been illegal.
This is a great video, I learn a lot watching your videos and it has been helpful to me. Building a steady income is quite difficult for newbies.. Thanks to Mrs.Jane Havice for improving my portfolio. keep up with the good videos.
l also invest with mrs Jane Havice, she charges a 20% commission on the profit made after each trading session, which is fair compared to the effort she put in to make huge profits.
