Here is my 2024 Main portfolio break down: 1. **Foundation (VOO)**: - **Percentage**: 55% - **Focus**: Provides broad market exposure to the largest U.S. companies, serving as the stable foundation of your portfolio. 2. **Growth**: - **Total Allocation**: 35% - **VGT**: 30% of the growth segment - **QQQM**: 30% of the growth segment - **SOXQ**: 26% of the growth segment - **Amazon**: 5% - **Meta**: 5% - **Tesla**: 4% - **Focus**: This segment includes ETFs targeting technology and semiconductors, as well as direct investments in Amazon, Meta, and Tesla, aligning with sectors known for rapid growth. 3. **Dividend (DGRO, SCHD)**: - **Percentage**: 10% - **Focus**: Equally divided between DGRO and SCHD, these ETFs provide income through dividends, enhancing portfolio income and reducing volatility.
I believe Jack Bogle's recommendation with respect to international was to go no higher than 20% of the EQUITY total, not 20% of the whole portfolio. "I recommend that [International stocks] account for no more than about 20 percent of your own equity portfolio." from The Little Book of Common Sense Investing.
Hello Tae. I really love your channel. I am a long time Vanguard account holder. The only thing I would say is please slow down your rate of speech. It is hard for me to catch everything when you speak so quickly. Keep up the good work!
안녕 Tae! New subscriber here 🤩I got started late in investing (in my late thirties, 42 now) and I have VTSAX in my Roth IRA and just recently invested in VFORX in my Roth. My question is if this is redundant? In other words, should I just keep the VFORX or keep both? After watching this video I am considering adding VBTLX. 감사해요!
I understand the reason(s) behind an international fund, but I choose not to hold any of them at all. It is a personal decision, but after 5 years of nothing but falling behind I said that was enough. Those 5 years are from '10-'15.
I like the "slow and steady" approach and makes sense for an investor like me in retirement. I'm a fan of both companies BUT upon review in doing some research the Fidelity funds in your 5 to hold forever seemed to have greater risk percentages than upside? Otherwise, I thought your material was good.
Thanks for your videos. Your videos cover important ground, and are very clear. Sorry, I do have a "but". What's your argument against Vanguard's huge actively managed funds VWIAX, VWENX and VGSTX? I lot of proven performance for minimal cost. Do you think individual investors can get better risk corrected returns by building their own index fund portfolios?
Serious question: How do I setup all 3 funds in my Roth if they all have a 3k minimum investment? That’s 9k to setup this initial 3 part portfolio. Max contribution is only 6k in my Roth 🤔
Just do two funds for the first year and add the third the next year for your Roth IRA account. US stock market is a little precarious right now, so maybe start with the international stocks and bonds first. If the US market goes down, you can add US stocks at a discount next year.
Some other index funds might not have a minimum. I’m with Schwab and the three index funds that equate to these Vanguard ones only have a $1 minimum investment on them.
Great info! I have one question tho. If I hold a certain percentage of VBTLX in my roth account, will it still grow tax free? You said it is not tax efficient at 14:30 so I'm a little confused.
“Not tax efficient” means don’t hold VBTLX in a taxable account due to higher turnover which triggers capital gains taxes every year. If you hold VBTLX in a Roth account the higher turnover doesn’t matter, you won’t pay any taxes. Everything in Roth grows tax free.
If each of the Vanguard funds have a $3000 minimum and I want to build a 90/10 portfolio of VTSAX and VBTLX does that mean I would need $30,000 to initially fund the portfolio? The initial asset mix in that case would be $27,000 of VTSAX (90%) and $3000 of VBTLX (10%). The $0 min of Fidelity index funds seem a better entry point to starting a brokerage account than Vanguard for an investor like myself with limited starting capital.
I personally haven't found a good reason for an international index fund. I've invested in one for the past 15-20 years, but to me it seems like as US stocks go so does the rest of the world. And I've moved away from vbtlx to vwenx to try to keep pace w/ inflation. As for my Roth I'm looking for high dividend producer w/ low expense fees like vexrx, vwenx, and vwuax.
I have one question : what is meant by placing VBTLX in a tax advantage account. Do you mean I use money in tax-advantage account to invest in VBTLX . I am new to investments. TIA.
because bonds and stocks are historically inversely correlated. When one is up, the other is down; when you combine this with portfolio rebalancing, holding bonds can allow you to accumulate more stocks when the stocks are low. Lets say the stock market has a bad year, and your stocks are down 30%, but your bonds are relatively flat. When you look at your portfolio that started out 80% stock, 20% bonds you will notice that now, by value, you have a higher percentage of bonds (as compared to the initial 20%) and a lower percentage of stocks (as compared to the original 80%). So you sell off the bond fund to get it back down to 20% and use that money to buy stocks, which are cheap now because they had a bad year. Now you have many more shares of stocks, so that the next year, when stocks do well you get more growth. And vice versa. You rebalance at a regular interval, which insures that you are always buying whichever asset is priced more cheaply relative to the other. Basically, the bonds can act as a store of value for when the stocks are down hard, and allow you to purchase more shares of cheap stocks in the downturns. In theory this works with global equities as well; when the U.S. is doing well you will have excess purchasing power to buy cheap foreign stocks, and then when you get huge percentage gains from those developing economies you can accumulate more American equities. However, there is some school of thought that says the world is becoming more globally connected, and that international and domestic stocks actually correlate closely, such that they both rise and fall together, which negates the advantage.
@@austinfehr9447 Thank you! May i ask what about a Portfolio only with international Stocks and international Bonds ? Does the rebalencing make sense too ? Thank you and greetings from Germany ;)
