More people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement...

@LeslieWagenheim

8 күн бұрын

I'm lucky as far as expectations in retirement. I travelled when I was younger, don't have extravagant tastes since I was used to sacrificing all those years. I think I'll have a very good retirement partaking in my low cost hobbies, and living cheaply because of it.

@user-qs9by1fq4o

8 күн бұрын

Can I get connected here in Switzerland 🇨🇭I keep hearing " Cynthia Mcclure Alexander " name being mentioned everywhere. Is there any social media handle I can contact her?

@OliverTilney

8 күн бұрын

I believe at the age of 30, you should be able to have something called an investment or a backup plan already. It makes things easy when you are retired.

@RoryAllen118

8 күн бұрын

YES!!! That's exactly her name( Cynthia Mcclure Alexander) so many people have recommended highly her I'm a huge beneficiary of her platform from Brisbane Australia 🇦🇺

@KimberlyWillowWood

8 күн бұрын

I retired 2 years ago. My husband retired two years later also at age 62. To date, we have not touched a dime of our retirement savings. We are having zero issues living on nothing more than our Social Security.

I'm a 52yrs Director in a Tech company and I consider myself a high income earner at $350,000 per annum, I have a retirement account account but i still want to explore opportunities for short term gains before i start working less in few years.

@sommersalt88

Ай бұрын

In my opinion, IRA is a valuable strategy for retirement planning, providing growth and tax advantages. While the market is promising, expert guidance is essential for portfolio management.

@Curbalnk

Ай бұрын

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

@gagnepaingilly

Ай бұрын

this is all new to me, where do I find a fiduciary advisor, can you recommend any?

@Curbalnk

Ай бұрын

"Jennifer Leigh Hickman" is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment

@gagnepaingilly

Ай бұрын

I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.

I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? 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 but watching my portfolio of $450k dwindle away is such an ick.

@JosephineKenney

21 күн бұрын

There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.

@HildaBennet

21 күн бұрын

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.

@PennyBergeron-os4ch

21 күн бұрын

That does make a lot of sense, I'd love to sit back and have someone who has the Market figured out guide my decisions. Who is this consultant?

@HildaBennet

21 күн бұрын

Sonya Lee Mitchell is a renowned figure in her line of work. I recommend researching her credentials further.

@PennyBergeron-os4ch

21 күн бұрын

she actually appears to be well-read and educated. I just did a Google search for her name and found her webpage, I appreciate you sharing

Hats off to Vanguard for TRYING to simplify investing during all our life stages...

@Trying858

3 ай бұрын

They are making a lot of money on it. There is a fee for managed funds.

@yanbu000

3 ай бұрын

@@Trying858 Hats off to Vanguard for TRYING to simplify investing during all our life stages...

@SunofYork

2 ай бұрын

They are not on your side...... Lets not be naive

@freedomforall64

2 ай бұрын

@@Trying858 Expense Ratio is only 0.14% for VASGX - seems like a pretty low cost fund

@robertconrad7528

Ай бұрын

You may want to look at Vanguard and ESG. SCARY

Rob I just want to sincerely thank you for all that you do in teaching personal finance. Your videos are always very helpful and full of excellent information and wisdom.

@Travlinmo

6 ай бұрын

Understatement but I am right with you.

@Austin-fc5gs

6 ай бұрын

Ron 😂

@godblessyou7376

6 ай бұрын

Rob, not Ron

@LatrishaHelena

6 ай бұрын

I've come across several positive endorsements of Jenny Pamogas Canaya on various platforms, including KZread channels, seminars, and more._

@LatrishaHelena

6 ай бұрын

Thanks to these recommendations, I successfully located her online profile and have already reached out to her with a message

I appreciate you and your channel. This was a very thought provoking video- I subscribed today.

Been retired for about 15 months. Have 3-4 years in cash then 3-4 years in Wellington then the rest in the Total market fund. Seems to be working. Wasn't excited about not getting SP500 returns but had to realize its about making it last and not accumulating anymore.

Thank you for your straight forward excellent presentation. I'm thoroughly impressed.

Interesting. These would presumably simplify the annual distribution issue but simply selling shares and not worrying about which funds to sell

Great info, loved this video!

Thank you, Rob, as the tutorial on Asset Allocation Funds was very helpful. I am educating myself in how to move my funds from the accumulation phase of my career into an IRA, upon retirement.

Rob-- great video--- very helpful to me as i am retiring in 6 mos. Thank you!

As the CTO of one of the oldest companies in the U.S my only advice is get you a broker

@Tipberends

2 ай бұрын

great advice sir, you must be really rich, i'm a devops engineer and i just want to let you know that i'd be honored to work for you if possible be your personal assistant. I would also like to get a few pointers on investing from you as your employee

@stephmeldrich6765

2 ай бұрын

Can you recommend a broker please? I'd really appreciate it, i just got divorced and i would really like to some investments as my life raft while i'm spending his money

@walter.dlawson2580

2 ай бұрын

I work with Anna Rounds Fay

@tonimhamilton2072

2 ай бұрын

did a quick search and found her webpage. I must say her resume is pretty impressive.. will be writing her too

@markwalters7498

Ай бұрын

Click bait. Now all these brokers are advertising themselves under the guise of viewers. “I’m looking for a great CFP/broker/adviser, what should I do?” “ I use Broker Shady Joe Blow, he’s awesome! Here’s his website “ Both written by Shady Joe.

I retired 4 years ago and never invested a cent until after I retired. I have a pension and social security as a lowly civil servant. My investments now are just to see how the market works and if I can prosper as I learn, so be it. I was thrilled to see info on how to invest as a retiree since everything else is aimed towards those who are preparing to retire. You had me until you said I'd have to give up control. Can't do that. At least if I lose, I can blame myself...don't want to lose and pay someone else to do it.

@poolmilethirty2859

6 ай бұрын

Don't blame you, especially when you don't even know the person or persons knowledge that is making the decisions. What if it's someone right out of college.

@joycef8443

5 ай бұрын

Not me, I have been investing since the 1980s and prefer mutual funds to individual stocks. Maybe I ain’t that smart, but just lucky.

@ggpp6252

5 ай бұрын

@@joycef8443 Did you have capital gains annually from your mutual funds? How did you deal with the taxes?

@B126USMC

4 ай бұрын

@@joycef8443 I hear you...however, I only see...3 thumbs....up...4...ur....post....Not...very...convincing

@SugarNorway

4 ай бұрын

@@B126USMCRetirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determines a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through 401k. We both still earning after our retirement.

Thanks Rob, this was another great one. -

Great video, Another factor to add is Do they spend a lot of time planning their financial future? The majority of people do not engage in planing for their future

@ralfbrown-kl1gp

20 күн бұрын

Opting for an investment advisor is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 45% since Q2.

@ralfbrown-kl1gp

20 күн бұрын

The decision on when to pick an Adviser is a very personal one. I take guidance from Sharon Ann Meny, to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

@Jadechurch-ql3do

2 ай бұрын

Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.

@yeslahykcim

2 ай бұрын

You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.

@JamesScott433

2 ай бұрын

​@@yeslahykcim I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

@yeslahykcim

2 ай бұрын

Yvette Ruta Musto' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

@brianwhitehawker1756

2 ай бұрын

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

Rob - As usual your input is informative and concise. I have been evaluating going tthis route in lieu of Vannguard Flagship I have been in (been retired 10 years). The allocation in the Wellington fund is consistent with my current holdings🎉. I have fouhd the Flagship Service of value making SS decisions and moving dollars into Roth account. Now that I am almost 72 that value has diminished.. Thanks Again!

Rob, yet another excellent video. Thanks! Simplicity aside, I presume, however, that you still personally prefer the 3 fund approach....with the possible one or two fund addition?

great video Rob.. thanks

Another well done video of yours. Thanks. Just watched your other video on the Bucket Strategy being flawed (in sum, rebalance your portfolio each year is better). Do these fixed allocation funds accomplish the same thing or would it be better to have say two types of funds; diversified fixed and diversified equity and rebalance the 2 every year?

Right now keeping my 401k on track is my top priority because I will soon be retiring. I've read about investors making up to $250k in this collapsing market. Do you have any advice?

@RickWatson-xu6gw

2 ай бұрын

While there are many ways to profit today, only real-time experts are capable of executing such high-volume, nearly flawless strategies.

@benitabussell5053

2 ай бұрын

that's impressive!, I could really use the expertise of this advisors.... who’s the person guiding you?

@heidikamrath1951

Ай бұрын

SCAM ALERT

@Psuedo-Nim

Ай бұрын

@@RickWatson-xu6gw high volume like your mom working the streetcorner.

Thank you Rob for your thoughtful choice of topics that are very helpful to retired DIY investors like me. Very helpful overview of good options for those who prefer KISS. I did not realize your last point regarding the old target date funds continuing to modify allocations after "expiration" date. Also appreciate the brevity in communicating the information. Buckeys #1? Ha, overrated. Go Blue! - Bill s.

Really goof video. Thank you I am now a follower.

All good intimation Rob. I was wondering if you have already discussed TIPS and TIPS funds. like VIPSX vs just buying TIPS directly. I'm mostly in VTSAX and BND but I'm looking to add TIPS to the bond side of my 60/40 mix.

Greetings from Malaysia. Thank you Rob for another great video and sharing! So helpful!

There are several ETFs and you could construct your own allocation. It takes some research but there is lots of data available. CDs also are good now as a backbone income.

thanks for the effort and sharing. i am an appreciative subscriber. my problems with these funds is on the bonds side. since i am now in the very beginning of my retirement, i prefer my bonds to truly act as a safety net to my equity holdings. i want my bonds to be short term/intermediate term treasury funds/etfs. i do not want long term bonds with their exposure to interest rates. i do not want corporate bonds with their exposure to credit risk. i do not want international bonds with their exposure to currency risk. that said, while i was in my accumulation phase, i invested in both Vanguard Target Date funds and Wellington Admiral. both had decent results and made investing more automatic and that was a good thing! thumbs up.

@me-myself-i787

17 күн бұрын

Long-term government bonds are only volatile if you plan on selling before maturity. If you wait until maturity, they're safer than short-term bonds because you're not exposed to any interest rate cuts. My recommendation would be, get Treasury Inflation-Protected Securities with a maturity date after you expect to die. That way, you will have predictable income which keeps up with inflation.

I like target retirement funds and life strategy funds but right now I love the combination of S&P 500 fund and CDs. You decide the risk ratio depending on your age, risk tolerance, and when you will need the money. Fidelity CDs are paying 5.3% while the S&P gained 20% this year. These are good times to be an investor. BTW, Fidelity's S&P expense ratio is .015%. That's almost free!

@Realgujju1

3 ай бұрын

what is ratio of S&P 500 fund and CD

Maybe what we need in retirement is a reverse target date fund. Where stocks increase in allocation over time from a low level to allow for sequence of return risk. The duration based on estimated lifespan.

Good stuff Thanks Rob

Hey Rob great episode. I know it's not your Forte but would you consider doing an episode about Social Security and spousal benefits. There's a lot on the internet about this but I trust you the most

Wellesley has taken a beating this year. It’s done really well in years past.

@bigtoeknee11

6 ай бұрын

Yes it has so great time to buy in.

Well done, thanks.

Nice video. I tried to manage my own stocks, but ended up with homes“analysis paralysis” and haven’t done well this year.

Thank you for the advice. What is your opinion of the these two Vanguard accounts: GNMA Admiral CL and Cash Reserves Federal Money Market Admiral. I've been debating with a friend about closing them.

Great video thank you

Nice review of some interesting new ETFs

Rob, would you be able to do a video on how to manage a retirement portfolio and aim to "spend it all or as much as possible without leaving much" for singles? :) I know it's hard to gauge how long one lives, but all strategies such as 4% seem not to withdraw the main pot of portfolio. As a single without commitments, I think many of us are interested in other more suitable strategies - that will also withdraw part of the portfolio as we live and the goal is adjust and leave as little as possible for "others".., I often wonder about it. lol

@nancymoore7657

5 ай бұрын

​@@philipdamask2279 why did you not post your same unsolicited evasive reply to everyone's question?

i recently bought the moderate growth one. it looks promising. i like that it also has some international investments

G8r ideas but T-Bills are good enough for now. The yields are above 5%

Great presentation. For me these funds have to much international equity exposure. I think that is reflected in the average returns.

Great video Rob, I would like to see information on the performance of those funds. Still, excellent information. Thanks!

Great video thanks

This works well if you aren’t taking distributions. But, I’m taking distributions, so I want separate asset classes in my portfolio so I can take distributions from the winners, rather than the losers or the average of the portfolio.

Thank you!

My wife's 401k is in one of these type funds - set and forget. I prefer to be more hands-on.

Good video Rob! I plan on keeping my Vanguard TDF for life. I like its index based structure, diversification, low costs and the fact that it includes TIPS as the target date draws closer. That said, I found (as you pointed out) that it's stock allocation (50%) when the target date is reached was too conservative for my taste so I just chose a fund 5 years beyond my retirement date. So I'll be 60% equities when I retire, then it will go down to 50% 5 years later and, seven years after that, it will be 30% and that is something I can live with as I'll be a lot older by then.

@joshuaryan8694

2 ай бұрын

Is your target date fund in a taxable brokerage? People have told me not to use target date funds because of tax consequences.

@Oivey2000

2 ай бұрын

⁠@@joshuaryan8694I it’s in an IRA, but if you choose a TDF in a taxable brokerage account, they are still good as long as you choose a company that uses index funds ( like Vanguard) because index funds are, by design, very tax efficient. Target Date Index Funds are the only type I like.

I like Vanguard but like to be involved, I keep it simple with Large Cap funds, CD ladders, money market/auto default VMXFF, balance and move things around a bit

Good video. with all thus funds you can build a nice 3 bucket portfolio, or any allocation that you want.

Great topic Rob, much appreciated! Do you or others have any feedback regarding the inability to manually rebalance following a withdrawal if all your eggs are in one strategy retirement fund? I'm currently looking at consolidating and simplifying my portfolio and torn between investing in either one "60/40 Balanced Index Fund" such as VBIAX or two separate total market Stock & Bond funds and perform the rebalancing myself. The unknown for me is how a "Balanced Index" fund allocates withdrawal distributions, do they pull the funds proportionally 60/40 ?

Liked,subscribed. Thanks

Rob - how about a podcast on how retirees can invest in IRAs, etc. so that RMDs are covered by dividends and capital gains distributions to avoid having to sell shares in a down market.

@gg80108

2 ай бұрын

Seeking Alpha and lots of dividend portfolio advice on youtube. It's a different strategy than what is here.

Yes you could put your money into date funds if you wanted to pay a butt load in management fees every month. Me I like keeping my money in my account and not be giving away my money in fees to.some fund managers who in the long run do even worse that the S&P 500. I only invest in a low fee S&P 500 index mutual fund. That way I keep as much of my money in my pocket as I can. When I am ready to retire then I will set up a multable year cash fund so when the market is down I have safe cash to draw on. When the market is flat or up I will draw out of the S&P 500 fund.

@bubbaburke

6 ай бұрын

Vanguard target date series is 0.08% fee.

Do you recommend only holding asset allocation funds in retirement accounts?

Our peak era is gone, with 401(k)s failing in the recession. My $750K retirement portfolio shrinks with inflation. I fear leaders repeat history's mistakes. If rising costs worry your retirement, I empathize. Foreign policies, regulations, and energy policies are chaotic.

Are the % management fees the only fees paid? Are there annual/entry/exit/etc fees or any other fees by any other name that should be considered? Thank you!!

Thank Rob. Do any Target Date Funds include automating actual RMDs? I think the Fidelity 2005 and 2010 are are step in the direction of a guide path for those 5 or 10 years into retirement. To really have one fund in retirement, an aging glide path is helpful. So too would be automating actual RMDs.

@Lukionest

6 ай бұрын

Individual funds won't handle your RMDs for you, but the broker you buy them through certainly can. For example, if you use Fidelity, you can invest whichever of their funds, or iShares funds, or others that you choose and independent of those investments, you can set up a schedule and automation for the withdrawing of RMDs with Fidelity. You tell Fidelity which of your IRAs to withdraw from (if you have more than one and assuming all your IRAs are managed by them), when during the year to make those withdrawals (once per year, or quarterly or ...), what date(s) to make the withdrawals, whether to have estimated taxes withheld or not, where the money should be deposited, the amounts of the withdrawals (just enough to cover the RMD or more?), which of your investment funds within your IRA should be sold to cover the withdrawals, etc. As you can see, there are a lot of different decisions for you to make when it comes to how RMDs should be handled, even if you end up having them automated. The fund company doesn't know (and you don't want them to know) all the personal information involved, but your broker does. Note that if you have multiple IRAs managed by different Brokers (i.e. one at Fidelity and another handled by Schwab), you need to coordinate with each broker individually, if you wish to have RMD money pulled from both IRAs. That's a good reason to consolidate them under one broker. Note you can have all the RMDs for a given year pulled from only one of your IRAs as long as the amount that is pulled is sufficient to cover the annual RMD required for the total value of all your IRAs combined.

Bonds are not always a conservative investment, it depends where they are in price and the rate environment.

@gg80108

2 ай бұрын

Now is the best time in 15 yrs to invest in bonds.

@MJLU280

23 күн бұрын

True. Duration risk. Keep them short dated if you need to.

I have a ? I live and work in Puerto Rico if I open an Roth IRA with one of the mention funds and brokarage will I loose tax benefits like paying federal and state taxes? Thanks.

So what are the pros and cons of simply putting an IRA into only one asset allocation ETF (if it matches your desired portfolio balance) vs using the 3 Fund Portfolio method? Seems the asset allocation ETF's automatic rebalancing would make it even easier vs having to manually rebalance the 3 Fund Portfolio?

Where should we people put our non Ira/ roth (cash) savings when we are 5-6 years from retirement? Love your videos.

Well done !

I might use them to cover RMDs.

Honestly, as you age you should ALSO be changing your asset allocation to be more conservative. So, maybe instead of targeting your retirement year .. you target your longevity year. For instance.. if you have a retirement plan to make your money last until you are 90 years old, and the year you turn 90 is 2060, then you could choose that year and the fund shifts for your longevity downcount.

Why invest in Vanguard Moderate Growth at a 0.13% expense ratio when you can just buy the 4 component funds with a net expense ratio of about 0.05%?

@SpookyEng1

6 ай бұрын

The fund auto rebalances, this may be of value if a spouse is not interested or able to manage the funds properly. It is a set and forget option.

Are these iShares Life Path ETFs a good choice for a taxable brokerage account?

I decided years ago that 60/40 stock/bond is my comfort level. For better or worse, its vanguard balanced index fund for much of my portfolio.

I have a pension and 401k and am now retired. I made 42% last year with my 401k but I’m sure I can’t expect to make that much every year. I want to watch these videos to educate myself. I’m going to draw my social security now that I’m 62.

would converting from target date to in retirement fund have tax consequences in a taxable account or would it be close enough to a wash sale?

Would like to know if you have an opinion on Baird financial and how they invest

How often do the asset allocation funds rebalance?

Great video love the content. I’m currently 55 years old and probably will retire between 62 and 65. I am a Fidelity customer and I don’t know if I am needing stocks or ETF now that paid dividends or do I don’t worry about dividends now and just worry about the growth I’m stuck in confused on where to go..

I plan to retire in a few years time and have our money tied up in Vanguard index funds etc just in case im not missing anything would you sell stocks on a monthly basis or annually to live off?

How do you handle with mult accts esp taxable?

Wellington!

Thank you for your clear and concise teaching style!! What are your thoughts on VBAIX? Does Schwab have asset allocation funds? I am 75 retired, should I let go of my stocks? I have several tech stocks, and several others. Your input would be most helpful!

@km-bo3zx

6 ай бұрын

I’ve had my investments (IRA and Roth) in the VBAIX, which seems to fill the needs of what he talked about in this video.

Looking into this stuff to help my dad out. You gave me some good key terms to work off of and some great information. Cheers!

@gg80108

2 ай бұрын

You should take an interest you just might inherit the fortune any minute😅

Hello Rob from Canada. Canadas had similar funds (in etf form) for 3-4 years now from ishares and vanguard. The symbols are XEQT, XGRO, XBAL, XCONS. Switch the X's with V's for Vanguard's products. It's slightly more expensive than the ones you mentioned at MER of 0.2% but its very famous here!

@jmc8076

6 ай бұрын

Looks like the life strategy funds are avail here too.

@jeepee2

6 ай бұрын

I mostly use XGRO and it couldn't be simpler!

I don't see any links for things you mentioned for Fidelity 😞

Really liked all this info, personally though i would never recommend a REIT to my worst enemy. Try cashing out a REIT unlike a mutual fund, you have to ask to try to be first in line every quarter and they only let you take out so much. Inherited some REITs and its taking over a year to get them all cashed out.

@me-myself-i787

17 күн бұрын

Some REITs are listed on stock exchanges, so they're more liquid. These include Realty Income and Invitation Homes. Although, I still wouldn't recommend them. They're no safer than stocks and they underperform.

Thanks

Interesting, the BlackRock Retirement ETF has the same 40/60 allocation as their AOM Moderate Growth fund. Seems like 2 different strategies (mod growth vs. income) but same allocations?

Bravo!

Do you have any videos on guaranteed income funds?

Thanks for a helpful discussion! I have heard that after retirement and outside of an IRA putting your assets in an asset allocation fund has negative tax consequences so it is not a good idea. Do you agree and please comment/ explain this?

If you are not investment savvy and want a reasonable way to invest, do in target funds and do not fret. You will be ahead of the crowd. No real need for an advisor. I invested regularly in a target fund, and invested smaller amounts in stocks, which helped me to gain a better knowledge of the overall market, etc.. Fidelity and Vanguard are both trustworthy. Do not invest in niche funds like ESG. Sounds good but really just a subjective, marketing gimmick, not necessarily a sound investment strategy.

You can also use two or three different target date fund in a ratio that gets to the desired stock to bond allocation. I was wondering if the lack of flexibility on withdrawals, stock or bonds, depending on market performance have an effect longterm

@greenzza

6 ай бұрын

True

@royprovins7037

6 ай бұрын

I am retired. I am withdrawing from a short term bond index fund with three Vanguard TDF behind it . 2020, 2030 and 2035 so that when it is time to withdraw from those they will have reached the retirement income stage.

@ronloftis9080

6 ай бұрын

that seems complicated to own several TDFs. Just buy stock and bond funds/etfs to get your allocation if y'all going to that trouble. Make life even simpler and use M1 Finance to be able to rebalance easily using their pie method. You could have two pies - one stock and one bond and easily manage the allocation inside each pie.

Unless 100% of your investable assets are in Qualified accounts like IRA,401k.. then this simple strategy will cost you in Tax efficiency. Having stocks in taxable accounts and Bonds in IRA type accounts results in less overall tax paid as the stocks will be capital gains rate. Sequence of Return Risk is a big threat to early retirees (ie reverse dollar cost averaging) , and one strategy might be to buy a 90% bond fund-or cash, just before retirement, then increase your stock allocation every couple or three yrs .. increasing your stocks as you get older..

You don't need to go searching funds and ETFs that match the asset allocation you want. Just buy a pure stock fund and a pure bond fund in the proportions you want to get to the AA you want.

Great video and thanks for the suggestions. I dropped out of Vanguard Advisors due to their policy of not allowing me to control my international exposure ( I am currently at 63% stocks with 19% of that are in international stocks and don't want to exceed that %). I am 74 years old and I don't need my RMD so I am looking for taxable account to place next year's distribution. I am looking at placing my next RMD in either VWELX; VBIAX or VSMGX, to control my allocation %. Any suggestions?

@cathyg1099

6 ай бұрын

Of the three, VWELX, is the better performing fund. If you buy into it, I suggest you do so after their years end distribution. That's when the price is usually the lowest.

@tumbleweedking5668

6 ай бұрын

Be careful of mutual funds outside your IRA. You'll get a capital gains tax bill you might not be prepared for.

@janc.8197

5 ай бұрын

@@tumbleweedking5668 Yes, very important to use a low turnover index fund or an ETF in a taxable account.

I understand the theory behind these "retirement" funds. When you retire, you need secure income without risk, so they buy high grade bonds and a few conservative stocks, more or less depending on your risk tolerance. But in periods of high inflation like today, fixed income is not so great. Your income won't grow with inflation, and the stock price will fall. If you have to liquidate in an emergency, you lose big. So don't get lulled into thinking these are always the way to go. They are great when inflation is low, or even just steady, but when inflation is rising, they lose real income and stock value. They are right for some people who just don't know anything or don't want to bother, but if you are a well educated investor with time to research investments, you can do better with high dividend stocks, albeit with more risk.

Right now in my IRA brokerage account, I’m laddering T-Bills and may eventually move into T Notes and Bonds when yield curves get above water. But, it seems the tax exempt advantage of the Treasuries will be lost - come the time I move money out of my IRA. So is this where TIPS may offer an advantage in a retirement account or does somehow the interest earned on T-Bills while in an IRA account maintain their tax exempt status when withdrawn into regular income?

@chrisp3913

6 ай бұрын

Wh6 not CDs. The tax advantage goes away in an IRA

I still dont understand invest in "bonds", all i see is negative results. 😅 This video is pretty interesting, i wasnt so sure what all these funds for. I might better switch to these type fund instead doing only s&p 500. Thanks

Rob, I was a 401K administrator for several companies over the years. I found the target date funds significantly underperformed the market for overall fund return. I know they have a mixture of stocks and bonds depending on the the retiremnet date. Ive listened to several of your videos and enjoy them immensly, how come you do not focus at all on total returns for the funds? You seem to focus on fees and asset allocation.

@TonyCox1351

4 ай бұрын

Rob believes in holding a mix of stocks and bonds and international diversification. If you watch his videos on his own personal portfolio, it’s very similar to a TDF. So the reason he pushes it so much is because he obviously prefers safety and diversity over “total returns”

I was in a 'Retirement Year' fund for 10 wasted years in my 30s to 40s. It was far too conservative and delivering very little growth when I could take some risk, ask that age. I moved its all into higher performing funds and never looked back. I retired at 55, 9 years ago.

What is your take on Schwab Intelligent Portfolio (SIP) product?

@swright5690

6 ай бұрын

I have been researching that too as a way to get diversity with low fees.

Growth company funds or stocks....if you cannot handle the risk buy dividend paying stable companies like Verizon? MO? The stock prices do not move much but you can get yourself a 7 to 10 per cent dividend. Cheers!

If you are rolling over a 401K into an IRA after retirement, should you diversify into different funds or do these do this for you?

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