I started with a 3 fund portfolio in 2013 and switched to 2 funds in 2020 (when stocks fell sharply and bonds increased). I sold all my bonds and bought the discounted stocks. Ever since then I have been 100% stocks with about 80% U.S. and 20% International. Well here we are nearly 4 years later and I'm thinking of going back to 3 funds because the dynamics of my life have changed.

Investing since 98' have seen it all in the market. The best way to invest is low cost total us and ex us markets and stay fully invested no matter what happens in the market.

@JarradMorrow

3 ай бұрын

Thanks for sharing that wisdom 👍🏻

What a great video, love how you deliver the message. Thank you!

@JarradMorrow

3 ай бұрын

Thanks for the kind words!

Excelent content. What Vanguard bond fund is your choice for the three fund portfolio?

Hi! I'm new here and am loving your videos! Very helpful information. I was curious why you aren't holding bonds in your IRA? Thanks!

Thanks! Love your videos

@JarradMorrow

3 ай бұрын

Thanks for watching!

Great content as usual. Stay the course fellas…DCAing into retirement

@JarradMorrow

3 ай бұрын

Thanks! Will do!

Thanks for your content.

@JarradMorrow

3 ай бұрын

I appreciate your support by watching the videos!

I honestly think what’s messing with peoples mindset is these finance KZreadrs that stock pick. They only see the wins not the loses or they just buy the magnificent 7 and thinking they are a genius. I found the Jake Bogel 3 fund portfolio and I’m happy with average returns. Btw I opened a custodial account for my little sister and out her in the three fund portfolio and yes that’s including BND.

Right now I’m looking to invest in SCHG,SWTSX and SWISX. I do like SWPPX but I’m thinking those 3 funds together might be better. SCHD is a good one too. I’m looking for thoughts and suggestions? Thank you.

What do you think of equal weight etfs like RSP, EQAL, QQQE?

Thank you for this video, it's a really great primer that covers the 3 fund portfolio. Going a bit beyond the 3-fund portfolio, I am seeing many funds of funds (529 and target retirement at Vanguard/Fidelity) that have added International Bonds Index Funds and sometimes TIPS, in addition to the 3-fund portfolio. I am curious to hear if the hear 3-fund portfolio could become a 4-fund portfolio with international bonds (similar to the international stock held in the 3-fund) for increased diversification. Do you think the extra complication of the international bond fund adds diversification, and if yes, is it worth the added complexity of holding one more fund?

Thank you another good video

@JarradMorrow

3 ай бұрын

No problem! Thank you for the continued support!

I hold VOO, QQQ, VNQ, SCHD, SCHY, and BND. It basically corners every sector and exposes me to the best of everything.

@GmanSJ

3 ай бұрын

Makes sense. Do you use Vanguard or Schwab? Any pro’s or con’s to having an account at one brokerage and funds from another in your account from a cost standpoint?

What do you think about Robin hood IRA with 1 percent match?

So, what percentage of my portfolio should be invested in international stocks?

Very interesting video.

@JarradMorrow

3 ай бұрын

👍🏻

Great video! I do question the international and bond allocations though. Namely, i don't see the point in having ANY bonds until a few years before retirement, at which point loading up on cash/bonds until you have a few years worth of expenses saved up seems to make sense. As for Internstional, has there EVER been a 30-year period where they've outperformed? I kbow there's been 5, 10, and maybe even 20 year periods. But for the average investing timeline of 30 years-plus, can you find a period where international wasn't a drag on a portfolio?

@jgray690

3 ай бұрын

I agree. And I think in some of his past videos he has disclosed he didn't have any bonds yet for the same reason. IF you have a 15+ year horizon, it doesn't seem like it make sense.

lol I just got into fidelity haven’t started any investing yet but all I see is acronyms and letters. Watched your 5 Fidelity fund video will probably do the ones listed on there and avoid overlap

Love the content! On a side note, I've noticed this for a while from video to video, but I can't keep myself from calling it out this time. Has anyone noticed the transitions used by Jarrad have really fast/gradient flickering, like at 4:58? It could be a personal device (or certain GPU accel) thing, but they are near-epileptic IMO 😅

@JarradMorrow

3 ай бұрын

Appreciate the feedback. I just rewinded that point of the video 20 times and I didn't notice anything 😂. I'll check it out again the next time I'm tripping on mushrooms to see if I notice something.

Inherited from my brother's estate in 2020 the Franklin Income Fund is my bond equivalent since 1948 always yielded more than the 10 year US treasury.

Another fine video....

@JarradMorrow

3 ай бұрын

Thanks!

Remove the bonds untill your older and this method is the best hands down ❤

Jarrad, I have been investing with my work portfolio 401k fidelity and been investing into a target fund essentially for 15 years 😐. I’m almost 50 and looking at selling it all and going with your 3 fund investment. But through my work 401 I’m actually able to buy US treasury bonds. Would it make sense to take 20% and buy the higher yielding 6 month bonds and continue to reinvest those as they mature as opposed to a bond fund per se? Thank you for these tips and videos they are a huge help for average joes who need investing simplified

So what's next? After maxed 401k, HSA, and ROTH IRA, plus a couple of real estate investments already in the mix. Let's say I got an extra nice sum sitting in a high yield savings account, how best to invest it?

Even Buffet said he will put his wife in a "Two Fund Portfolio" when he dies....90% equity and 10% bond. I'm not invested internationally right now. I've replaced that with a Nasdaq fund (QQQM) for a little extra exposure in tech, for the time being. Thanks for the vids!

@grigorirasputin425

3 ай бұрын

90% S&P 500*

@carlosesparza2459

3 ай бұрын

I’m doing the same!

@es330td

2 ай бұрын

You cannot use Warren Buffet as a guide for your own life. His wife is going to inherit more money than is in some of the biggest mutual funds out there. Even if there was a great actively managed fund worth investing in they could not handle an influx of a billion dollars, much less multiple billion dollars. His money has to go into the S&P 500 because it is the only fund that can take that kind of volume.

In my fidelity roth im investing 75/25 in FXAIX & FTIHX...$500 a month set it and forget it.

@grigorirasputin425

3 ай бұрын

Limits are higher than $6,000 since 2023

@RayRiv73

3 ай бұрын

@@grigorirasputin425 yes 8000 for me I'm 50

@RayRiv73

3 ай бұрын

@grigorirasputin425 yes $8000 for me

What is your opinion on the 4 fund portfolio? adding Total International bond etf/index fund?

@JarradMorrow

3 ай бұрын

I looked into the validity of adding a total international bond fund a few years ago and based on all the studies and research I went through it didn't add enough benefit to warrant including it in a diversified portfolio. It definitely made the portfolio more diversified and improved risk adjusted returns, but the benefit was so insignificantly small that it might not be worth it when you account for increased complexity (3 funds vs. 4 funds). I'm usually really good about documenting my sources so I can cite them when questions like this come up, but unfortunately I didn't do it for this one (go figure 😂🤦🏻‍♂️). I know this sounds like one of those "trust me bro" statements, but I'm 99.999% sure this is what the studies/research said even though I can't cough up the data to back up my statement.

I'm retiring in April. Last year I went from about 15 investments to three. Gotta keep things simple because my brain isn't going to get better with age and my wife needs it simple too! Auto-pilot on - enjoy retirement!

@mj1961christian

3 ай бұрын

I went from 25 funds to 4! Much simpler. My advisor had me in 25 funds. By by advisor!

@BadPhD777

3 ай бұрын

@@mj1961christian Right on! Keep it simple and diverse!

@geoffgordon9569

3 ай бұрын

K.I.S.S = Keep It Simple Stupid.

I opened a ROTH and went with a growth ETF, total US ETF, high yield dividend ETF and real estate ETF. I already have Bond exposure in my 401k so I thought it’d be a waste. So far I’m happy with the results.

@joy2come119

2 ай бұрын

Same exact thing with me I have the exact portfolio as you and thought that since I have 10 percent in bonds in my 401k that I wouldn't add them to my Roth

What is the rebalance once a year point, I still have hard time to understand? Do you move around your slices of investment pie?

@aaront936

3 ай бұрын

You prune your flowers to water your weeds.

Just a heads up, at 0:34 you put VGTSX as a Schwab Int'l fund but that is a Vanguard mutual fund. The real one should be SWISX 😄

Im planning on keeping HSA my max out-of-pocket in FDRXX and/or other stable money market funds. The ret will be for retirement, so I'm thinking 36% VTI, 18% VEA, 6% VWO, 15% BND, 5% BNDW, 10% REET, 10% GLDM. (60% VT, 20% BNDW, 10% REET, 10% GLDM)

Glad you called out Cathie Woods. I don't get why people hype her so much, she is a terrible financial manager and it did hurt many families.

@JarradMorrow

3 ай бұрын

I've been saying this for years. Got a lot of push back when her fund was performing well...now those people are nowhere to be found 😂.

Why not 50/50 VT/BNDW? Or 75/25 90/10 VT/BNDW? I have most if my investments in Betterment, which charges 0.25% bit makes up for it with tax loss harvesting. My new HSA im investing with Fedality.

@JarradMorrow

3 ай бұрын

Those portfolios are close enough to a 3 fund portfolio so that works 👍🏻

@shaereub4450

2 ай бұрын

​@@JarradMorrow just noticed the 3 fund portfolio includes BND or BNDW to prevent having internal bonds.

But you can see why folks debate the international exposure. Pre-1989 it seemed to make sense. Since then it looks to have bettered US find only about 20% of the time.

@JarradMorrow

3 ай бұрын

Yes, I completely understand why people would want to avoid international which is why I specifically said that in the video. But that doesn't change the fact that we have no idea how the next 30 years are going to play out. The whole point of a 3 fund portfolio is to say "hey I have no idea what's going to happen in the future so I'm just going to place my chips on everything and be done with it". If someone still wants to avoid international going forward then I have no issue with that as long as they understand what they're doing and can handle whatever outcome they get.

It would be great if you did a video on what current retirees should be invested in. Thank you, a Retiree.

@glasshalffull2930

Ай бұрын

Are you a current retiree that has a pension, a couple hundred thousand in cash and over $3 M in your 401K or do you have no pension and $10K in cash and $300K in your 401K? Everybody is too different. Also, there are the tax implications. As Jerrod said, a flat fee analysis is what you need.

I keep seeing the "new 3 fund" videos with SCHD and VGT/VUG/QQQ without international holdings. I watch them sometimes out of morbid curiosity like I do flat earth videos.

@JarradMorrow

3 ай бұрын

I get it from a KZread clickability perspective because it seems like a novel topic. But unfortunately the whole case for why they say it's a great way to invest going forward falls apart because it's based on past performance. I like your "flat earth" analogy 😂😂

@joshsantos9965

3 ай бұрын

“Professor G” is a joke and just make videos for views and picks the best performing ETFs over the last 5 years. Confirmation bias, recency bias, performance chasing, idiosyncratic risk etc etc.

@Milwaukee307

3 ай бұрын

I thought the Earth was flat?

@korndawggy1801

3 ай бұрын

What's your opinion about all the different videos where they say alot of the top US companies are already connected with international funds anyways? I've seen quite a few different ones saying that.

@joshsantos9965

3 ай бұрын

@@korndawggy1801 it doesn’t make sense tbh. Revenue is not exposure. In order for you to capture the growth of the international markets, you need to own the international funds contributing to those returns.. you won’t get rewarded by the international markets just because you hold Apple Microsoft and Coca-Cola while Indian stocks are popping off.. Think of it in reverse. Most countries stocks do business in the US, so why aren’t US revenues keeping international stocks at the same returns as the US stocks? Because it’s a terrible way to think.

Single fund portfolio is king. VOO or VTI.

This is awesome. I've been waiting for you to enlighten us regarding the recent influx of finance youtubers suggesting the dividend ETF/VOO/growth portfolios. I was on the SCHD train since it outperformed the S&P 500 that one time. I realized I was just chasing after performance rather than staying the course with 3 fund. Fortunately, SCHD did go up and I sold out at a profit to get back in on VTI but unfortunately I missed out on the greater gains from VOO/VTI. Never again.

@JarradMorrow

3 ай бұрын

Luckily someone brought these goofy portfolios to my attention. I don't pay attention to 99% of creators in this space so I'm pretty clueless about it all unless someone tells me about it.

Serious question-I’m 38, I have most of my investments in my (and my wife’s) Roth IRA, I have an emergency fund so obviously I have no intention or reason to touch my investments until I’m at or close to retirement age. So why should I care about volatility enough to invest in anything beyond the S&P500 at this stage of my life? I understand a 2 or 3 fund portfolio will make more sense as I get closer to tapping into those funds, but right now and for the foreseeable future my only goal is maximum growth. Can you (or anyone) provide a little feedback? Is my line of thinking correct or am I missing something? Thank you!

@nutria12247

2 ай бұрын

I agree with you. No need for bonds right now in your retirement accounts...as long as you don't panic sell in down markets.

But, But, But - Jarrad - My Neighbors's, Cousin's, Boyfriend swears that HIS way is the best way to Make $$. Human Nature and our tendencies are a powerful force that drives Greed and Fear. Appreciate you trying to re-center folks with your videos.

@JarradMorrow

3 ай бұрын

😂👍🏻

One fund here! Retiring in 3 years and all just put in the 2030 fund!

Jarrad.......A Seneca of our time !!

@JarradMorrow

3 ай бұрын

I appreciate it, but I don't deserve a title like that.

@zmack1830

3 ай бұрын

@@JarradMorrow Though you do not deserve that title, you can take it with a smile as you mostly apply many of his principles !!

Can I take my 401k and IRA from my finacial advisor and put in a 3 fund portfolio?

@davidbrooks8809

3 ай бұрын

You can ask but probably not it's set up their way

@hotballz72

3 ай бұрын

If your 401k is at your place of employment.....no. If ur no longer with the company for the 401k....u can roll it over to a brokerage of your liking and control it yourself. Your IRA can be and should be controlled under you if you wanna do the 3 fund portfolio.

@gottagowithjoe1

3 ай бұрын

@@hotballz72 it is with my financial advisor. I am self employed.

Before watching this video: buying government bonds during the war 1939-1945 was advertised as patriotic things. After the war, it has become a “diversified and balanced portfolio with reduced volatility.” After watching video: Most people do need financial advisors. Financial advisors keep nervous people invested during “tough” times and “good” times.

Surprised this didn't show how an example portfolio would have worked 10-20-30 years ago.

It seems like we've crossed an event horizon with the national debt and that bonds are mathematically programmed to be repaid in lower valued Fiat money. I'm finding it hard to even stomach a 10% allocation to them.

@JarradMorrow

Ай бұрын

I get it. They're not for everyone. If you can handle the short term fluctuations and stay invested then it might not make sense for you to hold them

Topic for yah-... As aging Gen X er's inherit parents hard work, how to you consolidate many a new opportunities? Person starts late in retirement game?, Can the opportunity pay off by x years? 😏 Enjoy the channel Nice wit on the girlfriend at the end

A good dividend index fund is an excellent bond substitute if you are not nearing retirement. While they are not as "stable" as bonds, they can be pretty darn close while having more potential to bring in more gains during your earning years. Of course, once you are close to retirement, this strategy might not make the best sense.

@davidbrooks8809

3 ай бұрын

True..you can always add more pieces to your 3 fund.. I have Berkshire Hathaway And Amazon..😊😅

What is better: S&P 500 or Total Stock Market Index Fund?

@nutria12247

2 ай бұрын

For a 3 fund portfolio, I would lean toward the Total Stock Market Fund since it offers a little more diversification.

@russellhunter8460

23 күн бұрын

Voo better returns and better dividends

Your chart had an error.. SWISX

3 funds: VOO VXUS SPAXX instead of bonds etf.. Pays 5%

@joy2come119

2 ай бұрын

I thought about using spaxx too over bnd being as if its already one of my core accounts. The yields are pretty much the same smh.

Jarrad, I am sorry man but that type gf belongs to the streets😂😂😂

@JarradMorrow

3 ай бұрын

What are you saying? Should I kick my current gf to the streets?!?! She said she loves me and promised this time would be different!!! 😂

@grigorirasputin425

3 ай бұрын

@@JarradMorrow i am sure she also added that “prior promiscuity is not an indication of future divorce”

@davidbrooks8809

3 ай бұрын

😂😅😊

I have to disagree with you on your perspective here. While fund overlap is an important consideration, SCHD and VOO are trying to accomplish two different things. SCHD has a higher dividend target while VOO is a growth fund. Maybe you want growth and dividend income so I don’t see how that is a problem once you are at a certain age. Disclaimer: I do not hold SCHD in my portfolio but I do hold FXAIX (in my 401k) which tracks the SP500.

@davidbrooks8809

3 ай бұрын

Wait what??..lmao..ok😂

You could be my daddy 12:22 On a more serious note, people need to realize that by owning the market, you own both the winners and the losers at the same time. If someone else only picks the winner for that same time period, then yes they have “outperformed” BUT the market isn’t just the US, it’s the global market. Choosing only 1 country for your investing LIFETIME of 30,40,50+ years is insane to bet only on 1 country’s market.

@JarradMorrow

3 ай бұрын

Please don't tell my wife

@joshsantos9965

3 ай бұрын

@@JarradMorrow 🫡😉

I got rid of International based off of research, watching Warren buffet and Jack Bogles opinions on the matter. So many variables, different currencies, governments, the way those economies are ran, wars, etc. so I’m just doing SCHD, SCHG, SPLG in my Roth IRA. My retirement fund havs S&P 500 fund, growth fund, mid cap and small cap. International funds have like 4 to maybe 5% growth since inception so I’ll pass lol.

@joshsantos9965

3 ай бұрын

You do realize by taking large cap growth (SCHG) and large cap value (SCHD) and investing in both, you essentially are getting large cap blend (SPLG). Bogles response to international was basically summed up as the French are lazy and the UK isn’t better than America.. You have 100% recency bias. You know international outperformed the US from 1950-1989 and 2000-2008?

@tylersucher8653

3 ай бұрын

@@joshsantos9965 yup and historically it still crushes international in the long run

@davidbrooks8809

3 ай бұрын

SCHG and SPLG.. super overlap the only difference is Tesla

Never ever invested in an international fund . I said that in the 1990s and I’m saying it now . First off like you were spot on with a dividend ETF , your international fund is still stocks . Additionally American companies are global . There is absolutely no reason to have this fund type as a major fund in anyone’s portfolio. Waste of time and money.

It’s an option… definitely not the best option. But good luck!

Bond funds are trash. All the downside none of the up sode of bonds.

The probability of continuing to do it goes down. False. Not how that works.

Why why why would you ever by an internationally fund . It was wrong in the 1990s and wrong today. Most foreign countries are laggards as are their companies. Invest in US companies that are Global ( which is virtually every large US company) . Stop with the international

@JarradMorrow

Ай бұрын

Investing in international was correct from '75 to '82, '86 to '90, and '04 to '10...the future is unknown. Recency Bias: "a type of cognitive bias that causes us to assume that future events will resemble recent experiences. In other words, it causes us to think that, because certain events happened recently, they are likely to happen again soon."

couple of things. "even the professionals under perform", is that why they drive Mercedes? "no one knows where the market is going" False. Easily proven to be a false statement.

@jarradmarrow it’s 2:25 AM n I’m up watching you video. I’m not sure I’m investing the correct way in my Roth IRA I currently hold SCHD VXUS JEPQ and QQMG your thoughts please as you know I can only max out at $7,000

@JarradMorrow

3 ай бұрын

I guess the first thing I'd need to know is how old are you, what are your investing goals, when are you going to need the money, why did you choose each of those funds individually, and how you expect those funds to work together to help you achieve your investing goal. I can't really give you my thoughts unless I have all of that info because for my situation that portfolio construction would make no sense...but for someone else it might make sense.

@thefloristtheflower1834

3 ай бұрын

Thanks so much for taking the time to respond. I’m 35 and my goal is to have money in my Roth IRA my goal is to retire between 48-52

I’ve parked on M1, with a two-fund of VT (95%) and BNDW (5%) for over a year, and I’ve been pleased. What say you, @JarraddMorrow?

@JarradMorrow

3 ай бұрын

That's close enough to the 3 fund portfolio so you get my stamp of approval

@davidbrooks8809

3 ай бұрын

Love it!!