Analytical and entrepreneurial-minded data nerd, usability enthusiast, Boglehead, and Oxford comma advocate.
Having a math background and a curious, quantitative mind in general, I've always naturally tried to analyze and "optimize" everything - health, fitness, sleep, work, finance, investing, decisions, cooking, websites, you name it. So I figured I'd create a KZread channel to help others do the same for investing and personal finance.
Topics covered include beginner advice, how-to's, "lazy portfolio" reviews, brokerage reviews, ETFs, leverage, dividends, bonds, loans, credit cards, insurance, budgeting, and more.
Part research, part ramblings. I hope you enjoy.
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Love the comparison chart at the end!
I'm glad!
i'm at 30% international now. i'm not allowing myself to change my strategy until i hit a certain milestone (otherwise i'd be changing it too often) but i'll probably try to go to 35% or 40% after that.
Thanks for sharing!
For how long can I hold cash into SGOV? Like one year or more? Because I don't need the cash any time soon. Thanks
As long as you want.
@@OptimizedPortfolio Thank youuu. So, what does it mean 1-3 months? Please explain to me John..
Nice video, really enjoyed it! Lately, I’ve been reading up on $WKSP (Worksport) and they seem like they’re on to something with their solar tech for trucks and EVs. This sector has a lot of room to grow, and there's a lot of buzz on social media and Discord about their potential. Definitely worth looking into!
Hey, great video! Investing is such a crucial part of securing financial stability, and $WKSP (Worksport) looks like a promising bet. They’re developing solar products for trucks and EVs, which is an expanding field. There's been a lot of positive chatter about them on social media and Discord. Definitely worth considering!
I divorced SGOV after seeing the tax benefits of BOXX. Now with potentially falling interest rates, I'm rotating that money back into equities and long term bonds
Thanks for sharing!
"Had you bought in January 2000 right before the Dotcom crash, you’d still be in the red today" => If you DCA during the bearmarket, you'd be ok ?
Possibly. Many like myself are doing a one-time lottery ticket. But I also showed even DCA doesn't always save the day.
@@OptimizedPortfolio I do have a small portion of my portfolio in LQQ (leverage 2x), and I'll only DCA in case of a major drawdown. I feel very good with this strategy
You missed the best one, AVUV.
AVUV is small cap value, not small cap blend: kzread.info/dash/bejne/rIGGqLCGdsWtg7A.html
Excellent review! Log charts of course make sense here, but I think it would paint a stark picture if they was linear y-axis charts too. In the DCA sim at 13:31, the 99.95% max drawdown of TQQQ would look much more devastating. Whereas in log scale it almost tricks you into thinking its much more psychologically manageable. Imagine a $1M TQQQ-only portfolio dropping to $500. I think if I implemented HFEA, the strategy would be to limit total portfolio allocation, Roth account, hedge as stated, ride the lightning, and profit take over time and shift it into normal un-leveraged assets, while not buying back in with profits during dips (which 2000 shows you don't know how low or how long they actually will be).
true
When I get a round tuit, I'd like to compare their Price charts. One reason I like SGOV and TFLO is their very low volatility. Sure, the price has gradually increased as interest rates increased and people re-invested distributions. When rates decrease, I expect the NAV to gradually decline, however it won't plummet like long duration bonds. I wouldn't call them "cash" because the price can vary, but they don't have dramatic day-to-day fluctuation. When I need a _cash equivalent_ in my M1 Finance pie, the relatively steady, low volatility SGOV and TFLO work for me.
If rates drop, we'd expect long bonds to jump up, not "plummet."
@6:53 Ben Felix all stock portfolio.
Thanks for the thorough, clear explanation! I'm staying with SPAXX for my Roth IRA. And may do the same when I open my brokerage account next month.
Thanks for sharing!
BOXX in taxable accounts, SGOV in 401k
Thanks for sharing!
AVUV on da rise !
😛
Excellent video as normal I think I will go with XHLF because it’s the cheapest one and they all similar basically
Thanks for watching!
You need to start including yield, as it making decision process easy
Yield on these changes week to week, and since they're all T-bills, they all pay about the same thing. Moreover, one would never base a choice of fund on yield alone.
Thanks for the video, very informative. I own Boxx, coupled with AAA and SPHY for a combined trio of nice diversification, growth and dividends.
Thanks for sharing!
Do you own any of these T-Bills ETFs?
I’ve had SGOV for quite while. Just wondering if it makes a difference at what point in the month to sell it. At the peak or after the distribution but stock drops in price?
@@couldbe8348 Doesn't matter. As you noted, its share price rises every day during the month leading up to the distribution and then drops.
Have sgov. Will probably migrate to xhlf with contributions going forward and reinvest distributions of SGOV into xhlf as well. Even though it’s minuscule I’d like to capture LTCG with the price for SGOV still where possible. It’s probably not worth my time to try to squeeze this level of tax efficiency/fee differential but I also have the time and view this like solving a crossword puzzle.
@@maybefull Thanks for sharing!
John, with Fed cuts likely coming in the back half of this year…..would be curious to get your thoughts on migrating short term t-bill assets to longer duration bonds. Thx
I don't try to time interest rate changes or the bond market.
@@OptimizedPortfolio If not time, what are some example other factors do you use to help decide between short term treasury ETFs vs long duration treasury ETFs?
@@user-tm1kb3fq4m Time horizon, volatility, asset allocation.
Been holding sgov for awhile now. Love it
Thanks for sharing!
I will check those out.
Thanks for watching!
Hello sir how are you. I have a question for you. So what are your thoughts on VICI?
I don't know what that is.
@@OptimizedPortfolio VICI properties I believe a type of REIT
I can't stand those stupid cheesy stock videos. So many KZread consultant has their clients use them. HOrrible.
Well I don't have a KZread "consultant," but thanks for the feedback!
As of Thursday, July 25, 2024, TQQQ is down about -25% in just 2 weeks 😔 Perhaps a good time to buy, but not good for those who already had TQQQ
Only time will tell. Trying to time the market is typically more harmful than helpful. But also, 25% is pretty mild for a 3x stocks ETF.
Small caps are an ugly lot for the bull market end game. Buy them if you must, but make a sell stop.
wut
Watch out, you don't get the state tax exemption with these ETF, but do with T-Bills.
Yes you do. Both SGOV and BIL plainly hold T-Bills.
Retires need higher dividends, not growth?
Nah.
So, if I understand you correctly, HFEA is essentially a 60/40 stocks/bonds portfolio, but on steroids, meaning 3x leverage? Do you still follow this strategy, despite 2022? If so, could you explain why?
Correct. I have a small lottery ticket in HFEA, yes. This video is the explanation why.
@@OptimizedPortfolio just wondering: is there a 2x alternative? And how did that perform?
Worst case scenario is that IRS disallows this and you have to amend your prior years taxes and pay up as ordinary income plus interest. Read numerous articles on this tax dodge, I think I will steer clear. Also unclear about what happens during high redemptions. Among others, google... The Tax Trap Inside the BOXX
I've already read those, though admittedly after I published this video. All theoretical and hypothetical at this point. As you noted, worst case, the seemingly magical advantages go away. We'll see how it shakes out, I guess. Maybe I'll do a follow up video on the potential so-called "tax trap."
My income from all sources is below the government threshold of $47K so I pay 0% capital gains taxes. And still aggressively investing at 62 years young.
Thanks for sharing! Good luck!
Can you explain this in more detail why dividends are had
Assuming you meant "bad," they are not inherently "bad," just that they don't really do anything. Share price compensates for div payments: x.com/OptimizedPort/status/1810907019219468339/photo/1
I can largely predict when markets go down. It happens every time I buy 😆
No I don’t own it but considering it and what you think which is could be better govt or High from simplify . ? What you think ? And many than,s for the video as usual super good
I can't provide personalized advice, but as usual, it comes down to the context - goal(s), time horizon, and need, capacity, and tolerance for risk. Those are 2 completely different products.