Recently, I've been pondering retirement, unsure if my 401(k) and IRA will provide a stable future. I've also put $800K into the stock market, encountering fluctuations with limited gains. i need an approach that will align with my risk tolerance and financial goals
Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management
Opting for an inves-tment advisr 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 85% since 2022
I work with Sharon Marissa Wolfe as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Sharon Marissa Wolfe’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
@@Elliot-Ivan That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
@@ElijahOliver-t9u Victoria Carmen Santaella Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
@@GabrielAnthony-09 She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Thankfully I learned this about 10 years ago from my GM. I moved the majority of my 401k to Fidelity 500 Large and Mid Cap with low expense ratios. Thanks for the video.
Thanks, Nolan!! I checked with our funds in our 401K. I found one that holds about 10% of our money to be at 1.31% expense ratio!! My jaw dropped. I sold it all and put it into the same class with a Fidelity fund with almost identical returns over 10 years that had an expense ratio of .03%
Really great idea at the very end on only contributing in 401k to the low expense version of VOO and hitting other funds in Roth or self brokerage with much lower expense ratio. I think that could have been a great opener because I bet a lot of people missed that at the end.
I’ve been watching your videos for a while now, love your videos! If you haven’t already made a video on someone in or near retirement, the benefits or disadvantages of doing a rollover 401k to have more control over fees and investment selections. I think this would be a great video that a lot of people in or close to retirement would benefit from greatly. Thanks.
@@NolanGouveia I also love your videos and was wondering the same thing about doing a rollover from Roth 401k to Roth IRA. However I am only 23 (unlike the person from the original comment) and have heard a lot about compounding costs. So I was wondering how beneficial it would be to do a rollover every few years to save on expenses in the long term. As well as the technicalities on if this is possible and what are the limitations. Keep up the banger vids!!!
This is crazy, I just thought about making a video about this. I double checked this for my self and made sure I chose the highest growth fund and low expense ratio. I’ve told other guys about this and they don’t have a clue what I’m talking about lol.
With around $250k to invest, what's your advice on entering the market? I'm considering replicating the strategies of experts instead of investing independently to avoid both financial losses and emotional stress. What are your thoughts on this approach?
Consider diversifying your portfolio with a mix of stocks and stable assets. Seeking professional advice now could provide valuable insights and strategies to navigate market uncertainties and protect your investments.
Agreed, my portfolio is well matched for every market season, yielding 60% from early last year till date. I and my advisor are working on a 7-figure ballpark.
Your financial advisor must be really good, Wehrine. I hope it's okay to inquire if you're still working with the same advisor and how can I get in touch with them?
Great video! The options in most of those types of accounts are like trying to read a foreign language! We need to take the time to at least understand what we’re investing in and how much it is potentially costing our future selves to do so!
I opened my 401k last July and I did 26% return in 12 months doing your three fund portfolio. I invested in large cap growth, tech, and dividend. The target date fund for 2065 (I’m 25) in there did 17% return. I imagine with my fees included they performed better. Maybe I should just do the growth one like you to minimize the expenses.
If you have a Traditional IRA, you can migrate some of your 401K balance to that Traditional IRA. Traditional IRA's have a significant broader range of investments to invest in without any fees{depending on what you want to invest in.......Individual Stocks, ETF's, ...ect.}. Same is true with After Tax 401Ks to Roth IRA.
I was in some target date fund and it was going no where. Last year I moved 100% into a mutual fund that tracks the S&P 500. My 401k was up over 20% last year, and again so far this year as well!
Would investing in an ETF like DIVO be a better way to achieve the monthly income goal? DIVO’s share price growth and total return are lower than PG+JNJ+TROW, but it’s monthly yields are higher and its share price growth stays ahead of inflation in the long run.
My 401k has a .7% expense ratio. Thats the lowest available. And that’s for the S&P 500 fund. I put in enough to get my employer match and then I opened up a Roth IRA. I can get voo at a .03% expense ratio and not pay any taxes when I retire on my earnings. I also have a regular brokerage account too. 401k fees are ridiculous.
Yeah, it tends to be small companies with the highest fees. The S&P 500 fund in my 401k at a retail company is .12%. Still a little too high, but not outrageous.
I lucked out, my employer has VFIAX, the s&p 500 index mutual fund from Vanguard, at .04%. everything else has an expense ratio starting at .19 and up 🥴
Professor G: this video is so true and I really appreciate your time going thru mine with me! My rate of return has jumped from 9% return to a wopping 28% return with your guidance breaking down exactly where and what to move all my investments. You da man!
I just learned this recently myself and have had 401k for 5 years. The issue is, most of the time the employers don’t really explain this, they tell you to sign up but they dont say the options in terms of actual investments.
I just looked at my T. Rowe Price 401K and it was 100% T. Rowe Price Retirement 2050, I adjusted it slightly to also include some Vanguard Institutional Index I, which has a 5 star Morningstar rating FWIW.
Got lucky when my company switched to a different provider. They have an SP500 fund at 0.01% expense. The stable value fund that i do rotate to when market is in bear is 0.27% which is high.
I did this a couple weeks ago because I realized I was getting charged outrageous quarterly fees as well as high expense ratios in many funds. I ended up changing to 40% SP500, 30% Total Mkt, 15% International and 15% bonds. I also have a rollover, a roth and a taxable IRA that I use to buy other funds in order to keep portfolio balanced. (I am 50 years old and plan to retire in 10 years for reference)
This stuff confuses me. If Fund A makes 10% average over the last 10 years with an expense ratio of .05% and Fund B makes 12% average over the last 10 years with an expense ratio of .75% how are you not better off with Fund B? You are paying .70% more in expenses but you are making 2% more so it sounds like paying the extra fees still nets you 1.3% more on your investment. Thanks for all the videos they are great but I must be a little slow on understanding this math.
I'd love to see how a Roth 401k would play into this. Wondering if it would be better to max out my Roth 401k (fees of 0.48%) or only put in the match then the rest in a brokerage account??
Dude, I’m 52, I have about 12k in my 401k. Would you recommend an S&P fund for me? Or something else? I realize I need some really aggressive growth and about another 25 years to work but realistically I’ve probably only got another 10-15 years before I just can’t do what I do anymore.
Great content as always. Do you bother with investing in small and midcap fund in your 401k? Doesn't look like it. Is there a time for that you think? Or straight up sp500 funds are king. Thanks
100% foundational; company match- in my Roth 401k similar to s&p 500 fund (viiix) .02 expense 100% max; dividend- in my Roth IRA & HSA (SCHD) tax free 100% growth- in my brokerage account (50%qqqm) (50%schg)
im the youngest out of my coworkers (25yrs old) and I changed all their allocations because of this specific issue (fees and being underexposed to the market). I changed it to a S&P500 fund and theyre already shocked at the growth. Some of these guys were making 3% per year before I made the switch... Shame.
My 401k is through tiaa. I went through it last year to check investments. The default is vanguard target date funds at .08% expense ratio. Since im not interested in bonds right now i switched to 35% vigix (pretty much VUG), 30% vviax (vtv), 35% vscpx for small cap . The expense ratios for these are between .03%-.05%. Seems to be pretty broad diversification in equities at low expense....but tbh i probably dont know what im doing. I tried to find a fund that tracks the sp500 but expense ratio was much higher (i think .4%+) i work for a university and get 5% match, and an additional 5%. I contribute an additional 5% on top and my 10% is roth 401k so half is roth and half is traditional.
For all the pro low fees people out there keep in mind that your funds likely dont have a high average rate of return. For example your low fee fund might have an average annual return of 8-12% and have an expense ratio of 0.005-0.2%. On the flip side i'm 100% in a fund(VITAX) with like a 0.75% expense ratio, but the average rate of return is like 22.5% which i'm glad to pay a larger fee for. I only put in like 9% of my average annual salary and if i did the math on 8-12% and it was like $1.3M which is nice, but nothing compared to the $5M im projected to realize in 30 years in VITAX or similar tech funds. Yea its rollar coaster but whos freaking looking every day
Pro. G, I have a brokerage account linked to my 401k through my company. Could you make a video sharing how you would invest if had this option? I'm curious how my method would compare to others. Thank you
As a soon retiree, keeping my $401k on course after a rocky 2022 is top priority. I have been reading of lnvestors making up to $25Ok R0I in this current crashing market, any recommendations to scale up my R0I before retirement will be highly appreciated
it's been a brisk tailwind for lnvestors in US stocks over the decades but it's a delicate season now, hence i advice you the guidance of a financiaI advisor
Having an lnvestment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K so far, that made it clear there's more to the market that we avg joes don't know.
Lucia Alicia Cruz 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.
I think all you need is an expert assigned by a brokerage company that will trade for you and handle your capital professionally and give you weekly returns of investment without any extra fees attached.
Seeing a remark regarding my manager Evelyn Turner is quite energizing. It was just like this when I first met her a few weeks ago. Having started with just 4k about 2-3 weeks ago, I have already made it to 21 k. She is very remarkable!
Yeah, I believe investing with a professional is the optimal approach, as it mitigates the risk of significant losses. Did you truly know her? I was under the impression that I was the sole beneficiary of her guidance through the challenges of trading.
Goodness gracious I'm so excited seeing Ms. Evelyn Turner been mentioned here also. Didn't know she has been good to other people too, this is wonderful because I also started with a UA-cam referral like this
Thank you, age 37, 4 years of 401k investment, company match 3% and I am doing all ROTH 401k, current holding: 59% of Fidelity® Contrafund® Commingled Pool Class O at expense ratio 0.35% 41% of Vanguard Institutional 500 Index Trust at expense ratio 0.0104% Shall I continue with this or any change / recommendation ?
Is it common to not receive dividends in a 401k fund? I have moved the majority of my balance in my 401k to an S&P 500 fund, but I do not receive any dividends.
My 401K through my company with match has a self-directed option, do you recommend creating a 3 fund portfolio in that self-directed option? I can choose any index.
My company does the same, so I moved a large portion to self-directed, but also retain a percentage in the standard 401k funds, but the fees are very low (VIGAX at 0.05% and VFIAX at 0.04% expense ratio.)
My company used vanguard and I simply don’t have a good selection to choose from. The only real options we have are target retirement date funds. I set it and forget it. What else can I do?
Hey! Idk if you'll see this comment lmfao, but I wanted your opinion on something, I recently came into a 100k inheritance, I'm only 18, but I'm trying to decide which ETFs to invest in, do you think it's a good idea to do the 33.3 split into VOO, QQQM and SCHD, or invest all of it in just one, while using my income to invest in the others? Thanks in advance
@@NolanGouveia my only thing is, if I go all in on schd, that dividend snowball with compound interest is just so much more then the split, but I understand where you're coming from
@@NolanGouveia that's fair, but they miss out on the dividends of SCHD, I mean, in 20 years that 100k could turn into 1.5m, with 90k per year in dividends
I have $175k in my current 401k. I will no longer be able to contribute after 3 more years. I am not offered employer match contributions and I will have to take RMDs. I plan on rolling the 401k to my ROTH IRA once I retire. Would it be better to keep contributing to my 401k or take those contributions and put them into my ROTH IRA from now on?
We don’t even have an S&P 500 option in ours. Switched mine from target date to total us market. Thankful for the 10% match. Does it make sense to actually sell the target date funds to switch to something else? Or just let it sit and invest in something else going forward?
I think the Total US Market is good if the expense ratio is low? It is probably the same as VTI which has very similar returns as VOO. But check it and see how close it is to VTI. If it’s very close to VTI I’d go 100% into it.
Good day sir, i think you can make a good discussion with the concern i have, last july 5 s&p 500 gained .5% and fxaix only gained .24%, that is a huge difference, i know that both have very minimal difference in holdings but with this more than half difference i am now confused where to put my lump sum money from CD next couple of weeks. I need your advice which one to choose, if we talk about long term here and let say 1 million, that is a difference of 5k vs 2400 usd. Hope i can get a reply from you
@Hotline-InvestmentSimplified i am a subscriber of yours sir, next 2 weeks i have a huge lumpsum, with last july 5 difference from s&p 500 and fxaix, i have to reconsider my decision where to put my money from maturing CD. I called fidelity and they say it might be from the difference in holdings but with .5% and .24% is a huge difference.
I have a T row price 401k at work. I was looking at all they ahd me invested it and most things are negative except for 500 index and some other one. Shoul i manage my own portfolio and just put 100 percent on index fund like he has it? Or would that be dumb??
In a 401k they will just reinvest it, since you can't use the money until you are 59.5 years old, they won't give you the option to reinvest or not like you would see in an IRA or traditional brokerage account. So the dividends just reinvest automatically. My 401k uses FXIAX which normally pays a dividend if you invest through a normal broker, but they don't show you that in your 401k. It just gets automatically reinvested.
@JAlexanderCurtis thank you, I am skeptical though because my large cap growth fund VIGAX shows me the dividend reinvestment when I search my history. However, there is nothing for my S&P fund. Additionally when I view each investment page it advertises a 0.5% yield with VIGAX but lists nothing for the S&P. Are they even allowed to pocket the normal profits from dividends though or would that be illegal?
Let's say you are pretty good at investing and you can typically expect 30% a year. I do options and that is the average. So, why would I want to leave my money in a 401k? There is no 401k plan that allows naked options investment. I rolled my 401k into a ROTH IRA and paid the taxes at the time. Now I load my 401k up to the max allowed every year and roll it into the ROTH where I can invest the funds profitably and tax free. This is called a Back Door ROTH strategy. Perfectly legal. I pay interest on the acorn (at the time of investment) but not on the tree (growth and withdrawal). Withdrawal from the ROTH is tax free and it is not subject to RMD!! Tax free growth compounded at 30% is impressive. If I could only get 5-7% it would still be worth it over a very long time frame.
Sorry but 30% per year is NOT sustainable. You might have that return this past few years due to the roaring bull market but do not expect that trend to continue for the long run. And this comes form someone who has been buying and selling options for the past 15 years.....
I have the SSGA S&P 500 index fund class k. The fee is an extremely low .013%, but it pays no dividend at all. Are they pocketing the 1.3% yield that I should be getting?
Right, it does not. My VIGAX growth investment does and has a .5% yield and .05% expense ratio. Nothing for the state street s&p index class k. I'm beginning to think I'm being bamboozled.
@andrewpulsipher2062 it's worth the question. You're making me second guess myself now - I'll have to check and make sure mine is paying dividends as well.
CAN YOU🎉 MAKE A VIDEO FOR 59 Y OLD INVESTMENT FOR RETIREMENT AND GET DIVIDENDS AND HOW MUCH TO INVEST FOR A SIMPLE EMPLOYE WITH NOT MANY SAVINGS😢❤ TO RETIRE IN ABOUT 4/5 YEARS🎉😂❤😅😊
I just checked out the target date fund in my 401k, it's the Fidelity Freedom Index 2050 Fund - Premier FRLPX. Expense ratio is only 0.05%. The S&P fund available to me also has a lower ER than your option. Sounds like the plans available to you are just expensive, which sucks cause you still want to put money in there to reduce your taxable income.
Recently, I've been pondering retirement, unsure if my 401(k) and IRA will provide a stable future. I've also put $800K into the stock market, encountering fluctuations with limited gains. i need an approach that will align with my risk tolerance and financial goals
Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management
Opting for an inves-tment advisr 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 85% since 2022
How do I reach out to a financial advisor, my portfolio has been struggling since 2022 and I’ve been holding on by the skin of my teeth.
I work with Sharon Marissa Wolfe as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Sharon Marissa Wolfe’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
@@Elliot-Ivan That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
@@GabrielAnthony-09 Mind if I ask you to recommend this particular coach you using their service?
@@ElijahOliver-t9u Victoria Carmen Santaella Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
@@GabrielAnthony-09 She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Thankfully I learned this about 10 years ago from my GM. I moved the majority of my 401k to Fidelity 500 Large and Mid Cap with low expense ratios. Thanks for the video.
Thanks, Nolan!! I checked with our funds in our 401K. I found one that holds about 10% of our money to be at 1.31% expense ratio!! My jaw dropped. I sold it all and put it into the same class with a Fidelity fund with almost identical returns over 10 years that had an expense ratio of .03%
Wow what a huge difference! That’s going to be worth a lot of money long term!
@@NolanGouveia I suspect it could be. It was around $225K in that fund. I like .03% much better!! Thanks again for all of your content!
My company uses Black Rock and I found a fund that tracks the S&P 500. Expense ratio is.01%. I’ll take it!!!!!
Good advise. Just rebalanced my 401k about a week ago. My expense ratios range from .04 to .09 so I'm happy with that
Really great idea at the very end on only contributing in 401k to the low expense version of VOO and hitting other funds in Roth or self brokerage with much lower expense ratio. I think that could have been a great opener because I bet a lot of people missed that at the end.
I’ve been watching your videos for a while now, love your videos! If you haven’t already made a video on someone in or near retirement, the benefits or disadvantages of doing a rollover 401k to have more control over fees and investment selections. I think this would be a great video that a lot of people in or close to retirement would benefit from greatly. Thanks.
Great idea! I’m on it
@@NolanGouveia I also love your videos and was wondering the same thing about doing a rollover from Roth 401k to Roth IRA. However I am only 23 (unlike the person from the original comment) and have heard a lot about compounding costs. So I was wondering how beneficial it would be to do a rollover every few years to save on expenses in the long term. As well as the technicalities on if this is possible and what are the limitations. Keep up the banger vids!!!
Get SPLG an alternate to VOO. It's literally VOO's brother and all the metrics are the same. The price is what VOO was back 2 decades ago
Any other you can recommend under $60?
This is crazy, I just thought about making a video about this.
I double checked this for my self and made sure I chose the highest growth fund and low expense ratio.
I’ve told other guys about this and they don’t have a clue what I’m talking about lol.
I have my 401K in the S&P 500. It's done very well for me
Great work!
With around $250k to invest, what's your advice on entering the market? I'm considering replicating the strategies of experts instead of investing independently to avoid both financial losses and emotional stress. What are your thoughts on this approach?
Consider diversifying your portfolio with a mix of stocks and stable assets. Seeking professional advice now could provide valuable insights and strategies to navigate market uncertainties and protect your investments.
This is an insightful perspective to consider.
Agreed, my portfolio is well matched for every market season, yielding 60% from early last year till date. I and my advisor are working on a 7-figure ballpark.
Your financial advisor must be really good, Wehrine. I hope it's okay to inquire if you're still working with the same advisor and how can I get in touch with them?
That would be Desiree Ruth Hoffman.
keep pumping out those financial informational videos Professor G!!!!
Great video! The options in most of those types of accounts are like trying to read a foreign language! We need to take the time to at least understand what we’re investing in and how much it is potentially costing our future selves to do so!
Exactly! So right Maria!
I opened my 401k last July and I did 26% return in 12 months doing your three fund portfolio. I invested in large cap growth, tech, and dividend. The target date fund for 2065 (I’m 25) in there did 17% return. I imagine with my fees included they performed better. Maybe I should just do the growth one like you to minimize the expenses.
Is PRGFX comparable to QQQM?
If you have a Traditional IRA, you can migrate some of your 401K balance to that Traditional IRA. Traditional IRA's have a significant broader range of investments to invest in without any fees{depending on what you want to invest in.......Individual Stocks, ETF's, ...ect.}. Same is true with After Tax 401Ks to Roth IRA.
I was in some target date fund and it was going no where. Last year I moved 100% into a mutual fund that tracks the S&P 500. My 401k was up over 20% last year, and again so far this year as well!
Would investing in an ETF like DIVO be a better way to achieve the monthly income goal? DIVO’s share price growth and total return are lower than PG+JNJ+TROW, but it’s monthly yields are higher and its share price growth stays ahead of inflation in the long run.
Divo is definitely a good option!
Great content for newbie’s-thanks for the explanations!
You’re welcome!
My 401k has a .7% expense ratio. Thats the lowest available. And that’s for the S&P 500 fund. I put in enough to get my employer match and then I opened up a Roth IRA. I can get voo at a .03% expense ratio and not pay any taxes when I retire on my earnings. I also have a regular brokerage account too. 401k fees are ridiculous.
Ya geez that’s a high expense but at least getting that match is great
Yeah, it tends to be small companies with the highest fees. The S&P 500 fund in my 401k at a retail company is .12%. Still a little too high, but not outrageous.
@@mysticaltyger2009 man you guys have horrible plans. They should have Voo or FXAIX available which are at 0.04% roughly
Good planning on your part.
I lucked out, my employer has VFIAX, the s&p 500 index mutual fund from Vanguard, at .04%. everything else has an expense ratio starting at .19 and up 🥴
Professor G: this video is so true and I really appreciate your time going thru mine with me! My rate of return has jumped from 9% return to a wopping 28% return with your guidance breaking down exactly where and what to move all my investments. You da man!
👊📈
I just learned this recently myself and have had 401k for 5 years. The issue is, most of the time the employers don’t really explain this, they tell you to sign up but they dont say the options in terms of actual investments.
This was me 20 years ago. Thanks to UA-camrs giving us financial information nowadays.
Super helpful, thanks!
Any time!
I converted my 401k to a Roth 401k years ago. I believe the benefits of the Roth option are superior.
Depends on your tax bracket. If your tax rate is the same before and after retirement, there is literally no difference.
I just looked at my T. Rowe Price 401K and it was 100% T. Rowe Price Retirement 2050, I adjusted it slightly to also include some Vanguard Institutional Index I, which has a 5 star Morningstar rating FWIW.
Great work!
Got lucky when my company switched to a different provider. They have an SP500 fund at 0.01% expense. The stable value fund that i do rotate to when market is in bear is 0.27% which is high.
That’s awesome!
I did this a couple weeks ago because I realized I was getting charged outrageous quarterly fees as well as high expense ratios in many funds. I ended up changing to 40% SP500, 30% Total Mkt, 15% International and 15% bonds. I also have a rollover, a roth and a taxable IRA that I use to buy other funds in order to keep portfolio balanced. (I am 50 years old and plan to retire in 10 years for reference)
THANK YOU PROFESSOR
This stuff confuses me. If Fund A makes 10% average over the last 10 years with an expense ratio of .05% and Fund B makes 12% average over the last 10 years with an expense ratio of .75% how are you not better off with Fund B? You are paying .70% more in expenses but you are making 2% more so it sounds like paying the extra fees still nets you 1.3% more on your investment. Thanks for all the videos they are great but I must be a little slow on understanding this math.
You need to calculate compounding effects over a long timeframe
Just opened up my 401k at work. Went with 80% s&p/ 20% target based fund
I'd love to see how a Roth 401k would play into this. Wondering if it would be better to max out my Roth 401k (fees of 0.48%) or only put in the match then the rest in a brokerage account??
Hey what do you think about investing in FEPI for a long term investment?
Dude, I’m 52, I have about 12k in my 401k. Would you recommend an S&P fund for me? Or something else? I realize I need some really aggressive growth and about another 25 years to work but realistically I’ve probably only got another 10-15 years before I just can’t do what I do anymore.
Tough to recommend anything specific without knowing the full picture. But I love the S&P 500 personally!
I loathe target date funds...regardless of the 401K/403B provider.
They serve a purpose but ya I know what you mean!
Can you do an update on which stocks you are still bullish on, given everyrhing seems so high/overvalued
Yes I will!
So should i sell off my entire 2045 tdf and then buy 100% into s&p500? Or just stop investing in tdf and start in s&p500?
Great content as always. Do you bother with investing in small and midcap fund in your 401k? Doesn't look like it. Is there a time for that you think? Or straight up sp500 funds are king. Thanks
I stick with large cap
@@NolanGouveia 👍thank you for your response
100% foundational; company match- in my Roth 401k similar to s&p 500 fund (viiix) .02 expense
100% max; dividend- in my Roth IRA & HSA (SCHD) tax free
100% growth- in my brokerage account (50%qqqm) (50%schg)
im the youngest out of my coworkers (25yrs old) and I changed all their allocations because of this specific issue (fees and being underexposed to the market). I changed it to a S&P500 fund and theyre already shocked at the growth. Some of these guys were making 3% per year before I made the switch... Shame.
Awesome!
what do you think about SCHB? and do you think it would be beneficial to replace it with SCHG in my roth account? I also have SCHD and SPHQ
My 401k is through tiaa. I went through it last year to check investments. The default is vanguard target date funds at .08% expense ratio. Since im not interested in bonds right now i switched to 35% vigix (pretty much VUG), 30% vviax (vtv), 35% vscpx for small cap . The expense ratios for these are between .03%-.05%.
Seems to be pretty broad diversification in equities at low expense....but tbh i probably dont know what im doing. I tried to find a fund that tracks the sp500 but expense ratio was much higher (i think .4%+) i work for a university and get 5% match, and an additional 5%. I contribute an additional 5% on top and my 10% is roth 401k so half is roth and half is traditional.
For all the pro low fees people out there keep in mind that your funds likely dont have a high average rate of return. For example your low fee fund might have an average annual return of 8-12% and have an expense ratio of 0.005-0.2%. On the flip side i'm 100% in a fund(VITAX) with like a 0.75% expense ratio, but the average rate of return is like 22.5% which i'm glad to pay a larger fee for. I only put in like 9% of my average annual salary and if i did the math on 8-12% and it was like $1.3M which is nice, but nothing compared to the $5M im projected to realize in 30 years in VITAX or similar tech funds. Yea its rollar coaster but whos freaking looking every day
Pro. G,
I have a brokerage account linked to my 401k through my company. Could you make a video sharing how you would invest if had this option? I'm curious how my method would compare to others.
Thank you
Good idea!
My Roth 401k doesn’t have a lot of options. No S&P 500 available. I have Russell 1000 large cap index with 0.07 expense ratio.
That’s a solid option in my opinion!
As a soon retiree, keeping my $401k on course after a rocky 2022 is top priority. I have been reading of lnvestors making up to $25Ok R0I in this current crashing market, any recommendations to scale up my R0I before retirement will be highly appreciated
it's been a brisk tailwind for lnvestors in US stocks over the decades but it's a delicate season now, hence i advice you the guidance of a financiaI advisor
Having an lnvestment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K so far, that made it clear there's more to the market that we avg joes don't know.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Lucia Alicia Cruz 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.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
My company matches up to 6% so that’s how much I put in. Also I follow the S&P with mine and expense ratio is 0.05.
I have learned a lot concerning crypto progress this time and would like to join in. I wish I can get a good mentor...
I think all you need is an expert assigned by a brokerage company that will trade for you and handle your capital professionally and give you weekly returns of investment without any extra fees attached.
Evelyn Turner is the professional that guides me and her optimal returns are really impressive
Seeing a remark regarding my manager Evelyn Turner is quite energizing. It was just like this when I first met her a few weeks ago. Having started with just 4k about 2-3 weeks ago, I have already made it to 21 k. She is very remarkable!
Yeah, I believe investing with a professional is the optimal approach, as it mitigates the risk of significant losses. Did you truly know her? I was under the impression that I was the sole beneficiary of her guidance through the challenges of trading.
Goodness gracious I'm so excited seeing Ms. Evelyn Turner been mentioned here also. Didn't know she has been good to other people too, this is wonderful because I also started with a UA-cam referral like this
Thanks for sharing.
Thank you for showing us 🤪
Any time 😛
Thank you, age 37, 4 years of 401k investment, company match 3% and I am doing all ROTH 401k, current holding:
59% of Fidelity® Contrafund® Commingled Pool Class O at expense ratio 0.35%
41% of Vanguard Institutional 500 Index Trust at expense ratio 0.0104%
Shall I continue with this or any change / recommendation ?
Is it common to not receive dividends in a 401k fund? I have moved the majority of my balance in my 401k to an S&P 500 fund, but I do not receive any dividends.
Check your activity...should get every 3 months. I do.
Would you please share your opinion on SPMO, XMHQ AND NANC?
Do you have a biotech ETF that you recommend? I hear there is a lot of good news coming down the pike
My 401K through my company with match has a self-directed option, do you recommend creating a 3 fund portfolio in that self-directed option? I can choose any index.
My company does the same, so I moved a large portion to self-directed, but also retain a percentage in the standard 401k funds, but the fees are very low (VIGAX at 0.05% and VFIAX at 0.04% expense ratio.)
I like that option personally!
My company used vanguard and I simply don’t have a good selection to choose from. The only real options we have are target retirement date funds. I set it and forget it. What else can I do?
Is there a fund called Vanguard Institutional Index?
@@JasonBuckman no, it’s mostly balanced targeted date funds. However, there is a Vanguard 500 Index fund.
@@metwono
That's what you want, the Vanguard 500.
We have a fischer account for 401k with an option of a brokerage account with schwab 401k
Hey! Idk if you'll see this comment lmfao, but I wanted your opinion on something, I recently came into a 100k inheritance, I'm only 18, but I'm trying to decide which ETFs to invest in, do you think it's a good idea to do the 33.3 split into VOO, QQQM and SCHD, or invest all of it in just one, while using my income to invest in the others? Thanks in advance
Awesome! I invest in a split like what you are thinking so I like that personally
@@NolanGouveia my only thing is, if I go all in on schd, that dividend snowball with compound interest is just so much more then the split, but I understand where you're coming from
@@Mandapanda6345 the compound interest from the growth of the other two could be even bigger!
@@NolanGouveia that's fair, but they miss out on the dividends of SCHD, I mean, in 20 years that 100k could turn into 1.5m, with 90k per year in dividends
@@Mandapanda6345 that would be amazing!
I have $175k in my current 401k. I will no longer be able to contribute after 3 more years. I am not offered employer match contributions and I will have to take RMDs. I plan on rolling the 401k to my ROTH IRA once I retire. Would it be better to keep contributing to my 401k or take those contributions and put them into my ROTH IRA from now on?
Depends on your tax situation now and also on what you project it to be in the future.
We don’t even have an S&P 500 option in ours. Switched mine from target date to total us market. Thankful for the 10% match. Does it make sense to actually sell the target date funds to switch to something else? Or just let it sit and invest in something else going forward?
I think the Total US Market is good if the expense ratio is low? It is probably the same as VTI which has very similar returns as VOO. But check it and see how close it is to VTI. If it’s very close to VTI I’d go 100% into it.
3 fund portfolio for european investors? 😁
Good day sir, i think you can make a good discussion with the concern i have, last july 5 s&p 500 gained .5% and fxaix only gained .24%, that is a huge difference, i know that both have very minimal difference in holdings but with this more than half difference i am now confused where to put my lump sum money from CD next couple of weeks. I need your advice which one to choose, if we talk about long term here and let say 1 million, that is a difference of 5k vs 2400 usd. Hope i can get a reply from you
@Hotline-InvestmentSimplified i am a subscriber of yours sir, next 2 weeks i have a huge lumpsum, with last july 5 difference from s&p 500 and fxaix, i have to reconsider my decision where to put my money from maturing CD. I called fidelity and they say it might be from the difference in holdings but with .5% and .24% is a huge difference.
Just 5 minutes in it is already more complicated than 50% of people could handle doing.
🤔
@@NolanGouveiasome people are just looking for excuses. 😮
I have a T row price 401k at work. I was looking at all they ahd me invested it and most things are negative except for 500 index and some other one. Shoul i manage my own portfolio and just put 100 percent on index fund like he has it? Or would that be dumb??
The s&p 500 index fund
Does anyone else's s&p 500 fund pay a dividend and use it to reinvest or is it normal for it to not pay the 1.3% dividend?
In a 401k they will just reinvest it, since you can't use the money until you are 59.5 years old, they won't give you the option to reinvest or not like you would see in an IRA or traditional brokerage account. So the dividends just reinvest automatically. My 401k uses FXIAX which normally pays a dividend if you invest through a normal broker, but they don't show you that in your 401k. It just gets automatically reinvested.
@JAlexanderCurtis thank you, I am skeptical though because my large cap growth fund VIGAX shows me the dividend reinvestment when I search my history. However, there is nothing for my S&P fund. Additionally when I view each investment page it advertises a 0.5% yield with VIGAX but lists nothing for the S&P. Are they even allowed to pocket the normal profits from dividends though or would that be illegal?
Let's say you are pretty good at investing and you can typically expect 30% a year. I do options and that is the average. So, why would I want to leave my money in a 401k? There is no 401k plan that allows naked options investment. I rolled my 401k into a ROTH IRA and paid the taxes at the time. Now I load my 401k up to the max allowed every year and roll it into the ROTH where I can invest the funds profitably and tax free. This is called a Back Door ROTH strategy. Perfectly legal. I pay interest on the acorn (at the time of investment) but not on the tree (growth and withdrawal). Withdrawal from the ROTH is tax free and it is not subject to RMD!! Tax free growth compounded at 30% is impressive. If I could only get 5-7% it would still be worth it over a very long time frame.
Sorry but 30% per year is NOT sustainable. You might have that return this past few years due to the roaring bull market but do not expect that trend to continue for the long run. And this comes form someone who has been buying and selling options for the past 15 years.....
I have the SSGA S&P 500 index fund class k. The fee is an extremely low .013%, but it pays no dividend at all. Are they pocketing the 1.3% yield that I should be getting?
It should show dividends reinvested every 3 months. Check the history of your portfolio.
Right, it does not. My VIGAX growth investment does and has a .5% yield and .05% expense ratio. Nothing for the state street s&p index class k. I'm beginning to think I'm being bamboozled.
@andrewpulsipher2062 it's worth the question. You're making me second guess myself now - I'll have to check and make sure mine is paying dividends as well.
@andrewpulsipher2062 yeah I just checked mine. VFIAX, and I get quarterly dividends. Math checks out too.
CAN YOU🎉 MAKE A VIDEO FOR 59 Y OLD INVESTMENT FOR RETIREMENT AND GET DIVIDENDS AND HOW MUCH TO INVEST FOR A SIMPLE EMPLOYE WITH NOT MANY SAVINGS😢❤ TO RETIRE IN ABOUT 4/5 YEARS🎉😂❤😅😊
SCHD
What about the administrative fees for using the 401k/403b service? You only went over the expense ratio for each security.
I just checked out the target date fund in my 401k, it's the Fidelity Freedom Index 2050 Fund - Premier FRLPX. Expense ratio is only 0.05%. The S&P fund available to me also has a lower ER than your option. Sounds like the plans available to you are just expensive, which sucks cause you still want to put money in there to reduce your taxable income.
How to reach out you professor G? To discuss financial questions @NolanGouveia
Email me professorg.invest@gmail.com