Thank you for watching and commenting. I appreciate the support. I think this is a sound starting point for any investor. It is also a great way to do it forever, but that will be up to each person after doing their own research.
I own 4 funds in my primary retirement account recently reducing from 6. VOO, VGT, SCHD, and VXUS. I personally don't like bonds and avoid them in my portfolio. I do manage 9 individual stocks in my primary account as well, which have greatly outperformed my funds at least over the past 6 years led by Nvidia. I choose companies I can stick with for 10 years or more making only minor swaps every few years. I do own a few different funds in my wife's IRAs, my brokerages and 401k (no choice there).
Hey Nick. That is a great way to go about it. Very similar to how I have set up my stuff. I used to have individual stocks that I held for a long time (MSFT, AAPL, AMZN, TSLA, and a few others). Pretty boring stocks, but combined with dumb luck I never had one underperform the market. A few years ago I rolled them all (long-term gains only) into my core setup. However, I am now managing a portfolio of individual stocks again. Using some rules based stuff to do it. I'm dropping my first detailed video about it in a week from today. Excited to ramp it up (small $ amounts right now).
@JeffTeeples I have been slowly rolling in profits into my ETFs plus weekly contributions to balance my account. I also hold AMD, Amazon, Apple, Chevron, Costco, Microsoft, Toyota, Tesla, and VISA. Nothing groundbreaking or exiting, but all are significant amounts.
Haha, I do basically agree with this. But, that is 'right now'. The beauty about the S&P 500 is that it will capture the market's rotation in real time. We never have to time the reversion to the mean before it happens. This is why it is so difficult to 'beat the market'. It is a real-time force that accounts for everything without ever mistiming a change. For example, Nvidia is now 5.04% of VOO. But VOO 'got it right' when it was 2%, then 3%, then 4%, and now 5%. When other things rise, and it stalls out or drops, VOO will get it right when it's 5%, then 4%, then 3%... They say (correctly) that timing the market is dangerous. VOO has never mistimed a market happening. It is mathematically impossible. All that said, I'm with you on VGT / SCHD for life!!! (:
Jeff, thanks for your great content, my favorite investing channel on YT! Have you ever looked at SCHD/XLK combo? I've back tested it 50/50 for last 10 years and it's ahead of VOO and even outperforms SCHD/VGT. At 50/50 allocation, risk is comparable to S&P, just slightly higher but not in red. At 60/40 XLK/SCHD it's a monster and just barely in the red for drawdown. Check it out!
Recently I have come across a lot of advertisements about annuities, some claim to offer very high yield, I have read some articles about it but I am still very confused because there are a lot of different annuities out there, I hope you can shed some light on this topic, I think you will be the one who can save a lot of headaches for seniors. Thanks.
Hey Brianna! I think we should all stay away from annuities at all times. They usually come with high fees. The opportunity cost of locking away money is not worth the benefit of the even payments for X amount of time. It is a business much like using a financial advisor to manage a portfolio. We will do WAY better in low-cost ETFs.
Hi there, Jeff! Addicted follower here =). I've noticed you don't own international (VXUS, VEA, VWO etc - or even a mix with VT). I often get myself thinking that VOO/SCHD/VGT is way too home biased, and it gets me a little concerned looking forward. I'd really like to hear your thoughts on that matter. Could you spare some words about the "risk" of going all US? Thanks in advance!
Thanks for the great question. I think I am 'home biased' when it comes to this topic. Jack Bogle and Warren Buffett were/are too. I do have more fluid thoughts than Buffett on this. He is a 'ride a low-cost S&P 500 forever' guy. I'm definitely not that because I know the reversion to the mean is coming. This is a data driven decision for me. I know I'll be a little late to the international party, and I'm okay to that. I constantly watch VT and VXUS. I don't put all of my thought processes in these videos, because I'm a big believer of preaching what I practice. However, I think international is very important in investing. If I HAD to pick something and never adjust it again, VT (for the VTI + VXUS) would be a part of that portfolio. I will say that having a watch and see approach has made me well into 6 figures more than just blindly following the FULL diversification method over the past decade. I think there is a middle ground. I also think it is crazy to ignore international long-term.
@@JeffTeeples Thank you so much for the input, I really appreciate it. Yes, reversion to the mean is a fact - the "when" is the forever issue. VT is indeed an excelent vanilla approach, but since - at least today - US is 65% of the market, maybe a 50/50 split of VT/VTI is the way to go, in order to get the best of both worlds. By doing so, one can calm down on thoughts such as "I should have gone with VTI!" or "I should have had INTL.!". This 50/50 split gives you the mean of both. Wait... you know what?! I'll do exactly that. First thing to do tomorrow. Cheers from Brazil - and please DO keep up the good work!
@@bossballheaddawg2588 Today. But just look back and you'll notice that Rome, the biggest of all empires, fell. More recently, England ruled the world - being surpassed by US just after WWI 'till today. Nobody knows what's comming next. / By the way: although not so good in total return, today international delivers a way chunkier/hefty dividend payment than US. It can be way to go for someone on the retirement years. Just check LVHI against SCHD on dividends.
Thanks for breaking everything down in such a clear way, Jeff. Building a strong portfolio is harder than people tend to think, and I like the way you show it in the video
For sure. It is VERY easy to beat the market for a year. 'Almost' half of all strategies do it (: But... When we zoom out we need to account for all of the reversion to the mean. If we continue to ride an imbalanced portfolio it will eventually hurt.
Great video Jeff. Nice overview and presentation. How would a 65 year old Teeps invest..?? Would you rely on the QQQM/VGT/VOO/SCHD protocol to receive constant monies selling off when needed or would you structure and do the ‘ol blue chips JNJ/PG/KO/PEP and all the others that are prominent in many portfolios. Love all your work. I hope you and your family are well. Enjoy your extended weekend.
Hey Lance! Thanks for the comment. Loving the shiny 2 month badge. I appreciate the extra support! I'll give the good ole annoying answer of 'it depends' (: IF I had the portfolio value to live on dividends at 65 year old from my mix, then right now I would be 33% VOO / 33% SCHD / 17% QQQM / 17% VGT (I still love VGT, but like to have a little more diversity within growth now by adding QQQM, haven't done this yet, it will be new dollars). With about a 1.85% dividend yield, I would need a portfolio value of ~3.8M to live off of the dividends while keeping the mix alive. This is assuming my wife and I are getting social security, healthy, and everything is going 'roughly as planned'. The real number is closer to 3M, but I like to make it a little more dire (: I hope to have that type of portfolio, BUT, if I didn't, I would go with a higher dividend approach. I know the 4% rule is sound. I completely get it and agree with it. BUT, I like the idea of never having my shares go down. The building process is addicting. In addition to that, it has 99.999999% chance of success. The mark downturns become trivial. Portfolio value becomes trivial. All that matters is that sweet cash flow from my ever growing shares. I would go with a little JEPQ for cash flow now, and SCHD + DGRO for dividend growth. I would still have a slice of VOO / QQQM / VGT, but not as much.
Thanks Jeff, another quality content. It is hard to find a stable, sane voice among all the chatter on UA-cam. One question - why do you think VOO needs to be in the mix? If VGT (QQQM for me) and SCHD are capturing the best parts of growth and value of the market, why not just have 50/50 instead of a third of VOO? SCHD and QQQM has 55% overlap with VOO, and maybe that's the best part of the market?
Thanks for the positive feedback. I appreciate it. VOO has dominated most portfolio mixes for many decades. It has incredible staying power. It is hard for me to make an all out bet against it over the long haul. Now, I think VGT/QQQM + SCHD is a good bet. And I love the mix. It has outperformed VOO every single year for the past 10 years. However, I STILL would like to see more long-term outperformance. I guess I'm a Buffett or Boglehead at heart. I've had good success on my 'wild side' (breaking the cornerstone only indexes), but I still can't do away with the S&P 500 (: I blame Jack Bogle for writing 'The Little Book of Common Sense Investing'. That started me down a rabbit hole that I swear will never end. lol.
Hey Jeff, great insights once again! I was wondering if you'd be willing to discuss value vs. growth in the long term? I looked at portfolio visualizer for asset class, and I was surprised that over the VERY long term, large cap value has outperformed large cap growth. I'm just curious about your thoughts on this?
Thank you for the positive feedback. I am planning on making a video about this topic. It is a tricky one, but my ultimate answer is that a balance is always important. Many companies have jumped from value to growth and back over the years. So it's not like we just buy 'value' or 'growth' and we are good to go forever. I'll have more thoughts in the video, but my spoiler alert is that I think they are equally important long-term (:
I’m trying to find an advisor for guidance but all so far want me to move my portfolio. With vanguard. They won’t manage my portfolio unless they sell 60/40 balanced funds and reinvest it. Not keen on that idea. What do you suggest? Wish me luck
Hey Poppy. I would stay at Vanguard if that is where you want to be. You don't want them to manage your portfolio for you. That will add unnecessary fees and it will underperform the low-cost index setup you can go with. There is VOO for the S&P 500. VTI for the total US stock market. I don't like bonds, long-term, but BND is a solid option for a total bond fund. If you want international mixed in you can go with VXUS. VT is a mix of international and VTI. An advisor will not tell you anything valuable for long-term investing. I probably should have started with this. What are you looking for? Google Boglehead 3 fund portfolio, or go with what I said in this video (I use Boglehead, Buffett, or a mix), and you will comfortable outperform the masses many years from now. Then I would watch videos and do research to make tweaks over time. I just want you to keep the money in your pockets honestly. Must of the professionals don't know a lot about this stuff (just like any field), OR, they are there to make money off of you. Easy solutions are better and more effective.
I love your mix Ron. I think adding international at some point will make sense. I personally don't have any yet, and it has been a great decision so far. I'll drop a video of when and why I eventually add it (I'm constantly watching it). I don't believe in bonds at any point, personally. I will be making a video in the near future with more details about that.
I disagree with keeping a certain percentage in bonds. Depending on your portfolio value it could be not enough or way too much. I think keeping a certain number of years of expenses is better. I keep five years of expenses in bonds. (If you are more than five years from retirement then do not keep any in bonds.) I keep the rest in QQQM, the NASDAQ 100 index. It has a much better return than the S&P 500 over its forty year history.
Hey Jacob. Thank you for watching and for dropping a comment. I have nothing to disagree with here. I think your strategy will work very well. It is crazy that people STILL think the Nasdaq-100 is 'fluky' or 'too risky' after 40 years of crushing the S&P 500 overall. I'm with you on that one. Of course it is more volatile, but that is perfectly fine with me when we zoom out.
I just joined your membership, for the first time ever on UA-cam. My tiny way of supporting and thanking you. Do you ever consider traditional vs roth when balancing your investments? I have 401a/403b (Roth)/457b/Roth IRA/brokerage (Fellow Washingtonian- have been working at OHSU for 20 years)
Thank you Mandy! I really appreciate the support. I do consider tax protected accounts. I personally max my 401k before Roth. I think it is the best way to go if you’re in the 22% tax bracket or higher. If 12% bracket I think maxing a Roth takes priority after getting the company match.
@@JeffTeeples my work automatically adds 6% into a 401a… FXIAX is the best option. I recently opened a self directed option (brokeragelink)… over the last month, i moved $75k over (VGT/QQQM/SCHD)- previously in a target fund that held about 20% of that balance. Roth 403b and 457b are 100% in FXAIX. My Roth IRA is all QQQM. My brokerage is 100% schd. 457b can serve as a great bridge account since I have access as soon as i leave the company. Again, thank you!! 🙏
Great video. Always lots of learning each week. What are your thoughts on nvidia stock split? Good or bad for growth in a 5 year period. Seems like a money maker .... see ya next week
Thanks for the positive feedback. Stock splits do not add or subtract value from a mathematical perspective. $100 x 1 share = $10 x 10 shares. However, sometimes a stock will get a bump when it becomes 'cheaper' to buy. It is a mental boost for some investors, and a real boost if fractional shares are not allowed. My thoughts are Nvidia? It has been amazing! It has made me and many others a lot of money over the past year+. Of course for me, it is exposure via market cap weighted ETFs (VGT and VOO). I don't know enough about the company to know if it will continue to rise or if it has become overvalued. It is not one of the 25 stocks I hold. I would be flipping a coin if I tried to make a specific prediction.
Thanks Jeff for the video. I have 33% each in VOO, QQQM & VGT. I was planning on increasing contribution to VGT significantly from now. Do you think it is good idea? I started investing journey late (36). Looking for growth for next 5-10yrs.
Hey Venus. I don't think that is a bad idea as long as you have many years of being in the work force ahead of you. This will allow you to ride out the volatility of the market. If it crashes by 50%, don't panic sell. Keep loading up on more shares. It always (at least for well over 100 years and counting) bounces back eventually. Be a patient dollar cost average buyer for many years and I think it will work.
Always good things to consider and useful information to help people think about their investment approach! It would help me if you include just 100% voo to give a standard metric of what "the market" was doing during those years too as comparison. (on the bar graph)
Thank you for the positive feedback Roy. I appreciate it and your extra support as a channel member. I'll be making more of these videos for years to come.
Hey Jeff, I have SCHD as one of my largest holdings in my taxable account and just learned that the last Dividend in March 2024 was a Non-Qualified Dividend. Do you know anything about this? Last year it was a qualified dividend...so I'm not sure what happened.
Hey Andrea. Thanks for watching and for the question. SCHD pays a qualified dividend. If you are looking at your 1099-DIV form, it will ‘show’ as both. This gives many the impression it is non-qualified. If you had $9,000 or qualified dividends, and $3,000 of ordinary dividends, your form will show this: $12,000 ordinary $9,000 qualified On the actual taxes, it is $9k qualified and $3k ordinary. I don’t like how they do it. If it was actually taxed as ordinary dividends, you’ll need to let your tax preparer know.
Hi Jeff thank you for the video. For the growth portion, what your thoughts about splitting that section between VGT and SMH? Instead of only VGT in that section?
Hey Idan. I don't think that is a bad idea, however, it is very heavy in tech and niche tech. I prefer the split of VGT (for tech) and QQQM (broad growth) a bit more. I know VGT and SMH have performed better in the last decade, no doubt. I am a tech bull, so I don't think it is bad. But I like a little more balance in my growth, long-term.
Thank you Jeff. I hope you will start making more weekly videos so there is more than once a week. I truly enjoy watching your videos you are the best.
Jeff, I love your explanation of the breakdown of a retirement portfolio. I have some questions. I am turning 50 this year and plan to retire at 55 years old. I’m setting up my taxable brokerage account now to be the account that me and my wife 401k, 403B, and all IRA withdrawals go into. I hope to keep this taxable account till we die. So I plan on keeping the investments for a longtime and passing them on to my daughter. Is an index fund like FXAIX better than a ETF like VOO? I understand some of the differences of the index fund versus the ETF. But for the long haul which is actually better? Also for the bond portion would you pick VBTLX or BND? I currently have two dividend etfs SCHD and DGRO. I just started a position in VOO. I think I’m going with 5 or 6 etfs or index funds that are S & P, dividend income and growth, tech, bonds, and a little international. Any help is greatly appreciated!
Thanks for this great question. I love the idea of leaving behind quality investments for your daughter. The taxable account is the perfect vehicle to use for it! You get the advantage of qualified dividends as the years go by, and, when you pass away, your daughter will pay ZERO capital gains. She will inherit the ETFs as if she bought them that day (steps up her cost basis). I like ETFs better. They are usually slightly more cost effective and liquid. The differences are negligible, but ETFs are 'technically' better if we split hairs. I think DGRO, SCHD, and VOO are all great ideas for her. Her 'yield on cost' will be hilariously awesome someday! The dividends will keep increasing over the years to pay out more and more per share held. I would personally sprinkle in some QQQM as well. That one has crushed the S&P 500 over the last 10, 20, and 40 years. It is a rollercoaster ride, but she will not need it for years to come. I wouldn't hold bonds unless you NEED the cash flow. They have well over 100 year history of underperformance. The crashes will technically be a good thing for your daughter, long-term (buying more shares per dollar invested). If you are dead set on holding bonds, I would go with BND. You have an awesome plan!
My thoughts is that you like some amazing growth ETFs (: SMH is too concentrated for my blood (top 25 semiconductors only). But it has been objectively amazing over the past 20 years. SCHG, along with QQQM, are my favorite 'multi-sector' growth ETFs. I think it is awesome. Great picks (: For the record, I go with QQQM (as SCHG) and VGT (as a more conservative SMH) in my growth section. We are very similar there. SCHG has been better than QQQM lately, and it may continue. Zoom out 15 years and QQQ(M) has performed better. Who knows what will happen in the future. I think we are both set up well.
SMH/XLK (12% each of Microsoft, Apple, Nvidia); and the rest excellent tech companies. I’m very much focused on growth though so I’m willing to deal with higher volatility to gain that. Good analysis! Buffetheads too conservative for my likings personally, but certainly not a bad option
Very nice Carlos. You clearly understand the volatility with your mix. I think you can make it work as long as you don't panic sell when the market crashes (that is when we load up). Thanks for the comment.
I love that plan. As long as you keep dollar cost averaging money into the mix, and never panic sell when the market crashes (QQQM will fall harder than other things), you'll likely be a happy camper when you go on a dividend shopping spree around retirement.
Cash isn't in the model because 10% cash = 10% cash. These comparisons are assessing the performance of the long-term investments. I could add cash, but that wouldn't add any value. It would have to be added to all portfolios, so it cancels out. Cash is 'on the side'. I like to keep mine at 10%. Some people like 5%, some 20%, etc.
Jeff, great video! I plan on replicating your strategy but was wondering…. Is there a mutual fund (preferably Schwab or TR Price) that I could substitute for VGT/QQQ? How about a mutual fund similar to SCHD? It sure would simplify the dollar cost averaging
Thanks for the positive feedback Chris. VITAX follows the same index as VGT. However, it has a ridiculous $100,000 minimum investment to get started. I don't know about a mutual fund for QQQ or SCHD. Nothing that is low-cost and on my radar anyway. I do admit I'm a huge fan of ETFs over mutual funds, so I haven't looked a ton to be fair.
In defense of Mutual Funds, SWPPX does outperform VOO, albeit by the hair on a nats ass. But yes, I prefer ETF’s too. It’s just a little more messy to dollar cost average, that’s all.
Hey Jeff, another great video! Can you go into more about the 10% you say you put into money market - so that replaces the BND allocation? Can you go into more of your reasoning behind it? I think HYSA have better APYs, no?
Thank you for watching and for the question. Before I get to that, I must say, I love your profile picture! I prefer a money market for my 10% 'cash equivalents'. I use VMFXX for this. If not a money market, I would roll with a high yield savings account. I found (by tracking like a weird nerd) that VMFXX is basically always higher than the best HYSA at any one time. I've been getting 5.27% to 5.30% for months now (this is net of fees). But it is made up of short term assets only. I have access to my 'cash' within 1 day with VMFXX. The only way I've found to compete with VMFXX over time is by purchasing individual T-bills. I don't like how my money is tied up, and frankly, I didn't beat VMFXX for most of the months that I tracked. HYSA are cool, but I get tired of bouncing around when one steps its game up. Again, they have all fallen short of VMFXX any given month. I don't 'invest in bonds', such as BND, that have longer maturity dates with my 10%. I am basically chasing the best 'cash' available at the time. The other 90% is invested in the market, so I like to make sure that 10% is ultra safe. The ups and downs of something like BND is not what I'm looking for here. Furthermore, when we zoom out over 100 years, things like BND are never worth it for a long-term, DCA investor that is building wealth (including the stock crashes). Scratch that, especially when the market crashes (: Bonds should only be used if a portfolio value didn't reach its desired level by retirement. I would still argue they are a no-no at that point compared to other things, but the traditionalist like to yell at me. It's easier to go with a 'different strokes for different folks' approach (: In their defense, 'most' people hate bonds because of the recent environment, and that is a bit bothersome.
As always, thanks so much for your very thoughtful reply. The picture represents me and my wife - mixed race black/white. Glad you like it 😊 Your insights have made me feel so much more confident in my portfolio. Thanks and happy holiday!
I appreciate the feedback. I got a chuckle because sometimes I'll listen to my stuff and wonder if that will make sense to viewers, lol. There are so many ways to invest successfully. We just need to make sure we don't get too crazy with the portfolio. Also, loving the 1 month badge. Thank you for the extra support!
It's also good to hear things again. Or in different ways. I've read John Bogle's book and some books by and about Warren Buffet. Always looking for book recommendations!!
Thanks for watching and for the question Bill. FTEC is a VGT replacement. To my knowledge Fidelity does not have an S&P 500 ETF. It has a mutual fund that is FXAIX. Not sure on the dividend ETFs. I will say you can buy SCHD, VOO, VGT, and QQQM at Fidelity for zero extra cost. The ETFs are 100% 'free' of any of the BS it pulls on some mutual funds.
Teeples for President!! Q: Can you please explain when exactly is the expense ratio fee taken out of your portfolio? Is it when you buy the etf or sell the etf?
Normally I would say Teeples for President is crazy talk... But these days... (haha) The expense ratios are calculated daily, and paid monthly (I think). What I know is that we will never 'see them' because it is an ongoing (usually) monthly charge that is accounted for behind the scenes. We don't pay (and see) a large expense once per year. They definitely matter! Expense ratios are the number one predictor of future performance for ETFs of all type. We argue aspects of things like growth vs value or small cap vs large cap. But one thing that nobody argues is the compounding costs of a high expense ratio.
I think VUG is a solid growth ETF that is slightly overrated. I do like it, but I think SCHG and QQQM are better 'like-ETFs' (I love VGT, but it is 100% tech, so it is a bit different). 10 Year Total Returns: VGT: 571% QQQ: 460% VUG: 317% 20 Year Total Returns: VGT: 1,398% QQQ: 1,378% VUG: 829%
It definitely has the same conclusion (of course, most of my videos will, because it is what I invest in). The point of this one is to mention that I do invest like Buffett or Bogle recommends 'by default'. I think everyone should if they want to be successful long-term. It is a bit scary when people start loading up on a specific type of investment. The results can be great, which is even more dangerous for the future (100% growth, lately, for example). My PE ratio is almost identical to VOO. It is a touch under. I think that is important for an inactive investor.
@@JeffTeeples I understand, it's a good video, as it compares performance of Buffet's and Boglehead portfolios with yours. I enjoyed it. Thanks for your reply.
Hi Jeff, I am doing an experiment on M1. I have set up three accounts with the exact same pie mixture (VOO 33%/SCHD33%/QQQM 12%/VGT 12%/ SMH 10%). One account I contribute daily, one account once a week, one account once a month. Each time I contribute $100). I want to see their rate of return in 1-2 year. I just set this up yesterday. I want to see if doing DCA, will more frequent contributions make any difference. Do you have any prediction on this?😊
Hey Cindy! Oh a nerdy experiment. Now you're speaking my language! haha. I'm assuming you're putting the exact same amount in overall? So if it's $10 per day, it's $50 per week? If so, they should be REALLY close. I like weekly better than monthly, personally, because it gives a truer average of the market. Daily is just too many tax lots for my OCD brain lol. If I had to guess, I would say the daily one might be a sliver higher over many years. This is because the market goes up, generally speaking, so having more money in right away is the way to go. Well, I guess it depends on if you do the monthly one at the beginning of the month (before DCA daily) or the end. The one with the most money invested the soonest 'should' win over loooooong periods of time.
Hi Jeff, thank you for your response. The overall amount is not the same, but each contribution amount is the same ($100). Assuming 4 weeks in a month, so $2000 for the daily each month, $400 for the weekly and $100 for the monthly. I was thinking to compare the return rate at the end, not the dollar amount. Will this work?
Hey Oldrin. I don't mention all of my holdings on these core portfolio setup / debate videos. IBIT, cash, money markets, bonds are all safe assets on the side that don't change the 'base performance of the core portfolio'. These videos are for what I think everybody should hold. For example, I have JEPQ for cash flow from when I quit my job. IBIT for my long-term trading strategy. I have my individual stocks (HODL Factory). I will always share all the details on my monthly portfolio videos, but I don' think my one off holdings should be part of the base portfolio. These will never be a big part of my portfolio either (except for HODL Factory if I can prove myself over multiple years).
Hey Emily. NVDA has been amazing lately. I've watched my ownership of it soar with VOO and VGT. I don't have any future predictions about it. I would be flipping a coin in that case. Its profitability and growth is amazing, objectively, but I'm not sure to what extent that is already priced in. I like holding it, MSFT, AAPL (over the years), and other big players via market weighted ETFs. Gives me a little bit of the exciting come up without making any poor decisions on the timing of buying, holding, and selling (:
No way. I'll end up crying at what could have been, haha. In all seriousness though, VGT, to your point, has dominated the market by so much in the last decade that it is hard to comprehend. 10 year total return: VGT: 547% VOO: 230% BUT... VOO is about 50% 'value stocks' (historically, little growth heavy atm). VGT is not only 100% growth, but 100% technology within growth. When/if the reversion to the mean happens, I don't want to be the guy holding VGT wondering where everything went (:
@@JeffTeeples I don’t understand your concern with VGT? It has only had 2 down years since its inception in 2004. It was down 42.81% in 2008 and 29.70% in 2022. All other years were positive and it recovered from those 2 down years very fast. My transfers into my new pies should go into affect this week. Let me know if you personally would tweak the percentages? I do have majority in VOO and VTI and I know there’s overlap but I treat them as one ETF. So if I want 50% into VOO, I make it 25% VOO / 25% VTI. I just want all stocks in the US market. Anyway, here’s my allocations: Traditional IRA: $1.1M VGT 35% VOO 25% VTI 25% SCHD 15% I consider this a 3 fund portfolio. Inherited IRA: $300K VGT 25% VOO 30% VTI 30% SCHD 15% I’ll be contributing $8000 a year or the max each year into the traditional IRA. I’m curious to hear your opinion on these percentages? Thanks Jeff. Very much appreciated.
I'm not concerned with VGT at all from a long-term perspective. It is my favorite ETF and has been for years. I'm a huge VGT & tech sector fan. I would be concerned having 100% in VGT. That is the only problem. It has been a major bull run for tech since the dot com crash. And frankly, I think it will continue. I think that technology will be the center of business flow for decades to come. I just can't put ALL of my eggs there (: I love value and dividends too. Especially as someone that avoids bonds like the plague (: I think your allocations are awesome for a buy / hold / and dollar cost average in more perspective. As long as you never panic sell on a downturn (especially the growth), I think you'll be good to go long-term.
@@JeffTeeples Awesome. Thank you Jeff. I’m definitely a long term investor and I do not panic. Would you put more or less into VGT or SCHD? Now QQQ is a little cornering to me since it has a record of 30% plus losses 3 years in a row. I still wouldn’t panic but that took a while to recover.
That is a good question. I personally like a half and half mix of value and growth. I'm likely a bit on the conservative side in that regard. I like to have a chunk of VOO just to have some of the market. I do an even mix for all dollars that I have outside of 'market funds that are already self balanced between value and growth' (aka VOO for me). I keep growth (for me it is currently 100% VGT, but going to trickle in some QQQM) at 50% and value / dividend ETFs (100% SCHD for me at the moment) at 50%.
I think these holdings are great in a tax protected account or a taxable brokerage. As long as they pay qualified dividends (which these ETFs do), they are great anywhere. For REITS, or derivative ETFs like JEPQ or JEPI, and anything else that pays interest or 'non-qualified' dividends, the Roth is a great spot.
In my humble opinion, VOO or VTI or both, VGT, SCHD. Since you’re so young: VOO 50% VGT 35% SCHD 15% Dollar cost average into it for the next 40 plus years, don’t ever panic, keep investing weekly or biweekly, don’t ever stop or sell even during down years or crashes or recessions/depressions. You will thank yourself when your 60. Id stay away from individual stocks and stick to ETF’s. Individual stocks are too risky and volatile. Jeff might have a different opinion than mine but I think we’re close in our thinking.
@@andreyshulgin5984 SPLG has a lower expense ratio but still underperforms VOO long term. It has to do with VOO having slightly better dividends and VOO having slightly less volatility.
Don't try to beat the market, just follow Jeff's portfolio that beats the market! Gonna save this video to follow the perfect portfolio, thanks Jeff.
Thank you for watching and commenting. I appreciate the support. I think this is a sound starting point for any investor. It is also a great way to do it forever, but that will be up to each person after doing their own research.
Thanks Jeff. Great as always. Morning fresh coffee, ocean view and listening to Jeff. 👍
Hey Ryan. You officially made me jealous! I love the description of that setting (:
Thanks for the positive feedback.
I own 4 funds in my primary retirement account recently reducing from 6. VOO, VGT, SCHD, and VXUS. I personally don't like bonds and avoid them in my portfolio. I do manage 9 individual stocks in my primary account as well, which have greatly outperformed my funds at least over the past 6 years led by Nvidia. I choose companies I can stick with for 10 years or more making only minor swaps every few years. I do own a few different funds in my wife's IRAs, my brokerages and 401k (no choice there).
Hey Nick. That is a great way to go about it. Very similar to how I have set up my stuff. I used to have individual stocks that I held for a long time (MSFT, AAPL, AMZN, TSLA, and a few others). Pretty boring stocks, but combined with dumb luck I never had one underperform the market. A few years ago I rolled them all (long-term gains only) into my core setup.
However, I am now managing a portfolio of individual stocks again. Using some rules based stuff to do it. I'm dropping my first detailed video about it in a week from today. Excited to ramp it up (small $ amounts right now).
@JeffTeeples I have been slowly rolling in profits into my ETFs plus weekly contributions to balance my account. I also hold AMD, Amazon, Apple, Chevron, Costco, Microsoft, Toyota, Tesla, and VISA. Nothing groundbreaking or exiting, but all are significant amounts.
S&P 500 is basically S&P 7! Tech is what moves the market! VGT/SCHD!
Haha, I do basically agree with this. But, that is 'right now'. The beauty about the S&P 500 is that it will capture the market's rotation in real time. We never have to time the reversion to the mean before it happens. This is why it is so difficult to 'beat the market'. It is a real-time force that accounts for everything without ever mistiming a change.
For example, Nvidia is now 5.04% of VOO. But VOO 'got it right' when it was 2%, then 3%, then 4%, and now 5%. When other things rise, and it stalls out or drops, VOO will get it right when it's 5%, then 4%, then 3%...
They say (correctly) that timing the market is dangerous. VOO has never mistimed a market happening. It is mathematically impossible.
All that said, I'm with you on VGT / SCHD for life!!! (:
Jeff, thanks for your great content, my favorite investing channel on YT! Have you ever looked at SCHD/XLK combo? I've back tested it 50/50 for last 10 years and it's ahead of VOO and even outperforms SCHD/VGT. At 50/50 allocation, risk is comparable to S&P, just slightly higher but not in red. At 60/40 XLK/SCHD it's a monster and just barely in the red for drawdown. Check it out!
Recently I have come across a lot of advertisements about annuities, some claim to offer very high yield, I have read some articles about it but I am still very confused because there are a lot of different annuities out there, I hope you can shed some light on this topic, I think you will be the one who can save a lot of headaches for seniors. Thanks.
Hey Brianna! I think we should all stay away from annuities at all times. They usually come with high fees. The opportunity cost of locking away money is not worth the benefit of the even payments for X amount of time. It is a business much like using a financial advisor to manage a portfolio.
We will do WAY better in low-cost ETFs.
Hi there, Jeff! Addicted follower here =). I've noticed you don't own international (VXUS, VEA, VWO etc - or even a mix with VT). I often get myself thinking that VOO/SCHD/VGT is way too home biased, and it gets me a little concerned looking forward. I'd really like to hear your thoughts on that matter. Could you spare some words about the "risk" of going all US? Thanks in advance!
Thanks for the great question. I think I am 'home biased' when it comes to this topic. Jack Bogle and Warren Buffett were/are too. I do have more fluid thoughts than Buffett on this. He is a 'ride a low-cost S&P 500 forever' guy. I'm definitely not that because I know the reversion to the mean is coming.
This is a data driven decision for me. I know I'll be a little late to the international party, and I'm okay to that. I constantly watch VT and VXUS. I don't put all of my thought processes in these videos, because I'm a big believer of preaching what I practice. However, I think international is very important in investing. If I HAD to pick something and never adjust it again, VT (for the VTI + VXUS) would be a part of that portfolio.
I will say that having a watch and see approach has made me well into 6 figures more than just blindly following the FULL diversification method over the past decade. I think there is a middle ground. I also think it is crazy to ignore international long-term.
International for what? They return much
@@JeffTeeples Thank you so much for the input, I really appreciate it. Yes, reversion to the mean is a fact - the "when" is the forever issue. VT is indeed an excelent vanilla approach, but since - at least today - US is 65% of the market, maybe a 50/50 split of VT/VTI is the way to go, in order to get the best of both worlds. By doing so, one can calm down on thoughts such as "I should have gone with VTI!" or "I should have had INTL.!". This 50/50 split gives you the mean of both. Wait... you know what?! I'll do exactly that. First thing to do tomorrow. Cheers from Brazil - and please DO keep up the good work!
@@bossballheaddawg2588 Today. But just look back and you'll notice that Rome, the biggest of all empires, fell. More recently, England ruled the world - being surpassed by US just after WWI 'till today. Nobody knows what's comming next. / By the way: although not so good in total return, today international delivers a way chunkier/hefty dividend payment than US. It can be way to go for someone on the retirement years. Just check LVHI against SCHD on dividends.
@@blaupunkt1619Stupid question but how much international does a 50/50 split of vt and vti end up with? 20%?
Thanks for breaking everything down in such a clear way, Jeff.
Building a strong portfolio is harder than people tend to think, and I like the way you show it in the video
For sure. It is VERY easy to beat the market for a year. 'Almost' half of all strategies do it (:
But... When we zoom out we need to account for all of the reversion to the mean. If we continue to ride an imbalanced portfolio it will eventually hurt.
Great video Jeff. Nice overview and presentation. How would a 65 year old Teeps invest..?? Would you rely on the QQQM/VGT/VOO/SCHD protocol to receive constant monies selling off when needed or would you structure and do the ‘ol blue chips JNJ/PG/KO/PEP and all the others that are prominent in many portfolios. Love all your work. I hope you and your family are well. Enjoy your extended weekend.
Hey Lance! Thanks for the comment. Loving the shiny 2 month badge. I appreciate the extra support!
I'll give the good ole annoying answer of 'it depends' (:
IF I had the portfolio value to live on dividends at 65 year old from my mix, then right now I would be 33% VOO / 33% SCHD / 17% QQQM / 17% VGT (I still love VGT, but like to have a little more diversity within growth now by adding QQQM, haven't done this yet, it will be new dollars).
With about a 1.85% dividend yield, I would need a portfolio value of ~3.8M to live off of the dividends while keeping the mix alive. This is assuming my wife and I are getting social security, healthy, and everything is going 'roughly as planned'. The real number is closer to 3M, but I like to make it a little more dire (:
I hope to have that type of portfolio, BUT, if I didn't, I would go with a higher dividend approach. I know the 4% rule is sound. I completely get it and agree with it. BUT, I like the idea of never having my shares go down. The building process is addicting. In addition to that, it has 99.999999% chance of success. The mark downturns become trivial. Portfolio value becomes trivial. All that matters is that sweet cash flow from my ever growing shares.
I would go with a little JEPQ for cash flow now, and SCHD + DGRO for dividend growth. I would still have a slice of VOO / QQQM / VGT, but not as much.
@@JeffTeeples thanks so much Jeff. Appreciate your thoughts and insights. Be well.
Thanks Jeff, another quality content. It is hard to find a stable, sane voice among all the chatter on UA-cam.
One question - why do you think VOO needs to be in the mix? If VGT (QQQM for me) and SCHD are capturing the best parts of growth and value of the market, why not just have 50/50 instead of a third of VOO? SCHD and QQQM has 55% overlap with VOO, and maybe that's the best part of the market?
Thanks for the positive feedback. I appreciate it.
VOO has dominated most portfolio mixes for many decades. It has incredible staying power. It is hard for me to make an all out bet against it over the long haul.
Now, I think VGT/QQQM + SCHD is a good bet. And I love the mix. It has outperformed VOO every single year for the past 10 years. However, I STILL would like to see more long-term outperformance.
I guess I'm a Buffett or Boglehead at heart. I've had good success on my 'wild side' (breaking the cornerstone only indexes), but I still can't do away with the S&P 500 (: I blame Jack Bogle for writing 'The Little Book of Common Sense Investing'. That started me down a rabbit hole that I swear will never end. lol.
Hey Jeff, great insights once again!
I was wondering if you'd be willing to discuss value vs. growth in the long term? I looked at portfolio visualizer for asset class, and I was surprised that over the VERY long term, large cap value has outperformed large cap growth. I'm just curious about your thoughts on this?
Thank you for the positive feedback. I am planning on making a video about this topic. It is a tricky one, but my ultimate answer is that a balance is always important.
Many companies have jumped from value to growth and back over the years. So it's not like we just buy 'value' or 'growth' and we are good to go forever. I'll have more thoughts in the video, but my spoiler alert is that I think they are equally important long-term (:
I’m trying to find an advisor for guidance but all so far want me to move my portfolio. With vanguard. They won’t manage my portfolio unless they sell 60/40 balanced funds and reinvest it. Not keen on that idea. What do you suggest? Wish me luck
Hey Poppy. I would stay at Vanguard if that is where you want to be. You don't want them to manage your portfolio for you. That will add unnecessary fees and it will underperform the low-cost index setup you can go with.
There is VOO for the S&P 500. VTI for the total US stock market. I don't like bonds, long-term, but BND is a solid option for a total bond fund. If you want international mixed in you can go with VXUS. VT is a mix of international and VTI.
An advisor will not tell you anything valuable for long-term investing.
I probably should have started with this. What are you looking for? Google Boglehead 3 fund portfolio, or go with what I said in this video (I use Boglehead, Buffett, or a mix), and you will comfortable outperform the masses many years from now. Then I would watch videos and do research to make tweaks over time. I just want you to keep the money in your pockets honestly. Must of the professionals don't know a lot about this stuff (just like any field), OR, they are there to make money off of you. Easy solutions are better and more effective.
I’m just beginning, doing 60%VOO~30%QQQM/VGT~10%SCHD for now. Not sure if I need to add bonds or international. Thanks for the information!
I love your mix Ron. I think adding international at some point will make sense. I personally don't have any yet, and it has been a great decision so far. I'll drop a video of when and why I eventually add it (I'm constantly watching it).
I don't believe in bonds at any point, personally. I will be making a video in the near future with more details about that.
Hi Jeff 😊 Just started following you. I notice you use ETFs. Would index funds work for this also?
I disagree with keeping a certain percentage in bonds. Depending on your portfolio value it could be not enough or way too much. I think keeping a certain number of years of expenses is better. I keep five years of expenses in bonds. (If you are more than five years from retirement then do not keep any in bonds.) I keep the rest in QQQM, the NASDAQ 100 index. It has a much better return than the S&P 500 over its forty year history.
Hey Jacob. Thank you for watching and for dropping a comment. I have nothing to disagree with here. I think your strategy will work very well.
It is crazy that people STILL think the Nasdaq-100 is 'fluky' or 'too risky' after 40 years of crushing the S&P 500 overall. I'm with you on that one. Of course it is more volatile, but that is perfectly fine with me when we zoom out.
I just joined your membership, for the first time ever on UA-cam. My tiny way of supporting and thanking you.
Do you ever consider traditional vs roth when balancing your investments? I have 401a/403b (Roth)/457b/Roth IRA/brokerage
(Fellow Washingtonian- have been working at OHSU for 20 years)
Thank you Mandy! I really appreciate the support.
I do consider tax protected accounts. I personally max my 401k before Roth. I think it is the best way to go if you’re in the 22% tax bracket or higher.
If 12% bracket I think maxing a Roth takes priority after getting the company match.
@@JeffTeeples i am in the 24th bracket (single)
Thank you. 🙏
Daaaang, keep on bringing in that investing money. I would focus on the 401k if it has nice investing options available.
@@JeffTeeples my work automatically adds 6% into a 401a… FXIAX is the best option. I recently opened a self directed option (brokeragelink)… over the last month, i moved $75k over (VGT/QQQM/SCHD)- previously in a target fund that held about 20% of that balance.
Roth 403b and 457b are 100% in FXAIX. My Roth IRA is all QQQM. My brokerage is 100% schd.
457b can serve as a great bridge account since I have access as soon as i leave the company.
Again, thank you!! 🙏
Great video. Always lots of learning each week. What are your thoughts on nvidia stock split? Good or bad for growth in a 5 year period. Seems like a money maker .... see ya next week
Thanks for the positive feedback. Stock splits do not add or subtract value from a mathematical perspective. $100 x 1 share = $10 x 10 shares. However, sometimes a stock will get a bump when it becomes 'cheaper' to buy. It is a mental boost for some investors, and a real boost if fractional shares are not allowed.
My thoughts are Nvidia? It has been amazing! It has made me and many others a lot of money over the past year+. Of course for me, it is exposure via market cap weighted ETFs (VGT and VOO).
I don't know enough about the company to know if it will continue to rise or if it has become overvalued. It is not one of the 25 stocks I hold. I would be flipping a coin if I tried to make a specific prediction.
Thanks Jeff for the video. I have 33% each in VOO, QQQM & VGT. I was planning on increasing contribution to VGT significantly from now. Do you think it is good idea? I started investing journey late (36). Looking for growth for next 5-10yrs.
Hey Venus. I don't think that is a bad idea as long as you have many years of being in the work force ahead of you. This will allow you to ride out the volatility of the market. If it crashes by 50%, don't panic sell. Keep loading up on more shares. It always (at least for well over 100 years and counting) bounces back eventually. Be a patient dollar cost average buyer for many years and I think it will work.
keep pumping out those financial informational videos Jeff!!!!
Will do Kevin. Thank you for your support of the channel.
Always good things to consider and useful information to help people think about their investment approach! It would help me if you include just 100% voo to give a standard metric of what "the market" was doing during those years too as comparison. (on the bar graph)
Thank you for the feedback. I normally separate VT from VOO. I will be sure to do that next time with something like this.
@@JeffTeeples Greatly appreciated, you are so helpful! I can't wait for you to get 10,000 subscribers almost there! You really deserve it!
Thanks for sharing these excellent viewpoints on why we need to participate in deciding our portfolio etf mix.
Thank you for the positive feedback Roy. I appreciate it and your extra support as a channel member. I'll be making more of these videos for years to come.
Hey Jeff, I have SCHD as one of my largest holdings in my taxable account and just learned that the last Dividend in March 2024 was a Non-Qualified Dividend. Do you know anything about this? Last year it was a qualified dividend...so I'm not sure what happened.
Hey Andrea. Thanks for watching and for the question. SCHD pays a qualified dividend. If you are looking at your 1099-DIV form, it will ‘show’ as both. This gives many the impression it is non-qualified.
If you had $9,000 or qualified dividends, and $3,000 of ordinary dividends, your form will show this:
$12,000 ordinary
$9,000 qualified
On the actual taxes, it is $9k qualified and $3k ordinary.
I don’t like how they do it. If it was actually taxed as ordinary dividends, you’ll need to let your tax preparer know.
@@JeffTeeples Thank you, Jeff! This is very helpful. I will look into it. Love your channel! Keep up the great work! :)
Hi Jeff thank you for the video. For the growth portion, what your thoughts about splitting that section between VGT and SMH? Instead of only VGT in that section?
Hey Idan. I don't think that is a bad idea, however, it is very heavy in tech and niche tech. I prefer the split of VGT (for tech) and QQQM (broad growth) a bit more.
I know VGT and SMH have performed better in the last decade, no doubt. I am a tech bull, so I don't think it is bad. But I like a little more balance in my growth, long-term.
Thank you Jeff. I hope you will start making more weekly videos so there is more than once a week. I truly enjoy watching your videos you are the best.
Jeff, I love your explanation of the breakdown of a retirement portfolio. I have some questions. I am turning 50 this year and plan to retire at 55 years old. I’m setting up my taxable brokerage account now to be the account that me and my wife 401k, 403B, and all IRA withdrawals go into. I hope to keep this taxable account till we die. So I plan on keeping the investments for a longtime and passing them on to my daughter. Is an index fund like FXAIX better than a ETF like VOO? I understand some of the differences of the index fund versus the ETF. But for the long haul which is actually better? Also for the bond portion would you pick VBTLX or BND? I currently have two dividend etfs SCHD and DGRO. I just started a position in VOO. I think I’m going with 5 or 6 etfs or index funds that are S & P, dividend income and growth, tech, bonds, and a little international. Any help is greatly appreciated!
Thanks for this great question. I love the idea of leaving behind quality investments for your daughter.
The taxable account is the perfect vehicle to use for it! You get the advantage of qualified dividends as the years go by, and, when you pass away, your daughter will pay ZERO capital gains. She will inherit the ETFs as if she bought them that day (steps up her cost basis).
I like ETFs better. They are usually slightly more cost effective and liquid. The differences are negligible, but ETFs are 'technically' better if we split hairs.
I think DGRO, SCHD, and VOO are all great ideas for her. Her 'yield on cost' will be hilariously awesome someday! The dividends will keep increasing over the years to pay out more and more per share held. I would personally sprinkle in some QQQM as well. That one has crushed the S&P 500 over the last 10, 20, and 40 years. It is a rollercoaster ride, but she will not need it for years to come.
I wouldn't hold bonds unless you NEED the cash flow. They have well over 100 year history of underperformance. The crashes will technically be a good thing for your daughter, long-term (buying more shares per dollar invested). If you are dead set on holding bonds, I would go with BND.
You have an awesome plan!
Great video Jeff. Just subscribed. Personally, I like SCHG and SMH as my growth/tech ETFs. Any thoughts?
My thoughts is that you like some amazing growth ETFs (:
SMH is too concentrated for my blood (top 25 semiconductors only). But it has been objectively amazing over the past 20 years.
SCHG, along with QQQM, are my favorite 'multi-sector' growth ETFs. I think it is awesome.
Great picks (:
For the record, I go with QQQM (as SCHG) and VGT (as a more conservative SMH) in my growth section. We are very similar there.
SCHG has been better than QQQM lately, and it may continue. Zoom out 15 years and QQQ(M) has performed better. Who knows what will happen in the future. I think we are both set up well.
@@JeffTeeples Thanks!
SMH/XLK (12% each of Microsoft, Apple, Nvidia); and the rest excellent tech companies. I’m very much focused on growth though so I’m willing to deal with higher volatility to gain that. Good analysis! Buffetheads too conservative for my likings personally, but certainly not a bad option
Very nice Carlos. You clearly understand the volatility with your mix. I think you can make it work as long as you don't panic sell when the market crashes (that is when we load up). Thanks for the comment.
Thinking 67% VOO, 33% QQQM with plan to transition QQQM to dividends for that portion 5 yrs out from retirement.
I love that plan. As long as you keep dollar cost averaging money into the mix, and never panic sell when the market crashes (QQQM will fall harder than other things), you'll likely be a happy camper when you go on a dividend shopping spree around retirement.
Hey Jeff in your “My Mix” example where is the 10% money market located?
Cash isn't in the model because 10% cash = 10% cash. These comparisons are assessing the performance of the long-term investments. I could add cash, but that wouldn't add any value. It would have to be added to all portfolios, so it cancels out. Cash is 'on the side'. I like to keep mine at 10%. Some people like 5%, some 20%, etc.
Jeff, great video! I plan on replicating your strategy but was wondering…. Is there a mutual fund (preferably Schwab or TR Price) that I could substitute for VGT/QQQ? How about a mutual fund similar to SCHD? It sure would simplify the dollar cost averaging
Thanks for the positive feedback Chris. VITAX follows the same index as VGT. However, it has a ridiculous $100,000 minimum investment to get started.
I don't know about a mutual fund for QQQ or SCHD. Nothing that is low-cost and on my radar anyway. I do admit I'm a huge fan of ETFs over mutual funds, so I haven't looked a ton to be fair.
In defense of Mutual Funds, SWPPX does outperform VOO, albeit by the hair on a nats ass. But yes, I prefer ETF’s too. It’s just a little more messy to dollar cost average, that’s all.
@@chriscarlin9363 FXAIX does outperform SWPPX
your thumbnails are cool how do you nake them? what software? great video!
Thanks for the positive feedback. I used to use Canva, but I wasn't great. I outsource them on Fiverr now.
Hey Jeff, another great video! Can you go into more about the 10% you say you put into money market - so that replaces the BND allocation? Can you go into more of your reasoning behind it? I think HYSA have better APYs, no?
Thank you for watching and for the question. Before I get to that, I must say, I love your profile picture!
I prefer a money market for my 10% 'cash equivalents'. I use VMFXX for this. If not a money market, I would roll with a high yield savings account. I found (by tracking like a weird nerd) that VMFXX is basically always higher than the best HYSA at any one time. I've been getting 5.27% to 5.30% for months now (this is net of fees). But it is made up of short term assets only. I have access to my 'cash' within 1 day with VMFXX.
The only way I've found to compete with VMFXX over time is by purchasing individual T-bills. I don't like how my money is tied up, and frankly, I didn't beat VMFXX for most of the months that I tracked. HYSA are cool, but I get tired of bouncing around when one steps its game up. Again, they have all fallen short of VMFXX any given month.
I don't 'invest in bonds', such as BND, that have longer maturity dates with my 10%.
I am basically chasing the best 'cash' available at the time. The other 90% is invested in the market, so I like to make sure that 10% is ultra safe. The ups and downs of something like BND is not what I'm looking for here.
Furthermore, when we zoom out over 100 years, things like BND are never worth it for a long-term, DCA investor that is building wealth (including the stock crashes). Scratch that, especially when the market crashes (:
Bonds should only be used if a portfolio value didn't reach its desired level by retirement. I would still argue they are a no-no at that point compared to other things, but the traditionalist like to yell at me. It's easier to go with a 'different strokes for different folks' approach (: In their defense, 'most' people hate bonds because of the recent environment, and that is a bit bothersome.
As always, thanks so much for your very thoughtful reply. The picture represents me and my wife - mixed race black/white. Glad you like it 😊 Your insights have made me feel so much more confident in my portfolio. Thanks and happy holiday!
Love it. And always learn a lot from your videos and also all the comments. ❤
Thank you for the kind words. I appreciate you watching and providing positive feedback.
Great explanation. I will share with some friends. You do a much better job than I do explaining this strategy.
I appreciate the feedback. I got a chuckle because sometimes I'll listen to my stuff and wonder if that will make sense to viewers, lol. There are so many ways to invest successfully. We just need to make sure we don't get too crazy with the portfolio. Also, loving the 1 month badge. Thank you for the extra support!
It's also good to hear things again. Or in different ways. I've read John Bogle's book and some books by and about Warren Buffet. Always looking for book recommendations!!
What would be the equivalent of all these Vanguard ETF's but for Fidelity ????
Thanks for watching and for the question Bill. FTEC is a VGT replacement. To my knowledge Fidelity does not have an S&P 500 ETF. It has a mutual fund that is FXAIX. Not sure on the dividend ETFs.
I will say you can buy SCHD, VOO, VGT, and QQQM at Fidelity for zero extra cost. The ETFs are 100% 'free' of any of the BS it pulls on some mutual funds.
Way to go ..lets beat Buffet and Boogle !
I'm all in. Bring it on, legends! (: Thanks for watching and commenting.
Teeples for President!!
Q: Can you please explain when exactly is the expense ratio fee taken out of your portfolio? Is it when you buy the etf or sell the etf?
Normally I would say Teeples for President is crazy talk... But these days... (haha)
The expense ratios are calculated daily, and paid monthly (I think). What I know is that we will never 'see them' because it is an ongoing (usually) monthly charge that is accounted for behind the scenes. We don't pay (and see) a large expense once per year.
They definitely matter! Expense ratios are the number one predictor of future performance for ETFs of all type. We argue aspects of things like growth vs value or small cap vs large cap. But one thing that nobody argues is the compounding costs of a high expense ratio.
Thoughts on VUG as a growth option (vs VGT)
I think VUG is a solid growth ETF that is slightly overrated. I do like it, but I think SCHG and QQQM are better 'like-ETFs' (I love VGT, but it is 100% tech, so it is a bit different).
10 Year Total Returns:
VGT: 571%
QQQ: 460%
VUG: 317%
20 Year Total Returns:
VGT: 1,398%
QQQ: 1,378%
VUG: 829%
This looks like a redo of one of your earlier videos where you show that a mix of SCHD and VGT beats VOO every year.
It definitely has the same conclusion (of course, most of my videos will, because it is what I invest in). The point of this one is to mention that I do invest like Buffett or Bogle recommends 'by default'. I think everyone should if they want to be successful long-term.
It is a bit scary when people start loading up on a specific type of investment. The results can be great, which is even more dangerous for the future (100% growth, lately, for example).
My PE ratio is almost identical to VOO. It is a touch under. I think that is important for an inactive investor.
@@JeffTeeples I understand, it's a good video, as it compares performance of Buffet's and Boglehead portfolios with yours. I enjoyed it. Thanks for your reply.
Another great video. Thank you Jeff.
I appreciate the kind words. Thank you for watching!
Hi Jeff, I am doing an experiment on M1. I have set up three accounts with the exact same pie mixture (VOO 33%/SCHD33%/QQQM 12%/VGT 12%/ SMH 10%). One account I contribute daily, one account once a week, one account once a month. Each time I contribute $100). I want to see their rate of return in 1-2 year. I just set this up yesterday. I want to see if doing DCA, will more frequent contributions make any difference. Do you have any prediction on this?😊
Hey Cindy! Oh a nerdy experiment. Now you're speaking my language! haha.
I'm assuming you're putting the exact same amount in overall? So if it's $10 per day, it's $50 per week? If so, they should be REALLY close.
I like weekly better than monthly, personally, because it gives a truer average of the market. Daily is just too many tax lots for my OCD brain lol. If I had to guess, I would say the daily one might be a sliver higher over many years. This is because the market goes up, generally speaking, so having more money in right away is the way to go.
Well, I guess it depends on if you do the monthly one at the beginning of the month (before DCA daily) or the end. The one with the most money invested the soonest 'should' win over loooooong periods of time.
Hi Jeff, thank you for your response. The overall amount is not the same, but each contribution amount is the same ($100). Assuming 4 weeks in a month, so $2000 for the daily each month, $400 for the weekly and $100 for the monthly. I was thinking to compare the return rate at the end, not the dollar amount. Will this work?
@@CindyHua-x2i that should work! For some reason my brain was stuck on the total amount. I will be interested in seeing updates!
I will keep you updated 😊
Another great video Jeff. Keep it up!
Thanks for watching! I appreciate the kind words.
Great video!
Thank you for watching and for providing positive feedback!
I see you make no mention of IBIT?
Hey Oldrin. I don't mention all of my holdings on these core portfolio setup / debate videos.
IBIT, cash, money markets, bonds are all safe assets on the side that don't change the 'base performance of the core portfolio'. These videos are for what I think everybody should hold.
For example,
I have JEPQ for cash flow from when I quit my job. IBIT for my long-term trading strategy. I have my individual stocks (HODL Factory). I will always share all the details on my monthly portfolio videos, but I don' think my one off holdings should be part of the base portfolio. These will never be a big part of my portfolio either (except for HODL Factory if I can prove myself over multiple years).
@@JeffTeeples Thank you for your hard work and your reply! Appreciate what you are doing for this community you created!
Jeff you are better then both of them.
That is flattering. Thank you! I don't know if I believe it, but I'll take it (:
Great content as always
I appreciate it! Thank you for watching and for dropping the positive feedback.
Jeff …. What’s you thought on NVDA
Hey Emily. NVDA has been amazing lately. I've watched my ownership of it soar with VOO and VGT.
I don't have any future predictions about it. I would be flipping a coin in that case. Its profitability and growth is amazing, objectively, but I'm not sure to what extent that is already priced in.
I like holding it, MSFT, AAPL (over the years), and other big players via market weighted ETFs. Gives me a little bit of the exciting come up without making any poor decisions on the timing of buying, holding, and selling (:
Try doing VGT 100% during that timeframe.
No way. I'll end up crying at what could have been, haha.
In all seriousness though, VGT, to your point, has dominated the market by so much in the last decade that it is hard to comprehend.
10 year total return:
VGT: 547%
VOO: 230%
BUT... VOO is about 50% 'value stocks' (historically, little growth heavy atm). VGT is not only 100% growth, but 100% technology within growth. When/if the reversion to the mean happens, I don't want to be the guy holding VGT wondering where everything went (:
@@JeffTeeples I don’t understand your concern with VGT? It has only had 2 down years since its inception in 2004. It was down 42.81% in 2008 and 29.70% in 2022. All other years were positive and it recovered from those 2 down years very fast.
My transfers into my new pies should go into affect this week. Let me know if you personally would tweak the percentages? I do have majority in VOO and VTI and I know there’s overlap but I treat them as one ETF. So if I want 50% into VOO, I make it 25% VOO / 25% VTI. I just want all stocks in the US market. Anyway, here’s my allocations:
Traditional IRA: $1.1M
VGT 35%
VOO 25%
VTI 25%
SCHD 15%
I consider this a 3 fund portfolio.
Inherited IRA: $300K
VGT 25%
VOO 30%
VTI 30%
SCHD 15%
I’ll be contributing $8000 a year or the max each year into the traditional IRA.
I’m curious to hear your opinion on these percentages? Thanks Jeff. Very much appreciated.
I'm not concerned with VGT at all from a long-term perspective. It is my favorite ETF and has been for years. I'm a huge VGT & tech sector fan.
I would be concerned having 100% in VGT. That is the only problem. It has been a major bull run for tech since the dot com crash. And frankly, I think it will continue. I think that technology will be the center of business flow for decades to come.
I just can't put ALL of my eggs there (: I love value and dividends too. Especially as someone that avoids bonds like the plague (:
I think your allocations are awesome for a buy / hold / and dollar cost average in more perspective. As long as you never panic sell on a downturn (especially the growth), I think you'll be good to go long-term.
@@JeffTeeples Awesome. Thank you Jeff. I’m definitely a long term investor and I do not panic. Would you put more or less into VGT or SCHD? Now QQQ is a little cornering to me since it has a record of 30% plus losses 3 years in a row. I still wouldn’t panic but that took a while to recover.
That is a good question. I personally like a half and half mix of value and growth. I'm likely a bit on the conservative side in that regard.
I like to have a chunk of VOO just to have some of the market.
I do an even mix for all dollars that I have outside of 'market funds that are already self balanced between value and growth' (aka VOO for me).
I keep growth (for me it is currently 100% VGT, but going to trickle in some QQQM) at 50% and value / dividend ETFs (100% SCHD for me at the moment) at 50%.
Is this in Roth or taxable brokerage
I think these holdings are great in a tax protected account or a taxable brokerage. As long as they pay qualified dividends (which these ETFs do), they are great anywhere.
For REITS, or derivative ETFs like JEPQ or JEPI, and anything else that pays interest or 'non-qualified' dividends, the Roth is a great spot.
For 20 year old what you think?
30% VOO, 30% XLK, 15% SCHD, 15% JEPQ, 10% stocks.
In my humble opinion, VOO or VTI or both, VGT, SCHD. Since you’re so young:
VOO 50%
VGT 35%
SCHD 15%
Dollar cost average into it for the next 40 plus years, don’t ever panic, keep investing weekly or biweekly, don’t ever stop or sell even during down years or crashes or recessions/depressions. You will thank yourself when your 60. Id stay away from individual stocks and stick to ETF’s. Individual stocks are too risky and volatile. Jeff might have a different opinion than mine but I think we’re close in our thinking.
SPLG 30%
QQQM 20%
XLK 20%
DGRO 10%
sorry, SPLG 50%
@@andreyshulgin5984 SPLG has a lower expense ratio but still underperforms VOO long term. It has to do with VOO having slightly better dividends and VOO having slightly less volatility.
@@andreyshulgin5984 Those are all good ETF’s, but for a 20 year old holding long term for 40 plus years, there’s no beating VOO, VTI, VGT, SCHD.
#Legend
Thanks for watching and commenting. They are the GOATs!
👍🏾
Thank you for watching.
Gpix/thta/schd
Not for a 40 year long term investment
Thanks for the comment. Very new funds. I'll keep an eye on them as they grow.
I agree with this. Just like I don't think JEPQ or JEPI belong in a 'long-term' portfolio that doesn't NEED income now.
Another great video Jeff!!!
Thanks for the positive feedback Stephen. Much appreciated.