What Should Your Portfolio Look Like? (Asset Allocation by Age)
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- Опубліковано 21 тра 2024
- In this video we discuss how your portfolio composition and asset allocation can change throughout the decades, in addition, we talk about how you should be investing based on a risky, moderate, or conservative risk profile. Please note that although you may start off "Risky" in your 20s, you may be a moderate or conservative investor in your 50s or 60s, it doesn't mean you stay "Risky". So in that way, each decade is it's own decade with its asset allocations by risk tolerances.
The other thing to note is that this is a general approach that is good for the majority of investors, but you may have a unique situation or unique case in which you may not want to follow these guidelines.
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WHO AM I?
Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.
PS: I am no longer a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!
⏱️ Timestamps:
0:00 - Start Here
0:38 - Risky Investors
2:54 - Moderate Investors
4:10 - Conservative Investors
5:39 - 20s
7:05 - 30s
8:56 - 40s
10:00 - 50s
11:47 - 60s
13:27 - Performance Over 20 Years
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*I am fortunate I made productive decisions that changed my life forever (accumuIated over a MiI) through my finance-mentor. I'm a single parent, bought my house in January and hoping to retire at 54 by next year.*
*get my mentor* ⤵️
*Rebecca Martin Watson*
im amazed to partake on this.
I had a yhing in here two months ago I guess that you did not read it but if you have a stock what is the stock tax on it???
*Humphrey is beyond amazing. “How to create income flow”*
Making money is action, keeping money is behavior and Growing money is knowIedge
I am fortunate I made productive decisions that changed my life forever (accumuIated over a MiI) through my finance-mentor. I'm a single parent, bought my house in January and hoping to retire at 52 by next year
sear ch the name, lf you care.
*Rebecca Martin Watson*
l’m amazed to partake on this, lt has rekindled the fire to my goaIs.
I have a three fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio dwindle away is such an eye -sore.
There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Natalie Noel Burns who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Natalie up and send her a message. You've truly motivated me. God's blessings on you.
❤ this video. I took huge risks and it paid off. But my dad told me don’t do it all the time. I am in my 20’s. But as I get older I am going more conservative.
Always love to see these “by age” videos.. it’s a good way to see different perspectives. Keep it up Humphrey!
I just turned 50, and I am behind; so it's full steam ahead increasing the savings rate with a more aggressive style! Great content, thanks!
This month I started investing 5 dollars a day everyday. Currently 24 and cant wait to see my portfolio when i’m in my 30s
You have the golden ticket…time! Compounding will be your friend someday.
Really enjoyed your take on adjusting our portfolios with age! One thing I’ve found super useful is the “age in bonds” rule, where you match the percentage of bonds in your portfolio to your age. It's a smart way to lower risk as you get older. But to keep the growth going, sprinkling in a mix of ETFs that cover different sectors and regions can spice things up. This combo helps maintain a good balance between safety and growth potential. Nice sharing Humphrey!
❤️
I was just going through your old videos wondering this very question yesterday. Thank you.
Great!
@@humphrey Hey humphrey it would be great if u could create a video sharing about your e-commerce business or maybe starting one I am very interested to learn more and hear from you !
As always, solid information well-presented. Truly helpful 👍🏻 Thank you! 😊
I'm glad you are here, you are appreciated.
Very intelligent subject. Thanks for content.
Always appreciate the time stamps!
This video was amazing and cleared ups a lot of things for me. I am 60 and I struggle with this because I started investing late. However I am fortunate to have a military pension, VA compensation and later Social Security. I have been extremely risky and it has helped me catch up, but I struggle with risk tolerance versus risk capacity.
I'm liking the graphics.
I'm glad you called out the difference between the first 5 years of a decade and the last 5. Cause investing at 30 and investing at 39 I think is very different.
Thanks Steve. Yep exactly
I'm fine with taking risks so I'd be going 100% stocks that entire time. In fact, I'm hoping I can go 100% stocks until I retire.
I’m 100% invested in stocks at 62, but the plan is to use only dividends when (if) I retire.
I’m in my 40’s and still 100% stocks. Even with the big falls in share prices over the last couple decades, I dont think you need 10 years to recover…..that said, if your portfolio is large enough, even losing a decent percentage should still leave you comfortably well off. If you are high income, stick to higher risk stocks.
I really appreciate uploading this helpful useful video 🎉
I want a balanced portfolio with growth investments, safe investments, and also focus on dividends to gain up to $20K monthly, my concern is picking the right stocks that can survive a recession. How do i go about this Humphrey?
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at the worth of your portfolio, you should consider financial advisory.
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my advisr are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
great gains there! mind sharing details of your advisor pleas? i've started gaining more cash flow with my employment and looking at putting money into stocks and alternative assets that can help build wealth over time
Thank you for sharing, I must say, Heather appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled a call
My mom told me a story about a coworker she had 20 years ago. He invested a couple hundred dollars every paycheck into a Polish oil company. After a decade or so, they sent him a plane ticket to Warsaw to check out their operation, because he had become one of the majority shareholders. His wife was pissed he hadn't told her...
Maybe she would have gone on a shopping spree of she knew.
Waw just waw
I surely wish I would have taken investing seriously sooner! Realizing the value in it now at 32. Like you said a lot more on the plate now vs in my 20s, but better late than never. I'm going in on saving and investing now to catch up and make the most of what I have. Thank you for the helpful education!
I think it is okay, I am 33 and started last year. 😊 we still have lots of time left !
I like using SCHD as the Bond portion of my portfolio. If you reinvest you dividends or not, you still get a good rate of return and a great total return, higher and safer than almost any bond fund would give you - But that's just my opinion.
Funny seeing this today, just last night I did a detailed portfolio once over, retired, 65 years old, 300k portfolio, 50% US stocks, 15% Intl. Stocks, 25% bonds, 10% cash. I need to do some stock trimming! Thanks for the video.
Glad to see this personal finance 101 video. Being a fellow asian american, these kind of knowledge was already hard wired into us in our 20s. Yet, it's so strange watching other Americans wastefully spending money and knows nothing of saving and investing into their 40s or way too late. Personal finance ignore and bad habbit is really the norm in this country, it'# sad.
word.
I have learned a lot from Asian people about money and life styles
Hi Humphrey. Love your content. I hear a lot about Gen Z and Millennials (which I still learn so much) but what about GenX? 💁🏻♀️Have you or can you provide content/advice on those late starters 😬who are 50 and didn’t have all the wonderful widely accessible money advice that’s put out in the world today or for those who just didn’t have the good sense to seek out the info?❤ Thank you.
Another great video. Hard to get excited about bonds when high yield savings accounts are giving close to 5%. Also, would love to see a video on the US vs. International allocation. Lot's of opinions on this out there but would love to get your perspective.
Agree! International allocation would be definitely interesting to see 🌍
Those high yield money markets/savings accounts, as soon as Fed rates drop they'll drop almost instantly as well.
Where as your locked in longer term treasuries/bonds will benefit in a declining rates environment from both having a locked in higher yield if you hold to duration or when rates decline theyll benefit massively from capital value of them increasing if you were to sell them.
Don't forget the state and local tax savings you get from T bills and bonds...I do not do HYSAs unless there is a good offer (usually a one time cash bonus). They are no better than money market accounts, and interest rate for both will drop once the federal reserve drops interest rate.
@@BaileyMxXthat’s great outside of a 401k, but useless within it as they are all bond funds
30s, still 100% stocks, all in
I’m 23 and have around 50% individual stock, 20% etfs, 20% mutual funds, 8% crypto and 2% money market (for a house down payment)
I think the 100 - age rule for bonds is flawed because in my opinion a young person (anywhere up to 30) should absolutely not be in bonds as they probably won’t be retiring for several decades. They will miss out on crucial gains that the total market will most likely give them
I'm in my mid thirties and am thinking about retiring soon. Could you please do a video on recommendations for people who FIRE (and RE)? My thought here is all of my retirement accounts will remain in 100% US equity but the money I will use from my regular 'savings' accounts (e.g. non tax sheltered accounts) will transition more towards bonds. I'd love to get your thoughts. Thanks
What are your thoughts on substituting TIPS for bonds?
What are your thoughts on target date ETFs, such as retirement 2065 ETF that self adjusts its positions over the years to become more conservative?
Should I include my emergency funds in CDs in my bond (or fixed) allocation?
Hello. What do you think of going for a percentage of etf in the portfolio? Starting in 30s..
I'm curious if you'd stay on the riskier side if you start investing late in order to try to make up for lost time. I'm 37 and just started a roth ira, and soon a normal account and moving 15k from my HYSA. Right now my plan is 100% stocks until maybe 50 to try to catch up on lost time in the market
Thanks Humphrey. What is your opinion on a target date fund vs picking your own assets? I use Fidelity investments based on my retirement horizon that fits my financial goals. Thanks again.
TDF will be best for most people, but if you are a DIY-er you can pick yourself.
@@humphreyThank you
In my opinion, how about saying in case when you are planning to retire there is a bear market and bonds can protect you from that at that moment. In case there was a bull market all stocks might be better, I read some books and follow some people that have zero 0 bonds, all stocks and mainly dividends, so don't care about bonds, and if for security now have a big high yield savings that are doing better than bonds now, who knows in the future, so once I retire I can switch my 401k to all high yield and high growth etfs and sticks and live off dividends since I don't plan in selling anything. Just my opinion for now, k who knows it may change, maybe bonds make a comeback
U r awesome❤
What are your thoughts on REITs? Would you count those as "stocks" in your allocation? At 29, my only cash and bonds are my 6 month emergency fund. My remaining 95% is 75% stocks, 10% crypto, 10% REITs. Would love to get out of the REITs however they are at around a 15% loss at the moment and i am holding onto them
Yes I would count those as stocks. I think you are good with that allocation TBH. Reits havent been great lately but will balance out your stocks longer-term
I like the rule of 120, maybe even 125, and to avoid longer duration bonds since this is supposed to be the non-risky part of your portfolio. In fact I prefer TIPS.
Mid-40s now, thinking I might play it super risky until 62 or 63…I’m pretty far behind where I’d like to be.
Same here. Risk is my friend.😅
That said, by the time I retire I hope to set aside some money for emergencies. If social security is still a thing then I'll rely on that and the emergency fund plus reduce the withdrawals from investment accounts in accordance to the drop in market. I figure at worse I cut my losses and go live in a van.
I love these kind of videos but looking only at stocks vs bonds and then I don't know "where" to put my 401k, my short terms savings accounts, public debt, gold, cryptos, etc.
Retirement vs. house question: I am 41 years old and make 80k/year. I have a decent retirement of 300k in a 403b. I can take it out as a 15yr loan against my retirement at 5% interest (paid back to my retirement). Is this wise or should I leave it in my investments and look at a conventional loan at 7%? (Looking at $250k-300k for houses)
What are your thoughts on substituting bonds for dividend stocks?
That’s what I’m doing. My “bonds” will be dividend stocks.
Can you go over asset allocation across multiple accounts like 401k/IRA/HSA (Traditional/Roth). I've heard having more dividend stocks is better for roth accounts and then there's also Qualified Dividends which I'm not sure how this applies to high dividend ETFs
Technically ya, anything wtih dividends or if you plan on getting a lot of capital gains would be better suited in a Roth.
Why put any money in bonds with such a small return. Why not put that in a HYSA instead and gain a higher return?
Buy the long bond funds now while they're cheap, even if you're young. I'm in BLV myself.
In my early 30s and 90% is in the bank and 10% in equity 😅
I’m not sure if this is a joke, but it should be the reverse, unless you’re saving to buy a house.
I am over 60 years old and I have about $8000 in my 401k with the company that I use to work for. That was my second job, and I also have a 401k in my full time job. Would it be better if I withdraw the 8k and use it to open aRoth IRA?
I need to catch up ... I'm 40 some years behind
I’m in my 30s, 100% Stocks and 100% crypto, am I doing this correctly?
I attended a workshop last week and the facilitator said to increase the number to 120-Age due to the rapid rate of inflation in years to come. That makes a higher allocation in equity as retirement age draws closer at 60...what are your thoughts?
Why bonds are considered less risky if they are highly affected by interest rates? TLT and BND dropped down by 25% and 40% since 2020.
Maybe because it is a fixed securities.
Youve said moderate is 60% stocks and 40% bonds yet the graphic and correlating information shows it as 60% bonds 40% stocks.. which one is it and is the info even correct?
Riding 100% VOOG until 2070 and possibly beyond, I don’t see BND being worth the drag on growth. With a 3ish percent withdrawal rate it’ll probably still make sense to stay full equities indefinitely.
I like bonds i keep seeing them go down but when they go up by 10 percent and stocks are down i figure i could sell and put in the stock market while its down and get more back when it goes back up
Flipping back and forth, also known as Timing The Market, almost NEVER works. All it takes is missing one rebound by a week or two and it will cancel out any gains you had made. Much better to stick with 100% S&P500 if you are younger and aggressive.
Question here: I'm going to have a government pension when I retire at 57 years of age and I'm going to have approximately $2.5 mil in stocks when I retire. Wouldn't it be better to live off my pension plus small amounts of my stocks/dividends when I retire and keep my money in ETF's focused on the S&P500? I know people are talking about lowering risk, but if my pension is paying for 50% of my retirement wouldn't it be better to have that money in "riskier" investments that would continue to grow approximately 10% per year on average?
You should hire an accountant or a wealth manager. They're perfect for situations like this. Make sure you don't use a financial advisor.
Yes possibly. As the above comment mentioned, might be good to talk to an advisor even just for a consultation.
I WAS almost exactly in your situation, except not that big a portfolio at retirement. With SS/gov pension/emergency cash, I decided to stay 100% in the S&P500. Now, nine years after retiring at 55, my 100% S&P has almost tripled. Now, the biggest concern is Required Minimum Distributions. Even taking big chunks now, in my 70s, I will be forced up into much higher tax bracket. That’s why a tax advisor would be good NOW to start moving some into Roth, etc.
Interesting that for equity you only propose US market. If you look at those bad periods for the US market it's usually when International and Small Cap Value do well and soften the blow.
I'm just curious, when the market dips or crashes, isn't this the best time to buy more / average down? Provided the stocks have good fundementals, esp if you have a longer time horizon
Yes, but that all depends on your risk tolerance and your ability to recover from the crash by the time you retire.
This is why you follow the discipline of always contributing the safe every paycheck ‘over your career’ and during the downturns this automatically buys more stock. Certainly, if you have cash on the side for such a downturn, then you can put it in. But, exactly when will you put it in??? At 10% drop? What if it drops another 20%?
bonds are less risk? doesn't seem that way lately
Making money is one thing, Maximizing profits is something else entirely
Risk is directly related to competency. Diversity is irrelevant if the companies themselves are risk adverse in nature. Read like Buffet.
Concerns about a potential recession and the Fed's talk of interest rate hikes have left me uneasy. I'm unsure about my $600K portfolio strategy, considering the uncertainty of a recession and the possibility that interest rates may not rise significantly
I completely understand your concerns. But In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I agree. This is why having the right plan is invaluable, my $210k portfolio is well-matched for every season of the market and recently hit 40% rise from early last year. I and my CFP are working on a more figures ballpark goal this 2024
Pls can you recommend this particular coach you using their service?
'Natalie Ann Brinkman 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.
Spam
Is it 15-20% per paycheck or per month? .....that we should be throwing to our 401k? I'm doing 8% per pay and I'm barely gettin by 😅
8% is fine if your employer matches, but its 15% per month, yes.
Every time you get a raise, up your contribution a little. That way you get some money to live and you’re slowly upping your contribution. This is the painless way to do it.
Dave Ramsey recommends 100% stocks forever 😆
Jobs just don’t pay enough and social media is full of people make videos on how to make money but it’s just to catch your attention for their course
@Humphrey Yang wheres my Bitcoin allocation
I’m 56yo with $480,000 in my Thrift Savings Plan. I’m currently retired federal law enforcement and my allocation in the TSP 60% C Fund and 40% S Fund. Your thoughts, please?
I’m retired fed LEO also. Are you currently taking distributions from your TSP and how much?
How old are you?
Bonds doesn't makes no sense if you are between 20 and 50 years old.
Very informative! Thank you.
Glad it was helpful!
should things like Crypto be included in the allocation if you’re in your 20s if you have a higher risk? Like 5-10%?
Sure. Yes you can replace a portion of your stocks for that. Maybe 5% of your total stock position
But bonds have been so bad..
I am 70 with no money invested.. Considering using leverage to increase by exposure to Crypto by 200%. Is that a risky profile?
Wish me luck 😭🙏🏿
your profile pic looks like youre 20
Lmfao
@@humphrey Appreciate the compliment young man!
But jk I just wanted to make you laugh 😂
100% stocks!
Haha if you are young. Yes
Why no adding crypto?
Can add that in lieu of a percentage of stocks
Never having kids nor a gf so I can be even riskier lol
lolol
First!
Fast!
Horrible advice bonds will slow the compound rate
I still think 80% exposure to stocks is too risky even in 20s. 50% is a healthy amount in my opinion.
To each their own! If it’s not right for you, it’s not
Even a 10% bond holding over 30 years and it equates to a HALF MILLION DOLLAR reduction in your portfolio if you’re investing $10K a year.
I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio dwindle away is such an eye -sore.
There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
She goes by 'Aileen Gertrude Tippy'. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Just ran an online search on her name and came across her website; pretty well educated. thank you for sharing.