My honest advise to new investors ,buy and hold quality stocks. Ignore market forecasts and opinions, they're mostly entertaining but not very helpful.
Achieving significant returns isn't about volatile stocks; it's about effectively balancing risk and reward. Proper position sizing and leveraging your advantage repeatedly are essential, whether you're a long-term investor or a day trader.
Certainly, many underestimate advisors until emotions lead to losses. A few summers ago, during a tough divorce, I sought a licensed advisor who, through diligent work, boosted my business from $190k to around $720k despite inflation.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
The Adviser I'm in touch with is *'Jude Ryan McDonough'* , he works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. for me her strategy works hence my result. He provides entry and exit point for the securities I focus on.
I’m a 62-year-old looking forward in this was great timing with this video. Thank you for your hard work going back-and-forth about keeping my financial advisor and really considering the fees over the 30 years of retirement seeing something like this makes me seriously reconsider. Thanks again your thoughts would be appreciated.
the size of your retirement portfolio will overwhelmingly be a function of the performance of the stock and bond markets between now and when you start withdrawing from it.
You need a third party to help you out. A financial planner or accountant can run through your figures, including your projected income and expenditures when you retire, along with your retirement goals, your emergency fund and any other strategies you need to put in place for such things as long-term care.
@@IshaanArtharv I have saved myself from all the hassle that the chaotic market causes. These days the best way to come into the market space is seeking guidance, due to side hustles i can’t handle my portfolio so i just work with LOREN LENA WALKER, a FA i came across via a recommendation from one of these UA-cam retirement coaches. It’s been smooth since then. Cliche as it may I have made a mark up of 70% in profits investing 350k under her. It helps not to be worried about your portfolio every minute of the day.
So grateful for all you do. Your UA-cam channel is a gem! I’m 57, a little late but started investing 5 years ago. Late is better than never. Maxing out my 401(k) in a Roth self direct account. Currently hold VOO, SCHD, DIVO, JEPI, O and about 10 different stocks. My biggest regret was the lack of knowledge about investing, starting so late and fear. I also fund a Roth account through Vanguard which I contribute the max of 7,500 each year. I enjoy learning about investing, and doing research. Would love to see you do a video on CEF’s. I see a lot of recommendations for those people my age. The fees are a lot more expensive for CEF’s. I’m not sure how those are justified with the high cost but again I don’t know much about them. I’m still learning. Thank you so much!
Thanks! I appreciate it! Great that you are attacking it now and maxing out those accounts. Keep it up! I'm not big fan of CEFs based on what I do know but it is an area that I still need to explore more.
Thanks Dave, from an 85YO "long term investor".😄And for the 3 ETF idea, especially, for sharing the spread sheet model. Saves a ton of Excel formatting.
Nice portfolio mix for those that don’t want to own individual stocks and sell options. The good-news for me is Since retiring I don’t care about beating the market and I personally don’t want to rely on selling shares to pay the bills. So no 4% rule for me. I also 100% agree with you regarding SCHD and patience … kind of silly to give up on something after 7 months of lagging the market.
New investors have not studied “reversion to the mean”. A concept John Bogle stressed over and over. Jumping into any fund after a decade of stellar performance, then abandoning it shortly after is a recipe to underperform over the long run
Retired at 59. Currently 60YO. I do not need all yield thrown off...Reinvest. Stock Portfolio only: SCHD 25%, DIVO 25%, 10% Each->MOAT, OMFL, JQUA, DIVI, 10%-> ARCC,WPC,O. Crushes SPY.
Hey! Love the simple portfolio advice with income ETFs. How about diving into some alternative investments like Fuse Minerals for wealth diversification? Would be cool to hear your take on Fuse Minerals in your next video
Great content as always Dave. I could care less about beating the S&P. Feels like a fools errand to me. I just want 7% annually at the lowest possible risk. That's a double every 10 years less tax leakage. 10% annual return for a double every 7 years minus tax leak. Ideally, a portfolio that lands somewhere between 7% and 10% annual with the lowest risk suits me fine. Thank you for the spreadsheet. I love spreadsheets. =)
Hi Dave; Great minds think alike Have some $$$ in large value and small value •XLV (own PRHSX will be swapping it for VHT •XLK (don’t own any. But VUG is on my list) • SCHD (own SCHD, DGRO, VYM & PRDGX) • For Income VNQ, ABBV MAIN, ARCC, RA BTI, MO, PFF (tempted to add JEPI) Might be time to simplify my portfolio It’s much easier to backtest your portfolio 😂
Thanks for your videos. They are very helpful. Question for you. I also use fidelity and when looking thru option chains before selling cash secured in the money puts, what metric would tell me most accurately the percentage of chance that the put will be assigned to me? is it delta? is it imp. volatility?
Hi. Think of Delta as the probability the option will expire ITM. The higher the delta value the larger the probability of assignment (1 and -1 are the same and would be a guarantee while 0 is no chance).
I like your split here. I’m setting a goal to invest into a 1000 shares of each schd, jepq, jepi. Once i hit that goal i plan to shift all dividends into Divo until i reach 1000 shares. than i plan on retiring in a low cost foreign country and living modestly off the dividends and never touching the principal. I also hold a Roth with primarily individual tech stocks, and some reits, which i will tap into when i’m older. I’m 44, and i don’t like working or living in the USA anymore. if all works out, I’m about 2 years away, from financial freedom! I’m either on something or onto something 😂
@@wealthadventures Mexico or Southeast Asia, most likely, but i’m undecided at this point and i may move around a bit. I’d love to learn how to surf and sail. I’ve been landlocked pretty much my whole life. Do you have a destination for retirement or do you like where your at?
VGT is a great fund and it could be swapped in just fine for XLK. Performance over the years has been similar. VGT gives you exposure to small and mid caps. If you become a big boy you get added to XLK eventually. I guess... my answer would be... because I was focused on the S&P500 and dissecting it to trim out the fat while working on it.😆
Thoughts on a schd/tylg portfolio? Tylg holds 55% Xlk and the rest is covered call at the money, it is up +29.41% YTD, with a 6% div yield. Or would 50/25/25 on schd, xlk, jepi. Any thoughts would be great thanks!
I hadn’t heard of TYLG. It looks like they have one for healthcare too with HYLG. Both funds write calls on just 50% of the holdings but I can’t tell if they are at the money or just out of the money. Interesting funds for sure…
Interesting. Neither TYLG or HYLG were on the radar before seeing this comment thread. I'd also be interested in what Dave makes of these. Not much history to fall back on yet so we're pioneering again.
I'll have to look closer but I have not been a fan of the Global X lineup. I prefer JEPI, JEPQ, and DIVO as they are managed ETFs. However, I will look closer.
I'm personally not a lump sum guy so I would probably limp in over a period of time. Especially since cash is paying at the moment. I would focus on growth like XLK, VUG, VGT, or QQQ and add a couple others to diversify a bit. Key will be to keep buying. I would probably ignore the "income funds" at his age.
@@wealthadventures when I backtest an all etf portfolio vs say 15-25 blue chip stocks the return on the stocks blow the etf away. Having a hard time going all etf.
@@bfine1962 I still primarily own individual stocks but that is not for everyone so I often mention ETFs as a starting point. I think it just depends on how much time you want to invest. In your case, it sounds like you have the experience.
@@bfine1962 By the way, I have minor accounts for my kids, and my rule is they can only pick individual stocks. They might as well screw up and learn early in life!😄
Interesting work as usual my man. And you have much less grey hair than I do you bastard. How do you do that? QUESTION: You put SCHD into your stocks basket rather than your income basket, when most people consider SCHD an income play. Is there a reason you consider it a stock rather than income holding?
Just for men! Amazon will deliver it tomorrow. 😆I think of SCHD as a dividend ETF. It will still offer growth over time and is up about 50% over the last 5 years. It just holds stocks so I dropped it in with my other stock ETFs.
Hi Dave, great ideas in this video... Question on covered calls, what's your preference for expiry? 30 or 45 days? OTM or ITM? Delta of 20 to 50%? Just a general question so I understand how experienced investors do it. As always, thanks in advance.
@@wealthadventures i was just watching a video of your with a calculator that you must have created that calculates the total return. Very nice. Thabka for answering me
@@fabiGBOtown Delta is the estimate move in the option price for a 1 point move in the stock... but I like to associate it with the probability the option will expire ITM. So, a 20 delta would be a 1 in 5 shot. It really depends on your approach to a trade IMO.
@@wealthadventures thank you. Im having a hard time figuring out covered calls with T, unless I'm ok with making 2-3 dollars a month, I don't see much upside. I could go closer to the strike price for a higher premium, but I think I should try for something more stable next time and keep these shares. Called fidelity, they don't think I should use that stock for the wheel. Too volatile they said.
Excellent video! You've reshaped (simplified) my strategy. Thoughts on my allocation of 60% SCHD of my portfolio in an IRA. The other 35% SPY and 5% QQQ in a taxable account while doing the wheel on SPY/QQQ?
@@wealthadventures Lower 40's, risk adverse (risk is in mainly in business ownership) with seven figure portfolio. Could I also sell covered calls on SCHD to squeeze a little more out? Thanks!
@@Steven-vi5nb You could sell conservative calls on SCHD. It will not earn you a lot but may add a little over the course of the year. Sounds like you are on a good track!
I'd be very cautious about TLTW - They seem to be canabilizing their NAV to make high dividend payments. Also if you expect the Fed to stop raising rates (as a lot of folks do), just buying TLT outright would probably be a better strategy.
@@wealthadventures I thought you would find that interesting. I stumbled into it in a cursory search for an investment that might provide an income stream from Chinese markets that I didn't actually think would be productive. I found it compelling enough to take a small position.
@@wealthadventures I think we're getting closer, but what do I know. Will be swapping SGOV and TBIL for TLT and maybe a smidge of TMF when The Fed decides it's time to flip to easing from tightening.
*** Correction - TSLA is not part of XLK as mentioned.
You're one of the few financial youtubers out there that actually make common sense videos. Thanks for sharing.
Thanks! Appreciate it.
My honest advise to new investors ,buy and hold quality stocks. Ignore market forecasts and opinions, they're mostly entertaining but not very helpful.
Achieving significant returns isn't about volatile stocks; it's about effectively balancing risk and reward. Proper position sizing and leveraging your advantage repeatedly are essential, whether you're a long-term investor or a day trader.
Certainly, many underestimate advisors until emotions lead to losses. A few summers ago, during a tough divorce, I sought a licensed advisor who, through diligent work, boosted my business from $190k to around $720k despite inflation.
Do you mind sharing info on the adviser who assisted you? I’m 40 now and would love to grow my stock portfolio and plan my retirement.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
The Adviser I'm in touch with is *'Jude Ryan McDonough'* , he works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. for me her strategy works hence my result. He provides entry and exit point for the securities I focus on.
I’m a 62-year-old looking forward in this was great timing with this video. Thank you for your hard work going back-and-forth about keeping my financial advisor and really considering the fees over the 30 years of retirement seeing something like this makes me seriously reconsider. Thanks again your thoughts would be appreciated.
My portfolio consists of 200 voo 200 vog 150vgt 5000 SCHD! Is the future bright or not ?
Bother less and enhjoy the time you have left.
the size of your retirement portfolio will overwhelmingly be a function of the performance of the stock and bond markets between now and when you start withdrawing from it.
You need a third party to help you out. A financial planner or accountant can run through your figures, including your projected income and expenditures when you retire, along with your retirement goals, your emergency fund and any other strategies you need to put in place for such things as long-term care.
@@AanyaDarika_ I have seen a lot about FAs and actually want to consult some pro. How did you go about it? Is yours any good?
@@IshaanArtharv I have saved myself from all the hassle that the chaotic market causes. These days the best way to come into the market space is seeking guidance, due to side hustles i can’t handle my portfolio so i just work with LOREN LENA WALKER, a FA i came across via a recommendation from one of these UA-cam retirement coaches.
It’s been smooth since then. Cliche as it may I have made a mark up of 70% in profits investing 350k under her. It helps not to be worried about your portfolio every minute of the day.
So grateful for all you do. Your UA-cam channel is a gem! I’m 57, a little late but started investing 5 years ago. Late is better than never. Maxing out my 401(k) in a Roth self direct account. Currently hold VOO, SCHD, DIVO, JEPI, O and about 10
different stocks. My biggest regret was the lack of knowledge about investing, starting so late and fear. I also fund a Roth account through Vanguard which I contribute the max of 7,500 each year. I enjoy learning about investing, and doing research. Would love to see you do a video on CEF’s. I see a lot of recommendations for those people my age. The fees are a lot more expensive for CEF’s. I’m not sure how those are justified with the high cost but again I don’t know much about them. I’m still learning. Thank you so much!
Thanks! I appreciate it! Great that you are attacking it now and maxing out those accounts. Keep it up! I'm not big fan of CEFs based on what I do know but it is an area that I still need to explore more.
Thanks Dave, from an 85YO "long term investor".😄And for the 3 ETF idea, especially, for sharing the spread sheet model. Saves a ton of Excel formatting.
You are welcome! Thanks for watching and good luck.
Nice portfolio mix for those that don’t want to own individual stocks and sell options. The good-news for me is Since retiring I don’t care about beating the market and I personally don’t want to rely on selling shares to pay the bills. So no 4% rule for me. I also 100% agree with you regarding SCHD and patience … kind of silly to give up on something after 7 months of lagging the market.
New investors have not studied “reversion to the mean”. A concept John Bogle stressed over and over.
Jumping into any fund after a decade of stellar performance, then abandoning it shortly after is a recipe to underperform over the long run
Thanks Richard!
Bro, EXCELLENT Video. Sincerely, Thank You!
Thanks for watching!
Thanks for the spreadsheet!! Very useful indeed.
Great!
Retired at 59. Currently 60YO. I do not need all yield thrown off...Reinvest. Stock Portfolio only: SCHD 25%, DIVO 25%, 10% Each->MOAT, OMFL, JQUA, DIVI, 10%-> ARCC,WPC,O. Crushes SPY.
I will check them out!
Hey! Love the simple portfolio advice with income ETFs. How about diving into some alternative investments like Fuse Minerals for wealth diversification? Would be cool to hear your take on Fuse Minerals in your next video
Good honest advice. Some gold and cash are also good hedges for 60+ for safety
Yes! For sure.
Good video and good blend of funds. I am into income now, so I invest in dividend paying ETF`s. Different blends for different folks.
Thanks Money Man!
Great content as always Dave. I could care less about beating the S&P. Feels like a fools errand to me. I just want 7% annually at the lowest possible risk. That's a double every 10 years less tax leakage. 10% annual return for a double every 7 years minus tax leak. Ideally, a portfolio that lands somewhere between 7% and 10% annual with the lowest risk suits me fine.
Thank you for the spreadsheet. I love spreadsheets. =)
Spreadsheets are great! lol. I like to poke around some high risk investments with extra income but the bulk would be happy with 7-10%.👍
Hell. I'd be happy with less than that if I can avoid 2008 and any volatility.
@@swright5690 I've been buying 3 month t-bills at 5.4%... Not sure how long it will last.
@@wealthadventures I'm heavy on SGOV and TBIL right now. Let the lower risk good times roll.
Any suggestions for a UK investor who cannot access schd
Looks like Wisdom Trees ETF UCITS could be a close equivalent. Check it out from your end. Cheers!
Love your videos. My 3 ETF portfolio is VTI,SCHD and JEPI. All reinvested!
60/20/20.
Thoughts?
Thank you!!!
Solid picks. Simple and will work over the long haul in my opinion.
Hi Dave;
Great minds think alike
Have some $$$ in large value and small value
•XLV (own PRHSX will be swapping it for VHT
•XLK (don’t own any. But VUG is on my list)
• SCHD (own SCHD, DGRO, VYM & PRDGX)
• For Income VNQ, ABBV MAIN, ARCC, RA BTI, MO, PFF (tempted to add JEPI)
Might be time to simplify my portfolio
It’s much easier to backtest your portfolio 😂
True! I have often said that I own too much. When I start to look at overlap between funds, I could certainly trim out a bunch!
Thanks for your videos. They are very helpful. Question for you. I also use fidelity and when looking thru option chains before selling cash secured in the money puts, what metric would tell me most accurately the percentage of chance that the put will be assigned to me? is it delta? is it imp. volatility?
Hi. Think of Delta as the probability the option will expire ITM. The higher the delta value the larger the probability of assignment (1 and -1 are the same and would be a guarantee while 0 is no chance).
I really like this guy!
😎
I like your split here. I’m setting a goal to invest into a 1000 shares of each schd, jepq, jepi. Once i hit that goal i plan to shift all dividends into Divo until i reach 1000 shares. than i plan on retiring in a low cost foreign country and living modestly off the dividends and never touching the principal. I also hold a Roth with primarily individual tech stocks, and some reits, which i will tap into when i’m older. I’m 44, and i don’t like working or living in the USA anymore. if all works out, I’m about 2 years away, from financial freedom! I’m either on something or onto something 😂
lol...if not money, you would atleast always have your sense your humor 😂
A man with a plan! What is the country of choice? I'm hoping for beach front.👍
@@wealthadventures Mexico or Southeast Asia, most likely, but i’m undecided at this point and i may move around a bit. I’d love to learn how to surf and sail. I’ve been landlocked pretty much my whole life. Do you have a destination for retirement or do you like where your at?
@@funL1F3 Take a look at Panama and Portugal - both look pretty attractive
@@funL1F3 I'm happy in Ohio at the moment. Just not a fan of Jan-Mar!
Nice video, thanks for sharing
Thanks!
Great stuff as always!
Thanks!
Nice portfolio, do you have a position for energy ETF, XLE? What do you think of XLE?
I do own some XLE. Mainly trade in and out of it with options but have a small position.
@wealthadventures 👍 I have XLV as well with my VGT do you recommend any defensive ETF like XLV?
@@ljrockstar69 Yes. That is why I like XLV. It tends to be defensive in nature.
First time watching your content and it looks great man! Why would you choose XLK over VGT?
VGT is a great fund and it could be swapped in just fine for XLK. Performance over the years has been similar. VGT gives you exposure to small and mid caps. If you become a big boy you get added to XLK eventually. I guess... my answer would be... because I was focused on the S&P500 and dissecting it to trim out the fat while working on it.😆
Thoughts on a schd/tylg portfolio? Tylg holds 55% Xlk and the rest is covered call at the money, it is up +29.41% YTD, with a 6% div yield. Or would 50/25/25 on schd, xlk, jepi. Any thoughts would be great thanks!
I hadn’t heard of TYLG. It looks like they have one for healthcare too with HYLG. Both funds write calls on just 50% of the holdings but I can’t tell if they are at the money or just out of the money. Interesting funds for sure…
@@marcalvarado1915 the other half covered call is at the money, like xylg or qylg.
Interesting. Neither TYLG or HYLG were on the radar before seeing this comment thread. I'd also be interested in what Dave makes of these. Not much history to fall back on yet so we're pioneering again.
@@brucef1299 Correct, these etf's are fairly new, they got introduce about 7 months ago.
I'll have to look closer but I have not been a fan of the Global X lineup. I prefer JEPI, JEPQ, and DIVO as they are managed ETFs. However, I will look closer.
Great video. My 32 yr old son with a 20-30 year time horizon has a $100k 401k rollover for me to invest. What portfolio would you set up now?
I'm personally not a lump sum guy so I would probably limp in over a period of time. Especially since cash is paying at the moment. I would focus on growth like XLK, VUG, VGT, or QQQ and add a couple others to diversify a bit. Key will be to keep buying. I would probably ignore the "income funds" at his age.
@@wealthadventures when I backtest an all etf portfolio vs say 15-25 blue chip stocks the return on the stocks blow the etf away. Having a hard time going all etf.
@@bfine1962 I still primarily own individual stocks but that is not for everyone so I often mention ETFs as a starting point. I think it just depends on how much time you want to invest. In your case, it sounds like you have the experience.
@@bfine1962 By the way, I have minor accounts for my kids, and my rule is they can only pick individual stocks. They might as well screw up and learn early in life!😄
@@wealthadventures trying to get my adult kids into managing their own money
What do you think about JEPI ETF????
I own it. I think it is a good option for someone looking for monthly income.
Thanks 👍
Interesting work as usual my man. And you have much less grey hair than I do you bastard. How do you do that?
QUESTION: You put SCHD into your stocks basket rather than your income basket, when most people consider SCHD an income play. Is there a reason you consider it a stock rather than income holding?
Just for men! Amazon will deliver it tomorrow. 😆I think of SCHD as a dividend ETF. It will still offer growth over time and is up about 50% over the last 5 years. It just holds stocks so I dropped it in with my other stock ETFs.
Thanks
Thanks!
Hi Dave, great ideas in this video...
Question on covered calls, what's your preference for expiry? 30 or 45 days? OTM or ITM? Delta of 20 to 50%? Just a general question so I understand how experienced investors do it. As always, thanks in advance.
Depends on the trade but I would say my default is 30 days, OTM, and a 8-12% annualized return.
@@wealthadventures i was just watching a video of your with a calculator that you must have created that calculates the total return. Very nice. Thabka for answering me
Just a follow up, any thoughts on delta? Getting mixed answers through my studies but since I follow you the most, would love to hear your thoughts
@@fabiGBOtown Delta is the estimate move in the option price for a 1 point move in the stock... but I like to associate it with the probability the option will expire ITM. So, a 20 delta would be a 1 in 5 shot. It really depends on your approach to a trade IMO.
@@wealthadventures thank you. Im having a hard time figuring out covered calls with T, unless I'm ok with making 2-3 dollars a month, I don't see much upside. I could go closer to the strike price for a higher premium, but I think I should try for something more stable next time and keep these shares. Called fidelity, they don't think I should use that stock for the wheel. Too volatile they said.
I don’t think xlk has Tesla. Think you meant Nvidia..
Ha! Yes! That was it...
TYLG, HYLG, SCHY others to checkout
Excellent video! You've reshaped (simplified) my strategy. Thoughts on my allocation of 60% SCHD of my portfolio in an IRA. The other 35% SPY and 5% QQQ in a taxable account while doing the wheel on SPY/QQQ?
Hi. Always hard to answer without understanding things like age, risk, etc. With that said, it looks conservative and nothing NOT to like.
@@wealthadventures Lower 40's, risk adverse (risk is in mainly in business ownership) with seven figure portfolio. Could I also sell covered calls on SCHD to squeeze a little more out? Thanks!
@@Steven-vi5nb You could sell conservative calls on SCHD. It will not earn you a lot but may add a little over the course of the year. Sounds like you are on a good track!
@@wealthadventures In theory SCHD + covered calls would be the JEPI killer, haha! Only one way to find out!
@@Steven-vi5nb I did a video on SCHD and options. Not a lot of meat on the bone but can add a little. Maybe a DIVO killer!
"Alternatives". International- KLIP. Bonds- TLTW. REIT'S- MORT.
KLIP is a new one for me. Looks wild!
I'd be very cautious about TLTW - They seem to be canabilizing their NAV to make high dividend payments. Also if you expect the Fed to stop raising rates (as a lot of folks do), just buying TLT outright would probably be a better strategy.
@@wealthadventures I thought you would find that interesting.
I stumbled into it in a cursory search for an investment that might provide an income stream from Chinese markets that I didn't actually think would be productive.
I found it compelling enough to take a small position.
@@garystone9177 Agree on TLT. Could see a nice return over the next few years.
@@wealthadventures I think we're getting closer, but what do I know. Will be swapping SGOV and TBIL for TLT and maybe a smidge of TMF when The Fed decides it's time to flip to easing from tightening.