3 Index Funds is All You Need in 2024
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- Опубліковано 2 тра 2023
- A Simple Index Fund Portfolio that produces three-times the average investor return in 2024! How to invest in index funds and why you only need three! ✅ FREE Report! See the top five stocks in my portfolio, up an average 94% last year! mystockmarketbasics.com/motle...
You know we love us some stock picks here on the channel but sometimes I feel like we’re overcomplicating investing. In fact, the three index funds I’ll show you today would have beaten the average investor return by 6.5% a year over the last two decades! Research by Dalbar shows the average investor earned just 2.9% annually in the 20 years through 2020. Most investors trading in and out of stocks trying to find that next stock to buy end up just shooting themselves in the foot and barely earn enough to keep up with inflation. That 2.9% annual return is less than half the long-term return on stocks and even under the 4.8% return on a straight bond portfolio!
But the simple index fund portfolio I’m going to show you today will more than triple that return with less stress and without a minute worrying about the market. I'll reveal those three index funds to buy along with what type of investor should use this strategy!
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
#indexfunds #etf #etfs
Perfect combination for your portfolio with THESE Dividend Kings Stocks! ua-cam.com/video/7s9uBykB9wc/v-deo.html
Bro you need to make a workout channel. Im trying to get ripped like you.
My only issue with your video is, not all your viewers live in the USA, so we are not going to ignore investing in our own country, put 100% in a foreign country, then have currency & withholding tax issues on our whole portfolio. With all due respect to our American friends, it wouldn't work for all of us, but for them, if they wish to put their entire portfolio into the US economy alone, good for them
@@HamiltonRb thats a great point
IEP stock went down almost 20% I'm wondering if they will recover they were doing great for many years.
SCHD outperformed VTV over 5 and 10 years and is very low cost. Just had bad luck this year. Many of us have a boatload in the S&P500 index in 401k's, so not having apple, Microsoft etc as top holdings (if at all) in SCHD is a good thing. Still have the bulk of my $500k portfolio in SCHD.
I’m taking the hybrid approach, VOO, SCHD as my foundation, with growth like MA, UNH, HD. And slow growth like O and PEP. I have a 20 year time horizon. But the best part is I still enjoy my life while I do this. Travel, and buy ONLY things I love. It’s the best combo, plus I love the small victories with receiving dividends/dividend growth/share price appreciation.
SCHD is an excellent portfolio addition, but relying solely on it for retirement may not be optimal. I retired at 62, grew my portfolio to $1.5 million in 10 years starting with 35,000 through the help of an investment advisor and dividends now supplement my retirement income. Invest wisely, build your nest egg, and don't sell the chicken that lays the egg!
Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems
The decision on when to pick an Adviser is a very personal one. I take guidance from Melissa Rose Francks to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Index funds are the easiest means to investing and when investing into a basket of quality stocks, you cannot really go wrong... Great video, Joseph!
Always glad to help Ari. Thank you for being a part of the community
No doubts , a good way of growing and saving your money is through investing . You don't need to have much before you can invest. "That little money you have now can make you millions if you invest it wisely". I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn over 3 crore on a yearly basis through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age
Nice one,any investment tip?. I would love to know how you made it this far
Investing typically demands a good understanding, and that's where having a financial consultant is invaluable. I've had the privilege of working with Regina Louise Collaro, an investment advisor affiliated with a licensed wealth management firm.
she have been very good to my financial journey as she is providing full & continues support till my financial goals has been achieved
I've read testimony of people employing investment advisors to help them become more financially stable, therefore your investment advisor must be pretty good. Would you mind providing more details about this person?
Regina Louise Collaro is based in the United States and can work with anybody wherever they stay. If you would like more information on reaching her, you can conduct a search online.
Question. Why have a portfolio of multiple dividend stocks with high and low dividend payouts if you just stick with a larger quantity of just a few different ones like SCHD and then maybe a couple that are solid that pay out a little more? Thanks in advance
What's the difference between VTI and Voo then?
Great Video, Mr. Joseph. I'm trying to understand the chart at time marker 9:23. I think you may have mis-labelled them cause it appears that the Traditional 60/40 portfolio outperformed the strategy you suggested in the video. Am I reading that wrong?
Jesus, Thank you, I watched it back 4 times thinking I had a stroke...
Great insight. Thank you.
Nice summary, I would say however that perhaps focussing too hard on US centred funds is a bit shortsighted and throwing at least a portion of your portfolio into global trackers is maybe something to consider. This is not advice, just my opinion.
I like the S&P companies for international exposure but You're right, it doesn't hurt to have an international fund as well
1.VTI
2.SCHD
3.SCHG... is all you need just play it safe and to make money!!
..4. My bonus pick Berkshire Hathaway
How’s the progress going?
Why do you prefer schd over vgt? Is it due to the higher percentage in tech
Thank you Mr Brooks!
I agree. Instead of following fad stocks, one could still stick to a global ETF and avoid losing money. Alternatively, if someone really wants to invest in individual stocks, instead of following the fads of the moment, it is better to use automatic tools for stock picking like the Everest formula that is based on fundamental data and algorithms, so it does not follow the bias of analysts or UA-camrs.
I use the Everest Formula too. Great tool.
Can one overpay for an index fund?
Hey body what we should do with frbk stok banks keep going down and you said it was going down by mistake please let us know
Would you recommend bonds for someone in their 20’s
Hi Mr. Hogue, thanks for sharing. In your personal professional opinion, do you recommend people in their 50s to invest in a large blend index fund?
I would not have so much exposure to real estate, especially right now...
@Let's Talk Money! with Joseph Hogue, CFA 9:16 I might be missing something but are the portfolios inverted on this graph? 60/40 seems to beat three fund portfolio
Also, I really enjoy your content! Thank you for your work. It is much appreciated!
Will have to check it out. I know the 60/40 underperformed on the data
Always glad to help. Thank you for being a part of the community
Agree: - I Noticed it and went back and
* re-listened and
* Read the Transcript, and
* did a Calculation: 10k x 1.095^20=$61.4k
( if that WAS the 3-fund )
i only have VIG and VUG 50% each in my ROTH IRA
Solid mix of dividends and growth!
Joseph, I like your take on this. As you indicated, some of us don't want the complication or stress of building a stock portfolio. Building a portfolio of index funds is a brilliant way to invest without stress. (I do invest in stocks, too. Like you, I like it.)
A total stock fund is a good basis (VTI). Further, being invested in a fund like this automatically gives a person international exposure. All good.
P. S. Dilbert is one of my heroes.
I had vti but sold because I felt I bought in to high
do I keep purchasing the index fund I am interested in or is it a one time purchase?
Very nice. Thanks.
Great video! I use a core-satellite strategy with about half my portfolio in individual stocks and the other half in ETFs. I hold BLV, SPY, VYM, and VNQ.
I’m building a position in VYM for right now and maybe next will be VNQ
I didn't really understand your argument that VYM, with 57% of its holdings in "just" 4 sectors, is less diversified than the S&P500. The table you presented showed SPY having 63% of its holdings in just 4 sectors. So VYM seems more diversified to me, although more heavily weighted across different sectors. Did i misunderstand something there?
I'd have to check my notes but you're right, they're both overweight just a few sectors.
Great video, VTI that holds stocks , bonds and REITs and then adding more bonds and REITs with other 2 ETF doesn't make much sense , but if you done the math and it makes sense , ride on !!!
I agree With you 100%..add SCHG n SCHD
IYR is interesting. Thanks for that tip. I was looking at another Vanguard real estate ETF the VNQ, which seems less diverse but has a higher dividend, and lower cost.
I'd have to look at exposures. I'd go with whichever has less office exposure. Other real estate is all about rates but office has real demand issues.
What about the VOO is that good
I think towards the end, you say the three fund portfolio did better at over 60 grand, but the chart itself shows the 60/40 portfolio in yellow outperforming the three fund portfolio. Was that a mistake?
Will have to check. I might have gotten the lines mixed
SCHD? I think you need a lot more than 3 index funds
Great advice. Jack Honey and index funds
Hard to beat!
Agreed 3-4 ish
And if all you want is one index fund then it's VTI.
What about dividend index funds
What do you think of Actively Managed Funds like JEPI and JEPQ?
6:00 Anheuser busch a solid company? 😬
Sales dropped more than expected on the mess but they've got a lot of brands to support
Thanks, Joe!
Always glad to help. Thank you for being a part of the community
VTI, VXUS, BND and BNDX . 60/40 portfolio. Set it and forget it. Some VUG, VXF and VHYAX also.
VXUS and BND is not a great Play!!
Try SCHG and SCHD instead please!!
Warren Buffet likes the S&P 500, Ken Fisher dislikes bonds and real estate ETF's could have taxable income problems (I found out the hard way). The point is, it's a crap shoot getting to the best portfolio for your personal needs. One size does not fit all in my opinion.
No foreign etfs?
No..a waist of Money!!!
Your graph contradicts your statement at the end.
I'm glad VYM isn't heavily weighted in tech
JEPI has perfomed well for me.
I'm just now getting into jepq. It had less loss of the two .
Can you do a deep dive on LLY
I can put something together but generally prefer ETFs for pharma because I don't have experience in the drug development and FDA process. Very difficult to analyze pipelines without that
I dont know, my VYM is paying dividens now and it pretty good.
Love your style. So helpful too. S. Africa
video starts 2:35
🔥
@2:13 goated episode
My first investment done through professionals was a 60% loss. If it had gone in the Wilshire 7000 INDEX, I would be independently wealthy. Your proposition is unarguably better than eating losses. It makes me wonder what if everyone adopted such a strategy? What if 'professionals' put their clients in such a strategy?
WOW! Six months ago you called $COP the #1 energy stock. its down nearly 30% since then. ?
Does that make it a better buy now?
Thank you for choosing VYM instead of SCHD. 🤠
Man sucks that you can't invest in america etf in my country.
I think eToro offers some intl investing
I will invest in Nasdaq-100 ETF.
I havent looked at your channel in a long time but im glad that i found you again. I always look further into what im potentially interest in but i have issues finding good stuff on my own to begin.
🎀
Can anyone tell me, If you can pay too much for an index fund?
(Disclaimer I am no expert)
Some index funds have high management fees which degrade your returns and yes, some index funds can simply be overpriced. Look at the p/e ratio as a guide to the health of the fund.
The only criticism I have in an otherwise good strategy is isn't it foolish to not have a fourth fund for international markets?
I wouldn't touch anything in Asia! Remember the Didi delisting in China? What happens to Taiwan when China decides to occupy it?
My guess is that if it’s not in a ROTH IRA and you’re doing it on a trading account you’re gonna pay taxes and if you’re paying taxes you ideally wanna keep it in your country cause if it’s in a foreign country you might have to pay tax there and in your home country
that reality fund was a terrible pick. Way better off with "O" Reality Income Corp. Zero expense ratio, sitting @ 4.98% yield, 26 yrs of growth. Maybe this is it for them but still.
Overall REITs have been pulled down by office. I like O for an individual play but going for diversified here
One thing to note about your investment strategy, is that it is heavily weighted in the property industry with the REITs. The Bae graph mostly showed from 2008 and on, which was right after the housing market crash, then the recovery. So those 15 years also included the housing market recovery, which is why it outpaced the market overall.
"Semper Fidelis"....
ooh rah brother
Vanguard requires 3000 to start
Buy the vanguard index ETFs. When you get above the 3K threshold you can exchange them for the mutual fund equivalent or keep them as ETFs
You can buy the ETFs
Oh yeah, I’m like you jack honeys fire
SOFI tanked. you got some explaining to do.
I'll be buying all the way down, now 18,000 shares @$6.19 average cost. While loan growth slowed, this is still a bank booking 40% revenue growth and deposit growth (how many banks actually grew deposits last quarter?). Now trading under book value.
Now over 9 bucks lol
And yet almost every retirement plan is based on indexes and your paying for access
What about the difference in how you get taxed (index funds vs ETFs)
No difference unless it's a mutual fund or alternative strategy like income ETFs
Jack Honey?
If you come up with any analysis on what is going on with IEP right now, please let me know.
Just buy what our elected leaders buy😅
Know myself - index funds are boring. Turns out I LOVE following the market and watching for deals on my favorite stocks. I started with index funds in 2020 (also when I started watching this channel) and slowly moved it all into 35-40 individual stocks. Now I'm earning with covered calls and limited cash covered puts (dividend funded - no more outside income; ss just covers Medicare and food.. Thanks to Joseph and (careful) dividend investing, I'm not going to be the aging hippie woman living out of a shopping cart that I seemed I was on track to be, just spending my small retirement savings (WAY less than a million dollars).. If I can avoid the nursing home scenario, it's likely I'll be able to leave a small trust fund for some worthy cause. :) Much gratitude (and no indexes).
Hujj
Anheuser bush is no longer a solid company ;)
Go woke, go broke!!
Busch..
😂 Ok snowflake.
As I always say; if he wears a bowtie, he can’t lie : )
3 Index Funds ARE all you need…come on man
Considering you made this comment less than a minute after the video was published, I'm guessing you haven't even watched it...c'mon man!
@@josephhogue Yo Jo! Love your content man, I think he/she was just being a bit of a strict grammarian (ARE instead of IS, plural)... By the way, the graph datasets are labeled the other way round 9:03, right? Thanks for the vid, much love from Cyprus 🤜🤛
His Index Funds VTI/ LQD/ IYR He is awesome!
In Spanish. Excelente!!!
Un proyecto estoy haciendo. Espero que sierve.
Bonds lol! Ummm no.
I once thought that...until I saw how they protect and gave me opportunities to buy in a crash
@@josephhogueBonds are going to yield less than inflation steals so why would you do that to yourself?