How to Invest $1 Million | A Simple Strategy to Invest a Windfall

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  • Опубліковано 21 лис 2024

КОМЕНТАРІ • 475

  • @brianwhitehawker1756
    @brianwhitehawker1756 Місяць тому +211

    My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.

    • @JamesScott433
      @JamesScott433 Місяць тому

      The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.

    • @yeslahykcim
      @yeslahykcim Місяць тому

      Having an investment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K during this dip, that made it clear there's more to the market that we avg joes don't know

    • @codeblue11
      @codeblue11 Місяць тому

      impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now

    • @yeslahykcim
      @yeslahykcim Місяць тому

      Credits goes to "Lucinda Margaret Crist" one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.

    • @Jadechurch-ql3do
      @Jadechurch-ql3do Місяць тому

      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.

  • @Dominic-y6e
    @Dominic-y6e 18 днів тому +696

    How can I make good profit as a beginner starting with $50,000 ~ir6

    • @Elijah-d2l
      @Elijah-d2l 18 днів тому

      Don't rush in rather seek expertise like Amanda Katherine. Growing a port-folio is complex

    • @Eleanor-d8h
      @Eleanor-d8h 18 днів тому

      I racked up so much losses trying it on my own. Amanda really saved me from myself

    • @FelixThompson-h4d
      @FelixThompson-h4d 18 днів тому

      Finding someone truly skillful is hard. I'm happy to see that a lot of people found Amanda

    • @Fiona-v9p
      @Fiona-v9p 18 днів тому

      Same here. Amanda managing myportfolio was my best decision. Gotten more than half a million since

    • @Catherine-b1i
      @Catherine-b1i 18 днів тому

      Amanda is a life changer. Through her I went from almost homeless to being a home owner

  • @educatedwanderer9293
    @educatedwanderer9293 3 місяці тому +22

    I inherited 700k from my dad and 200k from my mom and invested it all, a decade later my net worth is 3.1M. I was already debt free including my house, and had my own retirement savings of 350k at that time.

  • @KpxUrz5745
    @KpxUrz5745 8 місяців тому +3

    I faced more or less exactly this situation. One of my foremost concerns was to exercise some caution so as not to lose the principal. I entered the stock market and became surely overdiversified, with a certain portion in CD's but most of it spread far around amongst stocks. I ended the latest year with about a 40% profit, and things continue prospering along nicely. I trade frequently seeking profits, but also am aware of dividends and selling option premium to enhance returns. I make all my own decisions and would never entertain paying any portion in fees to any so-called professional for management.

  • @Floorguy1000
    @Floorguy1000 7 місяців тому +3

    An excellent discussion. Keeping it simple is a huge step up for the majority of people.

  • @wilmabrock6401
    @wilmabrock6401 Рік тому +5

    Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

  • @I..cast..fireball
    @I..cast..fireball 2 роки тому +1

    Rate my allocation!
    48% VTI
    12% AVUV
    26% VEA
    8% VWO
    6% AVDV
    0% Bonds
    30 y/o

  • @stevemlejnek7073
    @stevemlejnek7073 3 роки тому +12

    I'm considering using Vanguard's advisory services. In the introduction call, the advisor asked me where I would get income since I am considering retiring before 59 1/2. I said I would consider 72t distributions. The advisor wasnt aware that 72t distributions applied to IRAs. Has me thinking this person may not be right for me.

  • @jonathanbuyck2031
    @jonathanbuyck2031 2 роки тому +20

    He's spot on with the psychological factor which we forget about. So many athletes and rappers go broke when they get that windfall

    • @MuzixMaker
      @MuzixMaker Рік тому +2

      Because they never had to learn how to manage money. Same with lottery winners, who are usually financially “unsuccessful” before they won.

  • @griffinreitz7041
    @griffinreitz7041 3 роки тому +9

    A lot of it depends on age. Older you get the less risk you should be exposed to.
    A million is nice to have, but it's not near as much money as many think it is.

    • @Larry_left_a_comment
      @Larry_left_a_comment Рік тому +1

      Some people who are older who are convinced they won't be living on the streets feel they are investing for the next generation.

  • @angela-r
    @angela-r 4 місяці тому +3

    Something I don’t see many finance channels discussing: As we try to grow our retirement portfolio, how do we protect it from others taking it through the many data breaches happening lately. I see a lot of videos about protecting wealth by investing in safer assets that aren’t as risky, but not many videos about how to protect from data breaches and losing everything from that type of threat. Example: Should you have a web login accessible which would also be accessible to others if your credentials were leaked or the investment firm’s recovery options not as sound as they should be? Or is it better (especially lately) to not have a web login for your account and just invest through your advisor or in person at the branch. Just watching the news lately about data breaches and accounts compromised makes me think about this more, especially for the retired community. Would you consider creating a video on this topic? I would love to see this topic discussed, especially with the breaches in the news lately. Thanks! 😊

  • @ijchua
    @ijchua 6 днів тому

    10:00 I had a huge windfall a month after this video came out (at the point of writing, 3 years ago). I was able to retire and I did lump sum. Guess what, I bought in at the high then and I lost more than 50% in the year that followed. Everything is theoretical until you actually are faced with that situation, and you realize it is a lot murkier when you're in the middle of it than you actually think you are, even if you have done all the research.

  • @JackCasablanca-painter
    @JackCasablanca-painter 3 роки тому +39

    First time watching Rob Berger. Great talk Rob. Really informative, intelligent points in this video. And you have a nice, likable presentation style. So I subscribed. I'm 56, it's nice to find a financial youtuber who's more at my own stage in life.

  • @Hermanjackson89
    @Hermanjackson89 Рік тому +3

    Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market

    • @GeorgiaMoore.
      @GeorgiaMoore. Рік тому

      Stocks are pretty unstable, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks|couple months, so I think there are alot of wealth transfer if you know where to look.

  • @darrellgritten4398
    @darrellgritten4398 7 місяців тому +1

    Excellent, well-balanced, commentary. You are very intelligent, knowledgeable, and articulate. Thanks for your video.

  • @paulthorpe766
    @paulthorpe766 3 роки тому +2

    1/4 in buy-to-let property, 1/4 in vanguard style tracker, 1/4 in other investment assets eg Vintage Rolex, 1/4 in higher risk equities eg tech/Nasdaq.

  • @24hourgmtchannel64
    @24hourgmtchannel64 Рік тому +1

    My message to the most novice uninterested worker who equates investing in their retirement plan with brain surgery, 100% Vanguard VTI (or similar depending on what your plan offers with an eye on the expense ratio ) first job right out of college and then add BND (or similar) at age 30. Use ages 22 - 29 as your 100% equities building period. Time is on your side here. Then at 30 base your stock\bond asset allocation on whatever allocation you can tolerate. The older thinking was 100 minus your age is your equities (VTI) portion so that would be 70% VTI 30% BND at age 30 however I like 120 minus your age for your equity portion a bit better. Again it's all up to your tolerance level. Do this and you'll be better off than the the vast population of American workers.

    • @ThePianoMan1953
      @ThePianoMan1953 9 місяців тому

      I agree with you. Warren Buffet said he thinks stock bond allocations are ridiculous. I think he is "all in" at his age.

  • @bobdrawbaugh4207
    @bobdrawbaugh4207 3 роки тому +15

    Two years from retirement and this is where I find myself. My wife and I have invested in our 401k for the last 40 years. Never worried to much about our accounts. When the market was down we just continued to invest. But, now that we are close to retirement I’m constantly thinking about what to do with our 401K money. It’s become like a part time job research and watching videos like yours. As the retirement date nears I get more nervous about it. I’ve used the two fund portfolio all these years, not really knowing anything. I’ve adjusted the allocation to a 60/40 S/B as I near retirement.

    • @rob_berger
      @rob_berger  3 роки тому +3

      I know how you feel! What topics could I cover in future videos that you would find useful?

    • @mavissmith3
      @mavissmith3 3 роки тому +3

      @@rob_berger - Love your videos. Could you make a video about the best places to stash cash as a placeholder for those who may be hesitant to invest at the moment? For those of us that are admittedly timing the market. 😊

    • @bobdrawbaugh4207
      @bobdrawbaugh4207 3 роки тому +7

      @@rob_berger yes, the subject of asset allocation. I know most professionals recommend not dropping below a 60/40 stock to bond ratio. But, in retirement and your relying on the money is that the recommendation. Also In my wife’s 401K she has access to Vangaud’s Wellington and Wellesley funds. Both seem like ideal funds for retirement. Have you looked at them. At Retirement I was thinking of moving money to one or maybe both.

    • @frankkeel8410
      @frankkeel8410 2 роки тому +2

      Yes tough to manage on your own but you are not paying large fees! I have all my money 💰 in cash. This way no surprise tax bracket can place a large cost if you move to a higher one. When u do retire have every item u invested in your control.

    • @suzanneemerson9787
      @suzanneemerson9787 Рік тому +9

      My 2¢ :
      Keep 3 year’s worth of portfolio draws in cash instruments during retirement. Highly unlikely that the market will be down more than 3 years in a row. With that safe money in cash, you won’t have to sell assets when they’re down. The rest of my money is in a simple 60/40 portfolio (Vanguard) plus some rental real estate. This has worked very well for me over 23 years of retirement so far. Gives me peace of mind.

  • @fruitloops3718
    @fruitloops3718 3 роки тому +12

    The most advice I've gotten from Vanguard is the John Bogle message. Invest for the long term through low cost mutual funds in a well diversified portfolio. Good advice if you don't have any idea of what to do with your money. But I find very little to no diversity in stocks, bonds and reits. All of these seem to move together. For diversity you have to actually own real estate, actually own precious metals and then hold stocks. My message is that you made your money on your own, you need to learn how to invest on your own. Nobody cares about your money like you.

    • @fullmetta2764
      @fullmetta2764 Рік тому +1

      Bogle's approach is simple to follow but it's deceptively sophisticated. Recent years, the last ten especially, have been an historical anomaly regarding the performance of most asset classes. Last thing, some of the most savvy investors follow indexing, and not out of ignorance.

    • @cruisinusa5110
      @cruisinusa5110 2 місяці тому

      Precious metals? Lol. Why not own fine art or classic cars while you're at it? Makes about as much sense.

  • @ramrod2298
    @ramrod2298 3 роки тому +67

    How to invest $1M? That's easy.
    1) Pay off your house and any other debt
    2) Keep enough cash to sleep very well and fund any major expenses in the next 5 years (home renovations, kids' college, etc.)
    3) Dump the rest in an S&P index fund.

    • @alexkwilliams
      @alexkwilliams 3 роки тому +13

      1. you shouldnt pay off your house, you should use the lump sum of 1mil and invest that and use the earnings from the investment to pay the house. Do the math, youll have a lot more money.

    • @ramrod2298
      @ramrod2298 3 роки тому +8

      @@alexkwilliams By that logic, you should NOT use the investment earnings to pay off the house; you should reinvest all dividends. And further, you should never pay off your house - you should constantly refinance and pull out all equity to invest in the market. See where I'm going? At a certain point, most people want the security of a paid off house. To paraphrase Warren Buffett, don't risk what you need (a house) for what you don't need (a little higher number in your Vanguard account).

    • @alexkwilliams
      @alexkwilliams 3 роки тому +1

      @@ramrod2298 you gotta pay the mortgage somehow, im not factoring in a job here.

    • @darkphasex
      @darkphasex 3 роки тому +10

      @@alexkwilliams There is no right or wrong of paying off a house. However, I can tell you that you will have financial freedom and a psychological effect that you must factor in when you have no DEBT. That feeling of No Debt is ineffable.

    • @nicholasmartinez6043
      @nicholasmartinez6043 2 роки тому +3

      Love this idea. I keep no debt not even a mortgage. This is to keep my risk very low, even when investing 100 percent in stocks. My rationale is that stocks will outperform bonds and if need to take a 50 percent haircut a couple times in my life to enjoy the sweet gains, I can sleep easy with no debt.

  • @SilvesterMiles-y4j
    @SilvesterMiles-y4j 2 місяці тому +4

    Just hit $216k in my emergency fund, now I'm ready to dive into investments... but hey, if anyone has a spare $1 million lying around, I'd love a head start 😂. Let’s see if I can turn these pennies into something big!

    • @donmountford797
      @donmountford797 Місяць тому

      216k in emergency funds? That seems like an excessive amount for most people? 3 to 6 months of expenses is what most people advise. so unless you are spending 432k/ year, you can probably reduce the emergency cash reserve. My wife and I keep 50k in cash, which would cover any expense we'd need. The rest we invest. Now that we are in our 50s, we are starting to reduce our risk and put more into bonds.

  • @StevenDietrich-k2w
    @StevenDietrich-k2w 3 місяці тому +1

    Start investing as soon as you are able and continue to make regular additions to your investment. Let dividends be reinvested so that things can compound. Pay your taxes from other accounts. By the time you are to retirement age you will have substantially more money than you invested. Market downturns are part of the normal chain of events, don't look at market downturns as a thing to fear (unless you are at the point where you NEED to cash out) because downturns give you a chance to buy even more shares at a cheap price. Think of it as getting a bargain. All the better if you are in a tax advantaged account like an IRA or a Roth. Start early, keep at it, have confidence that you will be rewarded handsomely for your dedication. I would recommend a broadly diversified stock fund with low expenses.

  • @harveyking5038
    @harveyking5038 6 місяців тому +4

    i have about 700K to invest. i wanna invest and basically retire. i was thinking dca about 500k into VII s&p500, about 10k a week for the first year

  • @lougehrig1212
    @lougehrig1212 5 місяців тому +1

    I think the Warren Buffett portfolio may work most of the time, but the scary thing is when it doesn't. From 2000 to 2010 where the S&P round tripped to virtually -0- for the decade, taking draws on that portfolio would have decimated a retirement portfolio.

  • @ericgammill4780
    @ericgammill4780 3 роки тому +9

    This resonates. Thank you. Recently retired early at 59 under circumstances similar to your description. I decided it would be a good idea to get some advice so I went to a major brokerage to discuss ideas for retirement income. The representative was very happy to work with me and scheduled a meeting with an advisor. I arrive at the meeting a week later and find that the advisor is from an outside firm than will charge fees from .85 to 1.25%. Yeah, no thanks.
    With a little more research, I see they have a "robo" account that offers a financial planner for $30 per month, customized portfolios and automated tax loss harvesting. Looking into this more.

    • @ChrisBird1
      @ChrisBird1 3 роки тому

      59 early ...lol.

    • @gieb6428
      @gieb6428 2 роки тому +2

      should be, they get paid if you get paid. Why does a guy with $200,000 pay more than the guy with $100,000 for the exact same advice? Just like the reality commission on selling your house? I don't get it.

  • @EverylittlethingStephane
    @EverylittlethingStephane 3 роки тому +2

    You can purchase vti as voo which are identical on the cost and performance the good thing is you buy the dip of the one is more at this moment it might be this time vti an other time voo sorry for my English I hope you understand my point of view I also invest in a ask Australian market on vts which is total us market it is vti it seems it s more performing for some reason I should check on portfolio visualizer. That s in Australian dollars I am from new caledonia

  • @Donkeyearsa
    @Donkeyearsa 7 місяців тому +1

    If someone came up to me and asked me I got this $1mil windfall, how should I invest it?
    My first question would be, how old are you?
    My second question would be, do you own your own home?
    Depending on thoues answers I would ask other questions.

  • @somethingclever1234
    @somethingclever1234 7 місяців тому

    best advice Ive heard in many years

  • @JessCretney
    @JessCretney 5 місяців тому +1

    Hi Rob. Love your videos and the simplicity of investing. I have recently interviewed 3 financial advisors, and while they all provided some great information and a complex investing scheme, I am leaning back to simplifying and going to either the 3 or 6 fund method. I recently retired, so I have money in IRA's (80%) and about 20% in taxed investments. Since I plan to let my IRA grow tax free, and will be drawing on my post-tax investments first, I am thinking I might want to move a big chunk to dividend funds. This would reduce my taxes, since I would be able to keep my gross income low, and would pay 0% tax on dividends.
    Any thoughts on this?

  • @MillennialRescueOrg
    @MillennialRescueOrg 20 днів тому

    Mr. Berger,
    Stocks are great until they are not and a major sell-off occurs of 25%-50%.
    What is your plan on a huge Market drop? Mr. Buffet is in CASH at this time.

  • @borakizilirmak
    @borakizilirmak 6 місяців тому

    very easy for me; 50% laddered interest and individual bonds, 30% SPY buy and hold, 20% SPXL with 20/50 EMA passovers of SPY, and rebalance within absolute bands of 5% representation change..When 20 over 50 it becomes 50/90 portfolio otherwise it becomes 70/30 portfolio.. you are welcome

  • @allanjeong
    @allanjeong 2 роки тому +1

    How would you change the 90:10 portfolio when 30 vs 20 vs 10 vs 1 year away from retirement?
    When looking at the total returns in the S&P500 index from 1927-2020, here are the average, minimum and maximum annualized returns at the end of any 30-year, 20-year, 10-year, and 1-year investment period:
    Ave Min Max
    1 year 12.16 -43.34 53.99
    10 year 12.44 -1.35 23.13
    20 year 12.38 5.65 18.97
    30 year 12.39 9.79 18.44

  • @noyopacific
    @noyopacific Рік тому +4

    The fear of living off the nest egg was a big one! I think mostly because we had always been so frugal in an effort to build it. Five years out and it hasn't been any problem. It's kind of hard to adjust to the fact that we don't need to save for retirement anymore.

    • @Greg_Chase
      @Greg_Chase Рік тому

      There are two surprising anxieties:
      1) spending the saved money
      2) the wearing-off of the novelty of having free time (takes 1-12 months to wear off for most people)
      I retired once in my late 30s and it was disastrous. I've worked ever since. Although I have enough money, it does nothing to solve the anxiety of 'nothing productive needs to be done'
      This is probably the reason many people, including older people in my family who retired, did not live too long.
      To get a feel for what 'endless free time' feels like:
      1) if you went to college, remember after the 5 to 6 week long break in December-January for the holidays how it felt to get back to work
      2) what is the longest vacation you're ever taken - at the end of the vacation did you say "ready to get back to real life" or "this doing nothing productive all day needs to continue"
      There are people who thrive doing absolutely nothing productive all day. But I bet it's a small number of people.
      .

  • @rjb7260
    @rjb7260 Рік тому

    Simple truth - One of the best Investment videos geared towrard retirement I have seen!

  • @jackh1749
    @jackh1749 Рік тому +2

    Thanks, this is exactly what I need at this stage in my retirement!

  • @KryptoKorn
    @KryptoKorn Рік тому

    Great video… at 37 years old I would put 95% in the s&p, 4% BTC, 1% ETH
    If I were say say 57, I would probably be 87% s&p, 10% bonds, 3% BTC/ETH
    I’m currently over allocated in crypto but I have a high risk tolerance and don’t need fiat in the next five years. It’s also, 95% gains so I let it ride

    • @ThePianoMan1953
      @ThePianoMan1953 9 місяців тому

      95% gains? You're now betting with the "houses money" 🙂 You are smart with the 95% in the S&P at your age. You'll be a winner. I'm 70. I have a lot of the houses money too but the rules change a bit when you're my age. I don't want to risk it. Any suggestions?

  • @floxy20
    @floxy20 Рік тому

    Identify the stocks which continually have paid dividends and which have a good record of raising their dividends. Then pick the ones with a high (but not too high) yield. Very high yields is a red flag that the company is in trouble.

  • @cryptoenthusiast4999
    @cryptoenthusiast4999 3 роки тому +2

    I’m sorry. I seem to have missed a video. Where is the link to the “How to get/make/find a million dollars” video?

  • @glendavis1266
    @glendavis1266 2 роки тому +3

    I had a advisor who charged a percentage of assets. However a 1 1/2 later I realized the portfolio was static, nothing changing so why continue to pay the fee? If the portfolio has success that does not mean that the selections were the best! I think the fees are too much.

    • @KpxUrz5745
      @KpxUrz5745 8 місяців тому

      In my opinion, that advisor is a big rip. I'd put my sneakers on and run as fast as I could to get away.

  • @jmc8076
    @jmc8076 Рік тому

    13:47 I did a quick search for interest and he’s not doing that now but it’s still fairly simple.

  • @morganstubie
    @morganstubie 3 роки тому +7

    The was a great, no bs, straightforward video!!! I love his chill style and I’m probably going to binge him over the next few days. Lots of learned knowledge and experience!

  • @johnf.2300
    @johnf.2300 7 місяців тому

    Just a perfect video for simple guy in Vermont. Thank you!

  • @2023Red
    @2023Red 9 місяців тому

    Ok. The remaining issue is withdrawing during retirement. At my age, 75, I do not need any withdrawal due to no debt and positive monthly cash flow. I have no heirs. Your suggestion?

  • @seniorzhang9114
    @seniorzhang9114 5 місяців тому

    Hi Rob, so glad to find you in UA-cam. I have watched three of your videos so far. Whatever you said is so basic, doable, and practical! Thank you!

  • @AliceAnderson-in1et
    @AliceAnderson-in1et 3 місяці тому

    I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 128k in a short period of time .This comment serves as motivation for all those who have invested and continue to invest in cryptocurrencies with so many losses, do not give up, cryptocurrencies can change your life. Do your best to connect with the right people and you will surely see changes.

  • @schabetc
    @schabetc 4 місяці тому

    What is the advantage in "smoothing out volatility" if your cagr is significantly reduced?

  • @dexagalapagos
    @dexagalapagos 2 роки тому +1

    Why not just go with SCHD over VTI/VXUX?

  • @dannyturnpaugh2797
    @dannyturnpaugh2797 3 роки тому +3

    I have a question , is it better to invest in the S&P 500 index mutual fund or in the S&P 500 ETF from the same company?
    In a taxable account.

    • @DavidEVogel
      @DavidEVogel 3 роки тому

      Little difference. Look at the expense ratios.

    • @MistyJohanson
      @MistyJohanson Рік тому

      search up Joseph Sullivan Anderson he is extremely skilled at what he does. He rebuilt my portfolio, and over the following several months, I've made over $110k from an originally $20K.

  • @victorm.perezmora2624
    @victorm.perezmora2624 2 роки тому +1

    On the books recommended, any particular order? ThkU

    • @MistyJohanson
      @MistyJohanson Рік тому

      search up Joseph Sullivan Anderson he is extremely skilled at what he does. He rebuilt my portfolio, and over the following several months, I've made over $110k from an originally $20K.

  • @alsojuja
    @alsojuja 6 місяців тому

    I definitely wouldn't pay someone to help me choose which stocks to buy. My invested wealth is almost entirely in index funds. But I DO think it's important to rely on some outside expertise when your wealth is significant (over $1M), you have many types of assets (house, 401K, stocks, etc.), and/or your life situation is complicated or changing. Tax implications of every decision can be enormous. There may be windows for making certain changes, contributions, or withdrawals. A financial plan is essential.

  • @kartiknit1
    @kartiknit1 6 місяців тому

    This is exactly what I needed to hear. Great video, thank you for simplifying investing for us. You really alleviated the fear around investing
    Question I have is: once we say invest in the 3 fund portfolio: how do we go about rebalancing? I.e
    Do we need to increase the bond, lower the stock closer to retirement? Much appreciated!

  • @bfine1962
    @bfine1962 2 роки тому

    Great video. Exactly my situation now. Just sold my biz and retired. Been a buy and hold investor all my life, a little at a time. Always been very diversified. Now getting info overload on less is more. Of course at the time of this comment 5/2022 the market is correcting. I'm ready to jump in.

  • @43Danc
    @43Danc 3 роки тому +6

    Three fund portfolio might be better suited to the more “hands off” investor, but I tend to like a little more diversification. I just feel better with a bigger spread. Although, too much diversification can lead to a “clunky” inefficient, repetitive and overlapping portfolio. I’ve tried to maintain an optimistic all weather approach. Optimistic, meaning a healthy sense of growth that leans towards equities.

  • @lehighcap
    @lehighcap Рік тому +1

    I have just discovered your channel. So far so good! Time to binge. Watching this video here, it’s a year old. Market is down and projects to go lower. I have 1.2m in IRA and ready to retire. Has your strategy recently changed? I’m currently 15% Index equities, 10% index bond, 75% t-bills. I was 100% equities for many years but now I am fearful of a rigged market. Does your 60-40 strategy still apply into the summer of 2023?

    • @globalinvestor9440
      @globalinvestor9440 Місяць тому

      IRA should be almost risk free. T bonds, CD's, Indexed annuities, these are guaranteed income. Then 5% or less in BTC, gold and dividend stocks.

  • @ZCAR355
    @ZCAR355 3 роки тому +161

    Most people don’t want to be a millionaire, they want to spend a million dollars.

    • @gracieallen8285
      @gracieallen8285 3 роки тому +48

      And people who don’t have a million think it’s a ton of money, but those with a million know it’s not that much money.

    • @Duke_of_Prunes
      @Duke_of_Prunes 3 роки тому +14

      @@gracieallen8285 My wife and I are worth well past $1M, and it's nowhere near enough to retire without day jobs, rental property, or just outright scamming the welfare system.

    • @gracieallen8285
      @gracieallen8285 3 роки тому +4

      @@Duke_of_Prunes you made my point. But I don’t recommend scamming the welfare system

    • @RagnarokCo
      @RagnarokCo 3 роки тому +6

      It's all relative. It is most definitely a lot of money. If you own 1 million dollars you are somewhere in the 80th percentile or higher. So to say you have more money than 80 percent of people and call it "not that much money" is kinda ridiculous to me.

    • @mrdavidoac1238
      @mrdavidoac1238 Рік тому +1

      Oh wow that's a good quote

  • @edwardgent4378
    @edwardgent4378 3 роки тому +1

    Mr Berger I love your ideas I have a question which online broker do you use, I am sorta like the windfall I have $900000 to invest I am also 75 years old I have not read what you would be right for my age in regards to what etfs to invest in since I don't have 20-30 years left to invest do you favor vanguard funds mostly do you buy them from vanguard or some other online broker
    Thanks
    Mike Kelley

  • @robertmeyers3640
    @robertmeyers3640 2 роки тому

    I use the 4 fund portfolio. IVV, VXF,VXUS and either Agg or tlt

  • @perosa99
    @perosa99 Рік тому

    Thanks for the advice. It sounds reasonable from someone who presents himself both smart and down to earth.

  • @CrimsonFox36
    @CrimsonFox36 3 роки тому +3

    First thing i would do is call my bank ans ask if it's legit.
    Then i'd put 30% aside for taxes.
    Finally, id buy a house, and rent it out.

  • @marthas8108
    @marthas8108 Рік тому

    Thanks a million for the great video. It's helping my husband and I communicate as we anticipate a small windfall. One problem we have is finding someone to ask questions of who doesn't want to manage our money for us at 1% or more. Every time we interview someone we get the commissioned broker pitch. Where do we find these hourly advisors? Is there a professional website that lists them? Thanks again!

  • @jackjohnson9349
    @jackjohnson9349 3 роки тому +10

    Great video. However, I think there are two basic types of retirement investor classes. One is for those that need funds from there investments to live on after retirement. The other is for those who have a great pension/retirement plan and are not dependent on their investments so much to keep up their lifestyle. I think these two basic types of investors look at investing completely different. Just my thoughts. Yours is one of the best videos I've seen on you-tube and I subscribed. Thanks Rob.

    • @DavidEVogel
      @DavidEVogel 3 роки тому +4

      Just my thoughts.
      And your thoughts are correct. My pension income ($45000/year) covers all my spending. My investment portfolio is 100% equities. I have no need for fixed-income securities.

  • @emue229
    @emue229 3 роки тому +2

    Dear Sir, Should one invest $1 million right away or over a year or two gradually? Also when the windfall is available, where to park the money first while one figures out the plan where to invest it? Thank you in advance

    • @margaretmarshall3645
      @margaretmarshall3645 2 роки тому +3

      Scroll down in his show notes to find a link near the bottom to his video called something like “Lump Sum Investing vs Dollar Cost Averaging.”

  • @saal2636
    @saal2636 Рік тому +1

    Compared to the SPX, both 3 fund and 6 fund portfolio was a little better in performance until 2018 but after 2018 SPX appeared to be a little better (I looked at the chart on the 3rd week of March 2023). Could you please show comparison charts of these portfolio vs SPY or SPX?

  • @shaneomack5018
    @shaneomack5018 2 місяці тому

    We all have a different opinion on this and here is mine 750k into vym and reinvest the divys.. 250k in spyi and live off the divys. I don’t care what your opinion is. This is what I’d do

  • @EricGunderson-d6n
    @EricGunderson-d6n Місяць тому

    Is this 6 fund portfolio example for a taxable or retirement account?

  • @lw9936
    @lw9936 3 роки тому +3

    @Rob, If you are near or reach age 65, do you think you would change your percentage of investment allocation? or any other adjustment? thanks.

  • @money0436
    @money0436 9 місяців тому

    I am about to invest 1 mil into the index funds. Do i need to keep adding funds on monthly or quarterly basis?

  • @millerdave6
    @millerdave6 Рік тому +1

    Is there a limit to how much you can invest in a brokerage account? Also, related to the topic, how do you set up an IRA to inherit a parent's remaining IRA money.

    • @MistyJohanson
      @MistyJohanson Рік тому

      search up Joseph Sullivan Anderson he is extremely skilled at what he does. He rebuilt my portfolio, and over the following several months, I've made over $110k from an originally $20K.

  • @markg9967
    @markg9967 Рік тому

    Thank you so much for your video's, they are excellent.
    I was wondering if a personal financial advisor is needed if I follow either your 3 or 6 "bucket" portfolio structures and then use a good accountant to advise me on tax related issues?

  • @nissachichester7288
    @nissachichester7288 8 днів тому

    Thank you so much!!

  • @saurabhkumar5246
    @saurabhkumar5246 3 роки тому +2

    TLDR : Invest your windfall the same way you would invest your regular income (index funds and bond ETF's). Professional money management might just eat up that capital in fees. AND DONT SPEND IT ON USELESS LUXURY'S!

  • @RedMoonRising24
    @RedMoonRising24 Місяць тому

    Brilliant Rob; I ❤ this video. Thank you!! 🙏

  • @hraqhraq
    @hraqhraq 3 роки тому +1

    BND is horrible has many dips with one needing 8 years to break even, VXUS is inferior to VTI from historical performance because it has double dips compared to it in the same range and needing 3 years per dip to recover and break even I don't recommend both of them. VTI is the only way to go and maybe VOO but the later is expensive like double the VTI

  • @bth2012
    @bth2012 2 роки тому

    THX, 6-fund investing min 18

  • @davidmccartney6838
    @davidmccartney6838 Рік тому

    What do you think of the covered call funds? Like $JEPI, $JEPQ, both of those are JP Morgan’s and can pay 10 to 12 percent divided and paid monthly? There are Global covered call funds too like $XYLD paying a 12.81%. Yes those options can change though, but covered calls managed by JP Morgan bank seems like a pretty good risk reward for index weighted fund like $JEPI paying over 10%…

  • @LV-ei1ce
    @LV-ei1ce 2 роки тому +1

    When you did lump sum investment how did you handle covid drop? Did you sell ?

  • @rosaoddin4338
    @rosaoddin4338 4 місяці тому

    What is the name of the hourly person you mentioned for financial review?

  • @AdilAnsari-kh2jg
    @AdilAnsari-kh2jg 3 роки тому +2

    This should be particularly relevant today with interest rates where they are today. People can pull equity out of their homes at a bargain price and for 30 years. If you can pull out 100k or more at 3-3.5% via cash out refinance you face this exact problem.

  • @ryanboldt7751
    @ryanboldt7751 Місяць тому

    great insights - simple and effective. just do it

  • @EzraWildes
    @EzraWildes Рік тому

    How diff is that portfolio than just vt?
    Curious what u specifically think about vwo? The past history isn’t great but obviously the past isn’t a great indication but I’ve heard arguments that structurally it’s not good because many of those markets have difficult economies, inflation etc. curious about ur thoughts

  • @Kevin-go1qv
    @Kevin-go1qv 2 роки тому +2

    Man Rob, I really appreciate your videos. You're a good man!

  • @creativeexperience6388
    @creativeexperience6388 5 місяців тому

    My gf just got 2 sums of money first was a little over a mil and second over 3 mil and we just don’t have any idea what to do sir I’m 25 all we know to do is get a good financial advisor. I’ve been poor poor my whole life and now bam we got this and we wanna not blow it and make many millions more

  • @dansteiner898
    @dansteiner898 3 роки тому +2

    What percent should be invested in your house?

    • @inertiaforce7846
      @inertiaforce7846 7 місяців тому

      What percent of what? What percent of net worth is that what you're asking?

  • @ianjackson88
    @ianjackson88 3 роки тому +2

    Very good video. Thoughts on paying off mortgage with lump sum? Eg

  • @geoboggs3897
    @geoboggs3897 2 роки тому

    So, do you invest it all at once or, for eg. In in installments over a year?

  • @Allen-L-Canada
    @Allen-L-Canada 2 роки тому +2

    Rob, may I ask what is your return from your 3 or 6-fund portifoliao over the long term?

  • @garyrhode3755
    @garyrhode3755 11 місяців тому

    Any opinions on putting some in a Annuity or Bank CD's? Like 25 percent.

  • @davidtodd1037
    @davidtodd1037 3 роки тому

    Outstanding honest advice. No b.s like some jokers here on UA-cam who preach "get rich quick" baloney.

  • @desmo8755
    @desmo8755 Рік тому

    Thanks for the video. The psychology can apply to $1000 as well a $1 million. Put $1000 of this week’s paycheck into an investment, and if it loses $200 next week, it’s a $200 loss and feels crappy. The loss may not be “realized” without a sale, but it’s down. But suppose you invested a $1 a month for 20 years, $240 and it grew to $1000. Notwithstanding inflation you’re up $760. If it drops $200 like in the case above, you’re still up $560 and it doesn’t feel like a loss, or as great a loss.

  • @garyd5295
    @garyd5295 Рік тому

    So helpful. This turns away from all of the noise. Much appreciated!

  • @nfoster6835
    @nfoster6835 Місяць тому

    Your videos have helped me so very much! Thank you, lot forward to your sharing more, so very appreciated

  • @bobbrown4069
    @bobbrown4069 6 місяців тому

    Thanks Rob
    I live in the Washington DC area and would love a recommendation on a fee only financial advisor to help my with my portfolio construction/mainentence. Someone who was knowledgeable about ROTH conversion and tax implications would serve me well too. Might you have a recommendation?

  • @edwardgent4378
    @edwardgent4378 2 роки тому

    Mr Berger on your 6 stock portfolio would this work for a taxable account or just for a non taxable act

  • @jagsterr1
    @jagsterr1 Рік тому

    Hi Bob - what can one do if they are 65 still working and selling a rental property. So my window is a lot shorter than someone young who has 1MM to invest. Thank you.

  • @mncbabu
    @mncbabu Рік тому

    Quick question. If we have 3 or 6 index fund 1M portfolio at the time of retirement, how do we withdraw money from IRA or 401k account for monthly expenses? Should we sell stock and bond every month with 4 percent rule?How savvy retirees withdraw money from IRA/401K accounts during retirement?

  • @timotahowhitehawk3756
    @timotahowhitehawk3756 Рік тому

    Great Talk Rob; I was about to make that mistake of hiring Investment managers. BC if felt like a Mill was a big deal to invest. But I have been doing a good job on my $110K and $460K; great insight you have. Thanks for simplifying this for us; and giving us new investment strategies.

  • @acrobizer1238
    @acrobizer1238 2 місяці тому

    I’m what you may call a “Sitting Bull” at 55 an a 100% index allocation.
    Rob, you mention you are uncomfortable having such an allocation and my view is if we as humans are living way longer than ever in history, is there a case for this (assuming we are working longer as well)?

  • @andersmartinson1750
    @andersmartinson1750 3 роки тому

    You may not be inclined (or even allowed) to provide tax advice, but it occurs to me that (if you're not working) one way to "invest" a windfall (if you don't qualify for Medicare) is to put a (few) year's expenses in a checking account and live with no taxable income in the subsequent year(s). Doing so allows you take advantage of Obamacare subsidies to help with insurance costs. That can turn into a cost savings of thousands of dollars on your insurance bill. (If you are eligible for Medicare, you can't use ACA subsidies.)
    It's arguably unfair that high net worth but low income tax payers can enjoy the same or better subsidies as people living paycheck to paycheck, but as long as we're under the current system, it seems like an important consideration. I'm how you see taxes figuring into managing a windfall.

  • @janethunt4037
    @janethunt4037 Рік тому

    Thank you for this, and especially for sharing what you are personally doing.

  • @LuboMirtchev
    @LuboMirtchev Рік тому

    Rob, do you benchmark periodically your portfolio, to S&P500 or the 'Buffet portfolio'?