Hey Eric. No problem. Thank YOU for watching and for being a supportive member of the channel. It's been a fun ride so far. I can't wait to see what these videos looks like in 5 years from now.
Jeff, your spreadsheets are great for seeing how to maintain the correct percentage of each etf. We will buy the lowest cost in relation to the other etfs within our portfolio. The second benefit is we can watch over time as the growth of the portfolio continues and to what amount we can expect as the years go on. I know investing isn't perfectly linear but projections based of historical data is a good place to start. Updating the projections annually will give us motivation to continue and make slight adjustments. Thanks so much for being a good teacher, inspiration and helping us stay focused on our long term goals.
Hey Roy. I don't even know if I'm the teacher after reading this. Couldn't have said it better myself (: It will be fun to see where we are in 5 or 10 years from now. This crazy compound effect 'feels fake' because it is so powerful. I zoom out even now and think 'HOW!?!?, I didn't even do anything special'. It's just staying the course over many years and the rest takes care of itself (assuming a balanced portfolio mix with solid target allocations). I'm playing the long game with this stuff. I appreciate you support of the channel!
This was a timing issue. There was one bad week that I recorded this video. But it took another week and change to release, which followed some great weeks. I need to add dates (:
keep pumping out those financial informational video Jeff!!!! with the fed rate drop, the $73k portfolio drop will be back by Christmas time.... we already know that.... good time to DCA if you see any good values....
Thanks Kevin. Will do, and oh man you nailed it. I hit an all time high 2 weeks later. This stuff is wild, lol. Staying the course for the long road ahead!
ThanX Jeff... Looking good - even with he drop..... Just keep swimming as some may say.... A couple more months before I put the peddle to the medal after I pay a condo off...... Need to build up the income angle of my portfolio..... Only really have sCHD, DGRO and JEPQ for my income but I do have some individuals which include growers like COST, LLY, V and some old salty's like JNJ, PEP, PG, ABBV, HSY, CVX - middle of the road stock dividends..... Thanks again for your hard work and efforts and your valuable presentations each week. Love seeing and learning from your video drops each Sunday of if were lucky, and extra midweek.... Another month and you'll be sitting in those sweet season tix seats...... Please take care and be well & stay safe..... Let's Go and Lets GROW......
Thanks Lance! I appreciate your continued support as a channel member. You have been a pillar in the community for the channel. You have awesome holdings from what I see there. Great ETFs (my absolute favorites for dividend / cash flow) and very solid individual stocks as well. That paid off condo will be such a nice bonus. That much more money to deploy into the market (or other aspects of life) for you. I love how this stuff snowballs. I can't wait to see some Blazer games this year. Granted, my hopes aren't high as far as expected results... But, I hope to witness our future talent growing together. Maybe in a few years we'll get a few more wins rolling in.
I'm glad you nailed the reference! Oh man, NBA Jam was a big part of my childhood, lol. Loved that game so much. Would play it all the time. My mom and I still say some of the sayings from it to this day when we are joking around in conversation.
Hey John. Thank you for watching and for leaving a comment. I like to make retirement portfolio videos on the channel from time to time. It's hard to get specific because there is no one size fits all portfolio. I will continue to make more videos like this moving forward. Stay tuned.
Thank you for watching! I will be making a HODL specific video in the near future with some more details. Haven't ironed out the format, but I want to make it a quarterly thing.
It was crazy. Makes me wonder if there are more rocky roads ahead. Either way, I'll be staying the course (: Hit an all time high a couple weeks later, which is crazy to think. The one way to lose for sure is to panic sell when the crashes happen.
Hey Tony. I hadn't seen this news yet! Thanks for sharing. I did see the dividend is the biggest in Q3 history for SCHD at 75 cents per share. You bet I'll be making a video on that. I'll include my thoughts about the split as well. Although it doesn't matter from a value perspective, I always slightly prefer the lower price per share, personally. Especially as a person with OCD that doesn't like to buy fractional shares or use DRIP, lol. This will help me have less leftover money to move around to savings and money markets. As far as the impact, I would say either zero overall or slightly positive. I know that investors like splits in general over the years for a variety of reasons. I think it makes investing feel more accessible, even though fractional shares technically do that anyway (if the broker has the feature).
Hey Ivan. That is a great question! I think growth ETFs are better, and I'm speaking very broadly here, if an investor has many years (even decades) ahead of them to dollar cost average into the market before needing cash-flow in retirement. Dividend ETFs are (generally) better for folks in retirement that need consistent cash flow. I do think that most investors at all stages should have some growth and value/dividend ETFs to balance things out. Set up a system and buy to the target allocations to keep things in balance. For me personally, I am torn between liking growth and dividend ETFs better. It is why I have half of each in my portfolio (: I don't think there is one right away to do it, but balance will go a long way 'long-term' in all markets.
Thank you for watching and for the question. I think all 5 of those ETFs are great. You have a nice cornerstone with SPLG, dividend ETF with SCHD, and 3 quality growth ETFs in QQQM, VGT, and SMH. I like that QQQM has you covered on multi-sector growth, VGT is pure tech, and SMH is niche tech.
I'm 32 years old, after some calculations, by the time i want to retire from the canadian military ill be 58 years old and how much im saving per month, ill only be able to have 1 million after 25 years of investing ( 25 years of investing 1500 a month @ 5 percent interest annually to include inflation ). really wished i started investing when i was younger. I just got out of debt this year and managed to put aside a decent amount of money to start investing, but i feel like i'll always be behind since i don't have a house. i'm renting military housing and plan to do so until i retire and build my dream home, but that means that most ( hopefully not ) of my money will go towards my home and will only have a bit left for retirement. i'll have a 70% pension if i retire at 58, but i will forever be mad at my younger self for not being more frugal with my money at first. Big respect to whoever understands the value on saving/investing your money at a younger age, and how it can make your older self enjoy a better retirement.
Thank you for watching and for sharing your details. I think you'll be very happy with your results over that long stretch of time. Figuring this stuff out at 32 years old is VERY early. I completely understand the sentiment, as I was in a similar boat. We all wish we started earlier (: I think your assumptions are conversative for long-term, buy and hold investing. Anything can happen short term, but I'm fairly comfortable in the belief you will do better than your projections over 'most' stretches of 26 years. Using 7% instead of 5%, you would be at 2.2M after 26 years. The last 100 years has returned just over 10%. The last 50 years over 11%. Way higher in the past decade. We could have a lost decade in there, but that technically will help your net worth if you are DCA in all along. The market finds all time highs long-term. Just never sell and stay the course. Plus, now that you're into this stuff, I bet you'll put in more than $1,500 eventually.
Hey Jeff, I'm hoping to retire at the end of the year. Have some money (about 100K) in CDs about ready to mature and wondering if it would be a good idea to buy some JEPQ (or JEPI) for income in retirement rather than lock in ~4% for CDs for next 4-5 years? I have other money in my bucket 1 (HYSAs, money market) for next few years, but this would be money that would otherwise be for longer term needs (like bucket 2 needs). Have heard some other YT creators (e.g., Rob Berger) say they would not recommend these type of cover call ETFs in any situation. Sounds like it works for you in your situation of supplementing income at this time. Thanks!
Hey Greg. Thanks for watching and for the great question. I think Rob is great, and he's a smart guy. I watch most of his stuff and have read his book. One of the good ones. If you're looking for long-term cash flow, I would recommend SCHD over JEPQ and bonds. It has increased its dividends by 11% per year over the past 10 years. This means it doubles the per share dividend payment every 6.5 shares. Yield on cost is all that matters long-term. Yield is only relevant the day you make a purchase. SCHD has had the share price go up about 3x, and the dividend per share about 3x, therefore the 'yield' is always about the same. But the actual payments and value are wildly higher over long-stretches of time. But like most of this stuff, there is no one size fits all. What is best for me might not make any sense at all for someone else. To answer directly, if you need more cash NOW, and don't care about the value of the holding at any one point in time, JEPQ is awesome.
@@JeffTeeples Thanks so much for the reply Jeff! This makes a lot of sense. The more I learn about SCHD, the more I like it. I am planning to use it as a bit of a hedge in retirement, as opposed to bonds, plus it just has some sound fundamentals in its own right. For JEPQ, it may be a good fit for my cash needs as I bridge the gap until 59 1/2.
Hey Jeff: As I check out your impressive portfolio, I notice at 73 yrs you could accumulate about 22M. Have you considered converting some of your Pre-Tax retirement account funds into a Roth to avoid a larger tax bill because of 4% Required Minimum Distributions (RMDs)?
Hey Tommy. I appreciate the kind words. Building the portfolio from a rough starting point in life has been a wonderful journey. I think my wife (mainly) and I (already kind of did) will retire well before we get to 22M (: My ball park plan is to have her retire (or at least be able to if she chooses) at $3 million (if my channel is doing solid) or $4 million (if this channel never contributes much). At that point (and likely before, in the very near future) we will make Roth conversions from the 401k. I will put together a ladder for this. I think I'm going to release a video about it because I've been asked a few times about 'early retirement strategies'. I 'may' do a 72(t) style withdrawal plan, but I'll at least do Roth conversions no matter what. It depends on a few things (I'll explain more in the video).
Hey Ronney. I like to keep cash at around 10% historically. I like to make it a target allocation in my portfolio so that the comparative dip buying is put on autopilot. I don't trust my gut to time the market, but it is nice to put more money in than the normal DCA when it is low. If the market crashes, I become cash heavy, and then buy it back down to 10%. If the market goes up, I feed cash new dollars to get it back up to 10%. I am a little lighter on cash now because I've been leaning into my 'greedy cash-flow' more and more (JEPQ). Besides having an emergency fund, I don't see anything wrong being anywhere from 5% to 25% cash, depending on the situation.
Any stock or ETF is fine in a Roth IRA. Things that pay non-qualified dividends are probably the best in a Roth if you're specifically referring to Roth vs taxable. But nothing is 'bad' in a Roth. If you're asking for specific tickers I can't help you there. I don't 'recommend' any individual stocks.
What are your thoughts of a closed ended ETF fund like UTF? I understand the Infrastructure type investment's but it seems like it would take a few years to make returns. It has a pretty high expense ratio. Can you create a video explaining closed ended funds? Thanks!
Thanks for watching and for the question. I'm not a huge fan of CEFs in general compared to ETFs. Any expense ratio about 0.50% is way too high for my liking, so UTF at 2.29% is pretty ridiculous for me to consider. I don't know the fund well to be clear, but I can confirm that the performance on total returns has been very low compared to my other favorite ETFs of all types (threw it up on seeking alpha just now). It would take an unreal level of 'beating the market' to even break even when down 229 basis points at all times. I prefer JEPQ (for similar yield) or SCHD (for better growth) by quite a large margin. I don't know if I'm the best person to make a video on CEF since I don't like or use them very often. Although I may consider one that breaks down the core differences compared to ETFs and Mutual Funds.
Hey Kevin. There is a fee and it is pretty darn steep honestly. $360 per year. I did it for this channel, and I tried to get an affiliate link but they never responded. I wanted to save my viewers money if possible. I wish the tool was free. As far as being behind, it is never too late! That's the beauty. Yeah, I'm sure you didn't do things perfectly, BUT, starting now puts you ahead of a very high % of people. You got this!
@Kevinw4040 Hey Kevin, you. An use some basic features of Portfolio Visualizer. I use it to backtest up to 10 years ago without paying any fees. In most cases, 10 years of back data is enough to decide what etfs and in what percentage will give you the results that best suit your needs. I'm 57 and didn't start until I was 47. Time is always limited, but you can do amazing things with the 15 yrs you have until Social Security starts. ✌️
Ultimately the best holdings for tax deferred accounts are the ones that will likely grow the most over long periods of time. I like QQQM and VGT in my tax protected accounts and SCHD in my taxable. But a lot of it depends on where the need is. For example, I have JEPQ in my taxable because I need cash now. It would be better in a tax deferred account because of the ordinary dividends, but I need access.
I think it was the growth holdings as juicyfruit mentioned below. This video released a bit late and I had just experienced an incredible week in the market when it dropped. I hit all time highs actually as of Friday.
Yeah, this was a me being a little late thing. The market had an amazing turnaround, but it was the week(s) after this one dropped. I just hit an all time high this Friday (:
In retirement how much of your overall investable assets should you allocate to the 3 fund portfolio? Should there be a percentage beyond dividend ETF like SCHD invested for so that in market corrections you have enough assets to address your retirement expenses? Where would you invest those funds? We are always strategizing about the accumulation phase but the end goal is to have enough each year of your retirement life
Hey Felice. This is a difficult question that won't have a right answer that works for every person. For me, if I had enough SCHD to pay the bills in retirement, I would be perfectly fine to allocate 100% to it. If it dips by 10 to 20% on value, that is fine with me. I know the dividends growth each and every year. But again, this is just from my perspective.
Hey Steve. I think that move makes sense if you're in the 37% tax bracket. I've never used it personally, but based on the 7 day yield of 3.58% I think it would be better than VMFXX in your case.
The largest 1 day drop in my 2M portfolio was $55K - gotta have nerves of steel to weather that kind of drop. I’ve also never experienced a 2 day gain higher than $35K
@@NOTurbuisness-r5q That one day drop was mostly in my brokerage with NVDA accounting for 1/2 of the drop I think at the time it was something like 3.5% drop in my total portfolio
@@NOTurbuisness-r5q but yes you’re right . The % drop is what matters but when you tell your friends that you lost the equivalent of a down payment on a modest home in CA in one day , they all say OUCH
This is true. Dividends are the nice bonus that accumulates more shares to help the numbers when the inevitable all time high decides to show up again.
M1 Finance helps this automation process so well with automatically buying the dip. Set up weekly deposits and forget it, so i can get on with my day to day life without worrying about the stock market gyrations and noise 😁
Always appreciate your portfolio updates! 👍💰💰💰💰💰💰💰
Thanks Jed. I appreciate you taking the time to watch the videos.
Thanks!
Thank you Brianna! You are too kind. I hope all is well (:
Yay, Teeps Sunday! Great video Jeff, and thanks for the shout out. :-)
Hey Eric. No problem. Thank YOU for watching and for being a supportive member of the channel. It's been a fun ride so far. I can't wait to see what these videos looks like in 5 years from now.
Great update. Thanks for your insight. Slow and boring is a money maker.
Hey Chad. Thank you for watching and for the positive feedback. I appreciate it.
Jeff, your spreadsheets are great for seeing how to maintain the correct percentage of each etf. We will buy the lowest cost in relation to the other etfs within our portfolio. The second benefit is we can watch over time as the growth of the portfolio continues and to what amount we can expect as the years go on. I know investing isn't perfectly linear but projections based of historical data is a good place to start. Updating the projections annually will give us motivation to continue and make slight adjustments. Thanks so much for being a good teacher, inspiration and helping us stay focused on our long term goals.
Hey Roy. I don't even know if I'm the teacher after reading this. Couldn't have said it better myself (:
It will be fun to see where we are in 5 or 10 years from now. This crazy compound effect 'feels fake' because it is so powerful. I zoom out even now and think 'HOW!?!?, I didn't even do anything special'. It's just staying the course over many years and the rest takes care of itself (assuming a balanced portfolio mix with solid target allocations).
I'm playing the long game with this stuff. I appreciate you support of the channel!
My VOO, VGT, and SCHD all went up. 🎉
That’s what I was thinking how did anyone lose money last week ?
This was a timing issue. There was one bad week that I recorded this video. But it took another week and change to release, which followed some great weeks. I need to add dates (:
Hey Austin. It was a recording vs release timing issue. I recently hit an ATH on my last update. I need to be better about point out the dates.
Valuable and interesting video as always!!
Thank you for taking the time to watch and for leaving a comment. I appreciate it.
keep pumping out those financial informational video Jeff!!!! with the fed rate drop, the $73k portfolio drop will be back by Christmas time.... we already know that.... good time to DCA if you see any good values....
Thanks Kevin. Will do, and oh man you nailed it. I hit an all time high 2 weeks later. This stuff is wild, lol. Staying the course for the long road ahead!
ThanX Jeff... Looking good - even with he drop..... Just keep swimming as some may say.... A couple more months before I put the peddle to the medal after I pay a condo off...... Need to build up the income angle of my portfolio..... Only really have sCHD, DGRO and JEPQ for my income but I do have some individuals which include growers like COST, LLY, V and some old salty's like JNJ, PEP, PG, ABBV, HSY, CVX - middle of the road stock dividends..... Thanks again for your hard work and efforts and your valuable presentations each week. Love seeing and learning from your video drops each Sunday of if were lucky, and extra midweek.... Another month and you'll be sitting in those sweet season tix seats...... Please take care and be well & stay safe..... Let's Go and Lets GROW......
Thanks Lance! I appreciate your continued support as a channel member. You have been a pillar in the community for the channel.
You have awesome holdings from what I see there. Great ETFs (my absolute favorites for dividend / cash flow) and very solid individual stocks as well. That paid off condo will be such a nice bonus. That much more money to deploy into the market (or other aspects of life) for you. I love how this stuff snowballs.
I can't wait to see some Blazer games this year. Granted, my hopes aren't high as far as expected results... But, I hope to witness our future talent growing together. Maybe in a few years we'll get a few more wins rolling in.
You mentioned a portfolio balance of $3M. Would like to see a video on what your portfolio may look like when you reach that value. Thanks.
This is a great video idea. I need to figure out how to make it happen. Thanks!
Underrated NBA Jam reference!!
I'm glad you nailed the reference! Oh man, NBA Jam was a big part of my childhood, lol. Loved that game so much. Would play it all the time. My mom and I still say some of the sayings from it to this day when we are joking around in conversation.
Pretty sure that bonus was from me. It cleared on my side late in August!! Woohoo it worked
Thanks Anthony! I appreciate it. I hope you enjoy M1 as much as I do. It is the ultimate take a nap and stick to the target allocation platform (:
Please do a suggested portfolio for someone who is about to retire or recently retired.
Would love to see a video like this too! 😁
Hey John. Thank you for watching and for leaving a comment. I like to make retirement portfolio videos on the channel from time to time. It's hard to get specific because there is no one size fits all portfolio. I will continue to make more videos like this moving forward. Stay tuned.
Hey Greg. Will be putting a few of these videos out in the coming months. Thanks!
Hows your thought on SCHB & SPLG 5 years similar to VTI VOO
Thank you
I like SCHB and SPLG quite a bit. I think they are more or less interchangeable with VOO and VTI.
Thanks for sharing your HODL holdings. TPL is one I have not looked into before, but it looks intriguing.
Thank you for watching! I will be making a HODL specific video in the near future with some more details. Haven't ironed out the format, but I want to make it a quarterly thing.
That 1st week of September was a tough one!
It was crazy. Makes me wonder if there are more rocky roads ahead. Either way, I'll be staying the course (: Hit an all time high a couple weeks later, which is crazy to think. The one way to lose for sure is to panic sell when the crashes happen.
@@JeffTeeples And Jeff, I took a 90k hit, but came back plus.
Absolutely, never panic, I don’t count on that money, it makes life easier .
Thanks for the portfolio updates! So! I saw that SCHD is going to have a 3 for 1 stock split? What are your thoughts on this?
Hey Tony. I hadn't seen this news yet! Thanks for sharing. I did see the dividend is the biggest in Q3 history for SCHD at 75 cents per share. You bet I'll be making a video on that.
I'll include my thoughts about the split as well. Although it doesn't matter from a value perspective, I always slightly prefer the lower price per share, personally. Especially as a person with OCD that doesn't like to buy fractional shares or use DRIP, lol. This will help me have less leftover money to move around to savings and money markets.
As far as the impact, I would say either zero overall or slightly positive. I know that investors like splits in general over the years for a variety of reasons. I think it makes investing feel more accessible, even though fractional shares technically do that anyway (if the broker has the feature).
Thank you for the video. Is it better invest in growth ETF instead of Dividend ETF if you don’t need the cash??
Hey Ivan. That is a great question! I think growth ETFs are better, and I'm speaking very broadly here, if an investor has many years (even decades) ahead of them to dollar cost average into the market before needing cash-flow in retirement. Dividend ETFs are (generally) better for folks in retirement that need consistent cash flow.
I do think that most investors at all stages should have some growth and value/dividend ETFs to balance things out. Set up a system and buy to the target allocations to keep things in balance.
For me personally, I am torn between liking growth and dividend ETFs better. It is why I have half of each in my portfolio (: I don't think there is one right away to do it, but balance will go a long way 'long-term' in all markets.
@@JeffTeeplesThank you so much for your great answer! I am 49yo and I still think that your way to invest is the most appropriate for me too!!
Hello Jeff. I want my portfolio to focus on growth. What are your thoughts on a this 5 etf portfolio idea SPLG, SCHD QQQM, VGT, and SMH?
Thank you for watching and for the question. I think all 5 of those ETFs are great. You have a nice cornerstone with SPLG, dividend ETF with SCHD, and 3 quality growth ETFs in QQQM, VGT, and SMH. I like that QQQM has you covered on multi-sector growth, VGT is pure tech, and SMH is niche tech.
I'm 32 years old, after some calculations, by the time i want to retire from the canadian military ill be 58 years old and how much im saving per month, ill only be able to have 1 million after 25 years of investing ( 25 years of investing 1500 a month @ 5 percent interest annually to include inflation ). really wished i started investing when i was younger. I just got out of debt this year and managed to put aside a decent amount of money to start investing, but i feel like i'll always be behind since i don't have a house. i'm renting military housing and plan to do so until i retire and build my dream home, but that means that most ( hopefully not ) of my money will go towards my home and will only have a bit left for retirement. i'll have a 70% pension if i retire at 58, but i will forever be mad at my younger self for not being more frugal with my money at first. Big respect to whoever understands the value on saving/investing your money at a younger age, and how it can make your older self enjoy a better retirement.
Thank you for watching and for sharing your details. I think you'll be very happy with your results over that long stretch of time. Figuring this stuff out at 32 years old is VERY early. I completely understand the sentiment, as I was in a similar boat. We all wish we started earlier (:
I think your assumptions are conversative for long-term, buy and hold investing. Anything can happen short term, but I'm fairly comfortable in the belief you will do better than your projections over 'most' stretches of 26 years.
Using 7% instead of 5%, you would be at 2.2M after 26 years.
The last 100 years has returned just over 10%. The last 50 years over 11%. Way higher in the past decade. We could have a lost decade in there, but that technically will help your net worth if you are DCA in all along. The market finds all time highs long-term. Just never sell and stay the course.
Plus, now that you're into this stuff, I bet you'll put in more than $1,500 eventually.
I can't wait to see what your schd payment is this month 😂
Hey Jeremy. You and me both. It's like Christmas morning! Hey, us nerds can have nice things too! (:
I follow the Bogleheads portfolio and my system is similar except with bonds (some are ultra short bonds and behave like cash).
Thanks for watching and commenting. Nothing wrong with the good ole Boglehead 3-fund. Jack Bogle was awesome.
Hey Jeff, I'm hoping to retire at the end of the year. Have some money (about 100K) in CDs about ready to mature and wondering if it would be a good idea to buy some JEPQ (or JEPI) for income in retirement rather than lock in ~4% for CDs for next 4-5 years? I have other money in my bucket 1 (HYSAs, money market) for next few years, but this would be money that would otherwise be for longer term needs (like bucket 2 needs). Have heard some other YT creators (e.g., Rob Berger) say they would not recommend these type of cover call ETFs in any situation. Sounds like it works for you in your situation of supplementing income at this time. Thanks!
Hey Greg. Thanks for watching and for the great question. I think Rob is great, and he's a smart guy. I watch most of his stuff and have read his book. One of the good ones.
If you're looking for long-term cash flow, I would recommend SCHD over JEPQ and bonds. It has increased its dividends by 11% per year over the past 10 years. This means it doubles the per share dividend payment every 6.5 shares. Yield on cost is all that matters long-term. Yield is only relevant the day you make a purchase. SCHD has had the share price go up about 3x, and the dividend per share about 3x, therefore the 'yield' is always about the same. But the actual payments and value are wildly higher over long-stretches of time.
But like most of this stuff, there is no one size fits all. What is best for me might not make any sense at all for someone else.
To answer directly, if you need more cash NOW, and don't care about the value of the holding at any one point in time, JEPQ is awesome.
@@JeffTeeples Thanks so much for the reply Jeff! This makes a lot of sense. The more I learn about SCHD, the more I like it. I am planning to use it as a bit of a hedge in retirement, as opposed to bonds, plus it just has some sound fundamentals in its own right. For JEPQ, it may be a good fit for my cash needs as I bridge the gap until 59 1/2.
Hey Jeff: As I check out your impressive portfolio, I notice at 73 yrs you could accumulate about 22M. Have you considered converting some of your Pre-Tax retirement account funds into a Roth to avoid a larger tax bill because of 4% Required Minimum Distributions (RMDs)?
Hey Tommy. I appreciate the kind words. Building the portfolio from a rough starting point in life has been a wonderful journey.
I think my wife (mainly) and I (already kind of did) will retire well before we get to 22M (: My ball park plan is to have her retire (or at least be able to if she chooses) at $3 million (if my channel is doing solid) or $4 million (if this channel never contributes much).
At that point (and likely before, in the very near future) we will make Roth conversions from the 401k. I will put together a ladder for this. I think I'm going to release a video about it because I've been asked a few times about 'early retirement strategies'. I 'may' do a 72(t) style withdrawal plan, but I'll at least do Roth conversions no matter what. It depends on a few things (I'll explain more in the video).
Quick question Jeff why do you hold such a huge position in cash isn’t 100k overkill?
Hey Ronney. I like to keep cash at around 10% historically. I like to make it a target allocation in my portfolio so that the comparative dip buying is put on autopilot. I don't trust my gut to time the market, but it is nice to put more money in than the normal DCA when it is low.
If the market crashes, I become cash heavy, and then buy it back down to 10%. If the market goes up, I feed cash new dollars to get it back up to 10%.
I am a little lighter on cash now because I've been leaning into my 'greedy cash-flow' more and more (JEPQ).
Besides having an emergency fund, I don't see anything wrong being anywhere from 5% to 25% cash, depending on the situation.
@@JeffTeeples wow I never thought about this it is crazy.
what stocks should be on a ROTH IRA if you are over 50yrs old?
Any stock or ETF is fine in a Roth IRA. Things that pay non-qualified dividends are probably the best in a Roth if you're specifically referring to Roth vs taxable. But nothing is 'bad' in a Roth.
If you're asking for specific tickers I can't help you there. I don't 'recommend' any individual stocks.
What are your thoughts of a closed ended ETF fund like UTF? I understand the Infrastructure type investment's but it seems like it would take a few years to make returns. It has a pretty high expense ratio. Can you create a video explaining closed ended funds? Thanks!
Thanks for watching and for the question. I'm not a huge fan of CEFs in general compared to ETFs. Any expense ratio about 0.50% is way too high for my liking, so UTF at 2.29% is pretty ridiculous for me to consider. I don't know the fund well to be clear, but I can confirm that the performance on total returns has been very low compared to my other favorite ETFs of all types (threw it up on seeking alpha just now). It would take an unreal level of 'beating the market' to even break even when down 229 basis points at all times.
I prefer JEPQ (for similar yield) or SCHD (for better growth) by quite a large margin. I don't know if I'm the best person to make a video on CEF since I don't like or use them very often. Although I may consider one that breaks down the core differences compared to ETFs and Mutual Funds.
Is there a fee to use Portfolio visualizer? I feel so behind at 53 compared to you at 42. Wish I knew what I know now in my 20s.
Hey Kevin. There is a fee and it is pretty darn steep honestly. $360 per year. I did it for this channel, and I tried to get an affiliate link but they never responded. I wanted to save my viewers money if possible. I wish the tool was free.
As far as being behind, it is never too late! That's the beauty. Yeah, I'm sure you didn't do things perfectly, BUT, starting now puts you ahead of a very high % of people. You got this!
@Kevinw4040 Hey Kevin, you. An use some basic features of Portfolio Visualizer. I use it to backtest up to 10 years ago without paying any fees. In most cases, 10 years of back data is enough to decide what etfs and in what percentage will give you the results that best suit your needs. I'm 57 and didn't start until I was 47. Time is always limited, but you can do amazing things with the 15 yrs you have until Social Security starts. ✌️
Shouldn’t all Growth and individual stocks be in your Taxable
Dividends and income/and Bond ETFs be in your Tax deferred?
Ultimately the best holdings for tax deferred accounts are the ones that will likely grow the most over long periods of time. I like QQQM and VGT in my tax protected accounts and SCHD in my taxable.
But a lot of it depends on where the need is. For example, I have JEPQ in my taxable because I need cash now. It would be better in a tax deferred account because of the ordinary dividends, but I need access.
What stock killed you last week?
Wondering the same, I have mostly the same funds and still up this week.
@@AJGiliberti2His weekly portfolio total spreadsheet with his loss was the week ending on 9/6. Vgt lost 8%, along with losses in VOO, so there you go
I think it was the growth holdings as juicyfruit mentioned below. This video released a bit late and I had just experienced an incredible week in the market when it dropped. I hit all time highs actually as of Friday.
Yeah, this was a me being a little late thing. The market had an amazing turnaround, but it was the week(s) after this one dropped. I just hit an all time high this Friday (:
Those were the culprits. Ouch! lol. But at least the bounce back has been nice.
In retirement how much of your overall investable assets should you allocate to the 3 fund portfolio? Should there be a percentage beyond dividend ETF like SCHD invested for so that in market corrections you have enough assets to address your retirement expenses? Where would you invest those funds? We are always strategizing about the accumulation phase but the end goal is to have enough each year of your retirement life
Because even SCHD will go down in a market correction
Hey Felice. This is a difficult question that won't have a right answer that works for every person.
For me, if I had enough SCHD to pay the bills in retirement, I would be perfectly fine to allocate 100% to it. If it dips by 10 to 20% on value, that is fine with me. I know the dividends growth each and every year. But again, this is just from my perspective.
Yeah, this is true. I still think SCHD is a superior 'bond', to actual bonds, for long-term cash flow.
Hi Jeff, For my readily available cash, I am thinking of moving my funds from VMFXX to VMSXX since I am in the highest tax bracket. What do you think?
Hey Steve. I think that move makes sense if you're in the 37% tax bracket. I've never used it personally, but based on the 7 day yield of 3.58% I think it would be better than VMFXX in your case.
@@JeffTeeples or VUSXX, which has an even better yield. Thank you for your response
The largest 1 day drop in my 2M portfolio was $55K - gotta have nerves of steel to weather that kind of drop. I’ve also never experienced a 2 day gain higher than $35K
If my portfolio drops 2.5% in a day. I’m fine. I don’t care if it’s 55grand or 50 bucks.
That is quite the drop in 1 day. I think my largest single day is in the mid 40ks. Staying the course had it bouncing right back though (:
Yeah, the numbers have gotten bigger over the years, but I've learned to watch the %'s to get a little peace of mind (:
@@NOTurbuisness-r5q
That one day drop was mostly in my brokerage with NVDA accounting for 1/2 of the drop
I think at the time it was something like 3.5% drop in my total portfolio
@@NOTurbuisness-r5q but yes you’re right . The % drop is what matters but when you tell your friends that you lost the equivalent of a down payment on a modest home in CA in one day , they all say OUCH
You probably should be mentioning the date your talking about.
This is a great point. I will try to remember to do that on these videos.
You haven’t lost anything until you sell, stick to the plan!
Haven’t gained anything either.
@@daveycrocker4466checks dividend payout sheet …. You sure about that? This strategy actually is all about passive income without selling your shares…
Amen. Love this comment. Thanks!
True...ish. But as AJ mentioned, the dividends are a nice little bonus between waiting for all time highs on prices (:
This is true. Dividends are the nice bonus that accumulates more shares to help the numbers when the inevitable all time high decides to show up again.
M1 Finance helps this automation process so well with automatically buying the dip. Set up weekly deposits and forget it, so i can get on with my day to day life without worrying about the stock market gyrations and noise 😁
This is very true. It is the best for hands off, long-term target allocation investing by a mile.