Most of my $2m portfolio is in (20% Index funds, 20% CD's 30% Bonds/T-bills and other assets) but I want to explore different strategies for better growth with the current market, just here for ideas
Isn't VOO and VUG similar in the sense both are investing in the S&P 500? What is the difference? I thought it is generally advised against to invest in multiple ETFs or Mutual Funds?
Risk mitigation is indeed something to consider well before setting out on investments. Most often than not, CFAs take care of this perfectly. People downplay the role of CFAs until being burnt by their own instincts. I was in a similar situation a few years ago; Took my chances but stocks went crashing. Realizing I wasn't good at timing the market, I started working with an Adviser, which helped me build a $1.6m portfolio.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
I sometimes use my ETFs to buy dividend and growth stocks for diversification instead of reinvesting in the same place. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!
Hearing from an experienced investor who has survived the crisis and prospered is always comforting. It could be worrisome when your portfolio goes from green to red, but if you have invested in strong firms, you should just keep growing them and stick to your goal.
I’m a contractor, and my job doesn’t permit me the time to properly analyze my holdings/evaluate stocks myself, so I’ve had a fiduciary actively restructuring my portfolio for the past 7 years now to match the present market condition and that’s how I’ve been able to stay afloat, knowing when to buy and sell…
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘‘Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or when ever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income
When I started investing last year, I avoided significant mistakes. I've focused on investing modest sums in stable businesses for the long term. If stocks perform well, I hold onto them; otherwise, I reinvest losses into profits. Recently, I made $9.5k from a $4k investment in NVIDIA.
The market is not necessarily a rollercoaster if you know your way around the market, there are various opportunities in the present market to accrue good profit, If you are not too savvy with the market, just buy and hold on strong companies with good earnings, or consult with advisors on ETFs and actively managed funds. that’s what works for my spouse and I. We've made over 30% capital growth minus dividends.
Rebecca Nassar Dunne has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
My portfolio for the past 30 years has always been self managed and I own 3 shares of Berkshire Hathaway Class A stock (BRK:A) which I bought in at about $17,000 during the mid 90s, I’m currently liquidating some of these positions to incorporate new Gen. Stocks, but am I better off re-investing into Gold as it seems stocks are a little too unstable right now.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Nancy Magaret Delony for about five years now, and her performance has been consistently impressive. She is quite known in her field, look-her up.
Yeah, that's some loyalty to fans right there! Most of these UA-cam people act like they're too good to interact with their followers or read their comments. She's one of those rare good ones.
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Cheers for the Video clip! Apologies for chiming in, I would love your thoughts. Have you thought about - Rozardner Flying Bird Reality (Sure I saw it on Google)? It is a great one of a kind product for learning a simple option trading secret to win big without the hard work. Ive heard some great things about it and my close friend Aubrey at very last got amazing success with it.
Lovely Video clip! Sorry for chiming in, I would love your thoughts. Have you considered - Rozardner Flying Bird Reality (probably on Google)? It is a good one off guide for learning a simple option trading secret to win big without the hard work. Ive heard some interesting things about it and my work buddy at very last got cool success with it.
@Shivu anir there COULD be more in depth info, BUT -- the REAL TRUTH-- you--- YES you- and NO ONE else WOULD benefit --- SIGNIFICANTLY from it ( I did say --- significantly!!) so, there is NO FINANCIAL EDGE in MORE "STUFF"!
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Cheers for the Video! Sorry for the intrusion, I am interested in your opinion. Have you tried - Rozardner Flying Bird Reality (do a google search)? It is a great one of a kind guide for learning a simple option trading secret to win big without the headache. Ive heard some pretty good things about it and my BF got astronomical success with it.
I am 48 and I am completely ignorant of stock market and investments, my ignorance on the matter makes me believe there is always a catch and not invest, this video is my first of many that I am planning to watch to educate myself and start investing for my family’s future 🙏🙏🙏
I'm 48 too and trying to figure this out. Did you go with the Vanguard S&P500 index she mentioned? I'm thinking about doing that but ouch....$3000 to get in.
She is great and very smart. But the reason for the quick speak is because of the trade this field is in high frequency, quick price action and volatile chart reading which sharpens your brain and makes processing and outputting information quicker over all.
@@isoSw1fty investments like the ones she’s talking about are not short term. I highly doubt anybody talks like that simply to teach your brain to work faster.
Mutual Funds (MF's): 1. Convenience - a bundle of different stocks in one purchase - 01:22 2. Diversification - minimize risk - 02:00 3. Professional fund managers - Active Mgt ~ expertise to select comes w/ 1-2% fees - 02:33 Index Funds (IF's:) - 04:00 - They are a type of MF's, but passively managed, replicating S&P 500 index behavior, then, minimum fees. Transactions (buy and/or sell) ONLY once a day. IF's offer Automatic Reinvestment - added feature w/o fees to automate a frequent purchase - 08:18 Exchanged Traded Funds (ETF's): Can be purchased as often as desired,; each transaction has fees. No Automatic Reinvestment for ETF's - 06:29
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.
Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
“Angela Lynn Schilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you! Someone who finally clearly explained the different between ETFs and Index funds! Could never understand why someone would pick one over the other as a long term investor! Thanks.
I'm so impressed how clearly and concisely you explained all this, THANK YOU. I was always so confused by how these terms were being used and googling just took me down rabbit holes that made things even more confusing.
Rather of relying on penny stocks, I wish to diversify my assets by investing in ETFs/index funds/mutual funds and stocks of corporations with stable cash flows. I received 350k from the selling of my El-Paso property. What should I do?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my portfolio has grown by 25% every quarter since Q3 2020.
*Marissa Lynn Babula* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.
This totally answered an IMPORTANT question that I didn’t even know to ask. Thank you for cutting to the bare essentials and equipping us with answers we didn’t even know we needed!
but a minimum of $3k is required to invest in an index fund. an ETF has no minimum deposit. This is a really huge point that a beginner would need to know, i feel like this video has missed out a few really important things to consider, especially for beginners.
Omg girl you explain this so well!!!!! You’re AMAZING!!! I’ve watched countless videos and no one is so clear and concise the way you are!! I appreciate this so much
For me, the main benefit of ETFs over index funds is the lower barrier to entry. Most index funds have a higher minimum investment than their ETF equivalent.
True for Vangard's but SWPPX has a $1min. and FXAIX is $0. Also, if you don't what to buy a whole share of say FXAIX, you are welcome to buy fraction: 0.1 share is about 15 bucks! ETFs also cost a bit more than funds, for example SPY's expense of 0.09% is 6 times that of FXAIX at 0.015. That extra cost is no big deal for small holdings though but the point is that liquidity has a cost as well as a value. SPI and VOO are great for holding cash in the broad market, waiting for a business that you want to go on sale.
Sebastien Beauboeuf Thank you so much!!! That really makes me happy to hear because I spend a lot time thinking about HOW to explain things without making people’s eyes glaze over. So glad it makes sense!!
Some of this information is outdated, in regard to ETFs, don't know if she knows but robo advisor apps like Acorns only invest your money in ETFs (all 5 portfolios they offer) and they reinvest your dividends as well. 🤷🏻♂️ It does cost $12/year but if you have at least $3000 in the account the dollar per month expense isn't so bad. Especially since it's a dollar a month up to your first million dollars.
You have the ability to break down complex ideas to simple elements - I think it's a gift. You are probably fulfilling your life's mission, or at least a major aspect of it.
ETFs offer exposure to a wide range of assets, such as stocks, bonds, or commodities, which can help reduce risk. ETFs, like broad market index, sector-specific, and bond ETFs, are favored for long-term investments because of their diversification, reducing risk while offering growth and income potential.
A collapse of margin debts leads to a decrease in stock prices and it triggers a ripple effect on selling of stocks as investors will try to cover their losses.
Thank you for the nice and understandable explanation. I'm a new investor and wanted to buy mostly ETFs for their high dividend yields and mostly stable market price. But knowing you can invest in index funds with recurring automatic payments without having to pay commission fees seems really interesting. I will definitely look into index funds more
This video is a little outdated actually as Robinhood actually offers recurring investments in to ETF's for 0.0% trading fees. As long as you can control impulse buys, this freedom is currently the best option. If you haven't used Robinhood before, lmk and I can give you a referral code that gives you a little bonus when you set up your account. If not though, have a great day!
I've been watching UA-cam vids all day learning about investing and trading, and this was the easiest to understand. I love your teaching style. Example? "All index funds are mutual funds, but not all mutual funds are index funds." Boom! A light went on! And of course the entire video was extremely helpful. A sincere Thank You!!
All thanks to funds_hack on instagram that dudes got me $5000 on my cashapp account you can also message him via whatsapp +1 442 900 1012. He has been a great helper to me and my family.
It is not true though. An ETF can be an index fund, e.g. VTI. From Wikipedia: "An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments."
Great beginner info, exactly the comparison i was looking for. There's a lot of videos trying to explain this, with a bunch of terms that beginners have no idea how to interpret, but this makes it a lot easier for me to understand. Thanks a lot!
The advantage of ETF's over traditional Index Funds is liquidity. There have been times when fund managers have suspended withdrawals because they do not have the immediate cash to pay out the investment. At least with an ETF you can sell it whenever the market is open. You may have to sell it at a lower price but at least you can sell it immediately.
Hi Rose:) I just want you to know that among everyone on UA-cam I choose you to follow and learn from your UA-cam videos. You are so genuine and I really like your way of explaining. I am a completely beginner and I really want to start investing to create a better and safer financial future for me. So I thank you in advance and can't wait to look all your videos. Thank you for sharing your knowledge with us, I am so grateful for you!
no shit, i needed to learn eft very badly and when i saw this video i was like why should i invest 10 mins while i can see 3-4 minutes of video for etfs, but after watching it was truly worth of my time. thanks a lot!
I randomly found this vid while researching on employee stock option...don't even know how it showed up. As a former financial advisor and former finance tutor, I have to say I love your videi explaining the fundamental characteristics between ETFS and Index funds: very articulate and very easy to comprehend. Keep up the good work!
Knowing that you went to finance school and still didn’t learn any of this. Like, omg?? Makes me feel better having gone to art school and lost the first 5 years having zero investing knowledge. Thanks Rose!
I got my degree in accounting and took several finance and economics classes. These classes definitely taught what she said in this video. If she didn't learn this with a finance degree, she probably wasn't listening in school or went to a bad school. My guess is she probably did learn this in school, but didn't grasp it until later.
Life Yang Awesome! Lol info for dummies, that’s exactly what I want my channel to be. Fun fact: the first investing I ever read (in my teens) was called “Investing for Dummies”!
Hi Rose, thanks for the the simple explanation. However, you missed one of the most important benefit of ETF over Mutual Funds. And that is control over when tax liability in incurred. As a share holder of Mutual fund, we have tax liability whenever the fund trade its holdings even when we retain our holdings. On the other hand, we ONLY incur tax liability with ETF's when we sell, giving us control of timing of the tax liability, like we have with individual stocks. This can be quite valuable if you wish to defer taxes for years in a taxable account.
Don't stocks in both mutual funds and ETFs pay dividends, so you still pay taxes annually on dividends? You just don't have "capital gain distributions" on ETFs?
With the ETF though, do you still get the Capital Gain? For example I hold Vanguard Long Term Investment Grade Bond as an alternative to cash savings, chasing that 3% dividend versus pathetic savings/CDs. The capital gains each year are also significant but I figure hey, LT cap gains tax is better than income tax (I am in 32+% bracket). Am I doing something wrong?
A few more points Rose neglected to mention. You can also stop out of an ETF in the middle of a session if everything goes South. I remember what it was like riding my 401 mutual funds all the way to the bottom in 2009. Had I been in ETFs I would have stopped out near the top and had all of that additional capital to invest on the way back up. Also, most Mutual funds have a legal requirement to be mostly invested at any point. This means they can't just sit around in cash when that is the right thing to do. With ETFs, I can go to cash quickly and stay there as long as I need to.
@@lukemurphy9831 & Joe B, Yes you're both right. For ETF's, taxes on dividends are incurred as they are distributed, but Capital gains & loses are incurred when we sell the securities. I tend to buy leveraged ETF's such as TQQQ, TECL & ERX, where dividends are often fairly small when compared on potential Capital gains (or losses).
Omg! THANK YOU SO MUCH FOR THIS! This has cleared everything up so much! And you were not the first video I saw! Only now do I really understand! You’re explanations are short and full of info I can comprehend! You’re energy makes me want to learn more! I have been trying to learn more about investing in the last year but always feels overwhelming! Thanks for putting some of the anxiety at ease and making me excited to learn from you now that I have found you! I will be sharing you with my friends!
You are literally the best. I am a single mother and this is so motivating. Thank you for giving me a clear understanding. Will also be showing this to my teen - we are learning together. All the best and keep shining your Light! Thank you.
"Go after your dreams unapologetically." I love that quote. My family didnt want me to work in the media when I made my career choice in high school. Now that I'm working in television, I have followed my dreams unapologetically. Thanks for the great advice, Rose!
This is amazing! I'm 20 years old and currently majoring in Marketing but I'm so interested in finance and investment. Your videos are teaching me so much about investing my money etc, thanks!
Thanks for your feedback, don't forget to hit the subscribe button. Reach out for enlightenment, tips and guide, I have the best investment plan for you ✉️. .
Thanks for the info. Was trying to discern the difference between mutual and index funds for a while now, but your video clarified it in a comprehensive way. Great video.
Excellent explanation of the differences. I am a 71 year old who spends his time swing trading energy related stock on European and US markets. I often wondered about the differences in the type of funds and, even though I don't deal in them (my bank handles those) I was really impressed with this presentation. Thank you.
How much risk you are willing to take in the financial market is the key to building a portfolio that will meet your needs, but you can’t just assess this once.
Many of us would love to manage our own investments, but it can be overwhelming to know where to begin. Do we use stocks, bonds, futures, commodities, or real estate? Should we go long, buy on margin, short a stock, or put everything into crypto?
THANK YOU!! You're the first one to explain the difference between these three in a way I can understand. My bank lacks so much transparency that I'm not even sure if my money is on an index fund or a mutual fund, or an ETF 🙄
Despite some research, I was pretty confused between the different type of funds but now I have a crystal clear picture of how each fund is different. Love the content! 🎉
Just subscribed, thank you for explaining this in layman's term....I am 23 going 24 this year, I have watched a bunch of videos so nowi feel more empowered starting the fire movement journey for early retirement
Thank you so much for showing Vanguard's page and mentioning that index funds are still a type of mutual fund. I'm investing for the first time and was looking for the option to buy index funds but only saw options for mutual funds and ETFs. I was familiar with Jack Bogle being the creator of the index fund so knew I was missing something - if anyone offered index funds it would be Vanguard. Subscribed. Love your precision and depth.
Hello Rose ,I am new here ,I just opened a Roth IRA account in vanguard and I would like to know how can Buy an S $ P 500 index fund and how I can set up an automatic deposit and invest the dividends also,if you could tell me the steps to follow so as to do that it would be great,thanks in advance.
@@williamcuellarmanso5640 1-I think you just go ahead to find the symbol for that Fund, then place the order to buy it. 2-Reinvest the dividend, I think it will be a standard feature for this type of fund. It will automatically reinvest the dividend. 3-Automatic deposit: you need to add a bank account to your Roth IRA account, then set up an auto deposit for the money from your bank account go to your Roth IRA account.
Thank you so much Rose! You totally helped me out to make my investment. I was going to buy Mutual Funds because of Dave Ramsey, but it looks like I am going the Index Fund route. Thanks again!
ETFs offer lower fees. That's the reason why I chose VOO over VFIAX. And since basically all brokerages now offer free trades, ETFs are even more appealing. Oh, and you just gained a new subscriber 😉
Free Trade for Americans, not for non-Americans unfortunately. But purchasing 1 ETF is cheaper than purchasing 50 (or more) individual stocks that try to mimic the market in a similar manner. I also feel that mutual funds are quite a rip off to be honest. They always promise huge returns, but fail to beat the market. So, if you can't beat them, why not join them? :P
@@verynick What is the Vanguard Brokerage dividend reinvestment program? This no-fee, no-commission reinvestment program allows you to reinvest dividend and/or capital gains distributions from any or all eligible stocks, closed-end mutual funds, exchange-traded funds (ETFs), FundAccess® funds, or Vanguard mutual funds in your Vanguard Brokerage Account in additional shares of the same securities. investor.vanguard.com/investing/brokerage-dividend-reinvestment. My Vanguard S&P 500 Index ETF (VOO) allows dividend reinvestment.
@@verynick A lot of ETFs do reinvest or pay out dividend. However they usually also charge a small fee. Nowadays almost all companies buyback stocks, so dividends are the last thing I'm worried about to be honest. Only bad performing stocks tend to pay out a lot of dividend. But even just looking at buybacks is kinda useless data, you have to look at the whole picture. And attempt to predict the future.
I just looked at a video with a guy explaining this exact same thing and I was confused. After watching this I feel very educated and ready to learn more. Bravo 👏🏾
I'm 70 and retired, I have $302k in a bank savings account making nearly nothing in interest. I’d like to put it in a HYSA (5%) or should i put a portion in index funds? I have $400k in an annuity. How do i maximize all this to make gains this year?
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I agree. Based on personal experience working with a financįal advlsor, I currently have $2 million in a well-diversified portfolìo that has experienced exponential growth from when i started. It's not only about having money to invest in stõcks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
She goes by ‘’Jessica Annabelle Rupp’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Thank you for sharing, I must say, Jessica appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled a call
Or people who trade commission-free, which is more and more common. I pay zero fees to trade in my Roth IRA, and can even buy fractional shares. So I wait for dips in the strongest stock in popular ETFs and place a few trades per month. No fees, no commissions
...to be clear, I gave the video a like because it was a very good, clear intro to these three investment options. I just think the logic falls down when you factor in free trading
Gosh I haven't felt this dumb since trying to learn algebra back in school, LOL. Thank you for information , I had no idea. Hope to see more of your content.
I love u, u just brought me out of understanding of all three funds I was so confused, been watching lots of video and coundt understand the diff and here you came and made my life easy.
You can set up a DRIP (dividend reinvestment plan) with your brokerage to replicate the automatic investment feature of mutual funds, and you won't pay commissions if you're using an ETF with no transaction fees (check your brokerage, differs between brokers). Also, while I agree with the comment about emotions and gambling tendencies, the video doesn't consider the structural tax efficiencies that come with ETFs, which might be a reason to hold an ETF instead of a mutual fund. Talk to your investment professional for more information.
My dad has been developing ETFs for 20 years but I still have no idea how it all works. He isn’t the best teacher and these videos help me understand his work a lot better. Thanks!
@@DerpishDerp i am not. I would say im a privileged white guy but i have my own car payment and all that which i work for. I have scholarships to pay for college. But I would say my parents have more money than the average people.
@Slippery Storm See investor.vanguard.com/investing/taxes/investment-income . Taxation depends on where the ETF is held. Within IRA (or 401(k)) tax deferred (e.g., Traditional IRA) or tax free (Roth). See also investor.vanguard.com/investing/taxes/dividends. Within taxable (non-IRA) account, yes, one would pay tax on dividends.
I've heard that index funds and ETFs provide diversified stock market exposure while spreading risk. I have over $800K in savings; What's the most effective strategy to allocate funds in my portfolio and generate profits?
Yes, there are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Hahaha agreed I sent her videos to my grandson and niece just like I send them missbehelpful videos too both young ladies are great ua-cam.com/video/_4cOJ9J7phc/v-deo.html
Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as the Stock, EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE
Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.
You're absolutely right! With my financial advisor's guidance, I diversified my $400K portfolio across various markets. Despite the downturn, I’ve managed to generate over $1.2 million in net profit through a mix of high-dividend yield stocks, ETFs, and bonds.
Ughhhh! I'm only 1:42 in and I'm now comprehending all this. Thank you for making it extremely EASY to understand. All the videos I've watched do not simplify it for those who want to get into investing.
i tried reading articles and watching videos but felt dumber every time about the differences. this was the only video that ACTUALLY explained it to me. YOU ARE A GEM.
I'm not sure if I agree with you. I have all three, and I definitely have a higher amount of returns on etfs, almost 9%, which is higher than the 6% or 7% of the other two
Great video! I was a big ETF fan before this so thanks for sharing the downside of treating it's holdings like a short term play instead of holding long term. I'll definitely consider more index funds going forward
As Matt Viverette said a year ago, a DRIP application can be submitted to your broker to auto-reinvest dividends from an ETF. You can choose 'ALL', which will apply to all your securities now and in the future, or you can choose "specify" which means you specify which securities will have dividends re-invested. This latter optionm means that any future securities with dividends will NOT be re-invested and will require another DRIP application.
Most of my $2m portfolio is in (20% Index funds, 20% CD's 30% Bonds/T-bills and other assets) but I want to explore different strategies for better growth with the current market, just here for ideas
Isn't VOO and VUG similar in the sense both are investing in the S&P 500? What is the difference? I thought it is generally advised against to invest in multiple ETFs or Mutual Funds?
Risk mitigation is indeed something to consider well before setting out on investments. Most often than not, CFAs take care of this perfectly. People downplay the role of CFAs until being burnt by their own instincts. I was in a similar situation a few years ago; Took my chances but stocks went crashing. Realizing I wasn't good at timing the market, I started working with an Adviser, which helped me build a $1.6m portfolio.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
My CFA “Diana Casteel Lynch” a renowned figure in her line of work. I recommend researching her credentials further.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I sometimes use my ETFs to buy dividend and growth stocks for diversification instead of reinvesting in the same place. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!
Hearing from an experienced investor who has survived the crisis and prospered is always comforting. It could be worrisome when your portfolio goes from green to red, but if you have invested in strong firms, you should just keep growing them and stick to your goal.
I’m a contractor, and my job doesn’t permit me the time to properly analyze my holdings/evaluate stocks myself, so I’ve had a fiduciary actively restructuring my portfolio for the past 7 years now to match the present market condition and that’s how I’ve been able to stay afloat, knowing when to buy and sell…
Impressive can you share more info?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘‘Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or when ever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income
When I started investing last year, I avoided significant mistakes. I've focused on investing modest sums in stable businesses for the long term. If stocks perform well, I hold onto them; otherwise, I reinvest losses into profits. Recently, I made $9.5k from a $4k investment in NVIDIA.
The market is not necessarily a rollercoaster if you know your way around the market, there are various opportunities in the present market to accrue good profit, If you are not too savvy with the market, just buy and hold on strong companies with good earnings, or consult with advisors on ETFs and actively managed funds. that’s what works for my spouse and I. We've made over 30% capital growth minus dividends.
Could you kindly elaborate on the advisor's background and qualifications?
Rebecca Nassar Dunne has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
My portfolio for the past 30 years has always been self managed and I own 3 shares of Berkshire Hathaway Class A stock (BRK:A) which I bought in at about $17,000 during the mid 90s, I’m currently liquidating some of these positions to incorporate new Gen. Stocks, but am I better off re-investing into Gold as it seems stocks are a little too unstable right now.
Invest in real estate, ETFs and high-yield savings account.
Yes just buy Gold and protect your assets, the stock market is a rollercoaster.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Nancy Magaret Delony for about five years now, and her performance has been consistently impressive. She is quite known in her field, look-her up.
A year has passed and she still hearts comments. Freaking legend.
I dont think u have to pay trading commison on vanguard etfs
Great explanation. This is the reason!
@@investingwlthrose9280 lmao ur a fake don't trust her or he it's a fake click on her channel and no content or subscribers
Yeah, that's some loyalty to fans right there! Most of these UA-cam people act like they're too good to interact with their followers or read their comments. She's one of those rare good ones.
There must be an automatic software lol
finally someone explains it like i'm in middle school, needed that
@Shivu anir Yeah so that's why she explains like that
Lovely Video clip! Forgive me for chiming in, I am interested in your opinion. Have you heard about - Rozardner Flying Bird Reality (should be on google have a look)? It is a good one of a kind guide for learning a simple option trading secret to win big without the headache. Ive heard some amazing things about it and my m8 at very last got astronomical results with it.
Cheers for the Video clip! Apologies for chiming in, I would love your thoughts. Have you thought about - Rozardner Flying Bird Reality (Sure I saw it on Google)? It is a great one of a kind product for learning a simple option trading secret to win big without the hard work. Ive heard some great things about it and my close friend Aubrey at very last got amazing success with it.
Lovely Video clip! Sorry for chiming in, I would love your thoughts. Have you considered - Rozardner Flying Bird Reality (probably on Google)? It is a good one off guide for learning a simple option trading secret to win big without the hard work. Ive heard some interesting things about it and my work buddy at very last got cool success with it.
@Shivu anir there COULD be more in depth info, BUT -- the REAL TRUTH-- you--- YES you- and NO ONE else
WOULD benefit --- SIGNIFICANTLY from it ( I did say --- significantly!!) so, there is NO FINANCIAL EDGE in MORE "STUFF"!
I love how she get to the point... no fluff in the beginning
Nice Video! Excuse me for butting in, I am interested in your opinion. Have you tried - Rozardner Mind Tricks Reality (Have a quick look on google cant remember the place now)? It is a good one of a kind guide for revealing the trick to get the mind of a millionaire without the hard work. Ive heard some great things about it and my buddy at very last got astronomical success with it.
Cheers for the Video! Sorry for the intrusion, I am interested in your opinion. Have you tried - Rozardner Flying Bird Reality (do a google search)? It is a great one of a kind guide for learning a simple option trading secret to win big without the headache. Ive heard some pretty good things about it and my BF got astronomical success with it.
I hate fluff
I am 48 and I am completely ignorant of stock market and investments, my ignorance on the matter makes me believe there is always a catch and not invest, this video is my first of many that I am planning to watch to educate myself and start investing for my family’s future 🙏🙏🙏
I'm 48 too and trying to figure this out. Did you go with the Vanguard S&P500 index she mentioned? I'm thinking about doing that but ouch....$3000 to get in.
yes, finally someone that explains things without sounding like they have a train to catch
😅😆
😂😂😂
She is great and very smart. But the reason for the quick speak is because of the trade this field is in high frequency, quick price action and volatile chart reading which sharpens your brain and makes processing and outputting information quicker over all.
Or run over by one.
@@isoSw1fty investments like the ones she’s talking about are not short term. I highly doubt anybody talks like that simply to teach your brain to work faster.
Rose literally explained it the best way possible out of all the videos I watched
I’m thinking putting money in INDEX FUNDS WHAT ABOUT YOU
@@josedorantes67 same !!
Rase here😂
Mutual Funds (MF's):
1. Convenience - a bundle of different stocks in one purchase - 01:22
2. Diversification - minimize risk - 02:00
3. Professional fund managers - Active Mgt ~ expertise to select comes w/ 1-2% fees - 02:33
Index Funds (IF's:) - 04:00 - They are a type of MF's, but passively managed, replicating S&P 500 index behavior, then, minimum fees. Transactions (buy and/or sell) ONLY once a day.
IF's offer Automatic Reinvestment - added feature w/o fees to automate a frequent purchase - 08:18
Exchanged Traded Funds (ETF's): Can be purchased as often as desired,; each transaction has fees. No Automatic Reinvestment for ETF's - 06:29
You’re a hero
@@focusgroupachievers3876 Agh, I did check it out, but it was so low volume and slow that I couldn't stay and follow it, so downvoted it
Wonderful!l 👏
Genuine top comment!
@Osaka Seafood Concern ETFs can be bought with fractional shares. It depends on which trading platform people use.
@Osaka Seafood Concern You can buy partial shares of ETFs through a lot of different brokers like Robinhood and Fidelity.
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.
Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
Could you kindly elaborate on the advisor's background and qualifications?
“Angela Lynn Schilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
You would imagine how long it took to find a video that simplified it enough for everyone to understand
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I feel a whole lot smarter after watching this. thank you!
I've watched so many videos on this and you're the first who was clear and easy to understand. Thanks.
Thank you! Someone who finally clearly explained the different between ETFs and Index funds! Could never understand why someone would pick one over the other as a long term investor! Thanks.
This was so clear and concise for complete beginners who are intimidated by the complexities of the stock market. Thanks so much for all you do!
Would it be wise to invest in multiple index funds?
Agreed, very clear and concise. Also incomplete and incorrect in some non-trivial aspects.
"All index funds are mutual funds" this is wrong an index fund can be a mutual fund or an ETF
You explained this in 9mins when there are entire textbooks and full day workshops that cover it and you still get lost. Thank you
Yeah, information overload is a real thing - especially in the world of investing!
I'm so impressed how clearly and concisely you explained all this, THANK YOU. I was always so confused by how these terms were being used and googling just took me down rabbit holes that made things even more confusing.
@Investing with rose i can tell you are a scam account. Anyone reading this please ignore this person and report them!
same with me
Rather of relying on penny stocks, I wish to diversify my assets by investing in ETFs/index funds/mutual funds and stocks of corporations with stable cash flows. I received 350k from the selling of my El-Paso property. What should I do?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my portfolio has grown by 25% every quarter since Q3 2020.
@A_francis That's impressive ! I could really use the expertise of these advisors.
*Marissa Lynn Babula* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
This totally answered an IMPORTANT question that I didn’t even know to ask. Thank you for cutting to the bare essentials and equipping us with answers we didn’t even know we needed!
but a minimum of $3k is required to invest in an index fund. an ETF has no minimum deposit. This is a really huge point that a beginner would need to know, i feel like this video has missed out a few really important things to consider, especially for beginners.
Was just about to say this haha. Somebody new to investment isn't likely to have $3k to shell out.
This is a HUGE thing to mention, especially in a video like this where most of us are starting from rock bottom.
Omg girl you explain this so well!!!!! You’re AMAZING!!! I’ve watched countless videos and no one is so clear and concise the way you are!! I appreciate this so much
Your explanation is 1000% clearly and more useful than all the collect lectures I have learned in my finance degree! 😂😅
😂😂😂
I searched "etf vs mutual funds" and this video ranks the top, congrats!
Incredible simplified breakdown on this topic. This is the best explanation I’ve seen on these types of investments. Great job!
Thanks Praxis!!! Glad I could be of help :) You have an awesome name btw
Wow, I'm new to investments and you broke the whole thing into such simple words, easy to understand. I hope other UA-camrs learn from you.
For me, the main benefit of ETFs over index funds is the lower barrier to entry. Most index funds have a higher minimum investment than their ETF equivalent.
True for Vangard's but SWPPX has a $1min. and FXAIX is $0. Also, if you don't what to buy a whole share of say FXAIX, you are welcome to buy fraction: 0.1 share is about 15 bucks! ETFs also cost a bit more than funds, for example SPY's expense of 0.09% is 6 times that of FXAIX at 0.015. That extra cost is no big deal for small holdings though but the point is that liquidity has a cost as well as a value. SPI and VOO are great for holding cash in the broad market, waiting for a business that you want to go on sale.
Not to mention the tax differences, eft your in control of your own tax obligations
@@jojo-eb1ib can you elaborate on this? How are you in control of your own tax obligationsm
You did a really great job explaining the differences and made it really simple for anyone to understand these concepts. Also love your energy!
Sebastien Beauboeuf Thank you so much!!! That really makes me happy to hear because I spend a lot time thinking about HOW to explain things without making people’s eyes glaze over. So glad it makes sense!!
@@itsrosehan do you get capital gains from index funds as you do for mutual funds.
Some of this information is outdated, in regard to ETFs, don't know if she knows but robo advisor apps like Acorns only invest your money in ETFs (all 5 portfolios they offer) and they reinvest your dividends as well. 🤷🏻♂️ It does cost $12/year but if you have at least $3000 in the account the dollar per month expense isn't so bad. Especially since it's a dollar a month up to your first million dollars.
Yes agree awesome energy and she reminds me so much of missbehelpful videos too with her channel ua-cam.com/video/_4cOJ9J7phc/v-deo.html
simp
I’m seriously a noob to investing, but I just learned so much from you. Thank you greatly.
You're very welcome :)
Lots of good info in this one.
You have the ability to break down complex ideas to simple elements - I think it's a gift. You are probably fulfilling your life's mission, or at least a major aspect of it.
ETFs offer exposure to a wide range of assets, such as stocks, bonds, or commodities, which can help reduce risk. ETFs, like broad market index, sector-specific, and bond ETFs, are favored for long-term investments because of their diversification, reducing risk while offering growth and income potential.
A collapse of margin debts leads to a decrease in stock prices and it triggers a ripple effect on selling of stocks as investors will try to cover their losses.
Thank you for the nice and understandable explanation. I'm a new investor and wanted to buy mostly ETFs for their high dividend yields and mostly stable market price. But knowing you can invest in index funds with recurring automatic payments without having to pay commission fees seems really interesting. I will definitely look into index funds more
This video is a little outdated actually as Robinhood actually offers recurring investments in to ETF's for 0.0% trading fees. As long as you can control impulse buys, this freedom is currently the best option. If you haven't used Robinhood before, lmk and I can give you a referral code that gives you a little bonus when you set up your account. If not though, have a great day!
I've been watching UA-cam vids all day learning about investing and trading, and this was the easiest to understand. I love your teaching style. Example? "All index funds are mutual funds, but not all mutual funds are index funds." Boom! A light went on! And of course the entire video was extremely helpful. A sincere Thank You!!
All thanks to funds_hack on instagram that dudes got me $5000 on my cashapp account you can also message him via whatsapp +1 442 900 1012. He has been a great helper to me and my family.
It is not true though. An ETF can be an index fund, e.g. VTI. From Wikipedia: "An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments."
Great beginner info, exactly the comparison i was looking for. There's a lot of videos trying to explain this, with a bunch of terms that beginners have no idea how to interpret, but this makes it a lot easier for me to understand. Thanks a lot!
Thank you Rose I took the plunge two years ago now I'm with Fidelity investments and I'm doing great thank you!!👍🏼
These three different funds confused the heck out of me until I watched your video. Thank you. Thank you. Thank you.
@Investing With Rose ok spammer! 👌
The advantage of ETF's over traditional Index Funds is liquidity. There have been times when fund managers have suspended withdrawals because they do not have the immediate cash to pay out the investment. At least with an ETF you can sell it whenever the market is open. You may have to sell it at a lower price but at least you can sell it immediately.
When exactly has an index fund suspended withdrawals?
Hi Rose:) I just want you to know that among everyone on UA-cam I choose you to follow and learn from your UA-cam videos. You are so genuine and I really like your way of explaining. I am a completely beginner and I really want to start investing to create a better and safer financial future for me. So I thank you in advance and can't wait to look all your videos. Thank you for sharing your knowledge with us, I am so grateful for you!
no shit, i needed to learn eft very badly and when i saw this video i was like why should i invest 10 mins while i can see 3-4 minutes of video for etfs, but after watching it was truly worth of my time. thanks a lot!
Wow.... that's the type of video I was looking for... So, clear and easy to understand, not jumping to strange terms. I loved and just subscribed.
I randomly found this vid while researching on employee stock option...don't even know how it showed up. As a former financial advisor and former finance tutor, I have to say I love your videi explaining the fundamental characteristics between ETFS and Index funds: very articulate and very easy to comprehend. Keep up the good work!
Wow one of the best explanation I’ve heard. Keep it up!
That is such a huge compliment! Thank you!
Best explanations ever!
Knowing that you went to finance school and still didn’t learn any of this. Like, omg?? Makes me feel better having gone to art school and lost the first 5 years having zero investing knowledge. Thanks Rose!
School absolutely does not teach any of this.
hahaha same here ! but Engineering school! :P
@@sidb9540 Civil engineer here lmao, tryna prep for my future
I got my degree in accounting and took several finance and economics classes. These classes definitely taught what she said in this video. If she didn't learn this with a finance degree, she probably wasn't listening in school or went to a bad school. My guess is she probably did learn this in school, but didn't grasp it until later.
I was already leaning towards index funds, but with how perfectly broken down this was, I'm definitely going that way with my investing.
I am the type that I need "info for dummies." This video was awesome!
Life Yang Awesome! Lol info for dummies, that’s exactly what I want my channel to be. Fun fact: the first investing I ever read (in my teens) was called “Investing for Dummies”!
Honestly, I think it is "the dummies" that do not ask the questions and pursue the answers.
same here.
@@NewHampshireJack Asking questions is an important part of pursuing answers though.
I love your videos! Easy to understand and very helpful
Both the explanation and you were lovely, cheers!
Hi Rose, thanks for the the simple explanation. However, you missed one of the most important benefit of ETF over Mutual Funds. And that is control over when tax liability in incurred. As a share holder of Mutual fund, we have tax liability whenever the fund trade its holdings even when we retain our holdings. On the other hand, we ONLY incur tax liability with ETF's when we sell, giving us control of timing of the tax liability, like we have with individual stocks. This can be quite valuable if you wish to defer taxes for years in a taxable account.
Don't stocks in both mutual funds and ETFs pay dividends, so you still pay taxes annually on dividends? You just don't have "capital gain distributions" on ETFs?
@@joeb1522 Yes, no capital gain distributions on ETF's. Dividends treated the same for both.
With the ETF though, do you still get the Capital Gain? For example I hold Vanguard Long Term Investment Grade Bond as an alternative to cash savings, chasing that 3% dividend versus pathetic savings/CDs. The capital gains each year are also significant but I figure hey, LT cap gains tax is better than income tax (I am in 32+% bracket). Am I doing something wrong?
A few more points Rose neglected to mention. You can also stop out of an ETF in the middle of a session if everything goes South. I remember what it was like riding my 401 mutual funds all the way to the bottom in 2009. Had I been in ETFs I would have stopped out near the top and had all of that additional capital to invest on the way back up. Also, most Mutual funds have a legal requirement to be mostly invested at any point. This means they can't just sit around in cash when that is the right thing to do. With ETFs, I can go to cash quickly and stay there as long as I need to.
@@lukemurphy9831 & Joe B, Yes you're both right. For ETF's, taxes on dividends are incurred as they are distributed, but Capital gains & loses are incurred when we sell the securities. I tend to buy leveraged ETF's such as TQQQ, TECL & ERX, where dividends are often fairly small when compared on potential Capital gains (or losses).
Best explanation of these 3 on youtube. Thank you!
Omg! THANK YOU SO MUCH FOR THIS! This has cleared everything up so much! And you were not the first video I saw! Only now do I really understand! You’re explanations are short and full of info I can comprehend! You’re energy makes me want to learn more! I have been trying to learn more about investing in the last year but always feels overwhelming! Thanks for putting some of the anxiety at ease and making me excited to learn from you now that I have found you! I will be sharing you with my friends!
You are literally the best. I am a single mother and this is so motivating. Thank you for giving me a clear understanding. Will also be showing this to my teen - we are learning together. All the best and keep shining your Light! Thank you.
"Go after your dreams unapologetically." I love that quote. My family didnt want me to work in the media when I made my career choice in high school. Now that I'm working in television, I have followed my dreams unapologetically. Thanks for the great advice, Rose!
This is amazing! I'm 20 years old and currently majoring in Marketing but I'm so interested in finance and investment. Your videos are teaching me so much about investing my money etc, thanks!
I started a bit skeptical with this video, but ended up enlightened after watching ur video. Thank u
From skeptical to enlightened. Lol I love it
Wow the way she explains things is so clear and easy to understand.
Thanks for your feedback, don't forget to hit the subscribe button. Reach out for enlightenment, tips and guide, I have the best investment plan for you ✉️. .
This broke it down so well, just what I needed. You are a life saver!!
Thanks for the info. Was trying to discern the difference between mutual and index funds for a while now, but your video clarified it in a comprehensive way. Great video.
Qwerty Asdf Yasssss! It took me a while to figure it out too lol, so glad I could clarify this for you!
There's no fees with ETFs right?
You killed it Rose, finally someone explains it clearly and in a simple way.
I want more knowledge from you, about investing
Excellent explanation of the differences. I am a 71 year old who spends his time swing trading energy related stock on European and US markets. I often wondered about the differences in the type of funds and, even though I don't deal in them (my bank handles those) I was really impressed with this presentation. Thank you.
How much risk you are willing to take in the financial market is the key to building a portfolio that will meet your needs, but you can’t just assess this once.
Many of us would love to manage our own investments, but it can be overwhelming to know where to begin. Do we use stocks, bonds, futures, commodities, or real estate? Should we go long, buy on margin, short a stock, or put everything into crypto?
Find an investment strategy that is right for you, then make it a point to base your investments on logic rather than emotion.
Working with Tamara Diane Hagan have given me the leverage to have a proper retirement plan.
Thank you. How do i reach out to her ?
Search her name on the web to see her website.
after watching 5 "ETF's explained" videos I finally understand.... Thank you Rose, definitely got my sub and like
THANK YOU!! You're the first one to explain the difference between these three in a way I can understand. My bank lacks so much transparency that I'm not even sure if my money is on an index fund or a mutual fund, or an ETF 🙄
Despite some research, I was pretty confused between the different type of funds but now I have a crystal clear picture of how each fund is different. Love the content! 🎉
Just subscribed, thank you for explaining this in layman's term....I am 23 going 24 this year, I have watched a bunch of videos so nowi feel more empowered starting the fire movement journey for early retirement
Well done to you for starting early!!
Thank you so much for showing Vanguard's page and mentioning that index funds are still a type of mutual fund. I'm investing for the first time and was looking for the option to buy index funds but only saw options for mutual funds and ETFs. I was familiar with Jack Bogle being the creator of the index fund so knew I was missing something - if anyone offered index funds it would be Vanguard.
Subscribed. Love your precision and depth.
Finally somebody explains what 5 five great books and hundreds of hours of UA-cam videos couldn’t😭😃. Now I can get back to managing my💰
you're all over my YT channel! thanks for all your wonderful feedback and comments
Hello Rose ,I am new here ,I just opened a Roth IRA account in vanguard and I would like to know how can Buy an S $ P 500 index fund and how I can set up an automatic deposit and invest the dividends also,if you could tell me the steps to follow so as to do that it would be great,thanks in advance.
@@williamcuellarmanso5640 1-I think you just go ahead to find the symbol for that Fund, then place the order to buy it. 2-Reinvest the dividend, I think it will be a standard feature for this type of fund. It will automatically reinvest the dividend. 3-Automatic deposit: you need to add a bank account to your Roth IRA account, then set up an auto deposit for the money from your bank account go to your Roth IRA account.
Finally a person that gives me concise and direct information. You have a sub
Thank you so much Rose! You totally helped me out to make my investment. I was going to buy Mutual Funds because of Dave Ramsey, but it looks like I am going the Index Fund route. Thanks again!
You're definitely making the right choice.
ETFs offer lower fees. That's the reason why I chose VOO over VFIAX. And since basically all brokerages now offer free trades, ETFs are even more appealing. Oh, and you just gained a new subscriber 😉
Free Trade for Americans, not for non-Americans unfortunately. But purchasing 1 ETF is cheaper than purchasing 50 (or more) individual stocks that try to mimic the market in a similar manner. I also feel that mutual funds are quite a rip off to be honest. They always promise huge returns, but fail to beat the market. So, if you can't beat them, why not join them? :P
EFTs fees are lower but no dividend reinvestment
@@verynick E-Trade will drip ETFs as well some others
@@verynick What is the Vanguard Brokerage dividend reinvestment program?
This no-fee, no-commission reinvestment program allows you to reinvest dividend and/or capital gains distributions from any or all eligible stocks, closed-end mutual funds, exchange-traded funds (ETFs), FundAccess® funds, or Vanguard mutual funds in your Vanguard Brokerage Account in additional shares of the same securities. investor.vanguard.com/investing/brokerage-dividend-reinvestment. My Vanguard S&P 500 Index ETF (VOO) allows dividend reinvestment.
@@verynick A lot of ETFs do reinvest or pay out dividend. However they usually also charge a small fee.
Nowadays almost all companies buyback stocks, so dividends are the last thing I'm worried about to be honest. Only bad performing stocks tend to pay out a lot of dividend. But even just looking at buybacks is kinda useless data, you have to look at the whole picture. And attempt to predict the future.
Rose, your videos are fantastic. Zero nonsense, just to the point and informative! Great content!
Finally a useful video explaining the difference between mutual funds vs ETF!
I just looked at a video with a guy explaining this exact same thing and I was confused. After watching this I feel very educated and ready to learn more. Bravo 👏🏾
I'm 70 and retired, I have $302k in a bank savings account making nearly nothing in interest. I’d like to put it in a HYSA (5%) or should i put a portion in index funds? I have $400k in an annuity. How do i maximize all this to make gains this year?
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I agree. Based on personal experience working with a financįal advlsor, I currently have $2 million in a well-diversified portfolìo that has experienced exponential growth from when i started. It's not only about having money to invest in stõcks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
She goes by ‘’Jessica Annabelle Rupp’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Thank you for sharing, I must say, Jessica appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled a call
If you put it on high yeald savings of let’s say 4.26% you will gain $12865.2 a year
The 2 dislike are mutual fund managers lol
vale v Hahaha 😂
vale V, you are not alone in that thought !!!
Some r good
Or people who trade commission-free, which is more and more common. I pay zero fees to trade in my Roth IRA, and can even buy fractional shares. So I wait for dips in the strongest stock in popular ETFs and place a few trades per month. No fees, no commissions
...to be clear, I gave the video a like because it was a very good, clear intro to these three investment options. I just think the logic falls down when you factor in free trading
Simply LEGENDARY.
Gosh I haven't felt this dumb since trying to learn algebra back in school, LOL. Thank you for information , I had no idea. Hope to see more of your content.
I love u, u just brought me out of understanding of all three funds I was so confused, been watching lots of video and coundt understand the diff and here you came and made my life easy.
Recently started investing. Finally, someone I can understand :-)
Good luck. Have patience and keep compounding
I've only watched a couple of your videos but my knowledge has increased exponentially. Thank you.
You can set up a DRIP (dividend reinvestment plan) with your brokerage to replicate the automatic investment feature of mutual funds, and you won't pay commissions if you're using an ETF with no transaction fees (check your brokerage, differs between brokers). Also, while I agree with the comment about emotions and gambling tendencies, the video doesn't consider the structural tax efficiencies that come with ETFs, which might be a reason to hold an ETF instead of a mutual fund. Talk to your investment professional for more information.
Can you explain how a ETFs are better than mutual funds in terms of saving on taxes?
My dad has been developing ETFs for 20 years but I still have no idea how it all works. He isn’t the best teacher and these videos help me understand his work a lot better. Thanks!
Are u rich ?
@@DerpishDerp i am not. I would say im a privileged white guy but i have my own car payment and all that which i work for. I have scholarships to pay for college. But I would say my parents have more money than the average people.
My ETF's with Vanguard automatically reinvest my dividends. BND, VOO, VYM just to name a few. New subscriber here. thanks.
@Slippery Storm See investor.vanguard.com/investing/taxes/investment-income . Taxation depends on where the ETF is held. Within IRA (or 401(k)) tax deferred (e.g., Traditional IRA) or tax free (Roth). See also investor.vanguard.com/investing/taxes/dividends. Within taxable (non-IRA) account, yes, one would pay tax on dividends.
such a well-explained video. subscribed
I've heard that index funds and ETFs provide diversified stock market exposure while spreading risk. I have over $800K in savings; What's the most effective strategy to allocate funds in my portfolio and generate profits?
Yes, there are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
this is all new to me, where do I find a fiduciary, can you recommend any?
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Much clear and informative than a university finance professor's course. Thank you.
Hahaha agreed I sent her videos to my grandson and niece just like I send them missbehelpful videos too both young ladies are great ua-cam.com/video/_4cOJ9J7phc/v-deo.html
All beer no foam!! Thanks for this substantive no fluff no frills explanation!
Awesome. I completely learned something new. Index funds here I come.
Finally, someone who Keeps It Simple Stupid! Now I understand the differences
Thank you for such clear advice. I almost bought an ETF, happy I didn’t. Index funds sound much better.
You can still buy an ETF, as some ETFs are index funds. VOO for example is a good one.
Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as the Stock, EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE
Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.
You're absolutely right! With my financial advisor's guidance, I diversified my $400K portfolio across various markets. Despite the downturn, I’ve managed to generate over $1.2 million in net profit through a mix of high-dividend yield stocks, ETFs, and bonds.
Ughhhh! I'm only 1:42 in and I'm now comprehending all this. Thank you for making it extremely EASY to understand. All the videos I've watched do not simplify it for those who want to get into investing.
I actually just got hired for Vanguard, but as a software developer, so it’s funny you mention them in the video 😂
You sound like you’re doing great for yourself! Congrats!
what do you all code in? what language?
Finally, a video that that made some sense! Excellent work :)
hooky84 Lol, yay! And thank you!
finally I understand what's what, thank you so much
i tried reading articles and watching videos but felt dumber every time about the differences. this was the only video that ACTUALLY explained it to me. YOU ARE A GEM.
I'm not sure if I agree with you. I have all three, and I definitely have a higher amount of returns on etfs, almost 9%, which is higher than the 6% or 7% of the other two
Great video! I was a big ETF fan before this so thanks for sharing the downside of treating it's holdings like a short term play instead of holding long term. I'll definitely consider more index funds going forward
Excellent tutorial...Best one that I've seen so far..A++
Woohoo thank you!!😊
As Matt Viverette said a year ago, a DRIP application can be submitted to your broker to auto-reinvest dividends from an ETF. You can choose 'ALL', which will apply to all your securities now and in the future, or you can choose "specify" which means you specify which securities will have dividends re-invested. This latter optionm means that any future securities with dividends will NOT be re-invested and will require another DRIP application.