Thanks and love from my family in the UK to you Ramit. You have taught us so much and are changing the trajectory of our lives, guiding us to financial peace. freedom, and security.
I dont know about that" target date "..but after watching you. I put 2k every month in s&p 500....im 52 now. So my target date is 65 or whatever!... who know. God has his own plans for me❤😊🙏😇....thank you Ramit!
Target fund would be more appropriate in your case. While S&P has always given a decent return in the long run, it would be wise to switch to more bond allocation less risk assets as you get closer to withdrawal event
Ah Ramit disagree again. There are at least two issue I see with them. First they decide the portfolio mix solely by age of a person. Not where interest rates are at the moment. Consider the person who was 50 on2020 when rates were so low. First they started off earning low interest. But what is worse is when interest rates rise the value of the fund would drop. Remember they consist of generally long term instruments . The other major issue with target funds is they again usually are made up of other funds. So not only do you pay fees for the target date fund you indirectly bay the fees of those funds. But beginning investing is not hard . I tell people who don’t want to spend time learning more, to just put in an sep 500 index fund like VOO or SPY. And if they do that in their 20s when it comes to their 50s or 60s they might find it makes sense to convert some of the fund to bonds,!reits or other fixed assets. But that decision would be made on a lot of factors including interest rates at that time, size of the portfolio how much were planned expenses in retirement,and other expected income streams. Btw target date funds are so much better than not investing at all.
Thanks Ramit, for the consistent reminders and efforts in these videos. I hope other people who come across these in the future (Like I just did) and get to enjoy these important reminders. Thanks again bro
Thank uuuuuu so much for this. Bc for yrs i wanted to invest. But never knew how. Lately been here about these types of investments and again didn’t know HOW. Now i know and I already have Vanguard for my Roth. So, i will continue with them.
Are you maxing out your 401(k)/Roth IRA? Your 401(k) should have some kind of target date options, at least typically. Your Roth IRA you can pick any investment like he showed you in the video .
Either one is fine. 2055 means they try to allocate your money stock/bond/internation fund ratio a little different. Like 50/30/20. 2060 maybe 40/30/30.
Can you send a link to what to do or a link to more in depth I’m just now learning about investing and I’m unsure about winch of these for different types to choose from just by this one video it’s just a lot of confusion so it would help for a step-by-step guide thanks so much
Target date funds are too conservative for those folks who want to get rich quicker, which is what early retirement comes down to. You'll want to look at pure equity low cost index funds/ETFs.
Hello Ramit, MY husband and I would like to make a consultation with you based on investments and how our finances are. We are from Texas. Could you tell me what the cost of the consultation would be please? Thank you so much for your time.
Hey Ramit, love your content really getting me to think bigger. Q: is a Vanguard the same as a personal pension or a different type of investment? PS I am in the UK
You can open a brokerage account and choose a target date fund to invest in for that account. The money invested in that account will be with after tax money
Maybe it's changed, but the last time I looked at one of Vanguard's target date funds I noticed that 1) it's holdings were entirely other Vanguard funds, and 2) it had HIGHER fees then all of those funds in the fund. So I decided nope, I'll pick my own stock/bond allocation.
Hi Ramit! I set up a Roth IRA with Vanguard and picked a retirement account with a target date for 2050 (ticker VFIFX) Is it wise to set up another account with the same target date fund (VFIFX) since Roth IRA’s only max out at $6,500/year? Thank you! Just bought your book and love it so far!
following! I manager to contribute this year for last year as well and invested in S&P in an individual account. curious to find out if tidf would be an ok option for a brokerage account
I think it’s not allowed to create another, I tried. The total limit would be 6500. Pls Correct me if I’m wrong. I want to invest more than 6500/year, please suggest? @Ramit
So a Roth is a type of investment account and a target date fund is an investment. You have to pick investments inside your investment account. So for example you could open a Roth IRA account and after you put money in that account, you could then invest that money in a target date fund. Hope that helps.
I don't like target date. my first job, 100% was in a target date fund in my 401K. My 401K SHRUNK by 5k over 3 years. I have 1.5k in bonds since 2019 and it has netted -250 dollars. Better to do stocks. Bonds are not needed until you are in late 50s, especially since interest rates are so awful. Might as put into a high yield savings account of 4.5-4.8%, offered by Vanguard and some banks...
Italy. Here the state holds the amount for your retirement from your paycheck without interest so at the end, due inflation you lose so much money. Check it out on Google
What about Europe???? Do all these apply to Europeans as well? If not...How do we begin investing here? Please, devote some time and videos for the rest of the world as well. Thank you
Why would you start with a taxable account? US citizens should be doing IRA, 401k, dependent FSA for childcare, and investing HSA first to get tax benefits. So once you've covered those ~$42,000/year for a married couple, then you do the taxable account.
I moved away from target date, retirement funds, because I personally am a dividend investor and I didn’t think it was aggressive enough. I am 30 years old and most of my Roth IRA is in SCHD & SPHD with a little bit in VOO
@@LIVEINPEACE2023 I get that. But just because you start with a target date of retirement fund which most people do doesn’t mean you can’t evolve your investment strategy overtime as you learn more.
@@ramitsethiok thank you so much! And can I do the switch myself or do I have to talk to a fidelity agent? Not actually sure how to do it. Also, what’s the title of your show on Netflix?
I did this but instead of clicking the year I turned 65 I clicked the year I turned 35 and now I'm on track for becoming a millionaire in a year! That easy guys!🎉
I keep wondering about all those stock and stuff but the usa isnt doing that well and ww 3 is maybe on the corner so wat if it all go,s to shit and gone is your money 😢😮
The s&p is part of a target date fund. When the s&p drops or has a bad year, your target date fund will still hold your wealth because it is diversified with more than just s and p. It also gets more conservative as you get closer to retirement. The s&p had a period of no returns for a decade. When you’re retired you do not have years to wait for a recovery as you need that money to live off of.
Good advice, but only for retirement accounts. The target date funds tend to throw capital gains sporadically because of the rebalancing. The vanguard ones threw crazy high capital gains late 2022. People holding that in a brokerage account got rekt.
You should create something called the lady investor ..because this j can do and not worry about having to wake up at all hours of the night to trade stocks lol 😅
Good video. The best way to build wealth is to start investing at a young age. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a great investing book for teens.
My thinking about money has improved since I started following Ramit, thanks for what you do, it’s really remarkable
My husband is tired of how often I mention Ramit's name. 😂 I love him! ❤
Thanks and love from my family in the UK to you Ramit. You have taught us so much and are changing the trajectory of our lives, guiding us to financial peace. freedom, and security.
I dont know about that" target date "..but after watching you. I put 2k every month in s&p 500....im 52 now. So my target date is 65 or whatever!... who know. God has his own plans for me❤😊🙏😇....thank you Ramit!
Target fund would be more appropriate in your case. While S&P has always given a decent return in the long run, it would be wise to switch to more bond allocation less risk assets as you get closer to withdrawal event
Ah Ramit disagree again. There are at least two issue I see with them. First they decide the portfolio mix solely by age of a person. Not where interest rates are at the moment. Consider the person who was 50 on2020 when rates were so low. First they started off earning low interest. But what is worse is when interest rates rise the value of the fund would drop. Remember they consist of generally long term instruments . The other major issue with target funds is they again usually are made up of other funds. So not only do you pay fees for the target date fund you indirectly bay the fees of those funds.
But beginning investing is not hard . I tell people who don’t want to spend time learning more, to just put in an sep 500 index fund like VOO or SPY. And if they do that in their 20s when it comes to their 50s or 60s they might find it makes sense to convert some of the fund to bonds,!reits or other fixed assets. But that decision would be made on a lot of factors including interest rates at that time, size of the portfolio how much were planned expenses in retirement,and other expected income streams.
Btw target date funds are so much better than not investing at all.
How are you doing this investment in SP, can you guide me?
@@usamamashkoor9098 I know some people use Dominion. Its a company with investment plans
Thanks Ramit, for the consistent reminders and efforts in these videos. I hope other people who come across these in the future (Like I just did) and get to enjoy these important reminders. Thanks again bro
I did that and it put my money in some stocks and a lot of bonds. I would rather have more stocks.
It probably did that cause I think you're probably in your late fifties early sixties
If you are less risk averse you can set the target date later
Thank uuuuuu so much for this. Bc for yrs i wanted to invest. But never knew how. Lately been here about these types of investments and again didn’t know HOW. Now i know and I already have Vanguard for my Roth. So, i will continue with them.
My target day fun did not even get close to matching the market. I'm now all in on ETFs and stocks and I am doing much better.
Omg thank you!! I have been looking for that info for awhile. I have the money just don’t know where to go. Thank you thank you!!!
Are you maxing out your 401(k)/Roth IRA? Your 401(k) should have some kind of target date options, at least typically.
Your Roth IRA you can pick any investment like he showed you in the video .
Vanguard seems to be only applicable to if you are a US resident. Are there similar option for international clients?
Great advice. There are several Vanguard TDFs for my expected retirement year. Any advice on which one to choose?
Is it possible from the EU, specially Finland and preferably a shariah compliant? I'll highly appreciate any guidance for my circumstances.
Brilliant advice. Thanks for sharing 👍
I can’t stop watching your content. Very helpful information. Question.. I’ll be 65 in 2057. I only see 2055 or 2060 which one should I chose?
Either one is fine. 2055 means they try to allocate your money stock/bond/internation fund ratio a little different. Like 50/30/20. 2060 maybe 40/30/30.
Thank you for this Ramit
My target date 2060 has only averaged a 5% return… definitely switching it up now
Can you send a link to what to do or a link to more in depth I’m just now learning about investing and I’m unsure about winch of these for different types to choose from just by this one video it’s just a lot of confusion so it would help for a step-by-step guide thanks so much
Thanks for sharing, I was struggling with the investment part - this has given me the right direction..
I bought your book
How is it? Im about to order it on Amazon
This was so helpful ! I sent to all my friends
What about for the folks that want to retire themselves at 40?
Target date funds are too conservative for those folks who want to get rich quicker, which is what early retirement comes down to. You'll want to look at pure equity low cost index funds/ETFs.
Hello Ramit, MY husband and I would like to make a consultation with you based on investments and how our finances are. We are from Texas. Could you tell me what the cost of the consultation would be please? Thank you so much for your time.
Hey Ramit, love your content really getting me to think bigger. Q: is a Vanguard the same as a personal pension or a different type of investment? PS I am in the UK
I believe Vanguard is an American wealth management company, not a type of investment.
New sub! I enjoyed this video!
Thanks for subbing!
Good morning, Ramit. Thank you so much. I appreciate you tremendously. I've heard of Vanguard, but I just never did anything with it. Thank you.
Thank you
Good advice for Americans
Ok! Simple enough!!😊😊😊
Can I set this up for my two young daughters? We have a 529 for them but I want to diversify their investment portfolio.
Please advise and thank you!
You can open a brokerage account and choose a target date fund to invest in for that account. The money invested in that account will be with after tax money
Maybe it's changed, but the last time I looked at one of Vanguard's target date funds I noticed that 1) it's holdings were entirely other Vanguard funds, and 2) it had HIGHER fees then all of those funds in the fund. So I decided nope, I'll pick my own stock/bond allocation.
really ??
Thank you for this!!! 🙌🏽
My 401k plan from my workplace started with vanguard but now it got switched to principal
I can open an account with vanguard for this investment. I have vanguard and principal.
Hi Ramit!
I set up a Roth IRA with Vanguard and picked a retirement account with a target date for 2050 (ticker VFIFX)
Is it wise to set up another account with the same target date fund (VFIFX) since Roth IRA’s only max out at $6,500/year?
Thank you! Just bought your book and love it so far!
following! I manager to contribute this year for last year as well and invested in S&P in an individual account. curious to find out if tidf would be an ok option for a brokerage account
Following
@@doinavegasdon't do Target date in a brokerage, just do S&P
Following! 👍🏼
I think it’s not allowed to create another, I tried. The total limit would be 6500. Pls Correct me if I’m wrong. I want to invest more than 6500/year, please suggest? @Ramit
I’m doing that but with bitcoin
Can you do Target Date Funds the same time as Roth or are they the same thing
So a Roth is a type of investment account and a target date fund is an investment. You have to pick investments inside your investment account. So for example you could open a Roth IRA account and after you put money in that account, you could then invest that money in a target date fund. Hope that helps.
@@cassidymartin2491do you know if we have to pay taxes for a TDF ?
You’re the man
Hi Ramit. I'm interested to invest but Vanguard seems unavailable in the Philippines. Would u have any tips for us Filipinos where to invest?
Is this in Roth IRA or regular bokerage or separate? Also I do 15% into 401k , how should I invest outside that?
I have a Schwab 401k from an old employer with money sitting in it. Can I transfer this over to one?
Vanguard target date fund is not available for individuals in Canada, and only through employers. Any recommendation for Canadians please?
Same question
Thanks this a a great fast explanation
So which ISA is the best to use? This is where it gets confusing. Stocks and shares?
Let me sit down and figure out how much i am going to start with so I can get this investing going.
Você é inspirador , Ramit !
Gigante no conhecimento e praticidade ... 🧠
Ps.: Mais conteúdos em português ....😉
I thought target date meant every time you go on a target run you put that money on a special credit card 😂😂😂😭😭
Lol😂
Corny.
🤦🏽♀️🤭🤭🤭
I'm pretty sure this is only for Americans, right? Would you know the equivalent in Switzerland?
Or Acorns ❤
How much if your Roth should you invest?
Should someone in Canada use the same principles ie target date fund and whom should we set up an account with ?
I have that on my 401k plan but I don’t understand it. Help
Make sure it's an INDEX fund not actively managed.
Thank you
Is this information only applicable if you’re in the states?
I don't like target date. my first job, 100% was in a target date fund in my 401K. My 401K SHRUNK by 5k over 3 years. I have 1.5k in bonds since 2019 and it has netted -250 dollars.
Better to do stocks. Bonds are not needed until you are in late 50s, especially since interest rates are so awful. Might as put into a high yield savings account of 4.5-4.8%, offered by Vanguard and some banks...
Thats how my husband's work invested his ira from his work. They just put it in a target date fund.
Ramit I’m reading your book but how can I apply the steps if I’m not in US 😭
Most of the stuff still applies. Just find out what 401ks, Roth IRAs, high yield bank accounts, etc are called in your country.
We have a completely different system, for example you can have a lifesaving surgery even if you don’t have a job. Those 401k etc don’t exist here
@@Magjoey23 what country are you in?
Italy. Here the state holds the amount for your retirement from your paycheck without interest so at the end, due inflation you lose so much money. Check it out on Google
What about Europe???? Do all these apply to Europeans as well? If not...How do we begin investing here? Please, devote some time and videos for the rest of the world as well. Thank you
I don’t know how to do this. Have set up a Vanguard fund but can’t seem match the funds that you’ve recommended
Do you talk to senior citizens or only to working young people ? I am trying to find where I fit in this equation.
Have you read his book?
Why would you start with a taxable account? US citizens should be doing IRA, 401k, dependent FSA for childcare, and investing HSA first to get tax benefits. So once you've covered those ~$42,000/year for a married couple, then you do the taxable account.
Is this only in the USA ?
How do I do this with my vanguard australia account?
I hate target date funds
Are this funds only available for US citizens?
No in the uk it’s called a target retirement fund which you can also find on vanguard
Is this in conjunction with a Roth?
Maybe I'm missing something, but you're saying $1k a month into an IRA? That's above the max allowed per year.
No start with $1000 to open the account then each month add $100 or whatever you can afford..
in Europe???
I moved away from target date, retirement funds, because I personally am a dividend investor and I didn’t think it was aggressive enough.
I am 30 years old and most of my Roth IRA is in SCHD & SPHD with a little bit in VOO
Same here🎉
Yeah the fund he mentions isn't looking too hot either.
This video is for someone just getting started.
@@LIVEINPEACE2023 I get that. But just because you start with a target date of retirement fund which most people do doesn’t mean you can’t evolve your investment strategy overtime as you learn more.
Are SCHD and SPHD popular?
Target date funds are one of the worst things to invest in. They lose you money because they don't even keep up with inflation
Factually incorrect. I wish you would take one look at TDF returns and come back here and correct your comment
Where'd you go, "daytradinguy"?
The target date fund that’s close to my retirement age has a high expense ratio, what options do I have?
What's the expense ratio and what's the fund?
@@ramitsethiThank you for your time Ramit! FFFGX at 0.75%v
Consider the index version: FIOFX. If you search for "FIOFX vs FFFGX," you'll see that Fidelity doesn't publicize their index funds as much.
@@ramitsethiok thank you so much! And can I do the switch myself or do I have to talk to a fidelity agent? Not actually sure how to do it. Also, what’s the title of your show on Netflix?
What do you have for people in uk
Will you pay taxes when that date comes to pull out the funds???
Depends if it’s in a 401k, Roth IRA or brokerage
I did this but instead of clicking the year I turned 65 I clicked the year I turned 35 and now I'm on track for becoming a millionaire in a year! That easy guys!🎉
A lady I work with said she shortened her time as well and gained 15k pretty quickly.
I keep wondering about all those stock and stuff but the usa isnt doing that well and ww 3 is maybe on the corner so wat if it all go,s to shit and gone is your money 😢😮
So have the money when you’re older. Bad tip, as you should aim to build your wealth in your youth to enjoy your life.
😆 you get old and have a few milion and u cant even get it up no more 😂 what a wonderfull life and all that time u are young you lived poor
Sir pls one video in hindi language
Target date fund
SP500
The s&p is part of a target date fund. When the s&p drops or has a bad year, your target date fund will still hold your wealth because it is diversified with more than just s and p. It also gets more conservative as you get closer to retirement. The s&p had a period of no returns for a decade. When you’re retired you do not have years to wait for a recovery as you need that money to live off of.
I think I shall call you brain.. cause big thank you.
Good advice, but only for retirement accounts. The target date funds tend to throw capital gains sporadically because of the rebalancing. The vanguard ones threw crazy high capital gains late 2022. People holding that in a brokerage account got rekt.
Is this the same as a retirement fund? I think in South Africa we call it different things, I can't find anything called target date fund
I am 70 years old, passed 65. Yr advice. Thank you!
Not good advice. Fees on target date funds are high. You are better off in an index fund.
Fees are not high on TDFs
Ramit i wanna retire at 50 can you put up vids for the FIRE community?
Let's talk in iwt.com/moneycoaching
These target funds woefully underperform the s&p
Before a Roth IRA?
Sponsored?
So the point of investing is to have money when you’re 65?
Investing is a long term commitment. Ideally for retirement. If you’re looking for fast cash go be a sex worker.
I finally started automatically with each paycheck
You should create something called the lady investor ..because this j can do and not worry about having to wake up at all hours of the night to trade stocks lol 😅
Good video. The best way to build wealth is to start investing at a young age. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a great investing book for teens.
Fck 65, we need that money now bruh
Very bad advice. Target date funds under perform s&p and target date funds have more expense rate than s&p. Better to invest in s&p
If you don’t know where or how to start investing all you have to do is give me your money and wait 30 years to find out I robbed you. Great advice
Terrible advice
*** what's the minimum monthly investment requirements
I opened an IRA account in Vanguard and limit is only 7k per year! Am I doing something wrong?
That’s the limit for IRAs, anything more needs to go into a 401k or taxable brokerage
🙌🏼🙌🏼👏👏🙌🏼