Here's an easy, simple, and passive investing strategy for ANYONE, especially beginners. It's called the Three Fund Portfolio. Enjoy! Instagram: @humphreytalks Resources in this video: 🖌 Links: 🐪 Hump Days Newsletter ➭ ▶️ Join the Patreon Community ➭ 🗞 Follow My Twitter ➭ 👾 Personal Finance Discord ➭ 🖌 Free Stocks: ► WeBull (Get 7-12 Free Stocks worth up to $30,600 when you deposit at least $0.01) ➭ ► Moomoo (Get 5 Free Stocks valued up to $2500 each) ➭ ► Public ($10 Free Stock) Investing App ➭ ► Robinhood (Free Stock Valued Up To $250) ➭ 📸 Instagram: 🦜 Twitter: What is a 3 fund portfolio? - A three fund portfolio is an investing strategy that consists of buying 3 basic asset classes in the form of an index funds: one for total domestic stock market, one for international, and one for a bond fund. - Explain what an index fund is. - So in this strategy, we’ll be using Vanguard Index Funds, you’ll want one fund for the total domestic stock market, one for international, and one for a bond fund. - The tickers that most people tend to buy are: VTSAX, VTIAX and VBTLX. - I’ll explain how to buy these later, and what type of percentage of each you should own, and also a modification that I make specifically on my own, but for now lets talk about WHY the 3 fund portfolio reigns supreme. Why should you invest in a three fund portfolio? - In any great investing strategy – what we want to look for are investments that are 1) Simple, 2) Diversified, 3) Have low fees, 4) Have a good risk/reward ratio. - A three fund portfolio offers simplicity – it’s only three funds - It offers diversification – each index fund that tracks these markets has over 10,000+ securities. - And in terms of costs, By owning vanguard funds, fees are known for being lower than industry average. - No manager risk (mutual fund), in a mutual fund, they’re professionally managed and the fees are higher – but you talk about that in your earlier video. - Now in order to buy Vanguard funds, I want to note that these are all vanguard index funds can be purchased on Vanguard, Fidelity, or TD Ameritrade, but if you DON’T have any of those platforms, they are also available in their ETF versions as VTI, VXUS, and BND on many other platforms. How to allocate: - So basically we understand the concept of the three fund portfolio now, but how should we divvy up our money in this strategy? - There are a bunch of allocations in this strategy ranging from: - - First you need to decide how risky you want to be. If you’re young, you may be able to be riskier than someone who is approaching retirement age. In your case, you want to choose an allocation of the three funds that will give you the biggest benefit to upside throughout time. - Something like 60% US, 30% Intl, and 10% Bonds might work well. The reason you don’t want a high proportion of bonds right now is that bond returns have been poor with 30 year treasuries only near 1%. What you can do is substitute your US bond fund with an all world bond fund etf, such as BNDW – that’s what I personally hold. - Anyway lets look at some historical returns of the allocations: - Disclaimer: I am not a financial advisor, any investment commentary are my opinions only. Some of the products and services that appear on this channel are from companies that I have an affiliate relationship with, such as Robinhood, for which I recieve a small percentage made via those links, but it doesn’t cost you anything extra!...(read more)
LEARN MORE ABOUT: IRA Accounts
CONVERT IRA TO GOLD: Gold IRA Account
CONVERT IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Investing in the stock market can be intimidating for beginners. With so many options available, it can be difficult to know where to start. However, starting a simple investing portfolio using a three fund portfolio is an excellent way for beginners to dip their toes into the world of investing. A three fund portfolio consists of three main investments: a total stock market index fund, a total international stock market index fund, and a total bond market index fund. These three funds represent a diversified basket of investments that can offer a balanced and relatively safe investment strategy. One of the primary advantages of a three fund portfolio is its simplicity. With only three funds to manage, it is easy to keep track of your investments and to adjust your portfolio as needed over time. This simplicity also makes it easier for beginners to understand and to stick to their investment strategy. Another benefit of a three fund portfolio is that it offers a diversified mix of investments. The total stock market index fund provides exposure to the broad U.S. stock market and can offer long-term growth potential. The total international stock market index fund provides exposure to international markets and can help mitigate risk from U.S.-based investments. Finally, the total bond market index fund offers stability and income through fixed-income investments. To get started with a three fund portfolio, you will need to open a brokerage account with a company such as Vanguard, Fidelity, or Charles Schwab. These companies offer low-cost index mutual funds that are perfect for a three fund portfolio. Once you have opened your account, you can start investing in the three funds that make up your portfolio. You should aim to invest a certain percentage of your portfolio in each fund, depending on your risk tolerance and investment goals. For example, you may want to allocate 50% of your portfolio to the total stock market index fund, 30% to the total international stock market index fund, and 20% to the total bond market index fund. It is important to keep in mind that a three fund portfolio is a long-term investment strategy. You should avoid making frequent trades and instead focus on holding your investments for the long term. Over time, your portfolio will likely grow and you can adjust your allocation as needed to meet your goals. In conclusion, a three fund portfolio is an excellent way for beginners to get started with investing. By providing a diversified mix of investments and a simple, easy-to-manage strategy, it can help you achieve your investment goals while minimizing risk. So if you're looking to get started with investing, consider a three fund portfolio as your first step. https://inflationprotection.org/beginners-guide-to-investing-the-three-fund-portfolio/?feed_id=99891&_unique_id=646a96c2494aa #Inflation #Retirement #GoldIRA #Wealth #Investing #assetallocationbyage #assetallocationforbeginners #howtoinvestinstocksforbeginners2020 #howtoinvestinthestockmarket2020 #howtoinvestinthestockmarketforbeginners2020 #howtoinvestinthestockmarketwithlittlemoney #indexfundsforbeginners2020 #investingforbeginnerssolidadviceonhowtogetstarted #personalfinance #threefundportfolio #vanguardetfforbeginners #vanguardindexfundsforbeginners2020 #vanguardinvestments #FidelityIRA #assetallocationbyage #assetallocationforbeginners #howtoinvestinstocksforbeginners2020 #howtoinvestinthestockmarket2020 #howtoinvestinthestockmarketforbeginners2020 #howtoinvestinthestockmarketwithlittlemoney #indexfundsforbeginners2020 #investingforbeginnerssolidadviceonhowtogetstarted #personalfinance #threefundportfolio #vanguardetfforbeginners #vanguardindexfundsforbeginners2020 #vanguardinvestments
Comments
Post a Comment