Folks, to save you some time, 21:37 is when Rob starts with Dave Ramsey's portfolio promotion. Before this, he talked about investing advisors (fiduciary/broker) and evaluated a faux DR portfolio submitted with a question, but it doesn't have the equal 25% allocation across the funds, so it was not a true DR inspired portfolio. Someone submitted a question about a DR, but had an incorrect allocation among the 4 funds. To get the best of both worlds (following DR and keep your cost down) consider going with Index Funds instead of active managed mutual funds, but use DR's portfolio promotion and allocation. For Example, Total U.S.Stock Market (75%), and International (25%). This covers DR's 4 funds (Large/Mid/Small cap and International) in 2 funds. The Index Funds will be lower cost than DR's active managed mutual funds, and you will only the expenses on 2 funds rather than 4.
I notice that dave never actually just tells you what funds he is using and always directs to his “smartvestor pros”. If I had to guess dave gets a kickback off of these advisors and funds which is why he recommends them.
Exactly. His revenue stream is based on his network of advisors (who are all commissioned salespeople), so he will never undercut them or he undercuts himself.
Definitely. He’s proud to have an actively managed portfolio even if there are high fees. Big picture, his profits from referrals way outweigh these fees. He is a master of PT Barnum, there is a fool born every minute.
Dave Ramsey has never given specific funds yet he claims 12% average returns and says not to worry about fees. That's a little worrying. He should be more transparent.
The problem with trying to pick actively managed funds that have done well and then compare them to index funds is that the comparison has an inherent survivorship bias. What about the funds that haven't done well, or the ones that have closed? Picking the funds that HAVE done well isn't the same as picking funds that WILL do well. Did Dave pick these same funds 30 years ago? We have no idea, and if he did, he got lucky.
If he gets a kickback from Smart Vestor Pro from all of his followers, that is how he makes his serious money. I have to hand it to him, a very shrewd businessman.
I wouldn't bother picking them at all unless you have at least 2 million dollars in net worth and can afford annual mediocre returns. If you do just a little bit of research, you will see that many of these funds are composed of stocks you would normally buy individually, they are just packaged together. The problem is, there is always some/many dogs in these funds. The fund has to be "balanced," so it's not like you are ever going to have 40% in MSFT or NVDA for example, so they have to invest in crap you may not even see. Honestly, you are much better off picking your own companies and being heavily weighted in just a few great companies than being "diversified" in managed funds where average returns 10% a year, are considered good. "Diversification" is such a dumb term.
Dave Ramsey is an old boomer just like me. If you began investing in, say 1984, you had two primary choices: individual stocks or mutual funds. So Dave Ramsey recommends what he is familiar with. And yes you can find "low cost" mutual funds.
For me Dave Ramsey gives really good advice but you always need to be careful because he is selling products his financial services his books whatever. And the S&P 500 pretty much outperforms every financial advisor and mutual fund I think the percentage is like 99%. The issue with mutual funds mutual funds are actually managed accounts is your paying a percentage fee and it doesn’t really offset the really equal roi.
Yes, if you don't have any debt and actually have somewhat of a clue, he is useless. Unfortunately, a lot of my fellow Americans are in heavy debt and don't have a clue so Ramsey has a huge market of financial dimwits to help.
Why not add in the sales charge and start the investment with $9500 vs $10000 ? Also TAXES. The main reason that I went 100% S&P was no capital gains taxes( or very, very low) American funds with average turnover can’t claim that. It is swimming with an anchor. Reversion to the mean was a term Bogle made famous, betting on forward returns based on past winners is a losers game. ALWAYS go low cost index. You can’t predict the 2 % of managers that will outperform over 20 years, and this doesn’t include TAXES. Yes, I bought HD and MSFT 25 years ago, but going forward will they continue outperformance? I doubt it
It's a legal issue for Dave. Dave doesn't carry his licenses anymore and if he recommended specific funds it would be viewed (legally as investment advice) and the SEC has warned him in the past because other investment advisors complained. He has a whole company to protect.
Most things said are totally true. The KEY IS to INVEST steady and go with low fee funds. In the end two or three grand in a million dollar account is nothing. Good luck to all steady wins.
I listened to Ramsey for a few years off and on. And the real draw to the show are the outta control debt callers. Period. It's financial shock radio. Need to get outta debt/advice/etc? Spot on. The baby steps? Again, spot on. Need investment advice? Move on.
Rob, your comments on capital gains in an actively managed stock fund were spot on !! Long time ago I bought some Vanguard Windsor II fund. Market went down, shares went down, but I got a ton of capital gains on the 1099. No fun having a big tax bill when the investment went down in value. Learned the hard way. Thanks for all you do to promote financial literacy !!
Dave Ramsey has helped so many with budgeting and debt reduction. However, his advice on investments is horrible and is not in sync with the published data. Low cost index funds are the way to go.
Your channel is gold. Great video yet again. Im reading three books this month, otherwise I will read yours right away. It’s on my list for next month.
Having some high yield funds like QYLD as part of your portfolio isn't a bad idea. Would love to hear your opinion on that fund. Doesn't have capital appreciation but can be good for income because the volatility of it isn't too bad
I think a more realistic and fair analysis would be too do 20 years investing 1,000/ month in index fund and 942.50/month for Ramsey to model someone accumulating with and without the fee.
100% equities for Dave Ramsey himself makes sense. His hedge is regular real estate income and no debt. Definitely a personal approach that doesn't work for 90% of Americans when we reach retirement. 😂
Seems I read some time ago that Daves net worth was north of $200 mil. Bet he stashes a few mil in safe funds and then the rest as he advises. We could all do that if we had that kind of net worth.
Hi Rob, I am a fan of your channel but I have a question . I currently own individual stocks (FB, MSFT, AAPL, T) along with VOO. Using the portfolio Visualizer , the portfolio with individual stocks always beats just ETF's. I am 50 years old and maximizing my return is critical to me. I believe the individual stocks I own may out perform my IRA portfolio of just VOO. The risk level with the stocks I own are minimal in my opinion. Interested in your thoughts ?
loaded question…i think the answer depends a lot on your weighting in these. are you 60% VOO and 10% each in the 4 other stocks? maybe a bit concentrated…VOO already has exposure in FB AAPL MSFT obviously as they are some of the biggest companies in the world. no problem IMO in buying and holding companies/industries you really believe in, but especially considering the latest run up on these tech stocks the last 10 years (or even just look at the >100% gains since covid)….what goes up must come down. at your age i’m not sure you can afford an extended period of poor markets. with the turmoil in this country and throughout the world…if you had say 80% VOO and the rest are 5% i’d think thats a bit better.
Those stocks are called blue-chip stocks. They are good, mature companies. Most FA will tell you to have 5-10% max in individual stocks in your asset allocation. There is no right/wrong answer. It all depends on your risk tolerance, goals, and age.
If you want max return look at SCHG but when you want income you will have to switch to an income fund. Good luck but Vanguard has a growth fund as well.
This is an excellent point and question - and I have noticed the same in my own portfolios. You are absolutely right - BUT, my own caution and caution I will give here is the age old saying "Past performance does not predict future returns" so always be careful when you go into a single stock or the best companies. Example - there were a few years there where Microsoft was barely worth staying in and you would have beat it with VOO or any decent index fund, but then MS took off and you would be mad at yourself if you got out... I always stick with balance myself, some in stocks I like, some in funds, some in crypto, some in lower risk/long term stuff - if you plan and pay attention, and trust the long run, you will be fine! If you are looking to maximize gains and be the best, you have to really work hard and also get lucky - but the wisest of us (and best of us) always tell us "Get in early, stay in and be patient - dont try and time the market too much either and you will be totally fine"
It is possible to invest in American family mutual funds at Charles Schwab without paying the load fee. Their expense ratios are running about 75 basis points and they have a solid five star performance over many years. I tried creating a model portfolio with asset allocation that I like using vanguard index funds and compared that to a similar allocation in the American Target date funds. The American Target date funds beat it every time next of fees. I hope they continue to perform as well as they have in the past. By the way Rob, love your analysis. No hype no fanfare just good solid analysis. I am an older investor been doing this for decades. I really hope the future returns on the market are as good as what we've seen over the last 30 years but I really doubt it. I think all of the modeling that we do based on the recent past probably won't hold up in light of where we are in terms of fundamentals massive debt levels overextended markets, the ever-changing political climate with the rise of China and decline of the US which most Americans aren't fully aware of yet, etcetera. I'm afraid guys like Jeremy Grantham and Kathy wood are onto something. But who knows. Good luck to all.
Hi Rob. Great video- Question: If i buy, say VOO, do I still pay sales charges or do i not pay sales charges (and just pay the MER that is listed in the prospectus for VOO)?
A small cap fund loses its companies that do grow each year when they rebalance , company’s that do have outsize growth move to the growth portfolio where the bulk of their growth takes place.
A simple correlation study will ensure diversity. And liquidity matters for speed and costs. Ramsey is correct for asset classes selections. We use five not four. Whether funds or etfs is a personal choice .
@robberger if folk rebalance stocks/ bonds regularly have investors been buying bonds disproportionately during this last 12 months given the growth in stocks?
Rob, why are you comparing the S&P 500 index against an American Fund - Growth Fund of America? Why wouldn't you compare the American Growth Fund to a growth index fund like VUG?
One thing Ramsey doesn’t connect to his portfolio is his sizable real estate investments. He’s said on air he owns about 50% of his portfolio in unleveraged real estate. That’d certainly make me more comfortable with his recommendations. As a stand alone investment, it’s just too volatile for me.
Does it make sense to use utility index FUTY instead of bonds in one’s portfolio? It gives more than 9% of return including 3+% dividends. It is comparatively safe.
Interesting topic....I've found that if one is truly concerned about cost of different investment vehicles, the time one spends investigating this, why not investigating individual companies and picking stocks based on the company and pay very little for buying their stock for the long term 10 years out and use the buy and hold strategy and cut all costs down to an extremely low level. I went from just fund actively managed funds to a combination of funds and individual stocks diversified out and have seen much better growth with a increased risk of course.
An investment in knowledge pays the best interest. If you know your way around finance, you'd know better than to panic regardless of the fact that there will be a market crash. That's why when I consider how much in profit I've been able to accumulate from my investments in the trade market with my financial consultant and the amount of flexibility I have achieved in my portfolio. The only thing i see in a market crash is opportunity to continue to grow my investments.
Well, I just hit that golden age which I retried which 2013 to 2018 I purchased a farm house for $160,000 in Shepardvill Kentucky which it was so much work. The meth heads broke into property and I cant trust anyone.. the police pulled me over 24/7 and called me N word. Well, i am back in Downey California. I may pay more in taxes and not worry of the cold weather, snow. Yes, marijuana is legal which people are totally different. I realized the other day, we pay more in taxes but the weather and diversity of people makes it for me. So, now I need to make some money, your channel will help me and I will be following your advise.. thanks.. Downey California
Hey Rob. That's brilliant! I will get myself an advisor who i will pay 0.3% and he will invest in total stock market index funds for me! You sir are a genius!!!!
I have no idea why he wouldn’t like ETF’s and RIET’s… especially at a young age they are a great way to create dividends to reinvest into the market! 🤣
DR beat by almost 1% when I used portfolio visualizer vs vanguard. Over 30 years that’s huge. Also, load decreases with amount invested. Goes to zero at $1MM. I’m a massive fan of AF. I’m surprised you can’t say better - your numbers were all better. Love your channel, but facts are facts.
Well, we have to be specific on the funds. We can't just say Dave beats Vanguard. With some portfolios he does, and with some he doesn't. And of course it also depends on the years we examine.
@@rob_berger I hear you. I'm a massive fan. I have been taking a lot of grief from friends for being in AF -- for 35 years now. It has be great during this period. Lasting, what do you think about the next 10 years ? Covid and the convergence of disruption technologies (think Kathy Wood) is going to have an impact. I believe stock losers will be easier to exclude in a managed fund. Think Kodak, Sears, and Blockbuster. Past performance does not mean future performance.
Our IRAs are in a Dave style portfolio with a Dave ELP. Managed funds. My 401Ks are mostly in S&P index funds. The index funds have beat out the managed funds for 10 years now. If the ELP had index funds, I would buy them. I dont much like managed funds. Dave is right bond funds suck. Also, Dave is 1000% right when he says the biggest factor in acquiring retirement income is you have to put money in!!!
Hi Rob, when you when concern about where the money for crypto come from, I quote Peter Schiff to you: "When there is too much money, there is never enough stuff"
SPY ten yr return 16%, QQQ ten yr return 22.6%. Two biggest etfs beat dave's 12% big time. Want to beat the market put 5-10% of portfolio in SPY 2x etf or 5-10% QQQ 2x etf no brainer.
I dont believe dave can mention exact funds as he is not a certified liscence financial advisor and would become liable. With that said I agree with 99 percent of what dave says, but dont use his advisors. Ive tried to pick similar funds without the front load fee, or fees waived at fidelity. I also do hold index funds in my 401k because sadly they are the best option within my limited company 401k. I think people can do well with both strategies and dont nock low cost index funds.
Folks, to save you some time, 21:37 is when Rob starts with Dave Ramsey's portfolio promotion. Before this, he talked about investing advisors (fiduciary/broker) and evaluated a faux DR portfolio submitted with a question, but it doesn't have the equal 25% allocation across the funds, so it was not a true DR inspired portfolio. Someone submitted a question about a DR, but had an incorrect allocation among the 4 funds.
To get the best of both worlds (following DR and keep your cost down) consider going with Index Funds instead of active managed mutual funds, but use DR's portfolio promotion and allocation. For Example, Total U.S.Stock Market (75%), and International (25%). This covers DR's 4 funds (Large/Mid/Small cap and International) in 2 funds. The Index Funds will be lower cost than DR's active managed mutual funds, and you will only the expenses on 2 funds rather than 4.
I notice that dave never actually just tells you what funds he is using and always directs to his “smartvestor pros”. If I had to guess dave gets a kickback off of these advisors and funds which is why he recommends them.
Exactly. His revenue stream is based on his network of advisors (who are all commissioned salespeople), so he will never undercut them or he undercuts himself.
Definitely. He’s proud to have an actively managed portfolio even if there are high fees. Big picture, his profits from referrals way outweigh these fees. He is a master of PT Barnum, there is a fool born every minute.
He does get a fairly sizable flat fee (in the thousands) I believe from his smartvestor and real estate pros
yes
Yes... if he were beating the market, he would be transparent with his own investments..
Dave Ramsey has never given specific funds yet he claims 12% average returns and says not to worry about fees. That's a little worrying. He should be more transparent.
I have seen Dave refer to Growth & Income as Large Cap, Growth as Mid Cap and Aggressive Growth as Small Cap.
The problem with trying to pick actively managed funds that have done well and then compare them to index funds is that the comparison has an inherent survivorship bias. What about the funds that haven't done well, or the ones that have closed? Picking the funds that HAVE done well isn't the same as picking funds that WILL do well. Did Dave pick these same funds 30 years ago? We have no idea, and if he did, he got lucky.
If he gets a kickback from Smart Vestor Pro from all of his followers, that is how he makes his serious money. I have to hand it to him, a very shrewd businessman.
I wouldn't bother picking them at all unless you have at least 2 million dollars in net worth and can afford annual mediocre returns. If you do just a little bit of research, you will see that many of these funds are composed of stocks you would normally buy individually, they are just packaged together. The problem is, there is always some/many dogs in these funds. The fund has to be "balanced," so it's not like you are ever going to have 40% in MSFT or NVDA for example, so they have to invest in crap you may not even see. Honestly, you are much better off picking your own companies and being heavily weighted in just a few great companies than being "diversified" in managed funds where average returns 10% a year, are considered good. "Diversification" is such a dumb term.
Dave Ramsey is an old boomer just like me. If you began investing in, say 1984, you had two primary choices: individual stocks or mutual funds. So Dave Ramsey
recommends what he is familiar with. And yes you can find "low cost" mutual funds.
For me Dave Ramsey gives really good advice but you always need to be careful because he is selling products his financial services his books whatever. And the S&P 500 pretty much outperforms every financial advisor and mutual fund I think the percentage is like 99%. The issue with mutual funds mutual funds are actually managed accounts is your paying a percentage fee and it doesn’t really offset the really equal roi.
Dave Ramsey is obviously not an investment guru. His whole value prop is helping people gain control of their spending and debt situation.
Yes, if you don't have any debt and actually have somewhat of a clue, he is useless. Unfortunately, a lot of my fellow Americans are in heavy debt and don't have a clue so Ramsey has a huge market of financial dimwits to help.
Why not add in the sales charge and start the investment with $9500 vs $10000 ? Also TAXES. The main reason that I went 100% S&P was no capital gains taxes( or very, very low) American funds with average turnover can’t claim that. It is swimming with an anchor. Reversion to the mean was a term Bogle made famous, betting on forward returns based on past winners is a losers game. ALWAYS go low cost index. You can’t predict the 2 % of managers that will outperform over 20 years, and this doesn’t include TAXES. Yes, I bought HD and MSFT 25 years ago, but going forward will they continue outperformance? I doubt it
You could absolutely do that. Same with monthly contributions.
It's a legal issue for Dave. Dave doesn't carry his licenses anymore and if he recommended specific funds it would be viewed (legally as investment advice) and the SEC has warned him in the past because other investment advisors complained. He has a whole company to protect.
i will take john bogle advice or dave ramsey opinions any day, at least bogle never went bankrupt.
Most things said are totally true. The KEY IS to INVEST steady and go with low fee funds. In the end two or three grand in a million dollar account is nothing. Good luck to all steady wins.
I'm with Dave on paying down debt and not having a mortgage. I would never listen to him on investing.
I listened to Ramsey for a few years off and on. And the real draw to the show are the outta control debt callers. Period. It's financial shock radio.
Need to get outta debt/advice/etc? Spot on. The baby steps? Again, spot on.
Need investment advice? Move on.
Spot on summary of Dave Ramsey. I do like the guy but not for investment advice.
Rob, your comments on capital gains in an actively managed stock fund were spot on !! Long time ago I bought some Vanguard Windsor II fund. Market went down, shares went down, but I got a ton of capital gains on the 1099. No fun having a big tax bill when the investment went down in value. Learned the hard way. Thanks for all you do to promote financial literacy !!
Dave Ramsey has helped so many with budgeting and debt reduction. However, his advice on investments is horrible and is not in sync with the published data. Low cost index funds are the way to go.
Your channel is gold. Great video yet again. Im reading three books this month, otherwise I will read yours right away. It’s on my list for next month.
Having some high yield funds like QYLD as part of your portfolio isn't a bad idea. Would love to hear your opinion on that fund. Doesn't have capital appreciation but can be good for income because the volatility of it isn't too bad
I think a more realistic and fair analysis would be too do 20 years investing 1,000/ month in index fund and 942.50/month for Ramsey to model someone accumulating with and without the fee.
I’ll stick with mutual funds and invidiual stocks since I’ve been doing that the last 3 years been out performing the s n p 500
These are all mutual funds, there many options, an index fund is a mutual fund, by definition.
Ramsey`s funds should be easy to find as they`re the only ones in USA that have grown about 15% per annum for ever ;)
100% equities for Dave Ramsey himself makes sense. His hedge is regular real estate income and no debt.
Definitely a personal approach that doesn't work for 90% of Americans when we reach retirement. 😂
I put money in buckets, have a pension and am delaying ss to age 70. Why do I need bonds?
You don`t need bonds until the days of Jimmy Carter come back.
Pension and SS will be designated as our bond bucket at 70.
To survive a 3 year bear market?
Hey Rob, love your content! Great education.
Any suggestions of water stock to look into?
Cheers
I couldn’t do the two hours unfortunately. Can anyone summarize his findings? Thanks
The first 20 minutes gives you all you need. The rest is Q&A.
Thanks much, Rob. Very timely video for me. Maybe I missed it, but does “Portfolio Visualizer” deduct the expense ratios as part of the analysis?
Dave Ramsey is passive about the topic of joining MLM opportunities. Says all you need to know about his integrity.
Thank you very much.
Seems I read some time ago that Daves net worth was north of $200 mil. Bet he stashes a few mil in safe funds and then the rest as he advises. We could all do that if we had that kind of net worth.
It's just a basic truth, more volatility => higher expected return
why would anyone pay those kinds of front or back end loads anymore,.... no one has to do that....
Hey rob rate my portfolio
40% VOO
40% VFX
10% VEA
10% VWO
Hi Rob, I am a fan of your channel but I have a question . I currently own individual stocks (FB, MSFT, AAPL, T) along with VOO. Using the portfolio Visualizer , the portfolio with individual stocks always beats just ETF's. I am 50 years old and maximizing my return is critical to me. I believe the individual stocks I own may out perform my IRA portfolio of just VOO. The risk level with the stocks I own are minimal in my opinion. Interested in your thoughts ?
loaded question…i think the answer depends a lot on your weighting in these. are you 60% VOO and 10% each in the 4 other stocks? maybe a bit concentrated…VOO already has exposure in FB AAPL MSFT obviously as they are some of the biggest companies in the world. no problem IMO in buying and holding companies/industries you really believe in, but especially considering the latest run up on these tech stocks the last 10 years (or even just look at the >100% gains since covid)….what goes up must come down. at your age i’m not sure you can afford an extended period of poor markets. with the turmoil in this country and throughout the world…if you had say 80% VOO and the rest are 5% i’d think thats a bit better.
Those stocks are called blue-chip stocks. They are good, mature companies. Most FA will tell you to have 5-10% max in individual stocks in your asset allocation. There is no right/wrong answer. It all depends on your risk tolerance, goals, and age.
If you want max return look at SCHG but when you want income you will have to switch to an income fund. Good luck but Vanguard has a growth fund as well.
This is an excellent point and question - and I have noticed the same in my own portfolios. You are absolutely right - BUT, my own caution and caution I will give here is the age old saying "Past performance does not predict future returns" so always be careful when you go into a single stock or the best companies. Example - there were a few years there where Microsoft was barely worth staying in and you would have beat it with VOO or any decent index fund, but then MS took off and you would be mad at yourself if you got out... I always stick with balance myself, some in stocks I like, some in funds, some in crypto, some in lower risk/long term stuff - if you plan and pay attention, and trust the long run, you will be fine! If you are looking to maximize gains and be the best, you have to really work hard and also get lucky - but the wisest of us (and best of us) always tell us "Get in early, stay in and be patient - dont try and time the market too much either and you will be totally fine"
Stuck with MSFT and APPL. Just look at what Buffett invests and start a position in with those companies. Have a core index funds. Keep it simple .
Did you stop doing your podcast?
It is possible to invest in American family mutual funds at Charles Schwab without paying the load fee. Their expense ratios are running about 75 basis points and they have a solid five star performance over many years. I tried creating a model portfolio with asset allocation that I like using vanguard index funds and compared that to a similar allocation in the American Target date funds. The American Target date funds beat it every time next of fees. I hope they continue to perform as well as they have in the past.
By the way Rob, love your analysis. No hype no fanfare just good solid analysis. I am an older investor been doing this for decades. I really hope the future returns on the market are as good as what we've seen over the last 30 years but I really doubt it. I think all of the modeling that we do based on the recent past probably won't hold up in light of where we are in terms of fundamentals massive debt levels overextended markets, the ever-changing political climate with the rise of China and decline of the US which most Americans aren't fully aware of yet, etcetera. I'm afraid guys like Jeremy Grantham and Kathy wood are onto something. But who knows. Good luck to all.
Hi Rob. Great video- Question:
If i buy, say VOO, do I still pay sales charges or do i not pay sales charges (and just pay the MER that is listed in the prospectus for VOO)?
A small cap fund loses its companies that do grow each year when they rebalance , company’s that do have outsize growth move to the growth portfolio where the bulk of their growth takes place.
A simple correlation study will ensure diversity. And liquidity matters for speed and costs. Ramsey is correct for asset classes selections. We use five not four. Whether funds or etfs is a personal choice .
@robberger if folk rebalance stocks/ bonds regularly have investors been buying bonds disproportionately during this last 12 months given the growth in stocks?
Yes, but I think most investors rebalance once a year, at most.
Rob, why are you comparing the S&P 500 index against an American Fund - Growth Fund of America? Why wouldn't you compare the American Growth Fund to a growth index fund like VUG?
One thing Ramsey doesn’t connect to his portfolio is his sizable real estate investments. He’s said on air he owns about 50% of his portfolio in unleveraged real estate. That’d certainly make me more comfortable with his recommendations. As a stand alone investment, it’s just too volatile for me.
Great talk
Rob have you read “the deficit myth” by Stephanie kelton? I think you’d enjoy it
No, but I bought it and it's on my reading list. I'm a skeptic, but happy to learn about other perspectives.
Does it make sense to use utility index FUTY instead of bonds in one’s portfolio? It gives more than 9% of return including 3+% dividends. It is comparatively safe.
You'll find lots of studies and articles on that approach. The thing to keep in mind is that utilities are more volatile than Treasury bonds.
@@rob_berger Perfect. It means I will buy more of them when they go on sale. I am in my 40s
Interesting topic....I've found that if one is truly concerned about cost of different investment vehicles, the time one spends investigating this, why not investigating individual companies and picking stocks based on the company and pay very little for buying their stock for the long term 10 years out and use the buy and hold strategy and cut all costs down to an extremely low level. I went from just fund actively managed funds to a combination of funds and individual stocks diversified out and have seen much better growth with a increased risk of course.
An investment in knowledge pays the best interest. If you know your way around finance, you'd know better than to panic regardless of the fact that there will be a market crash. That's why when I consider how much in profit I've been able to accumulate from my investments in the trade market with my financial consultant and the amount of flexibility I have achieved in my portfolio. The only thing i see in a market crash is opportunity to continue to grow my investments.
I view Bitcoin as a technology not a currency.
is currency not a technology?
Well, I just hit that golden age which I retried which 2013 to 2018 I purchased a farm house for $160,000 in Shepardvill Kentucky which it was so much work. The meth heads broke into property and I cant trust anyone.. the police pulled me over 24/7 and called me N word. Well, i am back in Downey California. I may pay more in taxes and not worry of the cold weather, snow. Yes, marijuana is legal which people are totally different. I realized the other day, we pay more in taxes but the weather and diversity of people makes it for me. So, now I need to make some money, your channel will help me and I will be following your advise.. thanks.. Downey California
80% voo and 20% VTIP = good night sleep during this period. 😉
Smart man
Ramsey is a get out of debt guru.... Probably the best... He's not a source for investment advice... leave it at that.
Money laundering. The answer to where all that money came from into crypto is dark money getting washed.
Bitcoin- its the Beanie Baby of 2020
Hey Rob. That's brilliant! I will get myself an advisor who i will pay 0.3% and he will invest in total stock market index funds for me!
You sir are a genius!!!!
I have no idea why he wouldn’t like ETF’s and RIET’s… especially at a young age they are a great way to create dividends to reinvest into the market! 🤣
DR beat by almost 1% when I used portfolio visualizer vs vanguard. Over 30 years that’s huge. Also, load decreases with amount invested. Goes to zero at $1MM. I’m a massive fan of AF. I’m surprised you can’t say better - your numbers were all better.
Love your channel, but facts are facts.
Well, we have to be specific on the funds. We can't just say Dave beats Vanguard. With some portfolios he does, and with some he doesn't. And of course it also depends on the years we examine.
@@rob_berger I hear you. I'm a massive fan. I have been taking a lot of grief from friends for being in AF -- for 35 years now. It has be great during this period.
Lasting, what do you think about the next 10 years ? Covid and the convergence of disruption technologies (think Kathy Wood) is going to have an impact. I believe stock losers will be easier to exclude in a managed fund. Think Kodak, Sears, and Blockbuster.
Past performance does not mean future performance.
Our IRAs are in a Dave style portfolio with a Dave ELP. Managed funds. My 401Ks are mostly in S&P index funds. The index funds have beat out the managed funds for 10 years now. If the ELP had index funds, I would buy them.
I dont much like managed funds.
Dave is right bond funds suck.
Also, Dave is 1000% right when he says the biggest factor in acquiring retirement income is you have to put money in!!!
I don’t know anyone who’s going to move $1 million into one of these funds and pay an upfront charge of $57,500.
Hi Rob, when you when concern about where the money for crypto come from, I quote Peter Schiff to you: "When there is too much money, there is never enough stuff"
I see Dave Ramsey and I just block, takes 3 seconds, cya
Dave Ramsey recommends front load mutual funds because it is harder to jump out. His research is about people’s behaviour.
Who cares about Dave Ramsey. What is special about his advise I do not know.
I listened to him about ten years ago when I had quite a bit of debt. He was an inspiration for me at that time and hoping he is for others now.
SPY ten yr return 16%, QQQ ten yr return 22.6%. Two biggest etfs beat dave's 12% big time. Want to beat the market put 5-10% of portfolio in SPY 2x etf or 5-10% QQQ 2x etf no brainer.
No load with American Funds in your 401k.
I dont believe dave can mention exact funds as he is not a certified liscence financial advisor and would become liable. With that said I agree with 99 percent of what dave says, but dont use his advisors. Ive tried to pick similar funds without the front load fee, or fees waived at fidelity. I also do hold index funds in my 401k because sadly they are the best option within my limited company 401k. I think people can do well with both strategies and dont nock low cost index funds.
I’m predicting next 10 years to be great for AF. COVID and disruption technologies are going to make stock loser’s easier to weed out.