Create a Portfolio You Don't Have to Babysit
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- čas přidán 28. 06. 2024
- In this special one-hour presentation, Morningstar director of personal finance Christine Benz and ETF expert Mike Rawson discuss how to build a low-maintenance, hands-free portfolio that will help you reach your financial goals.
Note to viewers: Filmed in late April 2012, this Morningstar presentation was part of Money Smart Week, a series of free classes and activities organized by the Federal Reserve Bank of Chicago and designed to help consumers better manage their personal finances. Morningstar is a Money Smart Week partner.
Download the presentation slides here:
im.mstar.com/im/moneysmartweek...
Christine and Mike know what they're talking about. It's interesting to see how much things have stayed the same and yet how much has changed--such as ETFs skyrocketing and expense ratios lowering even more. A couple of the audience questions were slightly aggressive, and they did a good job of answering them.
My portfolio is 100% passive and I love it. My career keeps me too busy to watch over my portfolio.
This is dangerous.
@@rubyus7332 Depends on how his allocation is.
@@rubyus7332 Well he’s going to do better than 95% of “professional” money managers/mutual fund managers over 25+ years. Yeah I guess that’s dangerous
@@rubyus7332 dangerous for who, active managers 🙄
Unless his portfolio is 100% in cryptocurrency or some other investment more risky than the broad stock market, I think he'll be fine.
VTSAX is my only fund for my IRA
Mine too
Such a great underrated talk. Christine Benz has prudent investing knowledge. Keep it simple and less tinkering, ironically all the Qs seem to aim at tinkering it further
Watching this in December 2019 and thinking about the guy who was so concerned about losing his money in bond funds when interest rates rose. I wonder if he could have imagined a scenario where there were negative interest rates in some countries. Probably not.
Sooo interesting to watch almost 10 years later! I think they were right about quite every topic, especially not to try to time the market with bonds. People were afraid of rising rates - 10 years later they still are...
And what to do, if inflation rises is in post covid (orncovid on hold) also interesting . Due to hedging Strategies they recommand dsolidividend stocks.
I wonder though if they are right about the future of active management, someone ask about in the end. They think there is one...
I especially liked the Q & A portion of the program and my thoughts on Christine's knowledge on the pertinent subject matter was re-enforced. Thanks for the great work that Morningstar does on helping the average investor out there! :)
Good work displaying the speaker and relevant slides simultaneously.
Yeah agree with you here
No one has seemed to mention that a portfolio is also relative to your lifestyle needs. For example, someone like myself that has spent decades living on little more than the minimum wage and who also has a low life expectancy doesn't need their portfolio to be as big as someone who owns a million-pound house, drives a BMW, goes on holidays to 5-star hotels each year and perhaps works as a doctor or a banker. In short, if you recognise what you value and what kind of lifestyle you are living right now and what you would be happy to live in the future you can manage the elephant in the room when it comes to investing - greed. After all, the reason why people pile in when the stock market is high and then sell off when it's low is that they get greedy then regret losing their money in the downturn. So, as Warren Buffet said, 'Be fearful when others are greedy and be greedy when others are fearful.'
I see 3 elephants in the room: greed, fear and hubris. A low cost passive portfolio, minimising fees, transaction costs and taxes is best for most investors, unless you’re Buffett.
@@george6977 agree, I'm trying to stick to that plan
They dropped great knowledge on this newbie! I really enjoyed getting to know more about how to invest properly. Thanks for sharing Morningstar!
The slide at 9:18 is very insightful; missing the best days in the market 1991-2010.
about 78% of my portfolio is in passive index funds and ETFs. I still have a taxable brokerage account with the rest that I invest in stocks. It's doing a bit better than the passive side but solely due to purchases I made back in March. We'll see how it does over time. I feel like even if 20% of my portfolio underperforms, at least I'm entertained. Better than spending my money on an expensive car or vacation lol
Great presentation Christine.
Thanks for this great video!
Thank you!!
I love Morningstar.
Very good presentation. I am a big fan of Vanguard index funds.
great talk.
I learned a lot. Thank you.
Thnks for posting
Thank you
Excellent, TY
Great data and insight
fantastic, a woman doing the presentation. thanks.
2021 ETF'S are way more popular than Mutual Funds.
To each their own. With Vanguard, you can't set up automatic investments with ETFs. Coming up with the minimum investment can be frustrating but it's worth the wait for me.
Pause at 10:51 . Think about it for a second.
What am I missing?
I've added a link to the slides in the video description.
Morningstar, Inc. Thank you
My portfolio is 20% in individual stocks, 70% in mutual and index funds, and 10% in cash.
Here in the UK you can get much lower and capped platform charges if you use just etfs instead of mutual funds for example, HL, Fidelity, and, a j bell have lower charges. You do have to pay dealing costs though with etfs so it depends on how much you have invested as to whether it's cheaper
Vanguard offer no dealing fees on their platform.
@@george6977 but you do pay a percentage platform fee of 0.15%. So if you have £30000 invested that would be £45 per annum. If £100000 invested that would be £150 per annum for example but £100000 invested with fidelity uk in etfs would be capped at £45 per annum no mater how much your portfolio grows, and £10 per trade on the etfs, that would be much lower for regular monthly investments. So you could for example hold Vanguard ftse all world index etf & ishares bloomberg Barclays global bond index etf and your trading costs would be very low and good diversification accross equities and bonds
@@fredatlas4396 Thanks Fred; useful to know.
thanks, another good video, highly recommended to subscribe this channel.
Anthonycicero said she the excellent speaker for the company and coach of all time thankyou
Aumm!
Very amusing after last month's Fed 75 basis point increase, most likely again this month, and the rare voice for 1%.
@45:15 Spot on.
ponder2006 thanks
(50:37 and before) Who is this guy, or was it a genuine question for clarification.......? Seriously has he missed the whole point of the lecture?
+WestCoastBroodWar there always sort of these people that ask questions, but not even listen to the answer. Time and time again market timing is incredibly difficult to do even for the pros.
People like that think they know already, and think they are making themselves look smart by asking the question. And they get mad when the expert they are asking doesn't give the answer they want to hear.
If only we had a crystal ball
Those that are fixated on things other than the message have lost their focus
50% VOO / 25% VEU / 20% BND / 5% IAU. Done
Where is the website to get the Power Point presentation Please?
Soooo complicated.. Jack bogles philosophy is so much easier. VTI and BND that is it! no more than 75% and no less that 35% in one or the other. Just adjust depending on our ability to weather the up and down of the market and of course never, never get out of the market just adjust as you go. BOOM!!
No body understands why do we need bonds
Interesting to watch this lecture 11 years later in 2023. The discussion about the rise of ETFs and trading fees are outdated, but the principles for portfolio allocation are still valid.
Spock- like i like that
10:50 subliminal message :)
Christine Benz is a babe.....
@31. Bonds treasury and gold sucks last 14 years, not my favourite, 20 years away from retirement go 100 % VTI, avoid high fee mutual funds
Best portfolio is a simple one. One million dollars in cash, one million dollars in an S&P index fund, one million dollars in an all bond fund, one million dollars in gold, and one million dollars in real estate. Done. It's that simple. Trouble is 99.4% of the world has a net worth below one million dollars. How can an individual beat the banks that counterfeit our currency and governments that steal 51% of all income? We can't. It's impossible. Good luck trying to get the five million in assets to make the perfect model portfolio.
Can you loan me 5 million to get started ? ;-)
Looks like a good plan to have a million bucks left. How to have a million in the stock market start with 2 million
jackgoldman1 I
Don‘t want to pay any tax, live off grid, don’t drive on the road, drinking/ taking water out of tap, those are funbded by tax dollar. just for a start. maybe you can live in a cave, then you probably don‘t need million dollar.
Needs a crystal ball. It’s easy to criticize in hindsight, but they seemed stumped by the questions on rising interest rates. In 2022 and rising interest rates, shifting into value (dividend) funds was optimal. If interest rates start to drop in late 2023, bond funds should do well - my two cents.
4-6% in Gold hahaha *No Thanks*
Warren Buffett "rule no. 1:never lose Money. rule no. 2: never forget rule no. 1." being young doesn't mean you should take more risk with a huge allocation to stock etfs
LoooooL all this for nothing, buy NIO on every dip your welcome
Man, 9 years later and its so dated and poor
Paying fees for transactions...
Not using ETFs...
Confusing opportunity costs with loss...
this video really doesn't show alot of anything. put your money in ETF's . Ok ETF's are designed to track an index, mutual funds are designed to beat that index.
the thing is, the mutual funds that consistently beat the index dont exist. Some beat it for a couple of years but soon the good times end. Over a 20,30 or 40 year period there is no mutual fund that has beat the market index
who is the first lady speaker wow she's bad...
Christine Benz who writes for Morningstar