Very timely video. I just spoke with Rick last week. He still does portfolio review- typically for $925 ( pretty reasonable for a CFP with his horsepower). Booked out until quarter 2, 2022. He is one of our Boglehead gurus. I still believe that his approach is a bit confusing, with excess diversification. I am 80% equity ( 15 % individual stocks, 65% S&P 500) 20% bond ( all individually owned munis). If you compare my simple, 2 category portfolio, it outperforms Rick in Portfolio Visualizer , and likely will into the future. Not saying Ricks allocations aren’t well thought out, just not universal
You can't really compare a 80/20 portfolio to something like his. Also individual stocks is a huge gamble and can really throw off numbers. Are those individual stocks tesla/Amazon? Jnj? Like that matters. Also what's your drawdown?
@@TheSorrowWithinMe I’m retired. Eight figure portfolio. 65% SWPPX, 15% individual (HD, JNJ,PFE,WMY,KO,MSFT,INTC,BDX,DE,HON,IEX,LHX,NÉE,SONY,WM,WTSXYL,ZBH). I have had most positions for decades, all good stocks, but huge capital gains exposure, otherwise would be all S&P now. My bonds are all laddered individual bonds,about 60. My withdrawal rate is .6%. Hope this helps
I would love to see you back test those funds against Wellesely or Wellington. I do like his approach, and of course, you do a great job presenting them. For a novice investor like me, just hard to get past a simple all-in Wellington approach. Not that I am doing that, just very tempted to.
My only problem with ESGs is that their inclusion or exclusion doesn't matter. Companies only make money from their stock valuation when releasing shares to the public. Once out there the cash flows from investor to investor.
Well, companies can and do sell more shares, and the market price sets what they'll get. Stock price is also important to attracting and retaining employees.
Hi Rob, I watched your videos, among many others, discussing LOW-cost index ETFs. However, if you compare all ETFs that track an index (for example S&P500, here SPY and VOO) has very much the same performance over the years. If the ETF performance, that track a specific index, are the same and independent of expense ratio, what is the role of expense ratio and why that much emphasis on LOW cost index ETFs?
Hi Rob, your channel is the best, your knowledge is amazing! Thank you for helping us out. I'm 56 with a new lump sum $150k cash in my ROTH IRA from selling off some meaningless annuities I'd been accruing in this ROTH over the years before now finally attempting to become a knowledgable, effective investor. My thought is to do the "Inflation Fighter" portfolio with $100k, and with the remaining $50k choose about 2 or 3 very high growth ETFs or anything high growth you might kindly suggest. 1.) What are some very high growth ETFs that are still reliable and respected, unlike the crazy, high-risk, super-dividend ones I often see on questionable CZcams channels. 2.) Would putting $50k of other ETFs into the ROTH contaminate or wrongly skew the strategy of the $100k "Inflation Fighter," since they are in the same account?
I want to know more about SEP IRA and Roth IRA contributions. In a future video please. I have both and want to automate the process. I actually have a Brokerage, Traditional IRA, Roth IRA and Sep IRA. I haven't made contributions to the Roth for a while due to income limits. Please give your thoughts.
@@rob_berger Hi Rob. Yes. I would like you to over that and the order in which to fund your IRA accounts. Limits and Automating the process. I am feeling stuck due to the limits imposed on income for ROTH. What if you fund your Roth, then can you continue to fund other IRA accounts or can you fund a new IRA traditional and roll that into the Roth (backdoor) to get around the limit and what are the limits to that contribution? Seems limitless. Not an easy way to contribute monthly it seems.
Do you pay much attention to Sharpe ratio? Several of these portfolios had a Sharp below 1 which I have been led to believe means that the benefit is not worth the risk.
I didn't in this video. While generally a Sharpe Ratio above 1 is considered better, I focus on comparing the sharpe ratio between portfolios. That said, it's not a primary focus for me, but I'll discuss more in future videos as I do think its a reasonable metric to consider.
Keep in mind that Long Term Capital Management had a Sharpe Ratio of 4.35 just prior to its total collapse…….SR is important but only in context with many other metrics.
Very timely video. I just spoke with Rick last week. He still does portfolio review- typically for $925 ( pretty reasonable for a CFP with his horsepower). Booked out until quarter 2, 2022. He is one of our Boglehead gurus.
I still believe that his approach is a bit confusing, with excess diversification. I am 80% equity ( 15 % individual stocks, 65% S&P 500) 20% bond ( all individually owned munis). If you compare my simple, 2 category portfolio, it outperforms Rick in Portfolio Visualizer , and likely will into the future. Not saying Ricks allocations aren’t well thought out, just not universal
Auric--- can you tell us a bit about your two category portfolio? Past performance, etc. and how you select the categories? Thanks--Nick
So your 2 category portfolio is 80% stocks & 20% bonds? Any cash for dips/ pullbacks? What is your timeframe until retirement?
You can't really compare a 80/20 portfolio to something like his. Also individual stocks is a huge gamble and can really throw off numbers. Are those individual stocks tesla/Amazon? Jnj? Like that matters. Also what's your drawdown?
@@TheSorrowWithinMe I’m retired. Eight figure portfolio. 65% SWPPX, 15% individual (HD, JNJ,PFE,WMY,KO,MSFT,INTC,BDX,DE,HON,IEX,LHX,NÉE,SONY,WM,WTSXYL,ZBH). I have had most positions for decades, all good stocks, but huge capital gains exposure, otherwise would be all S&P now. My bonds are all laddered individual bonds,about 60. My withdrawal rate is .6%. Hope this helps
Rob can you do a video on dimensional funds and who might benefit from them?
Asset Allocation is a great book.
Hi Rob. Please let me know your opinion about this portfolio: tlt-12.5%, vglt-12.5%, vgit-12.5%, bnd-12.5%, xlp-12.5%, xlv-12.5%, vti-12.5%, qqq-12.5%
better than Lazy Portfolio could be just Super Lazy Portfolio which consists of 2 ETFs 🙂
The REITs tranche should come out of the bond %, makes it a more powerful portfolio
I would love to see you back test those funds against Wellesely or Wellington. I do like his approach, and of course, you do a great job presenting them. For a novice investor like me, just hard to get past a simple all-in Wellington approach. Not that I am doing that, just very tempted to.
Great suggestion!
My only problem with ESGs is that their inclusion or exclusion doesn't matter. Companies only make money from their stock valuation when releasing shares to the public. Once out there the cash flows from investor to investor.
Well, companies can and do sell more shares, and the market price sets what they'll get. Stock price is also important to attracting and retaining employees.
Hi Rob, I watched your videos, among many others, discussing LOW-cost index ETFs. However, if you compare all ETFs that track an index (for example S&P500, here SPY and VOO) has very much the same performance over the years.
If the ETF performance, that track a specific index, are the same and independent of expense ratio, what is the role of expense ratio and why that much emphasis on LOW cost index ETFs?
Good job Rob thanks
Is it better to take 30,000 to pay off a car with a low interest rate or 30,000 in an index fund?
Hi Rob, What are your views on the 'Paul Merriman's 4 fund' portfolio?
Here you go: czcams.com/video/OWOs9kGNT6I/video.html
@@rob_berger Thanks a lot, missed noticing that it's a subset of all the scenarios already analysed by you.
Hi Rob, your channel is the best, your knowledge is amazing! Thank you for helping us out. I'm 56 with a new lump sum $150k cash in my ROTH IRA from selling off some meaningless annuities I'd been accruing in this ROTH over the years before now finally attempting to become a knowledgable, effective investor. My thought is to do the "Inflation Fighter" portfolio with $100k, and with the remaining $50k choose about 2 or 3 very high growth ETFs or anything high growth you might kindly suggest. 1.) What are some very high growth ETFs that are still reliable and respected, unlike the crazy, high-risk, super-dividend ones I often see on questionable CZcams channels. 2.) Would putting $50k of other ETFs into the ROTH contaminate or wrongly skew the strategy of the $100k "Inflation Fighter," since they are in the same account?
I want to know more about SEP IRA and Roth IRA contributions. In a future video please. I have both and want to automate the process. I actually have a Brokerage, Traditional IRA, Roth IRA and Sep IRA. I haven't made contributions to the Roth for a while due to income limits. Please give your thoughts.
Scott, are you wanting to know the rules on contribution limits when you have multiple types of IRAs, or something else?
@@rob_berger Hi Rob. Yes. I would like you to over that and the order in which to fund your IRA accounts. Limits and Automating the process. I am feeling stuck due to the limits imposed on income for ROTH. What if you fund your Roth, then can you continue to fund other IRA accounts or can you fund a new IRA traditional and roll that into the Roth (backdoor) to get around the limit and what are the limits to that contribution? Seems limitless. Not an easy way to contribute monthly it seems.
You insight on Roth Conversions would be interesting too.
Do you pay much attention to Sharpe ratio? Several of these portfolios had a Sharp below 1 which I have been led to believe means that the benefit is not worth the risk.
I didn't in this video. While generally a Sharpe Ratio above 1 is considered better, I focus on comparing the sharpe ratio between portfolios. That said, it's not a primary focus for me, but I'll discuss more in future videos as I do think its a reasonable metric to consider.
Keep in mind that Long Term Capital Management had a Sharpe Ratio of 4.35 just prior to its total collapse…….SR is important but only in context with many other metrics.
Was gonna sub until I saw that red Sox uniform. Go yanks
It's actually not a Red Sox uniform. It's my softball jersey when I was at the PCAOB.