The 3-fund portfolio is a simple, low-cost way to invest your money. In this video, I’ll share the basics of how this investment strategy works and why it’s so effective.
Timecodes:
0:00 – Intro
1:13 – Introducing The Three Fund Portfolio
2:19 – Why Total Market Index Fund
3:25 – Mitigate Individual Stock Risk
4:28 – Cuts Out Unhelpful Advisors
5:53 – Low Costs
7:21 – Simple
8:32 – Building Your 3-Fund Portfolio
10:10 – Asset Allocation
————
FAVORITE TOOLS:
► Mint Mobile – Check Out My Partner Mint Mobile, Affordable Phone Service –
► SoFi – Checking & High-Yield Savings Account (Terms Apply) – (Affiliate Link)
► Shortform – More Than Book Summaries –
LINKS:
► Get My Weekly Newsletters:
► Favorite Books:
DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.
VTIAX equivelant for UK investors Please?
I live in the Caribbean I how can I invest
Is there an app where you can invest in all of the stocks of Vanguard, even if youre in Europe?
What is IRR for this 3 funds strategy, say, over the last 10-30 years?
Great channel! Appreciate you.
People are to ignore experts advice but follow yours? Let's talk actual numbers.
BND has lost 8% over the last 5 years, and has lost 3.42% over its life. Not sure why you think that's a good investment.
VXUS has barely made a little over 12% during the last 5 years, and barely almost 14% over its entire life.
If you really think the information in this video is good, please STOP. A portfolio with these investments would be really BAD.
Would you recommend using this method managing your money when you retire…just changing the allocation breakdown?
Great presentation . Thank you !
Yet you made a previous video telling us to ignore advisors!
I have a 3 fund portfolio but I have finally decided to invest in ETFs, alongside. I’m looking at SCHD, VOO, XLK or SCHG.
I did this. Retired with $5.5 M.
Listened to Bob Brinker before he retired
Right now, I sold early 2022.
T-Bill and Chill
Extending to mid-term Bonds
Taking less risk
But may re-enter equities if the US Gov. massive debt leads to a melt down in equity mkt.
Why did you also show their ETF's equivalent are you saying that if the Index is not available we could go for the ETf's etc. just clarifying thanks
How's the performance over the years with this methodology
So even market it dips 20 or 30 or 40 % in a given year as long as we stay in and don't sell at a loss the it would recover or just pick up in the next years right as long as the fund does not close down or file bankruptcy then there should be no issue there, wouldn't you agree
These Index funds are still Mutual funds correct
Did anyone else notice that the expense ratio in each case was cheaper with the ETF?
Please help me I am 60 and want passive income 🙏
why not 50-50?
I'm not big on Vanguard because they charge crazy fees. Fidelity doesn't charge me any & you can find a similar Vanguard funds through fidelity.
Stock percentage should be 125 minus your age.
Financial advisors are a scam. AI and ETFs should replace them.
I have found that raising the percentage of bonds always lowers my chances for success long term when running Monte Carlo simulations on my retirement portfolio…I'm using a dynamic withdrawal strategy and 10% cash. Try it!
Any advice for over 60 sitting on cash( lots!!)?
VXUS over 10 years. What's the return? (Bad) Fund overlap needs to be recognized, so you might be unknowingly investing 50% in Apple. Make sure that you are comfortable with the weightings
VOO over VTI, SCHD over BND and than add some QQQM or VGT, or FTEC, at least for the current climate. My VMFXX will outperform BND until interest rates change…if ever.
Emerging Markets stocks suck.
I just visited a wealth advisor today, you basically provided the same information he did in terms of % of asset allocation. Equities, bonds and international equities… obviously they provided more granular information but i really like how you confirmed things in this video.
@TaeKimFinancialTortoise
Why Vanguard over Fidelity or Schwab if their expense ratios are lower?
Thanks for the confidence building videos!
What is an equivalent bond fund at Fidelity?
koreans are bad investors…too prone to anger…
Something to keep in mind about bond funds: they are not especially safe. I know a lady near retirement whose portfolio is down 7% over the last 5-10 years because her financial advisor had her mostly in bond funds that tanked because of inflation and rising interest rates (they also had annual maintenance fees of about 1%). She'd thought her savings were safe and growing.
My current 3 Fund portfolio is SOXL, NVDL and SMCI. All in AI!😂
Tae, this is a wonderful video. I do really appreciate your time and efforts you put on every single video. This is a must watch video.
This is how I invest, with a slight twist: instead of investing in bond funds, I do individual treasury bonds. The rest stays the same.
HODL BITCOIN TO THE MOON!
Why not turn it into a two fund by getting a total market fund and not have to worry about balancing the ration between US and Intl stocks?
The total international index fund seems to be for "diversification for diversification sake". VXUS for example, has underperformed VTI and VOO for the past 20 plus years… Just go Buffett style and skip the international and stick to VTI or VOO.
THIS INDEX RECOMMENDATION STILL HOLD UP TODAY?
Excellent advice and I appreciate your honesty! Also, 100% agree with your thoughts on financial advisors. I have many, many friends who have used simple portfolio strategies very similar to the one you have recommended – and their returns have actually exceeded what I earned with my financial advisor. The more I have learned about the market and investing, the more I understand that simplicity is our friend.