How to Invest When Stocks are Expensive | Live Q&A

We'll start tonight with a discussion on whether and how stock valuations should inform our investing decisions. Then I'll turn to your questions.

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Timestamps

0:00 - Welcome to the Financial Freedom Show!
0:23 - Poll
1:09 - How to Invest When Stocks Are Expensive
11:41 - Poll results/Volunteering
14:56 - Swapping out BND
18:06 - Poll
20:04 - Taxes on etf in IRA
22:17 - Zotero
24:31 - Funding a Roth
26:41 - The Five Year Rule
28:43 - Favorite Chess opening
29:53 - VOO or VDIGX
35:02 - Maxing out a Roth with no 401K
36:09 - Timing the market
36:40 - Roth conversions and lower return rates
40:42 - Volunteer comments
41:07 - My credit card rewards
42:00 - Poll
45:08 - Babyboomers
47:26 - Stock rates
49:11 - Equally weighted S&P
53:08 - SMA's
56:35 - Moving a 401K
57:48 - Fidelity Contrafund
1:00:56 - Bond allocation and CD's
1:01:50 - SCHD and value funds
1:04:02 - M1 Finance
1:05:37 - Safe tax efficient investment
1:08:50 - Old sayings
1:10:30 - Allocating savings and non-retirement accounts
1:12:07 - Minor custodial taxable account to Roth
1:12:47 - The 4% Rule
1:17:00 - Social Security
1:21:03 - New Retirement
1:24:20 - Tax efficient investing
1:28:04 - Chess
137:44 - Financial Freedom

#retirement #investing #robberger

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

LET'S CONNECT

DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.

[TWILLIE]

I have volunteered for the American Cancer Society driving people to appointments. Also volunteered in the office at my church for a while. Since I've learned how to quilt in the past few years, I've been making quilts for my family members so they will have something to remember me by.

[gaurichess]

Hey Rob, thanks for all the content. Was pleasantly surprised to see you play chess at the end!

[jjdawg]

36:40 MUNIs wont help you with ACA credits since ACA uses MAGI instead of AGI. In short you cannot exclude MUNI interest income from MAGI in order to get ACA credits. That said it will reduce your Fed and maybe your State "income" tax. I have been and still going through the same dilemma every year. All I can say is to try to do your conversions sooner than later since your ACA gets more expensive every year and becomes more valuable(and necessary) as you get older

[davidw]

I have a Fidelity managed account and about 50% is in their tax managed SMA both US & international stocks. Between that and the other 50% of my portfolio I literally have 500 to 600 positions. It's crazy !!! Statements are 70 to 90 pages long.

[Estates]

Hi Rob! Love your videos!! Here is a request for you to cover! Would love your input! "What do you do when you are 64, always self employed, no retirement accounts, but invested in rentals for 20 years, and sold with a nest egg of $1.25M. Most video's cover how to invest in retirement accounts from a young, and your advice is spot on... 2 or 3 fund portfolio, in an index S&P fund, with low expenses. Brilliant, and a winner over the long term. So, many questions about what to do when you get a huge lump sum at 64+, and it seems impossible to put all that into a retirement account. Thanks!! Keep up the awesome work!!

[evanwheeler]

You said you picked SCHD because it's a value fund, but it's going to prioritize companies that issue a dividend over great value companies that dont. A better option would be to go for a more pure factor exposure through something DFUS / AVUS for large cap or DFSV / AVUV for small cap.

[markoliver]

Retired six years ago began volunteering at Lake Christian Ministries, a local food pantry three days a week.

[jaymetheaccountant]

Long term is the way to go - appeals to the accountant 🎉 reading to kids at Elementary schools 🏫 is our retirement goal! Served on many NPO boards in my working years

[disch]

After being in an retirement fund over 40 years, I wish I had a Thrift Savings type of account. We had too many options and very little guidance on what to do. I would have preferred very few options and a class on how to invest. I did okay but I can only image how well I would have done. FYI, I was one of those investors who never looked at the market or statements.

[chiparooo]

Great discussions! Thanks for sharing!

[mr.carlsen]

What is your view of using up your IRA's in your 60's, up to the standard deduction vs, doing ROTH conversions, up to the standard deduction, for a zero percent tax rate. Rest of my need would come from brokerage account, at zero percent. I don't have a huge amount of IRA's so it isn't a big deal to lower taxes for my RMD years. So, I either use the RMD's in my 60 or convert them, up to the standard deduction. Is either way better?

[Nick-xfpn]

14:08 small cap value sometimes doesn't work? Nonsense, it's performing differently than the US total market, especially in the last several years, and that's exactly what diversification looks like. That it's underperforming the US total market is no more relevant than international underperforming the US total market; both provide diversification, and both are working just fine for anyone not chasing performance.

[purpose.]

Where's the best place to put your investments when you're 50, and just starting?

[dadsgoogleacc]

Rob, much is written about managing a portfolio when in accumulation but not much regarding managing a portfolio in decumulation. Should profits be pruned off into cash as profits arise? or is it wise to take profits annually? Sometimes investments make profits quickly so shouldn't these be locked in by taking the profits into cash?

[Jima]

I don’t transfer money from fund to fund in my 401k. I change what I’m buying.

[demancey]

And here I thought I was the only one using zotero and obsidian to store/organize notes regarding investment content

[harb]

Qs. Can I use my G fund as a hedge against the etf’s I have in my Roth IRA instead of buying BND ?

[TWILLIE]

Can I get some thoughts on Vanguard’s Digital Advisor?

[zoner__]

Choices in a 401k are typically higher cost. Contra is an out performer 14% vs voo 12.7% last 10 years

[dhix]

IF anyone knew LOL. it depends on you're horizon and capital at a certain age you may not gamble in the stock market.