Top 5 Index Fund Investing Strategies

In this video, I'm going to go through my top 5 investments to buy and hold forever to become a millionaire.

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A target date fund (TDF) is a mutual fund designed to simplify retirement investing by automatically adjusting its asset allocation over time. These funds start with a more aggressive mix of stocks for growth potential and gradually shift toward conservative investments like bonds and cash as the target retirement date approaches. This adjustment process is called the fund's "glide path."

TDFs are popular for their simplicity, offering a one-stop solution for retirement planning. Investors choose a fund with a target date that aligns with their retirement goals and rely on the fund managers to handle the rebalancing of the portfolio. This makes TDFs ideal for those who prefer a hands-off approach to investing.

The Vanguard LifeStrategy Fund is a mutual fund offering that provides investors with a diversified portfolio based on specific risk tolerance levels. The fund comes in several versions, such as Conservative Growth, Moderate Growth, Growth, and Income, each with a different balance of stocks and bonds.

These funds are composed of various Vanguard index funds, offering broad exposure to domestic and international stocks and bonds. Unlike target date funds, LifeStrategy Funds maintain a fixed asset allocation, allowing investors to select a fund that matches their risk tolerance and adjust their investments as needed.

A total world stock fund provides comprehensive exposure to global equity markets by including a mix of stocks from both developed and emerging markets. This type of fund offers a simple, all-encompassing solution for investors seeking broad international diversification.

The primary advantage of a total world stock fund is its simplicity. Investors achieve global diversification with just one fund, covering a wide array of companies across various industries, sectors, and regions. This spreads risk and enhances potential returns by capturing economic growth from around the world.

A 2-fund stock portfolio is a straightforward investment strategy that involves holding two funds: one domestic and one international. The domestic fund typically covers the entire domestic stock market, including large, mid, and small-cap companies, providing broad exposure to the home country's economy. Examples include the Vanguard Total Stock Market Index Fund.

The international fund includes companies from both developed and emerging markets outside the investor's home country, offering global diversification. Examples include the Vanguard Total International Stock Index Fund. This diversification helps mitigate risk and capture global growth opportunities.

A 3-fund portfolio consists of three components: a domestic total stock market fund, an international total stock market fund, and a total bond market fund. This combination provides broad diversification across the entire global stock and bond markets.

The domestic total stock market fund includes a wide array of U.S. companies, capturing the performance of the entire U.S. economy. Examples include the Vanguard Total Stock Market Index Fund. The international total stock market fund covers stocks from developed and emerging markets outside the U.S., providing global diversification. Examples include the Vanguard Total International Stock Index Fund. The total bond market fund includes a broad range of U.S. government and corporate bonds, offering stability and income.

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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money.

[ItsAlive]

All you need is 5 investments of $200k each for instant millionaire status. Alternatively, 5 investments of $2 each and 350 years later, bam! Millionaire status

[etrans]

Thank you for the break down. Bottom line is that Not Investing is 10x worse than picking anyone of your suggested strategies.

[bigmike]

Hey, have a quick question about my 1st time investing journey that started last week with 3 etf's. VOO SCHD & SMH.. thoughts? I'm GenX with 20 or so to make this happen, appreciate your opinion. Thanks

[wayne]

Uh, besides the creepy skull prominently displayed on your shelf, that was some good actionable info. Thanks Jarrad.

[jamesklapetzky]

What ETFS do you recommend for a TRADITIONAL IRA? I am a new investor performing a rollover of my ROTH 401K into a ROTH & TRADITIONAL IRA account.

[Imperfectspace]

Please, would you do a review over why you would not pick iShares LifePath ETF’s for a 401k. And what would you pick in replace of it? I actually have LifePath ETF 2045 (pretty sure they put it as a default). if I’m leaving money on the table and there’s a better option, I would love to know!

How do you feel about bitcoin ETF’s? I know you’ve done a video a few months back talking about not getting into those hyped ETF’s. Like, AI, cyber security etc. I’m trying to have the best performance for my 401k and also trying to open up a good Roth IRA too. Hopefully you see this message. I know this videos is about two weeks old. Anyway, thank you! ⭐️⭐️⭐️⭐️⭐️

[MattStryfe]

Jarrad, just a heads up. The retirement planning service you recommend has somewhat sleazy subscription cancelation practices. For example, after signing up online, they require you to email them directly to cancel or alter your subscription. Thought you'd want to know. I signed up and cancelled immediately after I found out the hard way.

[shannonthomass]

What type of shirt are you wearing? I won’t look the same since I’m not jacked but I’ll try to honor it well

[CalvinHobbs-ebfj]

The only loose end I have in my Roth IRA three fund portfolio is FXNAX (9%). I really don't get what's the point of it and if there is a better alternative to it. What about Fidelity Inflation Protected - Bonds Index (FIPDX) and Fidelity Intermediate Treasury Bond Index Fund (FUAMX)?

Thank for the videos. They are very educational and helpful.

[ryanthomas]

Jarrod, thanks for the video. You mention not to buy another companies fund on a different platform. I invest with Schwab, but currently have 100% of savings in VTI (young, good income, etc.). I asked Schwab about a year ago if I was paying any additional fees/expenses buying a Vanguard fund and they said no. Am I missing something or do these extra expenses/fees you're referring to only apply to the target date funds? Thanks!

[brianlaskey]

Something to note is that a bond fund does not behave the same way as a bond (ladder). A bond fund will (regularly) sell bonds at a loss which any rational investor would not do if holding bonds in a ladder.

[garymcfadden]

A year ago you said you would never touch VT?

[ilikegames]

Just say for educational purposes and talk about what’s hot, we need $30 stocks not $191 or higher. We ain’t rich

[adriantarver]

Is this just re-uploaded content you made from the past?