3 Ways to Simplify Your Investment Portfolio | KISS--Keep It Simple Stupid

Some financial advisors put clients in 10, 20 or even more ETFs and mutual funds. Some think they do this to make investing look complex and to justify their unreasonable fees. Regardless of the reason, it makes understanding the portfolio more difficult, and for no good reason.

In this video I walk through my 3-step process for simplifying any investment portfolio. We look at a viewer's 11-fund portfolio and how to simplify it down to 5 funds.

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#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.

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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.

[priayief]

Here's a topic (slightly on topic for this video) that you might want to discuss. I am retired, married, and 75 years old (ugh). My wife is 10 years younger and knows little about investing. I am in the process of setting up our investments (taxable and untaxable) so that she will have to do as little as possible at the moment she becomes my successor and that she has to do next-to-nothing to handle her investments in the future.

Thanks for your many helpful and informative videos. Cheers.

[ohhdan]

Only started investing a year ago, used the market downturn to simplify into a three fund portfolio without paying much at all in capital gains.

[binawade]

I appreciate your knowledge. We have lots of great Canadian YouTubers who share investment advice but I have yet to come across a good one who is seasoned like you, most are quite young and years away from retirement. Thanks so much.

[walker]

Would be really interesting to hear the advisor's response.

[dwood]

if these assets are held in a taxable account, one possible explanation for duplication of similar funds would be that the advisor is tax-loss harvesting. promptly reinvesting in a second investment, similar but different to the one being sold, to put a capital loss on the investor's tax ledger.

[matthewharrigan]

My first thought was the two similar funds were used to tax loss harvest one and buy the other

[americaneagle]

Rob - nice analysis, provides an understandable approach of how to streamline/simplify a portfolio. Thank you!

[nickdoyle-achievefinancial]

Great analysis! I don't see a good good reason for the duplication either. I could see some reasons that I disagree with: tilt towards ~active management, commissions on selling certain funds, making it appear more sophisticated, etc. Maybe the advisor has a good one? Definitely understand and get it under control before getting locked in!

[xqfztzt]

Here's my entire portfolio for the past decade:
1. VTI
2. VOO
3. QQQ

It performs like no other, and I still keep on contributing the same amount (same date, same time, every time) even during our current market correction.

[clark_griz_gustafson]

Thank you so much for the very informative videos. Would it be possible to provide the links to the tools you are using Rob?

[BY-ixye]

Rob, thank you so much for the video. I appreciate you doing this. I'd like to simply my fund (11 to 5) in my Roth IRA account. I think it does not have tax complications, but what would be a good time of doing so (such as market-down or up)? Also, I'd like to change my target-date funds to low-cost index funds due to the fee. When would be a good time to do so? Thank you for what you do.

[Because]

I just cut my taxable account in half. 42 positions down to 21. 4 ETFs and 17 stocks. I found myself spending hours on research. I couldn’t do it anymore.

[jamie]

Hi Rob, thanks for this video. When I got access to my pension management portal I have to admit I maybe went a bit wild investing in different funds and now I want simplify to 3-4 funds. Is it wise to just transfer everything over in one go, at any point in time, to get the balance of funds you want or will there be draw backs to this? (30yo less than 100k currently invested) I suppose I’m asking for some elaboration on the point made at the end of the video. Thanks

[vjay_michigan]

Great video Rob. I had similar experience few years ago.

[jdedad]

Rob please do a recession proof portfolio pleaseee I am thinking staples, health, utilities value

[georgemanka]

Yet, DFA invest differently from the other index funds.

[catherine]

Rob thanks so much really enjoy your videos! Any thoughts on VGT? Is it worth it if you’re already into an s&p index fund?

[ljrockstar]

Hi, good subject to cover. When reallocating/cleaning up ETF funds is it okay to do this if the ETF is held less than a year? or should I do this "cleaning" up or consolidating at its anniversary? I want to redo my portfolio to eliminate duplication. I have a taxable account that needs consolidating.

[marwanalrubaee]

Hi Rob. Thanks for all you doing. Can you please talk about TZA ? Did the ETF reach it basecamp after it summit its Everest in 2008 ?

[Lee-nfel]

I sometimes do this when I invest in active funds, in order to diversify between two funds that I think are great quality, but I can't pick between the two. An example is TEM and FEML for my emerging market active funds. Would you advise against this?