Hubert Senters here.
I’m going to answer one of the most frequently asked questions I get from investors on where to put their money and this could be friends, family, loved ones, tons of people that follow these videos but they always ask me that question. Number one, I can’t tell you where to put your individual money so I am doing this exercise.
Both my mother and father are retired and they recently wanted me to move their portfolio around for them so I’m not telling you what to do because I can’t tell you individually and give you retirement advice but let’s say that my mother and father are retired. They are and they want to know where I thought that they should put their money. This is what I do with mine and this is what I recommend that they do with theirs and it’s super simple.
You can make it more complicated if you want to but you don’t have to. So first and foremost, you’ve got to pick where you’re going to put your money. And the main thing when you’re thinking about this is the expense ratio how much is going to cost you for someone else to manage your money or hold your money. So the best people in that would be VANGUARD so just go over and open up an account at Vanguard. I don’t have anything to do with them but we do have a lot of counsel there.
And then the thing that I recommend that my mother and father put their retirement funds are a ratio of this so it’s in two different things. VTSAX. I am going to put 75 percent of their cash there and then I’m going to put 25 percent of their money in VBTLX and then I want to do 25 percent that’s the ratio I’m going to do. So this is the total stock market. And then this is the total bond market.
Now, the older you are you want to increase or decrease this ratio depending on what you’re doing. But that’s as easy as it gets. Now, if you’re younger than just put your money VTSAX. I would do the admiral shares. It’s a $10,000 minimum account. Let me see I could probably pull up a little quote. Hold on a second. There you have it.
So this will be the one that I would recommend. I would recommend it to friends, family, loved, ones neighbors right here. And right there Expense Ratio 0.04 percent domestic stocks minimum investment, $10,000. And I would go for the admiral shares on this bad boy. It’s a little bit cheaper. You’re just going to have a slightly larger account. It’s all and then the other one which was the total bond market. I’ll pull that on in here too. There is that one. There you have it. That’s what I recommend.
I’m not trying to give you individual investment advice because I can’t do that. But that’s the plan. Now, you can get more sophisticated complicated and do some international stuff. But for the most part your Vanguard Total Market Stock Market funds or the VTSAX is going to have international exposure. Now, if you’re like I want to be a little bit more aggressive or active and stuff well. I mean heck all you’ve got to do is, you know, put your money in an ETF. It’s going to do basically the same thing. You’re probably not going to be able time the market that well.
But you can do SPY that’s the S&P 500. You can do The Dow. You can do the Nasdaq. Those are all ways to do it so you do SPY, QQQ. Those are valid places to put your income too.
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Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
