Are Index Funds Too Risky Now That They're Packed With AI Stocks? (FQF)

I know the audio on this video was terrible. I do believe I've fixed the issue for next time.

I generally don’t mind paying a little extra in taxes as long as it goes to a good cause

Regarding Question 4, Rob's advice was spot on, but I don't think his argument was very convincing. With respect to Roth vs. Traditional IRAs, asset location has little or no bearing on asset allocation. Imagine a scenario where you happen to have $500K in a Roth account and $500K in a Trad IRA account. Furthermore, imagine both accounts are equally split between stocks and bonds. Assuming the investments are identical between the two accounts, your stocks will grow just as quickly (or slowly) in the Roth account as in the Trad account and your bonds will grow just as quickly (or slowly) in the Trad account as in the Roth account. I can't predict how well or how poorly your investments will perform over time, but if you leave everything as is, your Roth balances will track your Trad balances. Any time you choose, you can effectively relocate stocks from the Trad to the Roth while relocating an equal value of bonds from the Roth to the Trad without tax consequences. How? Just go into your Roth and exchange bonds for stocks, then immediately go into your Trad and exchange stocks for bonds. No distributions, no withdrawals, no taxes. You can do it tomorrow, and maybe you should because in the long run asset location actually does matter: you'd rather concentrate long-term growth in the account that allows tax-free withdrawals.

In SMA, I donated my NVDA to my DAF and used cash to buy back the position in the SMA (obviously not in an IRA). You can also pick out a big winner with unrealized capital gains for a charitable gift annuity.

why not invest in a weighted index like rsp instead of voo so the heavy it companies dont affect it?

I added some SCHD to my portfolio to diversify away from VTI / VOO, different top 10. Rob's the best and such a pro. Wouldn't miss the Friday questions for anything. Thank you for what you do.

Rob, I know you answer to "everybody," but I think you missed a great bit of knowledge specific to that first question. Specifically, the question was about his young daughter being afraid of a downturn (in the sp500.) A very important idea, specifically for young investors (with a lot of risk capacity,) is that a market downturn is GREAT for them. They have an opportunity to buy ever more stocks/funds on discount.

I talk to so many young wouldbe investors afraid of putting beginner money into the market because of slight pullbacks. They never see the bigger picture of just how beneficial it will be to DCA through downturns in their early investing decades.

Automagically 😂

Thanks for making SMA actually understandable.

I was using Vanguard's advisory service for a few years and I noticed that they were putting my money in ETFs that were not making much returns compared to other ETFs. It seemed to me they were using customer money to boost certain ETFs. I asked my advisor to sell those shares and put them in a few others I picked out. He refused so I fired them and started managing my own money. My returns have skyrocketed and the performance line has been going up at a 45 degree angle ever since.

#1. I wish was a young person again, knowing what I now know. Yes. Buy the index. Buy when it's up. Buy more when it's down. And don't stop. Just keep buying.

Thank you Rob Burger

Not only should there be a discrepancy between two different products doing monte carlo, unless you are running in a debug mode, you should have discrepancies between different simulation runs on the same product. In monte carlo simulations, consistency screams you done messed up.

For the first question, the person asked whether the S&P 500 is right for a young person. With many more years to let it grow, I think the S&P500 is fine. Of course, if the person needs the money in the very near future, then going with cash or an equal-weighted fund might be suitable.

oh wow you picked the perfect questions #2 ,#3 and #4) in this video. thank you! Audio was fine but the camera was not.

IBIG and the rest of the IShares IBond family ETFs list the real yield on the right a little below the yields you showed. In the case of IBIG it is currently 2.06% It makes it a little easier to compare against an actual TIPS bond.

There are several things you can do to deal with the market being overvalued. First: use extended market funds or tilts like VIOV (excellent fund). Then rebalance into VTI as it inevitably fails to match your other indexes. Because it IS inevitable. Option 2: do nothing and continue DCA into VTI. When 2040 hits you will be very happy.

3:16 The ai bubble is completely predictable. It's going to happen sooner or later (probably sooner), and both the total market index, and the S&P 500 index are going to completely tank. With all do respect, Rob, making decisions isn't as scary as you make it out to be.

I would have made the point in answering #1 that because of the age of the daughter, the short-term issues aren't really an issue if she keeps dollar cost average I vesting over the next 20 years she'll get the benefit of the highs and lows....as everyone who knows anything says, it's all time in the market, not timing the market...

I just wish Boldin would allow using either historical IRS tax tables as an option or, and this is more difficult, allow the user to set their own Federal tax bracket breakdowns. Why? Simply, I would like to see what going back to tax rates from earlier federal tax rates, with the expectation that our future tax rates will go up, to see what a better expectation of my Roth conversion benefits will be. Choose an historical IRS tax table, chose a start year in the future and then run my conversion scenarios.

Concentration on SP500 in my opinnion just means it will have more volatility, we have to asume it to create a diversified portfolio that matches the volatility objective we want in global.

Concentration is how you beat the market and retire early. AI is just getting started.

"Stick to index funds" "but hey don't now because this time i actually know which sectors and stocks will be the winners"

The same ppl who will call u names for picking stocks or sectors a few years ago..