We will begin tonight discussing how to invest a large lump sum of money. Then I’ll respond to your questions. Tonight’s Sponsor: New Retirement–
0:00 – Welcome to the Financial Freedom Show!
0:51 – New Retirement
2:53 – How To Invest $1 Million
13:51 – VTI in a 3-fund portfolio
18:09 – TIPS in deflation
20:57 – Significance of a 10-year treasury yield
24:07 – Investing $100K
26:17 – Mid-cap index funds
28:16 – Deploying Roth assets
31:46 – Stock/Bond allocation
33:50 – Poll
34:54 – Long term bonds
39:33 – Warren Buffet
39:53 – Pension and the 4% Rule
43:45 – Tracking funds with no ticker
44:51 – VT vs DODWX
47:39 – US debt
49:58 – Efficient Frontier
51:30 – Social Security tax torpedo
54:22 – VMFXX
55:30 – Treasury rates
56:08 – TIPS vs Treasury
58:54 – Contributing to a Roth 401K
59:44 – FFTHX
1:02:22 – Lump sum or sell
1:03:28 – Simplifying a taxable account
1:05:25 – Mega backdoor Roth conversions
1:08:45 – Investing an inherited IRA
1:14:58 – Rolling over a 401K into an IRA
1:16:29 – Planning for cognitive decline
1:20:19 – Watching tv as a family
1:21:00 – retirement planning
1:24:51 – Traditional IRA vs Roth
1:26:52 – Tax torpedo spreadsheet
1:28:09 – High interest savings accounts
1:31:23 – Financial Freedom
————————————
Investing Tools
————————————
My Book (Retire Before Mom and Dad):
Personal Capital (Investment Tracking, retirement planning):
New Retirement (Retirement Planner):
Stock Rover:
M1 Finance $30 Bonus (IRA & Taxable Accounts):
————————————
Credit Cards & Banks
————————————
My Favorite Credit Cards:
My Favorite Online Banks:
————————————
Popular Videos
————————————
1️⃣ How to Create a 3-Fund Portfolio:
2️⃣ How I Manage 28 Accounts in One App:
3️⃣ 7-Step Financial Checkup:
#assetallocation #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.
I’m also the author of Retire Before Mom and Dad–The Simple Numbers Behind a Lifetime of Financial Freedom (
LET’S CONNECT
Youtube:
Facebook:
Twitter:
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….(read more)
LEARN MORE ABOUT: IRA Accounts
CONVERT IRA TO GOLD: Gold IRA Account
CONVERT IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Investing $1 million can be both exciting and overwhelming. How does one prioritize, diversify, and maximize returns? Many investors seek expert advice on their financial journey, and that’s why a live Q&A session can be immensely valuable. In this article, we will explore some key considerations and insights shared during a Q&A session on how to invest $1 million wisely.
1. Know your goals and risk tolerance: Understanding your financial goals and risk tolerance is crucial before making any investment decisions. During the Q&A, experts emphasized the importance of aligning investments with personal objectives, whether they be long-term growth, income generation, or capital preservation.
2. Diversify across asset classes: Diversification plays a pivotal role in any investment strategy. The panelists highlighted the need to spread the investment across diverse asset classes, including stocks, bonds, real estate, and alternative investments like commodities and cryptocurrencies. Such diversification helps reduce risk and balances potential returns.
3. Consider index funds and ETFs: Passive investing through index funds and exchange-traded funds (ETFs) gained attention during the Q&A. These investment vehicles provide broad exposure to different markets while aiming to replicate the performance of a specific index. Their low costs and ability to track market trends make them attractive options.
4. Research and understand individual stocks: Investing in individual stocks can be rewarding, but it requires extensive research and a deep understanding of the company, its fundamentals, and the market trends. Seek expert opinions, analyze financial statements, and keep updated on industry news before committing significant capital to a single security.
5. Learn from the best: The Q&A panel included experienced investors who shared their insights and lessons learned from years in the market. They stressed the importance of continuous learning, staying informed, and seeking advice from reputable sources. Following successful investors and reading investment literature can provide valuable guidance for your investment journey.
6. Maintain a long-term perspective: Investing is a long-term game. While short-term fluctuations can be tempting to react to, the experts urged investors to remain focused on their long-term goals and not be swayed by market noise. Avoid emotional decision-making and ride out inevitable market volatility for the best chances of achieving solid returns.
7. Consider professional advice: Investing $1 million is a significant task, and seeking professional help can be beneficial, especially for those lacking expertise or time. Financial advisors can provide personalized strategies and recommendations tailored to individual circumstances.
8. Rebalance and review periodically: Regularly reassessing and rebalancing your investment portfolio is essential. As markets fluctuate and investments perform differently, maintaining the desired asset allocation and adjusting holdings accordingly ensures a disciplined and optimized investment approach.
The live Q&A session on investing $1 million covered these significant considerations and much more. Ultimately, investors should remember that each person’s financial situation is unique, requiring personalized strategies. Engaging with experts and learning from experienced investors can empower individuals to make well-informed investment decisions and maximize the potential of their $1 million investment.
With the global interest rate spikes, steady erosion of consumer savings and post-COVID
pent-up demand, and deeply troubling global
geopolitical context will result in market
declines and re-emergence of market volatility
With American Funds $1000000 or more gets rid of the front load fee so you can purchase active managed funds with only a expense ratio with some advice from a broker.
Too chatty, self-referential and off target for too much of the time for me. A little more focus on the subject at hand would be more appreciated!
Just buy vwiax.
One million is too pedestrian. Dr. Evil wants to know how to invest ONE BILLION dollars.
Would you buy a T-bill from TreasuryDirect or a bank/broker/dealer? If TreasuryDirect, would you just trust that the rate is good? It seems weird to not know what you are buying until the competitive auction ends. If bank/broker/dealer, who would you go through and is it still tax free? Thanks
Just lump sum into your asset allocation. For me at 35 years old it’s 100 percent into VTSAX
You mentioned things happen slowly until they happen quickly, Robert Kiyosaki said something years ago that has stuck with me.
“How do you go bankrupt? Slowly at first then suddenly” for some reason that simple sentence terrifies me.
Google Keywords & ads are driving content creation with the big publishers. Has nothing to do with real advice and insight. Start with alternative assets like the ad losses all credibility with that publisher.
you confuse me. selling shares isn't the the same thing as spending dividends. Once the shares are sold the dividends cease. Again, you confuse me.
The "best 80's music." What is that? 1:14:49
Last time I checked short term 1 – 3 month T Bills are paying 5.3%. There really is no point in buying cooperate bonds because they pay less.
Index funds and stocks: DE, BERK-B, Cost, AAPL, MARKEL
@Rob Berger – First, it's Mega backdoor Roth 401(k). Mega backdoor Roth 401(k) contributions can be converted either IN-PLAN or you can do an IN-SERVICE rollover to a Roth IRA. Either process counts as a Mega backdoor Roth 401(k) contribution.
Second, Roth 401(k)s and Roth IRAs have the exact same rules for DISTRIBUTIONS from the plan, except that the Roth IRA rules happen to include more favorable Ordering and Aggregation Rules for Non-Qualified Distributions. Non-Qualified Roth 401(k) distributions are Pro-Rata and Non-Qualified Roth IRA distributions are subject to Roth IRA Ordering Rules. However, both types of accounts have two different types of 5-year clocks that apply. If you know how the 5-year rules work, and how Pro-Rata vs. Ordering Rules work, you can mix and match to the situation.
The first 5-year Rule only affects EARNINGS that were earned within the Roth IRA or designated Roth subaccount. If you have not had the account open and funded for at least 5 years, the portion of the distribution that is attributable to earnings is subject to ordinary income taxes AND if you are not yet 59 1/2 it will be subject to a 10% early withdrawal penalty.
The second 5-year Rule is applied to each conversion. This 5-year Rule EXEMPTS any portion of the distribution attributable to a TAXABLE Roth conversion from the 10% early withdrawal penalty if the conversion was at least 5 years prior. Note: This second rule is the basis of the so-called *Roth IRA Conversion Ladder*. And while you can build that ladder within a Roth 401(k), you need to take those distributions from a Roth IRA because the Pro-Rata Rule would have you distributing a Pro-Rata portion of each conversion with each distribution.
The conversion of the cost basis of an account (Non-deductible contributions for Traditional IRA or After-tax contributions for an employer sponsored plan) create what is known as a NON-TAXABLE ROTH CONVERSION. Non-taxable Roth conversions are never subject to additional taxes or early withdrawal penalties. EVER. However, the Roth IRA Ordering and Aggregation Rules require you to distribute TAXABLE Roth conversion dollars from a given year before you can take the NON-TAXABLE Roth conversion dollars for that year. But as long as you are doing the backdoor or Mega backdoor Roth contributions quickly, this should not create a significant obstacle to withdrawing funds, as long as you can get them into a Roth IRA before taking the distribution AND assuming you don't do a large Roth conversion of pre-tax dollars in that same year or a prior year within the past 5 years.
Finally, any dollars rolled over from any designated Roth subaccount of any employer sponsored plan that is already considered Qualified (meets the first 5-year Rule and you are at least 59 1/2) to a Roth IRA retains it's Qualified status even if your Roth IRA iss not yet 5-years old. This means you can open your first Roth IRA immediately after retiring and rollover your Roth 401(k) and start taking distributions from the Roth IRA without worrying too much about any taxes owed. You WILL incur ordinary income taxes on the earnings on your rollover dollars if you distribute the entire Roth 401(k) rollover balance as well as some of the earnings on that balance before the Roth IRA has been opened for 5-years.
So the answer to @Rhodan StarshipTitanic's question is: 1) Yes, there are 5-year rules associated. And 2) Yes, a pre-tax 401(k) Roth conversion can have much different tax consequences at distribution if you distribute within 5 years because of the second 5-year Rule. After 5 years, the two are the same.
And yes, I have had direct experience with a plan that supports Mega backdoor Roth 401(k) contributions, though I am now retired. But I believe those Mega backdoor Roth 401(k) contributions made a material difference in me reaching my retirement goals. (BTW, Mega backdoor Roth 401(k) contributions first became a thing in 2014, just 9 years ago…)
Remote controls were available in the late 50's. 40:14
70% dividend yielding stocks, 20% bonds, and 10% cash ($100K). Reinvest dividends into cash.
Is good time to buy more bonds, BND?
I'm trying to figure out when Bob publishes his live streams, ahead of time. Where is the best place to track the schedule?
I must respectfully disagree with Mr Berger. If you sell shares to pay bills, eventually you will run out of shares. If you use dividends to pay bills, you will not run out of shares.
The fact that an ex-dividend stock is reduced in price by the dividends amount ignores the fact that a high-quality investment will recover its price.
In the real world selling shares to pay bills requires share replacement. A retired person doesn't generally have new income with which to reinvest. Therefore, for a retired individual paying bills from dividends is preferable to selling shares, regardless of whether the value of the investment is the same.