Retirement Accounts and Investments
Lesson 13 from: FAST CLASS: How to Retire Early: The Latte FactorDavid Bach
Retirement Accounts and Investments
Lesson 13 from: FAST CLASS: How to Retire Early: The Latte FactorDavid Bach
Lessons
Financial Education - Know Better To Do Better
15:12 2Start Early, Start Today
07:02 3The Latte Factor: How It Works
16:31 4FITE - Financial Independence to Transition Early
04:39 5Common Investment Mistakes
01:29 6Becoming Rich on an Ordinary Income
04:04 7How Much do You Need to Retire
01:47 8Retirement Plans & Where to Start
05:23Lesson Info
Retirement Accounts and Investments
retirement accounts. Um let's go through some turnkey solutions for you. How could you make that investment pyramid without figuring out yourself. You can buy what's called the target dated mutual fund most 41 K plans today offer a for offer a mutual fund or a turnkey solution Where you say I'm retiring in 2030 and it does it all for you. Sometimes are referred to as asset allocation funds. Sometimes they're referred to as a balanced fund. That can usually be 60% stock and 40% bonds basically takes the investment pyramid and does it for you and you can have simplified what I call E T F solutions, all those robo advisors I showed you everybody today has got a turnkey, you drop the money in its diversified among mutual funds index is done for you automatically. These, this is everybody looks out what's my favorite mutual fund. Now remember full legal disclosure, past performance does not equal future performance. Do not buy any investment without reading the prospectus and I am not givin...
g you a specific investment recommendation. Did we all hear me on that? Okay, but this is a fun that I love a lot. Why do I love it so much? It's also in the automatic millionaire book because Vanguard is one of the largest investment company in the world, probably the largest investment coming down in the world. They run a asset allocation fund with all of the research that takes 11. Vanguard funds and diversifies it automatically using all of their research and institutional knowledge into one fund And since 1985 this was done anything a year ago, the average return was 9.4%. Super boring, boring is good. These are the three biggest target dated mutual fund companies basically in the world. That's what's inside. Most foreign K. Plans to the T. Rowe price fidelity or vanguard. They've all got turnkey solutions for your 41 K. Plans. Today It would be unheard of today to have a 41K. Plan that does not offer target dated mutual funds. You will do better in a target dated mutual fund in my opinion that you will do investing on your own figuring it out, figure out how much to put in each one of those sleeves. It's rebalance for you. It gets more conservative as you get older. I'm not gonna spend a lot of time on this right now. But what I said and start late finish rich, is that the perfect way to invest money as a third stock, third guaranteed investments. This was all the bonds and a third real estate. Which leaves me with your homework. Are you enrolled in your 41K. Plan? Can you increase it? Is there a match? How much do you need to put in to get your match? Do they have target date mutual funds If they do, are you using the right 1? And the last thing. Do they have financial planning services? A lot of these companies today actually have a company that provides financial planning services with the 41 K. Plan. See if they've got 11 of the biggest ones is financial engines. But most foreign K plans today are now offering a form of financial advice.