Retirement Accounts & Investments
I want to talk about turnkey solutions here. How should you invest the money in these plans? Okay, the first thing you should look at inside your K plan, I'm sure creative lives got this. Two eyes, target date. Mutual funds, target date of mutual funds Do all the work for you, and they make it automatic. So you plug you look at your age and you say, what do I want to retire? And let's say you want to retire in 20 years, there is gonna be a target dated fund with that date. And that fund may say 2000 and And that funds gonna have a certain amount of equity. Certain amount of start sort of stocks versus bonds. Gonna be totally diversified. Usually is gonna have at least 89 10 funds inside of it. Someone's looking at a daily. It's automatically re balanced over time for you. You don't have to do anything, has it gets as you get older, it gets more conservative. It is a true set it and forget it. Investment plan. I want to show you my favorite diversified one stop fund. This probably wil...
l not be actually I'm sure it won't be in your 41 K Please. But if you had a step IRA or an individual IRA account or you rolled over money, this is my one stop fund solution. It is the Vanguard Star Fund. How many of you are familiar with Vanguard? Yeah. Was there one of the Lord, the largest financial services company for to do it directly at the lowest cost. So Vanguard has their own asset allocation from they built. A diversified portfolio has been around since 1985. This is a symbol V G S T X. Since 1985 it's average 9.1 9.4%. Uh, it is basically what I would call balanced account those of 11 Vanguard funds that air inside this fund. Bangor. I don't even need to read from all. It doesn't matter. There's $18.7 billion in this fund as of November. To get that you have a biscuit. $20 billion fund at an annualized returns since they started in of over 9% automatically done for you. Because what's the book called Automatic Millionaire? How are we trying to do this automatically? What's the goal. Simple. Low cost. Yes, you can do it yourself. This is what I'm talking about here. Target date of fun example I gave you. These are the three biggest ones T. Rowe Price, Fidelity and Vanguard. Um, they make up the bulk of target date mutual funds. And by the way, there's 700. Last time I checked these numbers, there were 786 $1,000,000,000 in target date mutual funds. So it's the biggest growing solution inside 41 K plans in America today. Um, in start late, finish rich. I talk about the perfect pie approach where I discuss 1/3 stocks, 1/3 guaranteed investments and 1/3 real state. I still get asked all the time. Do I like this approach to Yes. This is my approach for all of your money, not just your retirement account. So if your goal are you going, David, how don't want all of my money to look if you have all of your net worth 1/3 in real estate, which typically ends up being to start your home and investment properties could be reads also 1/3 and guaranteed investments. That's gonna be bond CDs. Treasury bills guaranteed and 1/3 stocks. Something's gonna always work because again, I'm looking for singles and then I need an asset protection plan. And that includes my life insurance in my will, which I will go through another lesson. Here's your homework today. Are you enrolled? Go back to that 41 K plan. Are you enrolled? Can you increase it? So most of you here who had these plans you can increase it. That's what I want you to dio What's the company match? Make sure at a minimum you're maxing out the plan to get the full company match. Do they offer target date mutual funds? I'm telling you, if they dio, it's a great solution for you. One key thing with targeted mutual funds is, don't you what a lot of people do, Which is? People choose two or three or four of them to diversify again? That doesn't make any sounds. Just choose one. Did it offer financial planning services? A lot of companies are starting to offer financial planning services. One of the largest player, actually the largest player, is giving financial planning advice. It's not from the firm. His financial engines dot com, which takes me to the automatic millionaire promise. So in the automatic, knowing her as a little work sheet that says hi. And you insert your name hereby, I promised myself that starting this week I will work at least one hour a day for myself because I deserve it that our I deserve it. I deserve that one hour day of my income. Therefore, I promise that I will start paying myself first. Insert gross percentage. What did I tell you? The number was 12.5% good class of my gross income. No later than insert date. What dates to choose? How about like tomorrow? Okay, some of you that are doing this at home, You could do this two day. Okay, The key here. My goal here today is not to be entertainment on education without action, because education without action is not going to change your life. Classes don't change your life. Books don't change your life. Action changes your life