1 00:00:00,000 --> 00:00:02,280 So you wanna be a millionaire. 2 00:00:02,280 --> 00:00:04,680 Who doesn't, right? 3 00:00:04,680 --> 00:00:06,680 Well, maybe ETFs are the answer. 4 00:00:06,680 --> 00:00:08,560 At least that's what this YouTube video claims. 5 00:00:08,560 --> 00:00:11,120 Six ETFs is all it takes apparently. 6 00:00:11,120 --> 00:00:12,360 That's right, just six. 7 00:00:12,360 --> 00:00:14,600 So in this deep dive, we're gonna break it all down. 8 00:00:14,600 --> 00:00:16,680 Exactly, we'll see if this strategy really holds up. 9 00:00:16,680 --> 00:00:17,520 First things first. 10 00:00:17,520 --> 00:00:18,440 Gotta start somewhere. 11 00:00:18,440 --> 00:00:19,720 What's the foundation? 12 00:00:19,720 --> 00:00:21,360 What's the core of this whole thing? 13 00:00:21,360 --> 00:00:22,640 VTI, they say. 14 00:00:22,640 --> 00:00:23,480 VTI. 15 00:00:23,480 --> 00:00:26,000 Vanguard Total Stock Market ETF. 16 00:00:26,000 --> 00:00:26,840 Okay. 17 00:00:26,840 --> 00:00:27,680 And that is... 18 00:00:27,680 --> 00:00:29,600 Basically it's like owning a tiny piece 19 00:00:29,600 --> 00:00:31,960 of almost every company in the US stock market. 20 00:00:31,960 --> 00:00:34,000 Whoa, hold on, every company. 21 00:00:34,000 --> 00:00:35,560 Well, pretty much all the publicly traded ones. 22 00:00:35,560 --> 00:00:37,240 So from the big guys, like... 23 00:00:37,240 --> 00:00:38,880 Apple, Microsoft, Amazon. 24 00:00:38,880 --> 00:00:41,120 Two companies I've probably never even heard of. 25 00:00:41,120 --> 00:00:42,240 Exactly, you got it. 26 00:00:42,240 --> 00:00:43,320 All in one ETF. 27 00:00:43,320 --> 00:00:44,360 Yep, that's the idea. 28 00:00:44,360 --> 00:00:46,640 I mean, that's pretty impressive diversification, right? 29 00:00:46,640 --> 00:00:49,040 It is, but how does it actually perform? 30 00:00:49,040 --> 00:00:50,640 Yeah, that's the real question. 31 00:00:50,640 --> 00:00:52,400 Well, over the past 10 years, 32 00:00:52,400 --> 00:00:54,120 the average return has been... 33 00:00:54,120 --> 00:00:54,960 Has been... 34 00:00:54,960 --> 00:00:57,160 12.52% per year. 35 00:00:57,160 --> 00:00:58,560 Whoa, okay, that's... 36 00:00:58,560 --> 00:00:59,400 That's not bad at all. 37 00:00:59,400 --> 00:01:03,640 If I had invested, let's say, $10,000, 10 years ago... 38 00:01:03,640 --> 00:01:05,520 You'd be sitting on over $32,000 today. 39 00:01:05,520 --> 00:01:06,560 Okay, now I'm listening. 40 00:01:06,560 --> 00:01:07,400 But remember... 41 00:01:07,400 --> 00:01:08,560 Remember what? 42 00:01:08,560 --> 00:01:11,080 The stock market, it's a bit of a roller coaster. 43 00:01:11,080 --> 00:01:12,200 Oh yeah, for sure. 44 00:01:12,200 --> 00:01:13,440 It has ups and downs. 45 00:01:13,440 --> 00:01:16,360 But that's where VTI's broad diversification comes in. 46 00:01:16,360 --> 00:01:18,280 I see, so it kind of smooths things out. 47 00:01:18,280 --> 00:01:20,480 Exactly, because it includes companies 48 00:01:20,480 --> 00:01:21,840 from all different sectors. 49 00:01:21,840 --> 00:01:24,120 So even if one sector is struggling... 50 00:01:24,120 --> 00:01:25,480 Others might be doing well. 51 00:01:25,480 --> 00:01:27,280 And that helps to balance things out. 52 00:01:27,280 --> 00:01:29,440 Right, and don't forget about dividends. 53 00:01:29,440 --> 00:01:32,400 Oh yeah, those lovely little bonus payments. 54 00:01:32,400 --> 00:01:35,520 With VTI, you're getting a little extra income on top of... 55 00:01:35,520 --> 00:01:37,800 On top of the potential for growth. 56 00:01:37,800 --> 00:01:38,640 You got it. 57 00:01:38,640 --> 00:01:40,120 Okay, so we're getting diversification growth, 58 00:01:40,120 --> 00:01:42,440 potential, and dividends. 59 00:01:42,440 --> 00:01:43,560 All in one package. 60 00:01:43,560 --> 00:01:47,000 I'm starting to see why they call this the core holding. 61 00:01:47,000 --> 00:01:49,760 The solid foundation for any portfolio. 62 00:01:49,760 --> 00:01:51,440 But is it perfect? 63 00:01:51,440 --> 00:01:52,920 Are there any downsides? 64 00:01:52,920 --> 00:01:54,720 Well, it is very US-centric. 65 00:01:54,720 --> 00:01:55,560 Meaning? 66 00:01:55,560 --> 00:01:56,880 It only invests in US companies. 67 00:01:56,880 --> 00:01:58,600 So if I wanted to go global... 68 00:01:58,600 --> 00:01:59,760 I'd need to look elsewhere. 69 00:01:59,760 --> 00:02:02,120 Good point, no single investment can do it all. 70 00:02:02,120 --> 00:02:04,240 Exactly, diversification is key. 71 00:02:04,240 --> 00:02:07,040 And speaking of diversification, what about real estate? 72 00:02:07,040 --> 00:02:10,080 Ah, yes, a classic portfolio addition. 73 00:02:10,080 --> 00:02:12,800 Does this strategy include any real estate? 74 00:02:12,800 --> 00:02:14,880 It does, they recommend VNQ. 75 00:02:14,880 --> 00:02:15,960 VNQs. 76 00:02:15,960 --> 00:02:17,760 Vanguard real estate ETF. 77 00:02:17,760 --> 00:02:19,320 Okay, so with this one, I can... 78 00:02:19,320 --> 00:02:20,760 Tap into the real estate market 79 00:02:20,760 --> 00:02:22,440 without actually buying any property. 80 00:02:22,440 --> 00:02:24,480 So no dealing with tenants? 81 00:02:24,480 --> 00:02:26,320 No leaky faucets to fix. 82 00:02:26,320 --> 00:02:27,720 Sounds pretty appealing actually. 83 00:02:27,720 --> 00:02:31,040 It's definitely a hassle free way to invest in real estate. 84 00:02:31,040 --> 00:02:32,120 So how does it work? 85 00:02:32,120 --> 00:02:35,120 VNQ invests in something called REITs. 86 00:02:35,120 --> 00:02:36,040 REITs. 87 00:02:36,040 --> 00:02:37,760 Real estate investment trusts. 88 00:02:37,760 --> 00:02:38,600 And those are? 89 00:02:38,600 --> 00:02:41,800 Companies that own and manage income producing properties. 90 00:02:41,800 --> 00:02:42,640 Like? 91 00:02:42,640 --> 00:02:46,200 Office buildings, shopping malls, apartments, you name it. 92 00:02:46,200 --> 00:02:49,200 So basically I'm owning a tiny piece of... 93 00:02:49,200 --> 00:02:50,480 Kind of a whole bunch of different properties. 94 00:02:50,480 --> 00:02:52,600 Like a mini real estate empire. 95 00:02:52,600 --> 00:02:53,440 You got it. 96 00:02:53,440 --> 00:02:56,360 But how do the returns compare to the stock market? 97 00:02:56,360 --> 00:02:57,720 Well over the past 10 years, 98 00:02:57,720 --> 00:02:59,440 VNQ has averaged. 99 00:02:59,440 --> 00:03:00,320 Averaged. 100 00:03:00,320 --> 00:03:02,760 About 7.48% per year. 101 00:03:02,760 --> 00:03:05,320 Hmm, that's lower than VTI. 102 00:03:05,320 --> 00:03:07,600 It is, but real estate tends to be... 103 00:03:07,600 --> 00:03:08,440 To be. 104 00:03:08,440 --> 00:03:09,280 Bit more stable. 105 00:03:09,280 --> 00:03:10,880 Especially when the economy gets shaky. 106 00:03:10,880 --> 00:03:12,800 Exactly, it can help to balance out 107 00:03:12,800 --> 00:03:14,240 those stock market swings. 108 00:03:14,240 --> 00:03:15,440 What about dividends? 109 00:03:15,440 --> 00:03:17,600 VNQ is actually known for its dividends. 110 00:03:17,600 --> 00:03:18,440 Really? 111 00:03:18,440 --> 00:03:20,120 It has a yield of 3.1%. 112 00:03:20,120 --> 00:03:22,360 So on a $10,000 investment. 113 00:03:22,360 --> 00:03:25,880 You'd be getting about $309 per year in dividends. 114 00:03:25,880 --> 00:03:27,360 Okay, not bad at all. 115 00:03:27,360 --> 00:03:28,920 Nice little income stream. 116 00:03:28,920 --> 00:03:30,920 But are there any catches? 117 00:03:30,920 --> 00:03:33,080 Well there's a little tax nuance to keep in mind. 118 00:03:33,080 --> 00:03:33,920 Like what? 119 00:03:33,920 --> 00:03:37,640 Dividends from REITs are taxed as ordinary income. 120 00:03:37,640 --> 00:03:39,160 Which could be higher than... 121 00:03:39,160 --> 00:03:42,120 The tax rate for qualified dividends from regular stocks. 122 00:03:42,120 --> 00:03:43,320 Okay, that's good to know. 123 00:03:43,320 --> 00:03:44,480 Definitely something to consider. 124 00:03:44,480 --> 00:03:48,880 So we've got VTI for broad US stark exposure. 125 00:03:48,880 --> 00:03:52,560 And VNQ for some real estate stability and dividends. 126 00:03:52,560 --> 00:03:53,880 Where do we go from here? 127 00:03:53,880 --> 00:03:55,480 Well now it's time to think globally. 128 00:03:55,480 --> 00:03:56,920 Ah, going international. 129 00:03:56,920 --> 00:03:59,800 The video suggests adding VXUS to the mix. 130 00:03:59,800 --> 00:04:00,720 VXUS. 131 00:04:00,720 --> 00:04:03,600 Vanguard, total international stock ETF. 132 00:04:03,600 --> 00:04:05,320 And this one invests in? 133 00:04:05,320 --> 00:04:06,440 Companies outside the US. 134 00:04:06,440 --> 00:04:08,760 So we're talking Europe, Asia. 135 00:04:08,760 --> 00:04:11,040 Latin America emerging markets all over the world. 136 00:04:11,040 --> 00:04:14,000 So it's like VTI, but for the rest of the world. 137 00:04:14,000 --> 00:04:16,520 Exactly, it's a way to diversify beyond... 138 00:04:16,520 --> 00:04:17,680 Beyond the US market. 139 00:04:17,680 --> 00:04:20,160 And potentially tap into growth opportunities 140 00:04:20,160 --> 00:04:21,080 in other regions. 141 00:04:21,080 --> 00:04:24,040 Okay, I see the logic there spreading the risk. 142 00:04:24,040 --> 00:04:25,440 But what about the performance? 143 00:04:25,440 --> 00:04:27,200 Yeah, how is VXUS done? 144 00:04:27,200 --> 00:04:28,600 Well over the past 10 years, 145 00:04:28,600 --> 00:04:31,960 it's averaged 5.2% per year. 146 00:04:31,960 --> 00:04:35,120 That's lower than both VTI and VNQ. 147 00:04:35,120 --> 00:04:37,760 It is, but remember international markets 148 00:04:37,760 --> 00:04:39,800 don't always move in sync with the US. 149 00:04:39,800 --> 00:04:42,160 So even if the US is having a down year. 150 00:04:42,160 --> 00:04:45,320 My international holdings might be doing just fine. 151 00:04:45,320 --> 00:04:47,600 Exactly, it's all about balancing things out. 152 00:04:47,600 --> 00:04:48,920 What about dividends? 153 00:04:48,920 --> 00:04:51,320 The VXUS actually has a pretty decent dividend yield. 154 00:04:51,320 --> 00:04:52,160 How decent? 155 00:04:52,160 --> 00:04:53,480 3.86%. 156 00:04:53,480 --> 00:04:55,400 So on a $10,000 investment. 157 00:04:55,400 --> 00:04:58,480 You'd be looking at about $309 in dividends per year. 158 00:04:58,480 --> 00:04:59,320 Not bad at all. 159 00:04:59,320 --> 00:05:01,360 A solid addition to the income stream. 160 00:05:01,360 --> 00:05:03,320 Okay, so we've got growth, 161 00:05:03,320 --> 00:05:05,200 potential global diversification 162 00:05:05,200 --> 00:05:06,840 and a decent dividend yield. 163 00:05:06,840 --> 00:05:07,680 Anything else? 164 00:05:07,680 --> 00:05:09,640 Yeah, any downsides to be aware of. 165 00:05:09,640 --> 00:05:11,760 Well, international markets can be more volatile 166 00:05:11,760 --> 00:05:12,600 than the US. 167 00:05:12,600 --> 00:05:13,920 Especially those emerging markets. 168 00:05:13,920 --> 00:05:15,600 Right, but over the long term. 169 00:05:15,600 --> 00:05:18,160 International diversification can be a valuable tool. 170 00:05:18,160 --> 00:05:20,240 Exactly, it's all about the long game. 171 00:05:20,240 --> 00:05:23,120 All right, three ETFs down and three to go. 172 00:05:23,120 --> 00:05:24,120 We're making progress. 173 00:05:24,120 --> 00:05:29,120 We've got VTI for US stocks, VNQ for real estate, VXUS 174 00:05:29,760 --> 00:05:31,520 for international exposure. 175 00:05:31,520 --> 00:05:34,400 What's next on our path to millionaire status? 176 00:05:34,400 --> 00:05:36,720 I'm eager to find out. 177 00:05:36,720 --> 00:05:37,840 Let's dive in. 178 00:05:37,840 --> 00:05:40,400 All right, we've explored this six ETF strategy 179 00:05:40,400 --> 00:05:43,040 step by step, US stocks, international stocks, 180 00:05:43,040 --> 00:05:44,240 real estate and bonds. 181 00:05:44,240 --> 00:05:45,320 We've covered a lot of ground. 182 00:05:45,320 --> 00:05:46,840 But as I was looking over our notes, 183 00:05:46,840 --> 00:05:49,920 I noticed something was missing. 184 00:05:49,920 --> 00:05:51,240 Hmm, something missing. 185 00:05:51,240 --> 00:05:52,080 Did you catch it? 186 00:05:52,080 --> 00:05:52,920 I did actually. 187 00:05:52,920 --> 00:05:53,760 What is it? 188 00:05:53,760 --> 00:05:54,600 They didn't mention commodities at all. 189 00:05:54,600 --> 00:05:55,440 Commodities. 190 00:05:55,440 --> 00:05:56,600 You know, like gold oil? 191 00:05:56,600 --> 00:05:57,560 Ah, things like that. 192 00:05:57,560 --> 00:05:59,920 Exactly, things like precious metals, 193 00:05:59,920 --> 00:06:02,160 energy, agricultural products, all that good stuff. 194 00:06:02,160 --> 00:06:03,320 So why is that important? 195 00:06:03,320 --> 00:06:04,880 Why should we care about commodities? 196 00:06:04,880 --> 00:06:07,160 Well, commodities often behave differently 197 00:06:07,160 --> 00:06:08,400 than stocks and bonds. 198 00:06:08,400 --> 00:06:09,560 Meaning? 199 00:06:09,560 --> 00:06:11,640 Their prices aren't really tied to the stock market. 200 00:06:11,640 --> 00:06:13,880 So if the market is down. 201 00:06:13,880 --> 00:06:16,840 My commodities might be holding steady or even going up. 202 00:06:16,840 --> 00:06:17,840 Hmm, interesting. 203 00:06:17,840 --> 00:06:19,680 That's one of the big benefits of commodities. 204 00:06:19,680 --> 00:06:22,840 They can help to reduce your overall portfolio volatility. 205 00:06:22,840 --> 00:06:25,320 Exactly, they add another layer of diversification. 206 00:06:25,320 --> 00:06:28,480 Okay, but how do you actually invest in commodities? 207 00:06:28,480 --> 00:06:30,400 Well, you could buy physical commodities 208 00:06:30,400 --> 00:06:32,760 like gold bars or barrels of oil. 209 00:06:32,760 --> 00:06:35,520 Hmm, I don't think I have the storage space for that. 210 00:06:35,520 --> 00:06:38,240 Yeah, that's not really practical for most people. 211 00:06:38,240 --> 00:06:39,960 So what's the alternative? 212 00:06:39,960 --> 00:06:41,680 Commodity ETFs. 213 00:06:41,680 --> 00:06:42,520 Those are. 214 00:06:42,520 --> 00:06:44,960 The ETFs that track the prices of various commodities. 215 00:06:44,960 --> 00:06:47,400 Ah, so instead of buying a barrel of oil. 216 00:06:47,400 --> 00:06:49,440 I can just buy shares of an oil ETF. 217 00:06:49,440 --> 00:06:52,040 And that gives me exposure to the price of oil. 218 00:06:52,040 --> 00:06:55,480 Exactly, it's a much easier way to invest in commodities. 219 00:06:55,480 --> 00:06:57,640 So even though the six ETFs strategy 220 00:06:57,640 --> 00:06:59,440 didn't mention commodities. 221 00:06:59,440 --> 00:07:00,960 It's definitely something worth considering. 222 00:07:00,960 --> 00:07:02,560 If for additional diversification. 223 00:07:02,560 --> 00:07:04,760 Especially if you're looking to reduce volatility. 224 00:07:04,760 --> 00:07:05,760 Makes sense. 225 00:07:05,760 --> 00:07:07,880 Okay, so what else did the video miss? 226 00:07:07,880 --> 00:07:10,640 Well, they didn't really dive into risk tolerance. 227 00:07:10,640 --> 00:07:12,200 Ah, that's a big one. 228 00:07:12,200 --> 00:07:13,240 Huge. 229 00:07:13,240 --> 00:07:15,400 Everyone has a different level of comfort with risk. 230 00:07:15,400 --> 00:07:16,760 And that should definitely influence 231 00:07:16,760 --> 00:07:17,960 your investment decisions. 232 00:07:17,960 --> 00:07:19,040 For sure, you need to figure out 233 00:07:19,040 --> 00:07:20,000 what you're comfortable with. 234 00:07:20,000 --> 00:07:24,280 So someone younger with more time to recover from losses. 235 00:07:24,280 --> 00:07:27,320 They might be okay with a higher risk portfolio. 236 00:07:27,320 --> 00:07:29,520 And someone nearing retirement. 237 00:07:29,520 --> 00:07:31,480 They'd probably prefer a more conservative approach. 238 00:07:31,480 --> 00:07:35,320 Less risk, less potential for big losses. 239 00:07:35,320 --> 00:07:37,480 But also less potential for big gains. 240 00:07:37,480 --> 00:07:39,200 It's all about finding that balance. 241 00:07:39,200 --> 00:07:41,400 Right, what's right for one person 242 00:07:41,400 --> 00:07:42,840 might not be right for another. 243 00:07:42,840 --> 00:07:44,760 So risk tolerance is key, 244 00:07:44,760 --> 00:07:46,760 but what about asset allocation? 245 00:07:46,760 --> 00:07:47,920 Ah, yes. 246 00:07:47,920 --> 00:07:51,520 How to actually divide your money among these six ETFs. 247 00:07:51,520 --> 00:07:53,680 Did the video offer any guidance on that? 248 00:07:53,680 --> 00:07:55,600 They didn't give any specific percentages. 249 00:07:55,600 --> 00:07:56,680 And that's probably for the best. 250 00:07:56,680 --> 00:07:58,800 Asset allocation is a very personal decision. 251 00:07:58,800 --> 00:08:00,800 So I shouldn't just divide my money equally 252 00:08:00,800 --> 00:08:02,360 among the six ETFs. 253 00:08:02,360 --> 00:08:04,720 Not necessarily, it depends on your risk tolerance, 254 00:08:04,720 --> 00:08:06,800 your time horizon, your goals. 255 00:08:06,800 --> 00:08:10,600 So a younger investor with a longer time horizon. 256 00:08:10,600 --> 00:08:12,240 They might choose to allocate more 257 00:08:12,240 --> 00:08:14,480 towards growth oriented ETFs. 258 00:08:14,480 --> 00:08:17,040 Like VTI and VGT. 259 00:08:17,040 --> 00:08:20,000 Exactly, those have the potential for higher returns. 260 00:08:20,000 --> 00:08:21,080 And also higher risk. 261 00:08:21,080 --> 00:08:23,400 Right, and someone nearing retirement 262 00:08:23,400 --> 00:08:25,320 might lean more towards BND. 263 00:08:25,320 --> 00:08:27,320 For that added stability. 264 00:08:27,320 --> 00:08:28,680 Exactly. 265 00:08:28,680 --> 00:08:31,040 Bonds can help to protect your capital 266 00:08:31,040 --> 00:08:32,760 as you get closer to retirement. 267 00:08:32,760 --> 00:08:35,800 So it's all about customizing the strategy 268 00:08:35,800 --> 00:08:38,160 based on my individual needs. 269 00:08:38,160 --> 00:08:40,840 Precisely, it's not one size fits all. 270 00:08:40,840 --> 00:08:42,080 That's really helpful. 271 00:08:42,080 --> 00:08:43,960 I'm starting to see the bigger picture here. 272 00:08:43,960 --> 00:08:46,960 It's not just about picking six ETFs and calling it a day. 273 00:08:46,960 --> 00:08:49,400 It's about understanding the underlying concepts. 274 00:08:49,400 --> 00:08:50,880 And making informed decisions. 275 00:08:50,880 --> 00:08:53,040 Right, and adjusting my approach as I go. 276 00:08:53,040 --> 00:08:55,560 Exactly, it's a journey, not a destination. 277 00:08:55,560 --> 00:08:56,760 And speaking of adjusting, there's 278 00:08:56,760 --> 00:08:59,560 that thing called rebalancing, right? 279 00:08:59,560 --> 00:09:01,120 Yes, rebalancing, that's important. 280 00:09:01,120 --> 00:09:02,840 Remind me what that is again. 281 00:09:02,840 --> 00:09:04,920 Over time, your portfolio can drift away 282 00:09:04,920 --> 00:09:06,160 from your target allocation. 283 00:09:06,160 --> 00:09:08,520 So if one asset class is doing really well. 284 00:09:08,520 --> 00:09:10,440 It might start to make up a larger percentage 285 00:09:10,440 --> 00:09:11,400 of your portfolio. 286 00:09:11,400 --> 00:09:13,280 And that could throw things out of balance. 287 00:09:13,280 --> 00:09:16,400 Exactly, so rebalancing involves periodically 288 00:09:16,400 --> 00:09:17,960 adjusting your portfolio. 289 00:09:17,960 --> 00:09:19,280 To bring it back online. 290 00:09:19,280 --> 00:09:20,880 So you might sell some of your winners. 291 00:09:20,880 --> 00:09:23,200 And reinvest the proceeds in the asset classes 292 00:09:23,200 --> 00:09:24,480 that haven't performed as well. 293 00:09:24,480 --> 00:09:26,240 Right, it's a way to maintain that balance 294 00:09:26,240 --> 00:09:26,880 we were talking about. 295 00:09:26,880 --> 00:09:29,320 OK, so rebalancing is like hitting the reset button 296 00:09:29,320 --> 00:09:31,040 on my portfolio every now and then. 297 00:09:31,040 --> 00:09:32,120 It's a good way to think about it. 298 00:09:32,120 --> 00:09:34,000 What else should we be thinking about? 299 00:09:34,000 --> 00:09:36,280 Well, the video talked about diversification 300 00:09:36,280 --> 00:09:38,360 across different asset classes. 301 00:09:38,360 --> 00:09:41,040 Right, stocks, bonds, real estate. 302 00:09:41,040 --> 00:09:42,920 But it didn't really go into diversification 303 00:09:42,920 --> 00:09:45,280 within asset classes. 304 00:09:45,280 --> 00:09:48,040 Hold on, I thought those ETFs were already diversified. 305 00:09:48,040 --> 00:09:50,320 They are to a certain extent. 306 00:09:50,320 --> 00:09:53,000 You can actually enhance diversification 307 00:09:53,000 --> 00:09:56,520 by adding more ETFs within each asset class. 308 00:09:56,520 --> 00:10:00,320 So instead of just holding VTI for US stock exposure. 309 00:10:00,320 --> 00:10:02,720 You could add another US stock ETF that 310 00:10:02,720 --> 00:10:05,120 focuses on small companies, for example. 311 00:10:05,120 --> 00:10:05,480 I see. 312 00:10:05,480 --> 00:10:07,680 So it's like diversifying my diversification. 313 00:10:07,680 --> 00:10:09,800 Exactly, you're spreading the risk even further. 314 00:10:09,800 --> 00:10:12,960 But wouldn't that make my portfolio super complicated 315 00:10:12,960 --> 00:10:14,160 to manage? 316 00:10:14,160 --> 00:10:16,040 Not necessarily. 317 00:10:16,040 --> 00:10:18,600 There are tools and resources available to help you. 318 00:10:18,600 --> 00:10:20,120 OK, good to know. 319 00:10:20,120 --> 00:10:23,400 I'm starting to understand why this deep dive is so valuable. 320 00:10:23,400 --> 00:10:27,400 We're uncovering all these layers beyond the initial six ETFs. 321 00:10:27,400 --> 00:10:29,280 It's like peeling back an onion. 322 00:10:29,280 --> 00:10:30,400 There's always more to learn. 323 00:10:30,400 --> 00:10:32,080 And speaking of peeling back layers, 324 00:10:32,080 --> 00:10:35,920 I remember the video mentioned something about art 325 00:10:35,920 --> 00:10:37,160 as an investment. 326 00:10:37,160 --> 00:10:39,520 Ah, yes, art as an alternative investment. 327 00:10:39,520 --> 00:10:41,080 That definitely piqued my interest. 328 00:10:41,080 --> 00:10:43,600 They even mentioned a platform called Masterworks, 329 00:10:43,600 --> 00:10:47,120 which allows you to buy fractional shares of famous artworks. 330 00:10:47,120 --> 00:10:49,760 So you're saying I could own a tiny piece of a Picasso. 331 00:10:49,760 --> 00:10:50,680 Exactly. 332 00:10:50,680 --> 00:10:53,520 Platforms like Masterworks are making art more accessible 333 00:10:53,520 --> 00:10:54,640 to everyday investors. 334 00:10:54,640 --> 00:10:56,000 Wow, that's pretty cool. 335 00:10:56,000 --> 00:10:58,840 But is art really a viable investment? 336 00:10:58,840 --> 00:11:00,440 Well, it's important to note that art 337 00:11:00,440 --> 00:11:02,480 is a non-correlated asset. 338 00:11:02,480 --> 00:11:03,480 Non-correlated. 339 00:11:03,480 --> 00:11:05,880 Meaning its performance doesn't typically 340 00:11:05,880 --> 00:11:08,560 move in tandem with the stock market. 341 00:11:08,560 --> 00:11:11,600 So if the market is down, my art investment 342 00:11:11,600 --> 00:11:12,840 might be doing just fine. 343 00:11:12,840 --> 00:11:14,240 That's the idea. 344 00:11:14,240 --> 00:11:17,360 It can help to reduce your overall portfolio of volatility. 345 00:11:17,360 --> 00:11:19,440 So it's like having a secret weapon that's 346 00:11:19,440 --> 00:11:22,080 immune to the stock market's mood swings. 347 00:11:22,080 --> 00:11:24,960 You could say that, but there are also downsides to consider. 348 00:11:24,960 --> 00:11:25,760 Like what? 349 00:11:25,760 --> 00:11:28,000 Art is a relatively illiquid asset. 350 00:11:28,000 --> 00:11:30,320 It can be difficult to sell quickly. 351 00:11:30,320 --> 00:11:32,240 If you need to access your capital. 352 00:11:32,240 --> 00:11:33,560 So it's a long-term play. 353 00:11:33,560 --> 00:11:34,120 Exactly. 354 00:11:34,120 --> 00:11:35,360 You've got to be patient with art. 355 00:11:35,360 --> 00:11:35,840 OK. 356 00:11:35,840 --> 00:11:36,760 I'm intrigued. 357 00:11:36,760 --> 00:11:39,680 Art is definitely on my list to research further. 358 00:11:39,680 --> 00:11:41,240 It's definitely a fascinating world. 359 00:11:41,240 --> 00:11:44,560 Are there any other alternative investments worth exploring? 360 00:11:44,560 --> 00:11:45,400 Oh, tons. 361 00:11:45,400 --> 00:11:49,640 Real estate crowdfunding, private equity funds, hedge funds. 362 00:11:49,640 --> 00:11:50,760 So many options. 363 00:11:50,760 --> 00:11:53,800 It really depends on your goals, your risk tolerance, 364 00:11:53,800 --> 00:11:55,600 and how much you're willing to invest. 365 00:11:55,600 --> 00:11:58,360 Wow, this deep dive is really opening my eyes 366 00:11:58,360 --> 00:12:01,000 to a whole universe of investment possibilities. 367 00:12:01,000 --> 00:12:02,040 That's what we're here for. 368 00:12:02,040 --> 00:12:03,800 I feel like we need a separate episode just 369 00:12:03,800 --> 00:12:05,280 on alternative investments. 370 00:12:05,280 --> 00:12:06,960 We could definitely do that, but for now. 371 00:12:06,960 --> 00:12:09,800 Let's bring it back to our six ETF foundation. 372 00:12:09,800 --> 00:12:10,400 Sounds good. 373 00:12:10,400 --> 00:12:12,080 We've covered a lot of ground, and I 374 00:12:12,080 --> 00:12:13,920 want to make sure we're connecting all the dots. 375 00:12:13,920 --> 00:12:14,440 Let's do it. 376 00:12:14,440 --> 00:12:17,520 Wow, this deep dive has been a wild ride. 377 00:12:17,520 --> 00:12:19,360 We've covered a lot of ground, that's for sure. 378 00:12:19,360 --> 00:12:22,120 Six ETFs, risk tolerance, asset allocation, 379 00:12:22,120 --> 00:12:24,160 alternative investments. 380 00:12:24,160 --> 00:12:25,480 It's a lot to digest. 381 00:12:25,480 --> 00:12:28,320 But hey, that's what deep dives are all about, right? 382 00:12:28,320 --> 00:12:31,040 It's exactly digging deep and exploring all the angles. 383 00:12:31,040 --> 00:12:32,760 So as we wrap things up here. 384 00:12:32,760 --> 00:12:34,120 What are the key takeaways? 385 00:12:34,120 --> 00:12:36,000 What should our listener be thinking about? 386 00:12:36,000 --> 00:12:39,280 What are those practical next steps? 387 00:12:39,280 --> 00:12:42,800 Well, first things first, revisit your financial goals. 388 00:12:42,800 --> 00:12:44,960 Yes, got to have those goals. 389 00:12:44,960 --> 00:12:47,200 What are you saving for retirement? 390 00:12:47,200 --> 00:12:49,520 A house early retirement to travel the world. 391 00:12:49,520 --> 00:12:51,000 Figure out what you're working towards. 392 00:12:51,000 --> 00:12:53,720 Exactly, because those goals will determine your time 393 00:12:53,720 --> 00:12:55,880 horizon and your risk tolerance. 394 00:12:55,880 --> 00:12:56,280 Makes sense. 395 00:12:56,280 --> 00:12:57,880 So goals first, and then what? 396 00:12:57,880 --> 00:13:00,000 Take a look at your current financial situation. 397 00:13:00,000 --> 00:13:02,080 How much can I realistically invest? 398 00:13:02,080 --> 00:13:04,520 Right, and do you have any existing investments? 399 00:13:04,520 --> 00:13:06,040 Got to know where you're starting from. 400 00:13:06,040 --> 00:13:08,720 Exactly, assess your financial landscape. 401 00:13:08,720 --> 00:13:12,680 OK, so goals first, then assess my starting point, and then. 402 00:13:12,680 --> 00:13:14,440 Now comes the fun part. 403 00:13:14,440 --> 00:13:16,120 Research those ETFs. 404 00:13:16,120 --> 00:13:16,920 Ah, yes. 405 00:13:16,920 --> 00:13:18,800 Time to put on my detective hat. 406 00:13:18,800 --> 00:13:20,360 Read their prospectuses. 407 00:13:20,360 --> 00:13:21,640 Explore their holdings. 408 00:13:21,640 --> 00:13:23,400 Understand their investment strategies. 409 00:13:23,400 --> 00:13:24,960 Don't just take our word for it. 410 00:13:24,960 --> 00:13:26,360 Right, do your own due diligence. 411 00:13:26,360 --> 00:13:28,480 Become an ETF expert yourself. 412 00:13:28,480 --> 00:13:30,320 Exactly, and remember, you don't 413 00:13:30,320 --> 00:13:33,080 have to limit yourself to these six ETFs. 414 00:13:33,080 --> 00:13:35,720 Oh, right, there are tons of ETFs out there. 415 00:13:35,720 --> 00:13:38,720 Thousands covering every imaginable investment strategy. 416 00:13:38,720 --> 00:13:40,520 So broaden your horizons. 417 00:13:40,520 --> 00:13:42,160 Explore different options. 418 00:13:42,160 --> 00:13:45,280 Exactly, find the ETFs that align with your goals 419 00:13:45,280 --> 00:13:46,600 and your risk tolerance. 420 00:13:46,600 --> 00:13:48,880 OK, so research those ETFs, but what 421 00:13:48,880 --> 00:13:50,080 if I need a little extra help? 422 00:13:50,080 --> 00:13:52,160 Oh, don't be afraid to seek guidance 423 00:13:52,160 --> 00:13:53,560 from a financial advisor. 424 00:13:53,560 --> 00:13:56,040 Ah, a professional opinion. 425 00:13:56,040 --> 00:13:58,640 They can help you create a personalized investment plan. 426 00:13:58,640 --> 00:14:00,520 Tailored to my specific situations. 427 00:14:00,520 --> 00:14:02,920 Exactly, and they can answer your questions, 428 00:14:02,920 --> 00:14:05,680 address your concerns, provide ongoing support. 429 00:14:05,680 --> 00:14:08,360 So it's like having a personal trainer for my portfolio. 430 00:14:08,360 --> 00:14:09,560 I like that analogy. 431 00:14:09,560 --> 00:14:12,640 Any final words of wisdom before we wrap up this deep dive? 432 00:14:12,640 --> 00:14:15,080 Remember, investing is a marathon, not a sprint. 433 00:14:15,080 --> 00:14:16,360 Patience is key. 434 00:14:16,360 --> 00:14:18,880 Exactly, be patient, stay disciplined, 435 00:14:18,880 --> 00:14:21,640 and don't let short-term market fluctuations derail 436 00:14:21,640 --> 00:14:23,000 your long-term goals. 437 00:14:23,000 --> 00:14:24,760 Easier said than done sometimes. 438 00:14:24,760 --> 00:14:25,760 It's true. 439 00:14:25,760 --> 00:14:28,200 But focus on the long game, and most importantly, 440 00:14:28,200 --> 00:14:29,000 enjoy the journey. 441 00:14:29,000 --> 00:14:29,560 I love that. 442 00:14:29,560 --> 00:14:30,520 Enjoy the journey. 443 00:14:30,520 --> 00:14:32,200 It's not just about the destination. 444 00:14:32,200 --> 00:14:35,080 Exactly, it's about the process of learning, growing, 445 00:14:35,080 --> 00:14:37,000 and building your financial future. 446 00:14:37,000 --> 00:14:40,120 Well said, this has been an incredible deep dive. 447 00:14:40,120 --> 00:14:41,360 It has been my pleasure. 448 00:14:41,360 --> 00:14:44,200 I'm feeling inspired and ready to take action. 449 00:14:44,200 --> 00:14:45,200 That's what we like to hear. 450 00:14:45,200 --> 00:14:47,920 A huge thank you to our expert for guiding us 451 00:14:47,920 --> 00:14:50,120 through this fascinating world of ETFs. 452 00:14:50,120 --> 00:14:50,680 Any time. 453 00:14:50,680 --> 00:14:52,120 And to you, our listener, thank you 454 00:14:52,120 --> 00:14:54,120 for joining us on this deep dive. 455 00:14:54,120 --> 00:14:55,200 We'll see you next time. 456 00:14:55,200 --> 00:14:57,680 On the deep dive only.