The Rob Berger Show

The True Cost of Actively Managed Mutual Funds (according to Vanguard founder John Bogle)Actively managed funds are expensive. And it's not just the expense ratio. From transaction costs to tax inefficiencies, and cash drag to load fees, the cost of actively managed funds all but guarantee they will underperform an index fund over the long-term.In this video we take a look at a portfolio sent in by a viewer. The portfolio was recommended by PNC Bank. For just a $100,000 account, they recommend almost 20 funds, many with expense ratios over 1.00%. On top of that, PNC wanted to charge 1.24% to manage this mess.Resources mentioned in the videoJohn Bogle's article: http://johncbogle.com/wordpress/wp-co...Personal Capital: https://robberger.com/go/personal-cap...Tools & ResourcesMorningstar: https://robberger.com/go/morningstar/...📚  My Book (of course): https://amzn.to/2MsRJ9B📈  Personal Capital: https://robberger.com/go/personal-cap...💰  M1 Finance $30 Bonus: https://robberger.com/go/m1finance-bo...🏆  Best Investment Tracking Apps: https://bit.ly/3wSbKZa

There are two different 5-year rules for Roth IRA accounts. One applies to Roth IRA accounts and determines, in part, whether the withdrawal of earnings is subject to income tax. The second applies to Roth IRA conversions and determines whether a withdrawal will trigger the 10% penalty tax.In this video we walk through both 5-year rules. We'll cover what they are, how they work, and what it means for retirement savings.These are complicated rules, so be sure to check out the resources below. And as always, consult a tax professional before making any decisions.Join the newsletter: https://robberger.com/newsletter/?utm...————————————Video Resources————————————IRS Publications--https://www.irs.gov/publications/p590bhttps://www.irs.gov/retirement-plans/...https://www.forbes.com/sites/bobcarls...

Join the newsletter: https://robberger.com/newsletter/?utm...————————————Timestamps————————————0:00 - Welcome to the Financial Freedom Show!0:30 - Roth Conversions15:13 - Reverse mortgage16:24 - Is there a minimum where Roth Conversion doesn't make sense?18:04 - BUFOX21:47 - 11 stocks25:26 - Thoughts on investing for college/529 Ohio/VTEP27:05 - Defined Benefit Pension Plan31:29 - Is there a downside of leaving target date funds in my portfolio?33:42 - Why can't we invest non earned income into a Roth IRA?34:37 - Good Morning Washington35:33 - 90/10 or 80/20 for investing kids savings36:32 - Timing the market38:04 - Roth Conversions make sense if the market takes a downturn38:50 - VB & VBR40:56 - Accessing Roth Conversion after 5 years42:35 - Transitioning from predominantly index fund investing to disciplined individual value                  stock investing in Roth44:46 - Schwab vs Vanguard for retirement accounts48:19 - Married couple Roth conversion48:56 - Fulfilling promises to viewers51:05 - Cash reserves account52:17 - Betterment54:58 - Qualified donations56:41 - Tips on spending money during the accumulation phase57:57 - Good asset allocation in stocks1:00:25 - Most advantageous method to determine the profit or loss for tax reporting in a                     taxable account1:01:58 - Changing allocation since my account is no longer a Roth1:

TIPS vs I Bonds--What's the Best Way to Hedge Against Inflation?TIPS (Treasury Inflation Protected Securities) and I Bonds both protect investors against unexpected inflation. Both bonds are also issued by the U.S. Government and are exempt from state and local taxes. Bu that's about where the similarities end.There are key differences between TIPS and I Bonds that investors should know. We look at 8 key differences, along with the pros and cons of adding each to your portfolio.As a bonus, we look at how one of them can help you save for a child's education.Resources:https://www.treasurydirect.gov/indiv/...https://investor.vanguard.com/mutual-...https://www.treasurydirect.gov/indiv/...

You'll often hear the phrase VOO and chill or sometimes VTI and chill. VOO is the ticker to Vanguard's S&P 500 index ETF (VTI is Vanguards total U.S. market ETF). The idea is to invest all of your money in the S&P 500 (or perhaps the total U.S. market) and just relax.After my video showing my 2021 portfolio tracked the performance of the S&P 500 (more or less), many asked why I bothered with multiple asset classes and individual stocks. Why not just VOO and chill?This video explains why, and more importantly, walks through some concepts that might help you decide what's best for your portfolio.Join the newsletter: https://robberger.com/newsletter/?utm...

A viewer recently asked me if he was able to retire in two years. He provided his investment balances, projected expenses, and pension income. In this video we'll evaluate his situation to determine if he can retire.To determine if you can retire, it's important to evaluate both your expenses and income in retirement. This can be challenging for several reasons:1. Expenses are at best an estimate2. Medical expenses can be a wild card3. One-time and periodic expenses can be difficult to calculate4. Future income (social security, pensions) may not start for years5. Estimate how much of your investments you can spend each year is at best a rough estimate.To help, I walk through two free tools in the video:Join the newsletter: https://robberger.com/newsletter/?utm...

VOO vs. VTI--S&P 500 Index versus Total Stock Market Index Fund. Morningstar Series: https://www.youtube.com/watch?v=qRfRq...3-Fund Portfolio: https://robberger.com/go/3-fund-portf...

Dave Ramsey is perhaps best known for his baby steps and helping countless people get out of debt. Among low cost index fund investors, he's also known as recommending expensive mutual funds with front loaded sales charges. While fees are important, what matters even more is after-fee returns. And that raises an important question--Does Dave Ramsey's approach to investing outperform a portfolio of low cost index funds?In this episode, we'll look at American Funds, which appear to be Dave's fund family of choice. We'll compare their returns with low cost index funds over the past several decades to see which one comes out on top.

Opening an IRA account is an important step towards saving for retirement. The best IRA accounts have low fees, a wide array of investment options and tools that make investing easy. My analysis stems from holding accounts at each of the brokers on the list, with the exception of Ally Invest. I’ve had a Rollover IRA, Roth IRA, Traditional IRA, SEP IRA or an Inherited IRA at Wealthfront, Vanguard, Fidelity and Merrill Edge. I’ve held taxable accounts at Betterment and M1 Finance.Beyond my own experience, I focus on fees and functionality. Fees are always critical, and how each broker works is important. You want to match your own personal approach to investing with the right IRA account. I also considered each broker’s website and mobile app, as well as their investing tools.Article: https://robberger.com/ira-accounts/