Want to be Rich? Combine these ETFs for $100k FASTER

Summary

In this video, Nolan Goa, also known as Professor G, addresses five questions from his audience about investing. He discusses ETF-only investing, the best mix of ETFs to reach $100,000, taxable brokerage versus 401K accounts, investing with varying time horizons, and dollar-cost averaging out of one fund into another. He emphasizes the importance of a diversified, broad-market investment strategy and the psychological and financial benefits of consistent investing. He also shares personal insights about his passion for Jiu-Jitsu and his focus on being present and improving as a professor and YouTube content creator.

Takeaways

• 📚 Investing exclusively in a handful of ETFs is recommended for simplicity and diversification, with a suggestion to read 'Trillions' by Robin Wigglesworth for a strong case on index fund investing.
• 💰 There's no one-size-fits-all answer to the fastest way to reach $100,000 with ETFs, but a mix of broad market ETFs, growth ETFs, and cash-flowing ETFs can provide a balanced approach.
• 🚀 For long-term growth, consider investing in ETFs with an average yearly appreciation, such as the S&P 500, and supplementing with growth ETFs for potentially higher returns.
• 🔄 Dollar-cost averaging is a strategy that can be applied when moving funds from one ETF to another, but it's important to consider the tax implications and market conditions.
• 🏦 It can be beneficial to invest in a taxable brokerage account alongside a 401K to access funds before retirement and to benefit from potentially lower fees.
• 💡 The importance of understanding the fees associated with 401K investments and comparing them to other investment options like the Vanguard S&P 500 fund was highlighted.
• 🏠 When investing for specific life goals with different time horizons, it's crucial to balance the risk and reward, choosing the right investment vehicle based on the time until the goal is reached.
• 💎 For short-term goals (within 5 years or less), it's suggested to keep the majority of funds in the safest possible investments, like high-yield savings accounts or CDs.
• 🤔 The psychological benefits of dollar-cost averaging were discussed, emphasizing its role in managing emotions and maintaining a disciplined investment approach.
• 🌐 The speaker, Professor G, shared personal insights on the importance of focusing on the present, setting goals, and enjoying the journey of life and career.
• 🤸‍♂️ A personal anecdote about the benefits of Jiu-Jitsu training for discipline and resilience was shared, highlighting the speaker's commitment to personal growth.

Q & A

Who is the host of the video, and what is his background?

The host of the video is Nolan Goa, also known as Professor G. He created the channel to simplify investing concepts.

What book does Nolan recommend for understanding the benefits of investing in index funds and ETFs?

Nolan recommends reading 'Trillions' by Robin Wigglesworth to understand the benefits of investing in index funds and ETFs.

Can someone invest exclusively in a handful of ETFs and nothing else?

Yes, according to Nolan, it is possible to invest exclusively in a handful of ETFs and achieve a good investment strategy, especially if one chooses broad market index ETFs like the S&P 500 or the total US Stock Market.

What is Nolan's suggested mix of ETFs to achieve $100,000 faster?

Nolan suggests a combination of broad market ETFs, growth ETFs, and cash-flowing passive income ETFs like SCD or VYM to balance high reward and lower risk.

Is it a good idea to invest in a taxable brokerage account before maxing out your 401K?

Yes, it can be a good idea to invest in a taxable brokerage account before maxing out your 401K if you want access to investment returns before retirement and to potentially avoid high fees associated with 401K plans.

What is dollar cost averaging, and is it useful when shifting funds between different ETFs?

Dollar cost averaging involves spreading out the buying or selling of investments to minimize the impact of market volatility. It can be useful when shifting funds between different ETFs to manage risk and taxes.

How should one invest for different life goals with varying time horizons?

For short-term goals (within 5 years), Nolan suggests safer investments like high-yield savings accounts or short-term treasuries. For long-term goals, diversified investments in the stock market can be beneficial, but it's important to consider the potential for market volatility.

What are the advantages of having money in multiple types of accounts?

Having money in multiple accounts, such as savings, brokerage, and retirement accounts, allows for flexibility and risk management. Different accounts serve different purposes and time horizons.

How are fees different between 401K plans and brokerage accounts?

401K plans often have higher fees compared to brokerage accounts. For example, investing in the S&P 500 through a Vanguard fund in a brokerage account typically has lower fees than in a 401K plan.

What is Nolan's personal approach to life and career goals currently?

Nolan is focusing on taking life one day at a time, appreciating each day, and aiming to improve as a professor and content creator. He emphasizes being present and enjoying time with loved ones.