Investing for Beginners - Online Investing Course | C. T. | Skillshare

Investing for Beginners - Online Investing Course

C. T.

Play Speed
  • 0.5x
  • 1x (Normal)
  • 1.25x
  • 1.5x
  • 2x
12 Lessons ()
    • 1. Investing for Beginners Promo Video

    • 2. Introduction - Let's Get Underway

    • 3. Understand Your Investor Profile & Asset Allocation

    • 4. Learn About Fees & Commissions that Impact You

    • 5. Choose a Profitable Investing Strategy to Increase Your Wealth

    • 6. Manage Your Portfolio Effectively & Wisely

    • 7. Discover Services & Tools to Optimize Your Activities

    • 8. Frequently Asked Investing Questions (F.A.Q.)

    • 9. Invest in Individual Stocks: Why, Planning, & Tips

    • 10. A Look Inside My Brokerage/Investment Account

    • 11. Course Recap & Key Takeaways

    • 12. Reference - Create Your Investment Plan


About This Class

Learn How to Invest Intelligently in Under One Hour

1. Are you interested in increasing your investment returns with minimal effort?

2. Would you like to learn important investing fundamentals to fulfill your financial and lifestyle goals?

3. Do you want to pay lower fees to keep more of your money?

If you answered "yes" to at least one of these questions, then this course is for you!

Investing for the sake of investing simply won't cut it. Improving the odds of lifestyle and retirement success demand that you take ownership of your financial matters. As a result, financial success doesn't start with an "advisor," it starts with you.

Investing for Beginners 101 addresses the appetite that many people have for learning about investing. Course content is straightforward and neatly arranged so that you get a comprehensive understanding of financial and investment concepts.

I bring over 15 years of investing experience to this course, and I appear in all my videos (yes, I'm a real person, not just a voice over). You can visit my LinkedIn profile to learn more about me. Also, you get my full support when you enroll.

As you work toward building a robust investment portfolio, you'll implement an asset allocation model in line with your investor profile, for example, a conservative or aggressive investor. Upon successful completion of this course, you will be able to:

  • Make wise investment decisions leading to increased returns and wealth
  • Understand fundamental concepts including stocks, bonds, and managed funds
  • Understand your portfolio and if your current asset allocation is suitable
  • Learn how to build a portfolio of mutual funds, exchange-traded funds, and stocks
  • Understand all investment-related fees and which fees to avoid
  • Learn about DIY investing (so that you can fire your advisor)
  • And much more

Let's Start Learning!

Enroll now and start increasing your investment returns TODAY!


The information in this course is for general reference and educational purposes only. This course is not intended to provide tailored recommendations nor is it a basis for actions without careful analysis and due diligence on behalf of the consumer. Investing in financial markets does attract risks.

Neither the author nor the published are liable for any actions promoted or caused by the information presented in this course. Any views expressed herein are those of the instructor and do not represent the views of others. Proceeding to take/complete this course means you understand the details contained within this document.


1. Investing for Beginners Promo Video: when many of us think about investing, we experienced this a bunch of terms and concepts that leave us dazed and confused. Our busy lives, consisting of work and other responsibilities, leave little time to manage our investments wisely. Millions of us resort to hiring financial advisors who are supposed to take care of you and the rest of their clients. However, due to conflicts of interest, financial advisors usually create more problems than they solve. The truth is, financial success doesn't start with an advisor. It starts with you. You can learn how to invest her money within a matter of hours and days. All that takes is a greater commitment to your financial and lifestyle goals. With my help, I'll get you on the right track to making better investment decisions. Hello, I'm chat tenant, your instructor. In this course, I'm gonna walk you through The fundamentals of smarter investing will discuss a range of topics including asset allocation fees and commissions, investing strategy, portfolio management, investing in individual stocks and much more. By the end of the cores, you'll be able to make wise decisions leading to increase returns, lower fees and greater peace of mind. You'll also understand the critical factors that influence investing successfully. I've infused this course with over 15 years of my professional and personal investing experiences and you get my full support with each lecture. So what are you waiting for? Joint Thousands of individuals who've enrolled and sign up today. I'll see you in the course. 2. Introduction - Let's Get Underway: Hello there, Chad. Here from chat tenant dot com. Would you like to increase your confidence in your investing activities? Do you want to attract better performance and lower your fees? Where possible? Would you like to better align your activities to your financial in lifestyle goals? In this video? Siri's I'm gonna deliver on these questions and a lot more to help you become a better and more intelligent investor. I've been active in the stock market since 2001 and since then I've worked for top investment firms in various roles. I worked as an investment advisor for several years. I've published books and online courses that have helped thousands, and I continue want as a do it yourself investor. Your path of success begins with these areas here investing in key terms, understanding your investor, profound asset allocation, taking a look at fees and commissions, discussing investing strategy and portfolio management. We're gonna take a look at some services and tools that can help you, followed by discussion around frequently asked questions. The target audience here starts with individuals who are new to investing. Also, individuals were considering do it yourself investing. We're seeking to buy and hold here. So this is in a video Siri's designed for day traders or auction traders, Or what have you were looking at? More of a long term approach. Lastly, you're seeking simplicity and ease in your investing activities. Before we get into the investing related content, I think it's important to take a step back to look at the bigger picture. This here is the financial planning pyramid, and there's different versions of it. But I chose this one, and the idea here is to highlight the different areas of the financial planning process at the bottom. There we start with cash flow management, which speaks to budgeting and managing your cash on a short term basis for groceries or for rent, or what have you. As we move up, we get to risk management, and risk management speaks to different insurance products like life insurance or car insurance. And the reason we take these things out is so that if something does happen, there is not a tremendous financial burden that we can't handle because the insurance products that we have can help us navigate the financial crisis. We're gonna talk about investment planning, and that's what this video series is about tax planning is about implementing strategies to minimize the tax burden on your investments and other personal finance activities. Retirement planning speaks to that age we all want to get to when we no longer need toe work and the thought there is how we're going to manage our financial resources and income needs to sustain the lifestyle that we want. A state planning or even after life planning, focuses on tying up loose ends to transfer your properties, your wealth and your investments to your beneficiaries with the best possible outcome. So I think it's important to really understand your financial picture as relates to all these aspects and not just investment planning or wealth management. Because all of these are important to meet your financial and lifestyle goals. Leave it to the financial industry to create a plethora of terms and acronyms that leave us dazed and confused and often frustrated. Which is why I think many folks higher advisers in the first place. The truth is, you only need to know a handful of terms to invest wisely, and I've broken them out into these buckets here, starting with investments, asset allocation manage or investment funds, fees and commissions, strategy and execution and portfolio management. In this video, Siri's you're gonna find interactive learning assignments in each video. I did this intentionally because I don't want to just present and regurgitate ideas and concepts that I know you confined. Search for on your own. I want this learning process to be highly engaged in this assignment. I want to download my E book, which consists of the essential terms that will help you become a better investor. And you can check out invested pd a dot com, which is a great resource for concepts and terms and different ideas in the investing arena . I'll see you in my next video bye for now. 3. Understand Your Investor Profile & Asset Allocation: in part two of our video, Siri's. We're gonna take a look at concepts relating to investor profile and asset allocation. Some of you out there are dating or have dated or know somebody who has. And what you typically find is that when you visit a dating website or dating app, you'll feel an account and select preferences that will help to guide your dating experience and the profiles you come across. Your investor profile isn't that much different from other profiles that you set up to reflect different facets of your life, and we can examine it more here. The purpose of an investor profile is to guide your investment decision making, and it's worth calling out than investor profile isn't static. It's dynamic, and it will change as you age mature and learn more about investing. It's usually determined by a questionnaire or conversation with a financial advisor or financial planner to help unearth more about who you are and who you want to be as an investor, there are five factors that influence an investor's profile, starting with objective, which speaks to the goals you have for your investing activities. For example, are you investing to build a nest egg for retirement? Or are you investing for a child's college education? Time and rising Considers how long you have before you need to withdraw your money for whatever objective. And what we typically see in the marketplace is time. Rise and divided into three intervals. 0 to 3 years, 3 to 7 years and seven years. Plus, for example, if you're investing for a house, perhaps you have five years before you need to withdraw your money. And so you need to plan your investing activities accordingly. Regarding investing risk speaks to how much the actual return will deviate from your expected return and how that will impact your financial goals. Risk tolerance takes a look at the tolerance You have to accept large swings in the market place. For example, if the market tanks by 10% over a period of six months, how would you deal with that? Would you be comfortable with that? Would it make you feel stressed out? Would it make you lose sleep and so risk tolerance of something to consider in your investing activities regarding age? If you're young, let's say somewhere in your twenties you have plenty of time to ride out volatility and large swings in the market place, whereas if you're closing in on retirement and you're somewhere in your fifties or sixties , you may be counting on your nest day quite soon. Therefore, that's gonna influence how you invest your money. Your knowledge and investing savvy will influence your asset allocation. If you're new to investing, you may decide to go one way. We're as an experienced investor may decide to expose him or herself to more complex solutions, such as derivatives. So knowledge and the rest of these factors will influence impact and define your investor profile. Asset allocation or allocating your investable assets involves dividing an investment portfolio among different asset categories, such as cash, fixed income and equities. And the focus here is on thinking about risk and reward and weightings, and we're gonna talk about the what and where later in the portfolio management video. What we see in the marketplace are these five traditional models here, starting with conservative and moving to the bottom with aggressive. Along with that are the associated splits between fixed income and equities and cash default into fixed income so we don't see a cash portion there. These splits are not set in stone, and so you may come across a conservative model that features a 90 10 split or a 70 30 split. It really just depends on where you come across these models and where you find them. Your overall investor profile or at the account level is going to fuel your asset allocation model and you're investing behavior. If you conduct a search for asset allocation models, you may come across something like this or some pie charts. And if we skipped the middle of their with moderate, you can see that the risk return tradeoff. It's somewhere in the middle. The allocation here would be 60% equities and 40% fixed income. You're interactive learning assignment starts with Considering you're investing objectives . Are you investing to buy a house? Are you investing for retirement? Are you investing for a child's education fund that I want you to search and complete an investor profile questionnaire? And these questionnaires typically range anywhere from 10 to 20 questions. Lastly, I wanted to explore various asset allocation models and weightings just so you can get a feeling for what they're about. Have fun with these activities and I'll see in my next video bye for now. 4. Learn About Fees & Commissions that Impact You: in part three of our video, Siri's. We're gonna explore fees and commissions related to investing first things first. Investing isn't free, and I know this sounds like an obvious statement, but I've spoken to many mutual fund investors who thought it waas make no bones about it. Fees are essential to the investing equation, and it's just a matter of knowing which ones you can avoid. And your goal should be to minimize fees where possible. Transparency has been a long standing issue in the financial industry, and this is why it's important to be engaged in your financial matters and understand the fees that you pay from a cost benefit standpoint. These are considered a wealth erosion factor similar to taxes and inflation. And ultimately, the more you pay out in fees is, the less you keep, which negatively impacts your returns. Here is a snapshot of the impact fees can have on a portfolio holding mutual funds or exchange traded funds. Let's just say for the year the market has performed at 7% when we factor in an expense ratio and inflation even before we get to taxes, we're looking at a return of 3.75%. This is why it's so important to be aware of the fees that relate to investing. And while we can't do much about the market performance or even inflation, we can definitely control the fees we pay through the expense ratio. And we can think about how we can manage our accounts and investments to minimize the tax burden. Here are some standard fees Toe Watch out for starting with an annual account or administration fee, this kid range in price anywhere from 25 to 50 to $100. The good thing about this be is, it's often waived if you hold a minimum amount of assets. Of course, there's commissions to buy and sell securities, and the price there depends on the brokerage that you deal with. If you're gonna borrow money to invest or as they call it, trade on margin, you're gonna be charged interests. And lastly, if you're holding currencies in a different denomination, you need to watch out for currency rates and currency fees that apply managed funds or investment funds, such as neutral funds or exchange traded funds. Have several feet buckets you wanna watch out for, starting with the expense ratio. The expense ratio is really the primary number you want to take a look at, and it's no me stated in a percent, such as 1% or one a half percent. And this considers the fees paid to professional portfolio managers or those investment managers for those funds and also incorporates a 12 B Dash one or trailing commission, which is a fee paid to advisers annually to service clients accounts. And also it incorporates other costs, such as auditing, legal, custodial cost or taxes. And again, this is really the number you want to look out for. Advisor compensation is also something to consider and advise air compensated in any of these three ways, starting with a load or sales charge that surfaces as a front end load back in level or no load. Another arrangement is fee based, whereby the advisor charges a percentage of your assets for example, 1% or a fee only arrangement whereby the advisor charges a fee per hour or annually, or based on a plan and that arrangement there tends to be the most conflict free option, ah funds trading, expense ratio, or turnover rate of turnover ratio is not reflected in the expense ratio, and what this costs focuses on are the transaction costs racked up by portfolio managers. Believe it or not, portfolio managers don't get to buy and sell securities for free. They have costs associated with buying and selling securities, and those costs ultimately take away from the fund's performance and returns. Many of you are familiar with Vanguard funds as a leader in low cost index mutual funds and exchange traded funds, and I wanted to highlight a quote from them to provide some perspective. Minimizing costs is a critical part of very investors tool kit. This is because investing there is no reason to assume that you get more if you pay more. Instead, every dollar paid from management fees or trading commissions is simply a dollar less earning potential return. The key point is that unlike the markets, costs are largely controllable. So this is something to consider. As you understand and appreciate the impact fees have in the investing equation. There are many feet calculators available online, and I'll provide links to a couple of them in the description section in this example. Here, I'm comparing to funds fun one and fund to Fund One is actively managed and carries a management expense ratio or expense ratio of 1.25%. Fun to carries an expense ratio 0.5% and the difference over a 20 year period equates to just over $77,000. So once again, this speaks to the impact fees have on portfolio returns and expectations for your interactive learning assignment. I want you to explore a brokerages commission schedule. It's normally offered in PdF format. I just want you to take a look at it, dissected and understand all the fees that apply to investing. I also want you to select a mutual fund or exchange should have fun and dissect its fees. Look for the expense ratio. Look for the turnover rate or turnover ratio if you can find that, but just get a sense of what costs are involved in investing in investment funds. I also want you to understand how your advisor is compensated. If you use an adviser, I also want you to understand and calculate fees. Tie to investing so maybe you can just run a couple of different scenarios just again to get a feel for the fees involved in the investing equation. Have fun with your activities, and I'll see in the next video bye for now. 5. Choose a Profitable Investing Strategy to Increase Your Wealth: in part former video Siri's We're gonna Be Exploring Investing strategy. There are two main strategies and philosophies we can look to when navigating the marketplace. Active management and passive management. Active management is about analysing and selecting securities to outperform or beat the market. For example, constructing a portfolio of individual securities to beat the S and P 500 portfolio managers and investors look to two types of analysis or two methods. Fundamental analysis and technical analysis. Fundamental analysis involves analyzing a company's financial statements, such as the income statement and balance sheet. It also requires us to stay close to the company toe. Listen out for any new developments. You also want to take a look and keep an eye on the company's sector and industry and competitors to get a feel for what's going on with that company. Technical analysis involves analyzing charts and graphs to identify patterns and trends. Techies air focused on price and volume activity, which helps them to determine when to buy and sell securities. They are not focused on financial statements or company news or anything like that. Just charts another statistical indicators, such as moving averages. Some portfolio managers lean completely one way or the other, and others use a combination of both. Passive management is exactly how it sounds and that there is no securities analysis required. The goal here is to replicate market holdings of an index, for example, the S and P 500. I like to think of it as investing in the collective wisdom of all participants were active in the market. More to the point, we can take a look at a couple of scenarios here. The active investor is gonna be buying and selling securities based on fundamental analysis , technical analysis or both. Just a saying that may decide to invest in an actively managed mutual funds or exchange traded fund. For example, the Fidelity Contra Fun, a passive investor is gonna be buying and selling securities for the purposes of replicating an index, for example, buying securities that belong to the NASDAQ 100 waiting them accordingly. You can also invest in an index fund, whether it's a mutual fund or an exchange traded fund. For example, the Vanguard 500 Index Fund, the investing strategy that you choose has huge implications, and so the question arises as to which is the correct approach or which is the better way to go. Investors need to do their homework, and we're going to talk more about this. In interactive learning assignment. Portfolio managers will beat the market from time to time. There's no question about that. But overall research supports that passive investing or index investing is definitely the way to go. What I've noticed when comparing a lot of index funds to their actually managed counterparts is that the funds often hold similar securities. But the weightings air different. For example, an index fund may hold Apple at a waiting at 6% whereas the active managed fund may hold it at 7% or 8% or maybe even less. And so investors have to ask themselves whether the slight decisions or nuances of the actively managed fund justify the fee paid to active management. Investment fund companies that are in the business of creating and marketing actively managed mutual funds are the first to tout whatever returns they can get. But investors have to keep in mind that those returns need to be compared against their benchmarks. Investors also need to keep in mind that past results are not indicative of future results . And this is a common disclaimer found on prospectus is A few years ago, I stumbled upon the S and P index versus active report, and it's a report has been coming out for more than 10 years. Now it highlights and speaks to the ongoing fiery debate regarding active versus passive management and portfolio managers and how they compare against the respective benchmarks. The report covers various countries, such as the US, Canada, Australia, etcetera. It's just a matter of visiting the site to see which ones they cover. Also, reports may be based on a semiannual or annual basis, and again, it just depends on which country are taking a look at. In their most recent scorecard, they highlight how portfolio managers have done against the respective benchmarks on a 15 and 10 year bases, and another report they came out with recently. How much to fees affect the active versus passive debate also has some very interesting insights. Undeniably feeds play a major role in the active versus passive debate after subtracting fees returned from active management tend to be less than those from passive management, as the latter cost less from the most recent scorecard, they say. Similarly, over the 10 year investment horizon, 82.14% of large cap managers 87.61% of mid cap managers an 88.42% of small cap managers failed to outperform on a relative basis. In other words, over 80% a portfolio Managers for the last 10 year period have failed to beat the respective benchmarks and indexes. One theory have as to why portfolio managers aren't performing as well as they'd like is because the information gap has closed significantly over the past decades. Today, the everyday investor is a lot more informed and has access to information all over the Web . And so that time many decades ago when information was shrouded in mystery, is no longer the case. And so again, this is why I think the overall collective wisdom of the market is doing quite well against actively managed funds and their portfolio managers. Many of you know warm buffet as the poster child for active management, because he's done tremendously well in beating the S and P over decades. That said his advice to the everyday investor over several years has been in the direction of passive investing or index investing, and I'll just like this quote here. The goal of the non professional should not be to pick winners. Neither he nor his helpers can do that, but should rather be to own a cross section of businesses that, in aggregate are bound to do well. A low cost S and P 500 index fund will achieve this goal. Now, whatever motives Warren Buffett has for stating that everyday investors should go, the way of index investing are what they are. But nevertheless, here is somebody who has done tremendously well in the stock market over decades, telling investors they should think about these. Consider going the way a pass investing because it makes sense as an investing strategy for one last perspective on the active versus passive debate. I wanted to include this comment here that I came across on a thread because I think it's very profound. Active managers charge fees where they beat the market or not. It take advantage of the fact that everyone wants to beat the market and they're really good at selling products, claiming to do just that. The losers in the equation are the end investors. The winners are the asset gatherers charging high management fees for something they are unlikely to deliver. James, As we saw with the spear report, portfolio managers have not done well over the last 10 years, and I can assure you they also haven't done well over the last five years or even current year. As for the report, what this tells us is that the everyday investor should consider passive investing, investing in index mutual funds and exchange traded funds to achieve potentially a greater return for your interactive learning assignment. I want you to search passive, vs active management and read through some of the articles. Make the case for one or both, and figure out where you are in terms of your investing strategy and portfolio management philosophy and have fun with these activities, and I'll see in my next video bye for now. 6. Manage Your Portfolio Effectively & Wisely: in Part five. Our video, Siri's We're gonna be exploring portfolio management. I wanted to start off by recapping some of the topics have already touched on because they're vital to moving forward with your portfolio management activities. We took a brief look at the financial planning pyramid and the different aspects that relate to it. And I think what's important there is that you have your cash flow management and risk planning activities in order. The next step up from there, of course, is investment planning and wealth management, and that really starts with your investor profile and knowing yourself in knowing who you want to be in the investment arena. When we looked at the investor profile, it spoke to your objectives. Your risk Tolerance is your time horizon. Knowledge and age and those different factors ultimately produced an asset allocation model that was appropriate for you. Whether you are a conservative investor, Warren aggressive investor those to work together to really give a sense of what you're after and what you're trying to achieve. Everybody wants to experience amazing returns, but the reality is that there is a risk reward tradeoff that we need to think about and again that folds into your investor profile and asset allocation model. Diversification is one of the pillars of investing, and ultimately what we want to do is we want to build a portfolio that's well diversified among asset classes and securities. So we reduced our overall risk regarding investing strategy. We spoke about the differences between passive and active management. That's something that you need to consider on an ongoing basis. And, of course, we now realize that fees play a very crucial role in your overall returns and how your portfolio does. And so it's always a factor that we want to keep an eye on. You're probably thinking to yourself where you gonna keep all this information and details , and what you can do is you can create a 1 to 2 page document called an Investment Policy Statement. It's a statement that defines general investment goals and objectives. It describes the strategies that will be used to meet these objectives and contain specific information on subjects such as asset allocation, risk tolerance and liquidity requirements. I think having an investment policy statement is a really good idea. It will act and serve as a reference point for your portfolio management activities. But it's also gonna come in handy when the markets get really of all the tile. And you might think yourself, What am I gonna do? What am I gonna dio? Well, if you have an investment policy statement, it's gonna act. Is your game plan you can go back to and say This is how I'm gonna handle things. This is how I'm gonna proceed with my portfolio management activities. It amazes me that millions of folks still use investment advisors and pay the additional expenses, given how easy it is to build a portfolio. Nowadays, with all the solutions that are out there, the easiest way to build a portfolio is to choose an all in one fund that will give you exposure to fixed income in bonds and equities and stocks. For example, if you're a moderately balanced investor, you can find a fund that will once again give you exposure to both those asset classes. And that may be the only fun you need in your portfolio. Sometimes you may not be able to find all one fun at a low enough cost, or it may not be available in your market. Or you may have specific needs, in which case you may want to build a portfolio of anywhere from 3 to 7 funds that will give you a great cross section of exposure and diversification and meet the needs that you're looking to fulfill a notch up on the degree of difficulty scale is building a portfolio, individual securities and what you're essentially saying here is you want to take an active management approach to your portfolio and results. And I would encourage you if you're gonna go this way to do some analysis to make sure you track your results and see that you're actually beating the index or benchmark that you're competing against. Lastly, you may want to build a portfolio of funds and individual securities. Perhaps you invest 80 to 90% of your portfolio in index funds, whether they be mutual funds or exchange traded. Whether the passively managed, actively managed and with the remains of your portfolio, you invest in individual securities that you like based on analysis of some sort. So once again, there's many options here you have in terms of building a portfolio from a very simple approach to the on one fund to a more complex approach in purchasing and choosing individual securities. It's really how you want to go about it. This is really just a reference live. I think it's very important to talk about these considerations regarding funds or individual securities. So we're talking about funds. Are you going to invest in a broad market funds such as the S and P 500 that gives you a great deal of exposure and diversification to the market? Or are you gonna choose a narrow market or narrow focus fund that gives you exposure to a niche part of markets such as a social media? Stocks fun? We're talking about geographic location. Are you invest in the U. S. Canada, Europe, Asia brick, which would be Brazil, Russia, India and China. So again, that's an important consideration with fixed income and bonds. What we want to consider is the duration such a short term midterm. It long term are the government bonds or corporate bonds. And, of course, the credit rating that applies to them are the investment grade or they what's considered junk bonds with equities and stocks, where we want to take a look at his market cap of market capitalization so small, medium or large. We also want to think about sectors such as information technology, financial, healthcare, etcetera, Stalin, focus, speak to value and growth. They were looking at alternatives we can think about, including REITs or real estate investment. Trust in your portfolio, commodities and miscellaneous would speak to anything that doesn't fit into one of these traditional categories. Weightings are the allocations within your asset classes. For example, if you have a 50% fixed income waiting, how are you gonna divide your money into corporate bonds vs government bonds? This is more an art than a science. There's no way to wave a magic wand to predict how you should wait your securities or your funds in your portfolio to produce the best results. Just the same. If I could predict the future and tell you that Facebook was the only stock you should own for your portfolio going forward, a lot of you out there wouldn't be comfortable with owning one security because it wouldn't set up well for your investor profile and asset allocation model. There's several approaches you can take to allocating money in your portfolio. The first is you can based on analysis. So perhaps your analysis of past results for future projections leads you to a way. For example, the US over Australia, you can do what you believe to be correct. What makes you feel comfortable again, Based on your experience with your portfolio and investing in what you know, you can also equal weight funds and security. So, for example, if you build a portfolio of 40 securities, Teoh equally weight them, you're each gonna sign a 2.5% waiting. So that way they're all equal and not one. Security dominates the portfolio over the others. Additionally, you may want to equal weight funds in your portfolio. For example, if you have five funds, they each would receive a 20% waiting. Re balancing is a very important portfolio management activity, and it speaks to realigning assets back to their targets. For example, if you're moderately conservative investor and on January refers, you're waiting is what you wanted to be 70 30. The markets are gonna move a little bit and let's say equities have rallied, and therefore on March 23rd you're looking at a 66 34 waiting. What you need to do there is in your re balancing exercise is to sell a portion of equities and use that money. Use the proceeds to buy back the fixed income funds, for example, that you have in your portfolio. On April 1st, you're back to your target mix and you're back to your asset allocation model. I don't need to tell you that there are thousands of investment fund companies, and each of these companies create a plethora of options, which ultimately confuse investors. These four popular and global fund companies here have trillions under management and are well respected, and I believe that any one of them can offer you the solutions that you need to build an excellent portfolio. When it comes to choosing a broker, there's typically many in the marketplace. If you're in the US, Canada, Australia, UK, etcetera. Where you do want to take a look at is if you're looking for a discount broker, a discount brokerage or full service, one discount is basically a no frills platform where his full service has more frills and folks there that will help you and provide investment advice. As for some items that you want to look out for. Of course, fees and commissions are big deal. The user interface or trading platform will definitely influence your investing experience . Treadle products. So most brokerages, of course, will offer the ability to trade stocks. But you may be interested in trading options and forex as well. Research tools can be of added value. Real time quotes are pretty standard, but some platforms require you to pay a subscription customer service. You may hardly deal with customer service, but it's good to know that a brokerage does have reliable customer service and support. Lastly, have a look out for promotions because you may come across a promotion that you like, such as $100 free trades. And that may sway you to a platform that you're thinking about going with and you'll get the bonus there with the promotion for your interactive learning assignment, we spoke about the importance of re balancing, and I want you to understand the difference between strategic dynamic and tactical asset allocation. I also want you to build a portfolio consisting of 3 to 7 funds. As for your investor profile, an asset allocation model, have fun with these activities, and I'll see in my next video bye for now, 7. Discover Services & Tools to Optimize Your Activities: in Part six of our video, Siri's. We're going to be taking a look at services, tools and platforms that can help you with your investing activities. This is meant to be a high level overview. So for more information, you can check the description section for my post and links to these websites. And given all the innovative financial solutions that have come to the marketplace, my question Why so many folks live in the past and still use traditional investment advisors? Do you really need a mutual fund broker Who's going to sell you actively managed mutual funds? Do you need an investment advisor who's gonna recommend a mixed bag of individual securities and then charge you 12% on your portfolio every year? I would argue that still of value is a fee only financial planner who is gonna help you tackle in plan all the different aspects of the financial planning pyramid, which at that point you can take the investment piece and recommendations and manage your own investments at a lower cost and manage them sensibly to experience potentially greater returns. Once again, I would encourage you to do a cost benefit analysis and really think about the value that you're getting from an investment advisor. If you're using one compared to the services and approaches, we're gonna take a look at in a second the services and tools we're gonna be taking a look at for the most part of concentrated in the US, and some of them have expanded globally. But I would just keep an eye out for the equivalent service or solution in your home country with any of these platforms and services. You do want to consider your investor profile and asset allocation model. Of course, you want to take a look at account minimums and fees, and you want to consider if your investing strategy aligns with the tool that you're interested in. Now, let's take a look at some services that may benefit your investing experience. Starting with traditional brokerages such as TD Ameritrade, Fidelity, Scottrade, etcetera, there's many to choose from. The idea here for the do it yourself investor is to open an account and then build a portfolio of one on one fund, perhaps a few funds or even some funds and individual securities with the traditional brokerages. You typically have research tools and even an education section that you can continue to learn about investing. But all in all, they still remain an excellent solution. As a brokerage, Robin Hood offers a very appetizing value proposition in allowing investors to trade for free via their app. And if we quickly scroll to the bottom here, you'll see that they've attracted attention from Google and other major players. They're currently available in the U. S, Australia and China, and expanding globally motif investing offers unique spin on brokerage and portfolio management activities. Basically, what they allow you to do here is create a motif or mini portfolio of up to 30 stocks or E T. F, and weigh them accordingly. And what you can do here is you can find a motif, you can build your own, and then, of course, you can purchase it. So if we take a look at some examples, you can see here. There is a wearable tech motive, a tablet take over, and they have some really cool and interesting ideas and themes that investors make gravitates awards. A Robo Advisor is an online wealth management service that provides automated algorithm based portfolio management advice without the use of human financial advisors starting with betterment. The idea is pretty straightforward. You're gonna come to the website and fill out the equivalent of an investor profile questionnaire and they're going to recommend to you one of five asset allocation models they're investing. Strategy is to invest in low cost index funds from my shears and from Vanguard etcetera. And what they also do here is they focus on minimizing your taxes through measures such as tax loss, harvesting and other cool things that they dio. So definitely recommend that you come here to check out some of the other futures of their investing strategy. Wealthfront is another popular robo advisor that competes directly with betterment, and the ideas are very much the same in that Wealthfront also believed in passive investing through low cost index E T f s. The one difference here is if you have a large enough account, they will purchase individual securities to further focus on tax loss, harvesting and other tax strategies To minimize the tax burden with betterment and Wealthfront, you're not gonna gain access to your very own financial advisor and that's where these next two companies come into playing starting with personal capital. They offer you a couple really cool things here. As a robo advisor Number one, they offer you free financial software that allows you to connect your various investment accounts and portfolios to really get a holistic view on one dashboard of everything that's going on. Secondly, they offer you dedicate advisers and personalized portfolio management, and this is really good for folks who still want that human connection. You can connect with your advisors through email to the phone or video chat, and it makes it very convenient. Their philosophy. It's similar to others that we've taken a look at in terms of focusing on index and passive investing, so you're pretty good there. The only caveat here, I would say, is that fees are a little bit more because you do get that dedicated approach. But it is a solution. Definitely. We're taking a look at Vanguard is very much the definition of passive index investing, and they decided to jump into the robo advisory arena with this service here, Vanguard Personal Advisory Services. So with this, you're gonna get a dedicated financial advisor who's gonna be assigned to your account, and mostly recommendations will come from their own basket of E, T. ETFs and mutual funds. If you're new to investing or have smaller amounts to invest, we can take a look at a couple options here, starting with a corns. The idea here is that they're gonna invest your spare change, so what you can do is you could connect your credit, debit and bank accounts to their app on Let's say, for instance, that you're out for a coffee and your coffee cause $4.60. They're going around that up to $5 invest that difference in one of their five s allocation models. If we scroll down, you have other options for funding your account, such as recurring or one time. And once again, you can come here and take a look at other information bites. But there's a really cool solution that has come out in the APP. World Stash is another exciting app that's making headlines, and the idea here is that you need as little as $5 to start investing. What's interesting here is that based on your investor profile, they're going to recommend to you a curated list of E T F themes if you will, and even individual stocks that you can choose from, so there's a bit of active management component here that interests you. Nevertheless, it's definitely an act that you should check out for those wine to stay close to the markets and who have an interest in individual securities. We can take a look at a few websites that I visit quite often, starting with investing dot com. I won't go through all the information here, but I do come here for the calendars and also to set free price stock alerts, which is quite cool. And if we scroll down here, you can see that it's quite a comprehensive site, a lot of information and once again, free tools, income and use. There's also an education center with webinars and other information bites that can help you with your investing acumen. Google Finance is a very popular go to website for a lot of investors. I know I come here daily for different things, but typically just to stay up to date with what the markets are doing or if I wanna look at some quotes here, you can create a portfolio. You can look at the stock screener, you can customize your layout for your liking. So all in all it really just a convenient solution for those of you with an interest in technical analysis or if you want to learn more about it. I don't come this side as often as I used to, but I do recommend stock charts dot com. They have a chart school Here is Well, what you can do is you can come to site, look up a stock and then access all their free technical analysis tools here and really just chop this chart away and go at it. We just had a look at several exciting and innovative services, tools and platforms. And so what I recommend for your interactive learning assignment is that you explore them, have a look at their value proposition. They're investing strategies and their fees and have fun doing so I'll see in my next video Bye for now. 8. Frequently Asked Investing Questions (F.A.Q.): in part seven of this video, Siri's I'm Gonna Tackle frequently asked questions about investing My favorite investing book and the book I recommend to all investors is a random walk down Wall Street. It changed my thinking, investing, philosophy and advice. I give the clients. I also recommend the classic, an updated version of The Intelligent Investor, and also went up on Wall Street for more of a dramatic tale about the shenanigans and mayhem of Wall Street. I recommend when genius failed. Yes, risk is inherent to investing. It's something we can't get away from. But once again, we need to think about the risk return tradeoff and diversification. Risk is the chance that an investments actually term will be different. Mawr less than expected. So although there's the potential for upside, there is the potential for downside as well. We could talk about a few common risk that you may or may not be familiar with, starting with market risk, which is the risk that security prices will fall due to factors that affect the whole market. It we're thinking about an individual business. If a business performs poorly, that could result in a depreciating stock price If we're talking about fixed income, we can think about default or credit risk, which is the risk that an issue over bond may be unable to make timely principal interest payments. We can also think about interest rate risk. So when rates change due to policy makers or government that could have a positive or negative impact on bond prices, we can also consider a foreign exchange wrist. So if you're investing in stocks abroad and investing through different currencies, the fluctuations in those exchange rates can impact your returns. And we can also think about liquidity. If you're a trader and you're active in the marketplace, we need to think about if the security that you're trading you can get in and out of quickly enough to make a profit, a loss or re balance your holdings. So there's some of the risks that are involved and encourage you do a search for any more that you feel are relevant to your situation. Primarily, it's new information that comes out, for example, for thinking about the market. We know economic numbers or announcements can influence the direction, such as a GDP number of jobs report decisions made around interest rates by policymakers can affect the mood and sentiment of the market. We're talking about individual companies or share values. We need to think about earnings reports and new developments with that company, which can have a positive or negative impact. The first thing you shouldn't do is panic or get emotional. A bear market, by definition, is 20% reversal orm or from the highs. And we spoke about this earlier in the video. Siri's the importance of your investment policy statement, which is really gonna act as your game plan through good and bad times. Of course, we all want our money to grow. But bear markets are inevitable, and what you're going to do is you're gonna follow your investment policy statement, your I PS and your re balancing activities that you've already drawn out. When the markets move like that, your weightings air going to shift and all you really want to do is just focus on re balancing, saying, get back to your target asset allocation model. It really depends on your investing strategy and how you build your portfolio. If you're a passive investor with one fund or a few funds, you can check and quarterly, or even twice a year. If you're a bit more active in the market trading individual securities, you probably want to check in monthly or even weekly Justin share. Everything is as you want it to be. This question is for aspiring to yourself investors. I think the reason a lot of folks use investment advisors is because a little afraid or timid to buy and sell securities themselves. But to be honest with you, it's not that big of a deal. It's not that hard to do. What I recommend that you do is you search stock simulators invested PD a dot com offers one as well and just get familiar with the platform or the application. The different order types. And then once you're ready and you're confident, go in. They're going to your portfolio and buy and sell securities. As for your desires, if we're talking about do it yourself, investing from a passive investing standpoint to the focus here, being on investing in low cost index funds then, of course, is gonna be an opportunity to reduce fees because he won't be shelling out money to an investment advisor or mutual fund broker. There's also an opportunity to increase returns, not only because you're going to saving on fees, but because passive investing is high probability investing. From a qualitative standpoint, we can think about becoming a more empowered, independent and knowledgeable investor who is more in control of his or her personal finances. The one item I want to call out to anybody thinking about making the transition to do yourself investing is to take stock of your investments. For example, if you were sold mutual funds buying advisor, you just want to check to see that you can sell them without any redemption penalties. You also want to understand the difference between in kind transfers and in cash transfers , depending on what you're looking to do with your investments. This wraps up my investing for beginners video Siri's and I hope you got a lot from it. I will be releasing more videos about investing in the future. In the meantime, best of luck with your investing activities, and I'll see in my other videos Bye for now, 9. Invest in Individual Stocks: Why, Planning, & Tips: in this video, we're gonna talk about investing in individual stocks. We're gonna talk about why you might Investment planning. And I'm gonna give you some tips for doing so in my other videos. I talk about investing strategy and the differences between passive and active management. Passive investing through index funds is an excellent and intelligent approach to take for many investors. But you still may have an appetite to invest in individual stocks and securities, and I just want to help guide you along the right path. If you conduct a search for why by individual stocks, you're gonna come across a lot of results. And most these articles will talk about how difficult it is to pick winners. Nevertheless, here's some valid reasons for investing in individual stocks. Starting with the first point you want increased exposure. Perhaps you hold in S and P 500 fund or large cap fund. And in that fund, there's Amazon with a 5% waiting. Perhaps you're really bullish on Amazon, and you won't increase your exposure once again, so you'll go out and buy Amazon just the same for any number of reasons. You may want direct exposure to a stock staying with our large cap fund. Example. Perhaps you identify a small or mid cap stock that you really like. That's not held within the fund. To further diversify you buy the stock eligible mutual funds. Exchange traded funds do allow you to reinvest your dividends and distributions just the same. Many companies offer dividend reinvestment plans, but you need to be a direct shareholder in order to participate in them. Finally, if you trade options, that's another reason why you might go out and buy stocks before you go out and buy stocks or any security for that matter. I want you to consider these three R's in risk management returns and research. Starting with risk management, you want to remain cognizant of your investor profile. An asset allocation model. For example, If you're conservative investor, it doesn't make much sense to go and buy tech stocks. Another thing you want to be aware of is diversification and the weightings you assigned securities in your portfolio. I don't want you to buy stocks or bonds haphazardly. I want you to think about what you're trying to achieve and set goals. I also want you to consider what you're gonna compare your results to in terms of benchmarks and standards. If you're gonna be buying stocks for the sake of outperforming the market, then you need to think about your research approach and the tools and websites that you're gonna use. You want someone to stay on top of earning announcements, and you can loop into analyst coverage and their reports to get a better understanding of the stocks themselves, along with your risk management goal setting and research activities. Here are some tips and ideas to consider investing companies you enjoy doing business with . For instance, if you enjoy shopping online Amazon or eating McDonald's thes air reasons to favor a stock , how about companies that benefit your business, Whether you're employed or self employed, you may identify suppliers and partners who are worth investing in. The trend is your friend, and there's no reason to be a contrarian or make risky bets. Look for stocks that have been trending upwards for at least a year. Two of the things that look out for our stocks that are reporting posit developments and increasing dividends on a regular basis. These two factors indicate to me potential upside and that the stock is headed in the right direction. Finally, and this is a critical point. You want to understand the business that you're investing in so much so that you can explain the business model to somebody else. You want to understand how it operates, how it makes money, and how different economic trends and scenarios can impact its bottom line. Once again, investing in individual stocks are usually riskier than investing in well diversified and managed equity funds, whether they're passive or active. But activities can be warranted under the right scenarios. Have fun with your investing activities, and I'll see in my other videos bye for now. 10. A Look Inside My Brokerage/Investment Account: Hey there in this video, I'm gonna take you through a tour of my brokerage slash investment account. We can take a look at some of the more important points to look out for. Just in case you're thinking about opening up your own brokerage account or doing some do it yourself investing activities, you could get a feel for what's going on here. I will say that the layout they're looking at here will differ from one company to the next . Every brokerage has a different way of laying out there investing platform. But the essential ingredients to managing your portfolio and executing trades are pretty much standard across the board, for their point I'll make is there are several investing simulators out there. It's just a matter of doing a search for them. I don't know how good or bad they are, but it will give you what can give you a feel for investing activities before you jump in real time. So let's start the top here. I'm actually on the trading dashboard, but if I click, here is a drop down menu to account. Typically, an Accounts area is where you can look at your overall portfolio and the different new ones is that applies, such as activities were requesting funds or moving money around making deposits, withdrawals. Anything that's account related trading here is the dashboard that I'm on. That's why this is highlighted with Quest Trade Portfolio. I Q may mean looking at some more granular details regarding my portfolio question. It offers in different platforms, and you typically find that with brokerages that the offer different levels of access to market information such a level one and Level two, for instance, different markets that are out there. Market research again different platforms of brokerages will offer the ability. It's happened to greater market research, but you might have to pay a premium, and lastly, they offer a learning center. If you look at the left side panel here, you can see account, and this account within the trading dashboard is really speaking to these items here, which will come back to in a second. Your watch list is basically any stocks that you're watching. So I had a few here just to give you an example. So Twitter, PayPal and another item here stocks this screen will allow me to search for a stock, get the information as to what it's trading at and the other different information details here relating to the stock. If I want to look up options, this is the screen to do that. Here's some generic news that's coming out about different items. So McDonald's and other different platforms ultras down here. And if we scroll down and you'll find that most brokerages will give you ability to set your preferences, you can change the layout and appearance and different order entry I numbers here and Collins etcetera. So you always or should always be able to access a preferences area to really set up your layout and customize it the way you want. So, as I said, if we come back to account here, you see balances, we should to speak to your balances. So how much money is where cash market value? This here features a profit and loss in daily orders positions. So if you have any positions, if you're long a stock, let's say or you bought a stock that's going to show up here. If you placed any orders that are still open, that's gonna be right here. Executions, of course, will be that your orders got filled or your order has gotten filled. And lastly activity will confirm other details, such as when you logged in, Let's say or again information around the executions. If you move to the right side panel, here is where I can enter orders. So I just looked at Facebook here. This is kind of where it's at in terms of the bid and the ask, and here is where I would place the quantity. So how many shares do I want to buy here? It defaults to 100 because I set that as my preference. One of things you want to look at before you get into investing or trading or doing any activities or executions is the different order types, So marketing limit are quite popular order types, but you can look at different orders, order types and just check out what they mean before you place them or use them. Duration speaks to longevity of your order. So if I placed an order and I just wanted to last for the day, I could choose day. But there's good til cancelled and some other order types here. You just need to again understand what they mean. And these acronyms here may change slightly from brokers brokerage. That's why again, it's so important. Understand what they mean the account. You want to make sure that you're buying and selling at the right account, and lastly, you just click, buy or sell. So that's kind of the gist of it here with Quest rated also giving me again. This information here is well on the side panel. If I want to take a look at it, looks like I have some ability to add gadgets or add widgets. And lastly, over here again different profile settings and is even some APS help, etcetera. So that's really what you're kind of looking at when you're in your brokerage account, er in an investment account. So just to recap is gonna be an area to manage your account. All the documents there. Then there's gonna be an area to conduct your investing activities of the trading area, and those are pretty much the two pillars of any brokerage accounts, so help some of these insights help. If you have any questions about it, you can, of course, post them in the discussion section and good luck with your investing activities. Bye for now, 11. Course Recap & Key Takeaways: thank you for completing the course, and I just want to take a few seconds to recap some of the key takeaways from it, starting with the financial planning pyramid, which we had a brief look at. We didn't go into all the different aspects of it because this course, of course, focuses on investing wealth management. But you do again want to take a look and get appreciation for all the different processes and aspects related to it. Your financial life isn't just about wealth management and investing. It's about cash management, risk management, estate planning, retirement planning, taxes, etcetera. So you do again want to appreciate those different areas. You want to understand where you're weak and where you can improve, ultimately to round out your financial life and the total picture that surrounds your finances. Another critical point to consider is outsourcing some of these areas or aspects to competent financial professionals. I make the argument that investment advisors or mutual fund brokers don't provide a lot of value, and I think after taking this cores and doing a little bit more work, you can manage your own investments or again use some of the services and tools that we looked at, but in terms of some of the other areas, such as tax planning or a state planning life insurance, etcetera. Maybe it's a good idea that you look for a competent individual that specializes in those areas to really help you optimize them. Tax planning and estate planning can be very complex. They're not areas that the everyday person can tackle head on and get right right away. I would recommend, of course, aligning herself with great stakeholders who can help round out your financial and lifestyle vision. Your investor profile serves as the foundation for all your investing experiences and activities, and it's so important to always have an understanding of who you are as an investor. This is gonna change as you evolve as an investor as you enter different stages of your life. But nevertheless, you always want to get a beat on who you are and what you can tolerate in the marketplace thing you want to consider. Two is your overall investor profile may not be the same for every account, so may differ on the account level. For example, let's say you're a conservative investor, but you open up a college education fund for a grandson or granddaughter. In that case, that account may be more aggressive, given how much time there will be in between investing the money and the beneficiary taking the money. We're needing the money for college, so in that case you may want to create or set up a more aggressive asset allocation model. Unfortunately, we can invest for free fees are a necessary part of the investing equation, like I said before. But they are a silent wealth killer, and this is why it's so important that investors have a well rounded understanding of the fees they're paying and what they're getting for the fees that they pay. When you think about over decades, how many billions of fees have been racked up by Wall Street and financial institutions abroad again, some of them are justified. I would argue that many are not and so really good understanding of the fees that you're paying and how it impacts your overall performance. We talked about investing strategy and considered passive vs active management. Empirical evidence and research overwhelmingly supports passive investing as a way to go you makes don't want to participate in active management, which is fine. But again, what you want to do there is. You want to monitor your activities and performance tractor nuances of what's going on and keep on top of it. You don't need to stick toe one investing strategy throughout your entire investing experience. But you do want to choose an investing strategy that makes sense. That's proven, and that will ultimately benefit you in the long haul. Portfolio management doesn't have to be complicated As much as the news media wants you to believe. It should be or has to be. You can choose one fund or a few funds. Like I said, if you're going to get into individual securities, you do want to follow the three R's of returns, risk management and research and again track your results, understand what you're trying to achieve on what you're doing and if it's gonna benefit you from holding these individual stocks as opposed to mutual funds or exchange traded funds. We took a look at several services and tools from the U. S. But these services and tools are replicating globally, so it was a matter of having a look in keeping an eye out for them. These tools and services weren't around a decade ago, but they're around today, and a lot of wise and intelligent investors are picking up on them and exploring them, which I encourage you to do. If you're using an adviser, one of the things you have to question is the value add of your advisor compared to some of the services and tools that we looked at. So again, I would do a cost benefit analysis and really think about which way want to go and what your advisor can do for you or is doing for you that you can't do for yourself or that some of the services that we looked at can't do for you. Those are the key takeaways from this course, and I wanted to continue to develop your financial literacy and financial savvy because it will benefit you in the long run. If have any comments or questions, you can post them in the discussion forum in this course, and I will get back to us soon as I can continued success with your investing activities and I'll see my other videos. Bye for now, 12. Reference - Create Your Investment Plan: in this video, we're gonna talk about how to create an investment plan. You probably heard the saying that a failure plan is a plan to fail, and this is very true when it comes to your financial and investing experience, just like you would for any other week. You would plan your activities around, work around errands, responsibilities and two DUIs, and we're gonna do the same for your investing activities. An investment plan outlines your investment activities in connection with your goals. You can think of it as a map to take you from point A to point B. Vanguard likes to think of it as the GPS to your investment destination. It doesn't have to be long or complex. It could be 1 to 2 pages, and each of your investment accounts are likely to attract a different plan. For example, a retirement account may attract one set of parameters versus a short term investment account, which may attract a different plan. Here are the inputs that go into your investment plan, starting with financial in lifestyle goals. So you really want to give a lot of thought to this? What do you trying to achieve long term in terms of lifestyle, whether it's five years from now or in retirement, What are you looking to do? Do you want to travel? Do you want to join private membership clubs? Whatever it is, the next step is to tie these future activities $2 amounts and create some financial targets. So perhaps you want to reach a $1,000,000 in assets before retirement. Perhaps you know that the cost of some of these memberships and travel will cost a certain amount. So you do want to get a feel for the lifestyle that you're after and that you want to live and how much it will cost. Once you have a good sense of your financial targets and the dollars and cents, you need to think about your target rate of return. So maybe your 20 years out from retirement. What rate of return will you need to achieve To reach your dollar figures, you'll need to consider your contribution frequency and amount. For example, you're going to contribute $2000 monthly to your retirement account. Your investor profile is going to influence and dictate much of your investment experience , and you can complete an investor profile questionnaire online. There's many of these short surveys available to get a better understanding of who you are as an investor. For example, are you a conservative investor? Are you moderate or aggressive? Whatever type of investor you are is gonna lead to a suitable asset allocation model. For example, if you're a moderate or balanced investor, then you're probably looking at a portfolio of 50% bonds and 30% stocks or somewhere in and around there. Investment strategy speaks to active and passive investing and the approach you favor, and it also considers the investment vehicles you're gonna use in your portfolio. For example, mutual funds, exchange traded funds and or individual securities. As with any plan, you want to follow up and review it to ensure your staying on track. I recommend reviewing your portfolio at least twice a year, maybe more, depending on your needs. Let's run through an example of an investment plan. Here's Joe's retirement account. His goal is to build a nest egg for retirement. He's laid out a target of 1.1 to 1.4 million by age 65. The target return is gonna need to achieve that is 5.5 to 6%. That 5.5 to 6% is actually a combination of capital appreciation and dividends. His monthly contribution is gonna be 1500. His investor profile is moderate, which aligns with his target return, and he's looking to build a portfolio of 50% bonds and 50% stocks. He's given himself a little bit of leeway there. So when the markets move, he's giving himself leeway of about 10% points 40 60 on the low side, 60 40 on the high side. Before he needs to do any rebalancing, Joe is gonna focus on passive investing through low cost index exchange traded funds and use a robo advisor such as Betterment and Wealthfront. Lastly, Joe has decided to review his portfolio semi annually. Keep in mind that your investment plan is just one piece of the financial planning pyramid , which represents a different aspects related to your financial lifestyle goals. Good luck with your investing activities, and I'll see my other videos. Bye for now,