The Only Two Funds You Will Ever Need to #invest #money #tyler #wealth #financialplanning

Simple Investment Strategy00:00:09

A straightforward investment strategy involves putting 90% into an S&P fund (like VO) or a total stock fund (like VTI), and the remaining 10% into a money market fund (like SGB or SPAXX). This approach prioritizes simplicity over complex financial products or paid advisory services.

Adjusting for Risk Tolerance00:00:28

If a 90% stock allocation feels too risky, a more conservative option is to allocate 70% to stocks, 20% to a bond fund (like Vanguard's aggregate bond fund BND), and 10% to a money market fund.

Timeline-Based Allocation00:00:37

Forget age-based investment rules. Instead, base your portfolio allocation on when you will need the money. Short-term needs (e.g., 2 years) should lean heavier on money market and bonds, while long-term needs (e.g., 20 years) can be more heavily invested in stocks. Your financial timeline, not your age, is the critical factor.

Managing Funds During Market Fluctuations00:00:53

During market downturns, use your money market fund as a buffer to cover expenses, avoiding the need to sell stocks at a loss. In bullish periods, gradually replenish your money market fund by selling stocks after they have recovered, ensuring you always have a liquid reserve without overthinking your investments.