I recently made a video about how the 3 fund portfolio is the best way to invest your money in the stock market. While I still believe that to be true I like investing in a 2 fund portfolio a lot more...but only under certain circumstances. In this video, we'll go through why I like both the 2 and 3 fund portfolios, what makes them so different, and when you should choose the 2 fund portfolio over the 3 fund portfolio. Since investing in bonds is such a hot topic right now I'll also touch on the importance of investing in them within a 3 fund portfolio. Here is the original 3 fund portfolio video I made: https://youtu.be/X7hZQmSj8KI Check out My Recommendations (Purchasing anything here funds the free content on this channel): 📊 Personal Finance Bundle Wait List: https://bit.ly/4bpyTHT Work with an hourly fee financial planner here: https://bit.ly/48mrWaF 📝 Boldin - The retirement planning tool I use to make sure I'm on track with saving for retirement. It's perfect for "Do it yourself" investors https://bit.ly/3EAAhrJ 💬 Sign up for 1 on 1 coaching with me: https://bit.ly/4bAUpYT 📖 Free copy of my Spending Review Spreadsheet: https://bit.ly/48lMVZ1 Benefits of a 2 and 3 fund portfolio: Diversified- Both of these portfolios spread your money across thousands and thousands of stocks. This diversifies your money among different companies, sectors, countries, and even currencies. Zero Portfolio Overlap- Because you have 1 U.S. Stock fund to handle the companies based there, and 1 International stock fund to handle the rest of the globe, there is zero portfolio overlap. This becomes a problem when you own the same stock within multiple funds without realizing it. Low-Cost Investing- For every $1,000 invested you're only paying 30 cents and 80 cents per year. Compare that to an expensive actively managed fund where you pay $7.50 per year. An index fund based portfolio like this is 26 times less expensive than an actively managed fund. No fund manager risk- One of the biggest risks of investing in any fund is with the manager who runs that fund. If they start taking on more risk than they should then you have a higher chance of losing money. With an index fund based portfolio there is no fund manager picking stocks which removes the human error and emotion that comes along with trying to beat the index. It's simple- Simplicity is so important for investing because it reduces your chances of accidentally making mistakes. Rebalancing your portfolio is simple. Allocating money across 2 or 3 funds is simple, withdrawing money from 2 or 3 funds is simple. Affiliate Disclaimer: Some of the above may be affiliate links. Support the channel by signing up or purchasing through those links at no additional cost to you. I appreciate you for helping me keep this channel running Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic. #indexfunds #investing #stockmarket

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