Transcription
Here are the only five funds I would hold in retirement if I wanted to create a balanced portfolio. I'm Tyler, I'm a former financial advisor and portfolio manager. Now, I make financial content for free so you don't have to pay for it.
Number one, VTI, the Vanguard Total Market ETF. 3,700 companies, 0.03% expense ratio. I'm not giving up my core investment just because I've retired. I'm just finally sleeping a little better through the volatility instead of stress-eating about it.
Number two, SCHD, the Schwab US Dividend ETF. When I want dividend income without the full roller coaster of the total market, SCHD delivers. Historically lower volatility, higher yield, and companies that have actually committed to paying you. I know, novel concept.
Number three, VNQ, the Vanguard Real Estate ETF. In retirement, I might want some assets that don't move in lockstep with everything else. Real estate as an asset class has historically lower correlation to equities, and VNQ is my way of owning it without becoming a landlord, which I simply have no interest of ever becoming.
Number four, TIPS, Treasury Inflation-Protected Securities. Because a bad inflation run at the wrong time can kill a perfect financial retirement plan. Your purchasing power eroding at 3% a year while you hold cash is not a retirement strategy. It's a leaky faucet that you can fix with TIPS that are currently yielding around 2% real return.
Number one, SPACs, Fidelity's Money Market Fund. Currently yielding around 3.25%. This is my cash position, emergency buffer, and my sleep a little better at night fund. In retirement, liquidity is not cash drag, the necessary component of a well-thought-out plan.
Buy funds, low cost, and as always, if any of this is helpful, sign up for my free weekly newsletter by clicking the link in my bio. And each week, I'll send you over another money playbook that actually works.