0:00

Music Reality

0:05

radio for a really great

0:07

future. We're talking real money. Wow,

0:11

it's time again. Seems like just a few

0:13

minutes ago we did a podcast and look,

0:15

we're back doing another one. Time

0:17

flies when you're having fun or getting

0:19

old. One of those two. Not sure

0:22

which. Maybe it's both. Yeah,

0:24

sure. Let's go with both. I'm

0:26

Don McDonald in beautiful, not sunny

0:28

Florida. How's it in Seattle today?

0:30

Not sunny, but sun is coming.

0:33

You just have to wait long

0:35

enough. That's all. Till June

0:37

or July. Hopefully August by the

0:39

time you're here, we'll get a couple breaks.

0:42

Yeah, yeah, yeah. Please don't get that

0:44

90 degree stretch you guys

0:46

get whenever I come out. It

0:48

will be whenever I do this. At Lake

0:51

Chelan, it will be 90 plus degrees. Yeah,

0:53

at Lake Chelan, I'm okay. But in Seattle,

0:56

the last couple of times I've been out there for

0:58

an extended period in the summer, the

1:00

place has been hot as Hades

1:03

and smoky as Hades. Yeah, well, I'm not

1:05

smoking anymore, as you know, so that'll make

1:07

it better there on the smoke. But

1:10

the heat can't do much about that. So we'll see. Just

1:12

don't lose the evergreens back behind

1:14

the house or something. That'd be the...

1:16

Sucking down the smoke. Hello

1:18

everyone. We're going to talk about money.

1:20

Not smoke, not heat, not summer vacations.

1:22

Although we will be talking about summer

1:24

vacation too. At

1:26

some point, I'm done. That's Tom. I

1:29

said that. Oh, we're going to talk about something really important.

1:33

We know that you

1:35

live to own

1:37

the best. The

1:40

best house, the best

1:42

car, the best clothing,

1:44

the best electronics, the

1:46

best iPhone, with

1:50

the loudest ring, the best... What?

1:58

Just Like, get anything else going. The wrong

2:00

we got the dogs go manager of the

2:02

I agreements going. I could be in the

2:05

soundproof booze but I sold The cell phone

2:07

booth gets a little warm aware of that

2:09

it was after. It's okay for going of

2:12

of your commercial or something. When you get

2:14

an and you do a podcast gets a

2:16

little warm. So. I'm I'm outside the

2:18

soundproof boot just in the studio which is

2:20

itself or the dogs come through and sobs.

2:22

Phone rings, But. Today we want

2:25

to talk about not the best of those things, but.

2:28

How. How. Do you

2:30

pick the best investments? Party

2:32

of pick? Korea,

2:34

Trusted tell you the best investments,

2:36

the best mutual funds, the best

2:38

balance funds, the best index funds

2:41

of the best of all these

2:43

investment vehicle thing is Tom Yeah

2:45

I mean it's the bad news

2:47

is there isn't. Wait

2:49

are are skewed weeks. There are articles

2:51

all the time I say Gov Bass

2:54

I envy them. What happens is and

2:56

and we see this from even products

2:58

of we mention from time to time

3:01

because new things come along as likely

3:03

as pretty good. Maybe. You

3:05

should use it. People have a tendency to, oh, I gotta have

3:07

some of that. Give. Me: what's on

3:09

I'll to I gotta And so I. I

3:11

hate these articles. And. Let's talk

3:14

about wanting him with a couple

3:16

of and run Mom Morningstar recently

3:18

have one was entitled three Grade

3:20

Balanced Funds Now Balanced One The

3:22

idea here is. It. Has

3:24

stocks and bonds in it, right?

3:26

You're giving yourself some cushion with

3:29

the bonds. And. Stocks are

3:31

gonna give you the appreciation and

3:33

most the time it's somewhere around

3:35

sixty percent in. Stocks.

3:37

For that, this has gone to

3:39

Canada. But algebra comics and what

3:42

it means is that you end

3:44

up with less volatility. Know.

3:46

The way as the bumps or smooths

3:48

out of it and you know if

3:51

you been listening to us for a

3:53

while we're never gonna recommend. Of

3:55

fund that is actively may I mean

3:57

and when I say actively managed stock

3:59

picking. Sector. Time all that

4:01

stuff. I gotta be careful because I

4:03

know yeah the invasion of barges are

4:05

now use i the herd animals but

4:07

they're not really active by our definition

4:10

of as yeah so are the rules

4:12

based on he put it that way

4:14

but. Less mention this

4:16

was chasing Tip: Artless met in the

4:18

three great he calls them Great Balance

4:20

Funds Okay, these are the best visual

4:22

about These are the best and I'll

4:24

start with the one that brings you

4:26

the release that you may need every

4:29

day. Maalox. M A O

4:31

L O X The Black Rock

4:33

The global navigation That's the data

4:35

that sounds like that area that

4:37

on or via think yeah Oh

4:39

my gosh, the expense ratio will.

4:42

Eighty Four Bayer Point Zero Point

4:44

Eight Point Four percent the of

4:46

and it it it gets worse

4:49

because in the description says they

4:51

use of Vegas style buffet of

4:54

Research. Now when I got

4:56

away as well as was going to try

4:58

to identify areas like when I go to

5:00

Vegas I get the buffet but I'm not

5:03

doing that the craps table. I mean I'm.

5:05

Don't like it, Don't like exasperated

5:08

or would be supported by a

5:10

well rounded group of fundamental and

5:13

quantitative veterans and analysts were are

5:15

relying on. The people say it's

5:17

good that their mothers are forming.

5:21

The. Balanced. Index.

5:24

By. Funny. You know

5:26

how much over fifteen years they underperform

5:28

the balance index have Point Zero Eight

5:30

ford of Point Seven Five a positive

5:32

about was excited about the difference in

5:35

mean the ah okay that one should

5:37

be on the list. Then they mention

5:39

the T Right Right Balance. Our

5:42

p backs are P

5:44

B A X. Which.

5:46

Is also a kind of fact

5:48

that he managed yeah, zero point

5:50

six one on the expense ratio.

5:53

It does have twenty percent of

5:55

his money and international. Stocks.

5:57

That's good it it is as a lot.

6:00

More. Aggressive as sixty five percent of

6:02

it's in stocks. And that's

6:04

what the author calls keeping things

6:06

spicy. Handful of D

6:08

Rose well regarded active stock and

6:11

Bond managers build the building blocks.

6:14

Like. The Managers by the to reprise

6:16

bluechip growth you were brought a debtor

6:18

center arm. Well, that's interesting on that

6:20

one. They actually were fifteen years. Outperform.

6:23

The index by about a tenth of

6:25

one percent. but you know why they

6:27

do that there will there jones Er

6:29

docs. Yeah, you just said it. They

6:32

take more risks. They're taking more risks.

6:34

Isn't that interesting? So wait, if you

6:36

take more risk, you might make more

6:38

money. Does This is not about T.

6:40

Rosemont by Asset Team being one of

6:42

the best as the author claims. Sense

6:44

what you're saying he already is a

6:46

risk, that it's about the risk. Yoga

6:49

Mat is exactly what I'm saying. Okay,

6:51

or then there's would is. That really

6:53

quick third option v be I

6:55

N X. that's the Vanguard Balanced

6:58

Index. You virtus Mention this many

7:00

times on this show. Zero Point

7:02

One Eight. It is a quintessential

7:04

Sixty Forty which is alive and

7:07

well despite all the haters corny

7:09

the are When you're right, they

7:11

exactly match the index. Yeah, I

7:14

took it's Lumps and twenty Twenty

7:16

Two but has come back. Of.

7:19

The only index the only issue the author as

7:21

I have a little bit of this is the

7:23

U S only focus. It does not have any

7:25

international. Stocks. But. That

7:28

see zero point One eight eighteen dollars for

7:30

every ten thousand invested. That That's the kind

7:32

of a expense ratio were looking for. So

7:34

fi to pick one great one out of

7:36

that would be. V be I

7:38

annex it would not be the relief I

7:41

get from a lox or the beating I

7:43

get from Rp backs. No way. Well

7:46

as and and. I

7:48

feel sometimes. But Morningstar,

7:51

Goes. Out of their way to

7:53

make the actively managed fun groups

7:56

happy that they pander to them

7:58

a little bit. Ah

8:00

Ming as they do sell advertising.

8:03

To. Those companies and I

8:05

think they feel like they have

8:07

to keep saying well, yeah, there

8:09

might be a good active fund

8:12

out there. even though all of

8:14

the data leak the aggregate data

8:16

says yeah, maybe there's a good

8:18

one, but most of the time

8:20

you could attribute that to nothing

8:22

more than sheer luck. And.

8:25

That over time. The. Longer

8:27

you the farther out you go in

8:29

time. The less.

8:32

And Active Fun performs they they

8:34

The Index's beat them over longer

8:36

and longer periods of times, more

8:38

and more consistently. So the of

8:40

wow that is really really really

8:43

really really. Bad. Advice? yeah,

8:45

comments and and frankly, I think the Vanguard

8:47

product is done a good job. I was.

8:49

It's one if I wanted and in a

8:52

balanced index fund that would be the one

8:54

to do. I'll get. but then I'll And

8:56

decks one? Yeah, exactly. Russ on Record Solar

8:58

moves on with his article the Best Us

9:01

Stock Index Funds and yeah, I hate the

9:03

title. Ah, But he looks at

9:05

the Snp, five hundred funds, the total market

9:07

funds, and small company fun. So he looks

9:10

at three different parts of the market, which

9:12

I think is important because. His.

9:15

In Desisted. Put this out here to be

9:17

clear: if you're going to buy a total

9:19

market fund, you don't need to buy. The.

9:21

Snp five hundred because he or to got a lot of

9:24

that in the total market to shouldn't this? it gets people

9:26

get confused by the you might want on the small because

9:28

you know on a much smaller but that's another. Question.

9:31

So, but he writes these. It's interesting.

9:33

I'm. He's got the. Fidelity.

9:36

As five hundred fun F X A

9:39

I acts with who talked about before

9:41

that only. Zero. Point Zero Two

9:43

Very very cheap. Very. This Schwab

9:45

Snp five hundred s W P P

9:47

X Zero Point Two then guards

9:49

as and P E D F The

9:52

Oh. Zero. Point Zero Three:

9:54

I mean, I think any of these would

9:56

be fine. Ah. But. Here's the

9:58

thing. he also suggests. The Fidelity Zero

10:00

Large Cap F M I L X

10:03

Now what I don't like about that

10:05

is. It's it's own index.

10:07

doesn't track the Snp five hundred yards.

10:09

Makes me want to strip. see. if

10:11

it's not a major beef though, I'm

10:13

yeah, it's a small one, but not

10:15

a major one. Yeah, I am A.

10:17

But the thing is is that. What's.

10:20

The difference. Between.

10:23

Zero for said fees.

10:26

And zero point

10:28

zero Two. Inverse

10:30

to one hundred, but not much.

10:33

Literally delicate change it is. Ah,

10:35

so I think any of those

10:38

are reasonable choices. I didn't

10:40

realize of anger. Five hundred Admiral. Was.

10:42

Of charging zero point, Zero four. Ah,

10:45

which, which is why. Why does the

10:47

exposure of why would you own that

10:49

when you can get it for zero

10:51

point zero? Two said, that's the Snp

10:54

Five hundred. I'm. I'd.

10:56

I mean, what's your? I mean I

10:58

don't think as any any of those

11:00

a be fine. I think right? exactly.

11:03

It's because now we're quibbling over fractions

11:05

of a presets for the eggs. What?

11:07

It amounts to almost exactly the same

11:09

portfolios there is actually there. There may

11:11

be slight differences in any Tf they

11:14

can also emulate. Are

11:16

a good V O O O

11:18

can emulate. Deflect away for nobody.

11:20

Zero does. But moving on to

11:22

the total market funds I'm I

11:24

didn't realize. I guess the fidelity

11:26

at a zero total market find

11:28

out if they do, we are.

11:30

Oh acts. Of I rockstar

11:32

at which have very low tracking

11:34

air and the expense ratio urinal

11:36

of this zero point. Zero

11:38

Zero. The what's the

11:41

symbol again S Z R

11:43

O X. I'm.

11:46

Very cheap and asked if it's.

11:48

Does. Pretty well with the index. Hey.

11:51

What's wrong with that, right? A. Matter

11:53

of yeah when recommend were one of the

11:55

past but that we're not looking up in

11:57

you see an expense ratio of Das. The.

12:01

Line through it. man. Gotta love

12:03

that I'm. So. There's nothing wrong

12:05

with that. Ah, and then they

12:07

they mentioned a couple once. It's

12:10

also the Schwab Total Market S

12:12

W P S X. Was.

12:14

Expense Ratio: Zero Point Zero Three: We've

12:16

recommended the Vanguard totally T V T

12:18

I many times Zero Point Zero hurts.

12:21

I think any of these are fine.

12:23

I. Don't think there's one that's what drives me that I don't.

12:25

There's and the be other products by the way that also

12:27

have. Similar. Close closely

12:30

tracked the index. And. A

12:32

very low expense ratio Anything as a whole lot of

12:34

choosing out of. The. Total Market. One

12:36

other I looked up Fc rocks

12:38

and at times Fc does rocks

12:40

It does. Ah but it's really

12:42

curious because again it's and emulating

12:45

fund it's not. They don't buy

12:47

the entire. Out how

12:49

many stocks would be in a total market

12:51

index three hundred thousand years now. But it's

12:53

not that because I bet they they don't

12:55

buy. When. I mean just

12:57

normal lives like a like V T

13:00

would probably be. I think vt last

13:02

I looked was least ten was a

13:04

ten obviously none. So the but the

13:07

the fidelity. Zero. Total Market

13:09

only has twenty eight hundred stocks and. So.

13:12

Does is allow the Sox? Yeah,

13:14

and that shows up. In

13:16

it's performance it's very very

13:19

interesting to see the the

13:21

the deviation in the performance

13:23

when compared. With. The

13:25

index you'll see some years. Where.

13:28

It does. A little bit worse.

13:30

And other years a little bit better when

13:33

you would expect it to almost exactly drag

13:35

the index. If it was the index democrats

13:37

jar would have access to. Ah so there

13:39

is a little bit a devious but again

13:41

not a big nora and then he goes

13:43

into small this where it. Think.

13:46

We can make some arguments but

13:48

his get the Fidelity Zero Extended

13:50

Market S Z I P X

13:52

F Z I P X. Was.

13:55

Eight Zero Expense Ratio in a sharp ratio

13:57

of zero point five, all which is very

13:59

fine. Who. Ah, I'm they

14:02

get lighter. Sorry. We.

14:04

We we probably should explain what the

14:06

sharpe ratio it has to do with

14:08

my pencils, right? It's a measurement of

14:11

volatility versions, returns, Know that. I

14:14

shouldn't even imagine that I apologize this

14:16

spider up or foi West Virginia we

14:18

have to play the SNP six hundred

14:21

eighty F. S. P. Which.

14:23

Also has of a fine sharpe ratio

14:26

and the expense ratios: Zero Point Zero

14:28

Three inexpensive. Their Schwab Us Small Cap

14:30

E T F S C H A

14:32

zero Point Zero Four I think these

14:35

are all fine. Vanguard's.

14:37

V Be, which we talked about on the program

14:39

before, but. I. Took the liberty

14:41

of looking up of for example i'm.

14:44

In. The small cap category. Ah.

14:47

The. Be versus a like and a

14:49

view v Now. A the you

14:52

views of fun you've heard of talk about

14:54

on this program before because its managed by.

14:56

Academic rules based. it's not enjoying that. Gonna

14:59

be an index knock and of their bad

15:01

or to included because we know is not

15:03

an index one but. You.

15:05

Would expect if you believe factor

15:07

investing going back almost one hundred

15:09

years now that a fund that

15:11

sort of has more. Deeply.

15:14

Discounted value stocks in it

15:16

and smaller small would do

15:19

better. Than a fun the

15:21

doesn't care, it just owns the index

15:23

right. And I went back and look

15:25

just for the last. Back to Twenty

15:27

Twenty Twenty Twenty Twenty Twenty One Twenty

15:29

Twenty Two Twenty Twenty Three Right A

15:31

The U V Return Sixteen Point Six

15:34

percent a year. The. V

15:36

be ten point two percent a year,

15:38

which is a substantial difference that you're

15:40

taking more risks. A riser for? Yeah,

15:42

that's more. And by the way, that's

15:44

where the sharpe ratio starts to come

15:46

into play because of out Again, I

15:48

want a cat, so I don't want

15:50

to give you the formula. Because

15:52

your head will span and was some of

15:54

the last person I remember losing A was

15:56

versa be like the the created by Man

15:58

on the two Sons. August was

16:00

worked on by Professor William Sharp. At.

16:03

Stanford. Arm.

16:05

And it is. It is

16:08

a a formula for determining.

16:12

How much. Extra

16:14

return, extra risk. Is

16:17

providing you. It's. A

16:19

measure of. Whether. Or

16:22

not, you're being compensated for taking risk. So

16:25

this is where the sharpe ratio would

16:27

come into play and in things like

16:29

the the of Autism a D of

16:32

A funds because they're adding risk. But.

16:36

The. Masses shown, they're also adding.

16:39

More returns. Commensurate

16:41

with that extra risks. So taking

16:43

extra risks has met, making more

16:46

money, has has has an open.it

16:48

every period and short periods of

16:50

time. The index all those caveats

16:52

that we brew pub presented ad

16:54

nauseum and that's why when you

16:57

say the best of anything. I

17:00

think there should be a large asterisk. Because.

17:02

The. Only difference for an index one

17:04

truly is a adhere to the index

17:06

would be the last. Year. Nuts

17:08

it because there's no time for sense but

17:10

then you have to decide? Well but do

17:12

I just wanna be an index investor and

17:15

have for example in today's world. What?

17:17

twenty? Percent of your money if it's in

17:19

the Snp? Five hundreds In the five or

17:21

six biggest companies, Do I want to be

17:23

overweight into those huge firms that have had

17:25

a big run up. Maybe.

17:28

Maybe not. Or. Do. I want

17:30

to, as you pointed dawn, be more factor

17:32

oriented when it comes to my investing. That's

17:34

why struggle with these lists because it truly

17:37

does depend on your portfolio, on your personality,

17:39

and how much work you want to do.

17:41

you get on the total. Total

17:44

World Stock Index and do No Work

17:46

right is one fund. Ah,

17:48

I would expect by adding some these other

17:50

factors you make more money, but maybe they

17:52

will. Very simple. I gotta. I don't have

17:54

to worry about it. That's why I struggle

17:56

with the best list in general. The

17:59

I don't like. That's because you're all

18:01

you always end up. Comparing.

18:05

Maybe. It's apples to apples. but it's

18:07

you know, Granny Smiths to read: delicious

18:09

as a good that's good our headsets

18:11

and so you're You're still not making

18:13

an absolute comparison unless you're going Granny

18:16

Smith, the Granny Smith and then pretty

18:18

much zero going to taste like. Granny.

18:21

Smith. There. We

18:23

go heart guess could squeeze in

18:25

a couple questions or on this

18:27

one comes from served are in

18:30

Salisbury, Maryland. Ah your

18:32

to love the someone the whenever the

18:34

topic comes to bond you recommend Bnd.

18:36

That's not entirely true by the was

18:38

no we don't We we do have

18:40

are simple things. Yes I see our

18:43

Bnd as broad holding seven I don't

18:45

realize was seventeen thousand seven hundred eighty

18:47

five bonds at along it is a

18:49

slew Obama so they get diversification and

18:51

you got low cost, low expense ratios

18:53

Zero point zero Three Sporty think of

18:55

be T A G. Fewer. Holdings

18:58

and Bnd. Been. Expense ratio

19:00

of zero point zero. Bk

19:03

A G. I'm not a

19:05

fun day. know at some

19:07

blow up it's the Bank

19:09

of New York Mellon melanoma

19:11

Bond eg. off. Ah

19:14

ah but it has a bunch of

19:16

of our dreams of one is a

19:18

yeah. Currently there are. They're not. They're

19:21

not charging anything. Or

19:24

talk about ago brazenness. The talk about the

19:26

race to the Bahamas. Up about it We

19:28

give you something the buyer fonda week we

19:30

will just go to Zero. Are.

19:32

It has yeah has a fraction of

19:35

the bonds. Ah,

19:38

I'm just trying to gov. Never

19:40

looked at this for me. Either

19:42

very quick analysis of it or

19:45

it has not been around for

19:47

a real long time. so it

19:49

didn't It didn't get started until

19:51

the Bond market started unraveling an

19:53

army or said it is in

19:56

government buildings. I. Have

19:58

to go to the portfolio for. Down

20:00

at my next stop Us

20:02

again or Morningstar servers as

20:05

they get more popular. Their.

20:07

Servers are good getting so

20:09

slow. Odd government is forty

20:11

five percent of the portfolio.

20:14

Oh, they are all investment

20:16

grade. Most of the portfolio

20:18

on the corporate side is

20:21

a Aaa I'm sorry doubling.

20:24

Are. Very little Aaa but doubling. Hours

20:26

which can give you a

20:28

they're reducing quality This is

20:30

where they're improving the potential

20:32

returns. Is there reducing quality

20:34

on the corporate side. Of

20:37

the they have very little Aaa paper.

20:39

Aaa Paper tends to pay the lease

20:42

cheerfully. So because they have a higher

20:44

yield than or I think they have

20:46

a higher yield that be a d

20:48

I actually haven't looked at. Me:

20:50

Undies yield lately. Gotta

20:53

be in the three somewhere, right? No, I

20:55

think it's in the force now of the

20:57

Se sealed on. On became

20:59

be tag. Is. Four point

21:02

six and Vanguard's is four point. Four

21:05

point five. Yeah. So if I

21:07

had to make a decision between. Be.

21:09

And d and became a D.

21:11

I still would take be and

21:13

d I went through because of

21:16

the greater diversification and we're getting

21:18

into that. What? What? Every we

21:20

get down to point one or

21:22

less. On. Expenses: One tenth

21:24

of one percent or less. We're now

21:26

really just quibbling the i think so

21:29

A also says way or point zero

21:31

Five or less. What do you think

21:33

of Z? See, I see. Ah,

21:36

Which I did. Look at that

21:38

as twenty one hundred bonds is

21:40

A. but it's corporate debt, which,

21:42

as you may node a general

21:44

sense, is going to be riskier

21:47

than. Government Bonds. Because government

21:49

bonds are backed by the full

21:51

faith and credit of the Us

21:53

government. Corporations. Have

21:56

good times, bad times. and

21:59

we rarely them coming ahead of time.

22:01

And that is reflected in its yield. The SEC

22:03

yield on that is about 5.25% as of right

22:05

now. And

22:09

and and and and and they too tend

22:11

to shoot for lower credit

22:14

quality to get that

22:16

higher yield. Their average

22:18

rating is just

22:20

above junk. Yeah, that's scary. Yeah,

22:22

I wouldn't be doing that. I

22:24

can't remember why we own bonds.

22:26

We own bonds for stability.

22:29

We own bonds because we wake up tomorrow and

22:31

it's about the same price. I know you're gonna

22:33

say 2022 wasn't like that. That's

22:36

pretty anomalous situation.

22:38

But even looking back over

22:40

the last 50 years bonds have

22:42

been that ballast for you. We're

22:45

not looking to make money here. And I think that's a

22:47

fund where people would say, yeah, look, I'm making that much

22:49

more until you're not. Exactly.

22:52

It's until you're not. And

22:54

see the thing about and

22:56

what if we want the

22:58

perfect bond portfolio, if

23:00

I was creating the perfect balance,

23:03

I would skip corporates altogether because

23:06

I think we used to do that. Yeah,

23:08

I think the risk we're only throwing BND

23:10

in because of the simplicity of it. If

23:12

we really wanted to do this in the

23:14

most pristine manner, we would have equity

23:17

for your stock portfolio. We'd have

23:19

diversified stock holdings, which expose you

23:22

to the risks of corporations. And

23:24

we would have 100% of the bonds in

23:28

short to intermediate term treasuries

23:30

only to eliminate any risk

23:33

of permanent loss. Permanent

23:36

loss. You will still have volatility. But

23:38

you cannot lose the face value of

23:41

those bonds. They'll eventually renew or they'll

23:43

eventually pay off at face value. All

23:45

right. All along, but we'll throw one

23:47

more in. Mary writes

23:49

us from State College,

23:51

Pennsylvania. She says

23:54

I've held- I haven't held a college there. Apparently. So

23:57

I've held FN, pardon me,

23:59

FXN8. since 2000. You

24:02

know that fund, right? Isn't that the

24:04

fidelity total bond? And I despise it.

24:06

I've lost over $25,000 in that time.

24:08

I'm begging you to explain the details

24:10

of managing a 40% bond allocation

24:13

in a portfolio as I wish I'd told

24:15

the entire holding when learned the

24:18

Fed was going to raise rates. I don't even see

24:20

breaking even in my lifetime in this fund that I

24:22

rolled over from my 401k. I am

24:24

so confused. How much does she have in this? It

24:26

doesn't say the total says she's lost $25,800. Hold on.

24:28

So since 2000, I mean, you should be in the

24:30

green. Yeah, yeah, yeah. Since 2000, you

24:39

should absolutely. One really bad.

24:42

Really wrong with these numbers.

24:45

Because 2000 was how

24:48

many years ago? I think it's

24:50

24. Well, okay. This

24:53

fund hasn't existed for that long. Mary?

24:57

You need to check your math

24:59

or check your calendar. No, the fund hasn't existed.

25:02

The fund's been around for like 12 years. But

25:04

let's just dispel this. Let's say, let's go back

25:06

as far as you can. I'll go

25:09

back to 10 years. Okay. Which has been

25:11

a horrible period of time. Actually, I'll go

25:13

clear back to the beginning

25:15

of the fund, which

25:17

I think I can find. Oh, I have to

25:20

go to this. Hold on. I have to switch

25:22

my screens. I'm going

25:24

to go back to the beginning

25:26

of FXNAX. Isn't this the fidelity

25:28

total bond fund? Yes,

25:31

I'm just trying to figure out. Well,

25:33

it's the US bond index. If,

25:37

no, that's a weird max. I'm on

25:40

the wrong chart. Okay. If

25:42

you put $10,000 into that fund back in, oh, it

25:44

has been around.

25:48

Why doesn't it have a 50? Oh, they made some

25:51

changes. Okay. So she got in what year? 2014? 2000.

25:54

So I was going to go back to 2000. If on January 1st, 2000, Then.

26:01

You. Had. Ten

26:04

thousand and the fun. Yet. Today.

26:07

You would have about twenty six

26:09

thousand just from the price of

26:12

the fun. Plus. You

26:14

would have made. The

26:16

the income over that time.

26:19

So. Underwater series ends up so there's

26:21

something wrong with the mouth. He.

26:23

Disasters got the you're wrong. Of

26:26

well, it's really hard. The only period over

26:28

which you would have suffered a loss is

26:30

if you got in in twenty twenty. I

26:33

was gonna say he could have bought at

26:35

the absolute wrong moment. And twenty or anything

26:37

about. And Twenty Twenty. Are.

26:39

You would have suffered.

26:43

A loss in principle.

26:47

Of I don't pull of the right number

26:49

of fab. About. Ten percent.

26:52

Ten percent on Twenty twenty? Yeah, that sounds about

26:54

right. Yeah, cause but now letter high on it

26:57

would have made you have the income of one

26:59

percent or so. maybe one and a half. Sure.

27:01

So that takes you down to about an eight

27:03

percent and eight and a half percent. Total.

27:06

Loss over that period of he got his

27:08

want to twenty yes you have a loss.

27:10

I'll just eyes yeah otherwise if

27:13

you got in at any point.

27:15

prior was yeah thousand. O

27:18

Two Thousand Nine Team.

27:22

You're. At least a break, even if not at a profit.

27:24

I'm gonna start another plot. Guess I'll

27:26

maybe join me on this one daughter.

27:28

Maybe don't put his bitch about bonds

27:31

baby bits, it allows. God, I'm so

27:33

tired of these. Get the huddle. this

27:35

is about. Guess this isn't a radio

27:37

show right of self. So I kids.

27:40

You. Go very well every other that as I was

27:42

gonna I have abilities be rude I would get

27:44

in trouble dealt with the alfredo to have would

27:46

it would be funny. I know if it was

27:48

a comedy show. I could get away

27:50

with it, but bit of like on Saturday

27:53

Night Live. This could be the title of

27:55

a financial show. Get a couple of women

27:57

together and you get you get funny. So.

28:00

If you want to know what Dawn was coming

28:02

up with it as devious little mindset us a

28:04

notes and will central hockey or sex or luckily

28:06

I think I know but I'm not going to

28:08

go every god way long. How away we have

28:10

so thank you for joining us for issue that.

28:13

You. Will add anything else or know I

28:15

think as it bitching about bombs and. Lot.

28:18

Higher taxes. Will. Be

28:21

back though. Doing. That thing that

28:23

voodoo that we do so

28:25

well talk and real? Who?

28:27

Money? If you

28:29

need expensive as I can recruited

28:32

opinions. Estimates worker from statements as any to

28:34

market trends, that of it and free market indices

28:36

constitute our judgment in recent. it's into that notice.

28:38

Including and avoid looking as an assistant

28:40

to be some certain expectations in something

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other information and have any given have

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been a pool from what they've done

28:47

Forces to be reliable, No warranty or

28:49

representations made us to acclimatise for accurate

28:51

information presented on the podcast Personalizing the

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said as from until the These strategies

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describe me not be suitable for. Protests

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29:00

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Because we hope. You realize that the

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instead the program as provided in the Public

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Fcc or any state security The selling

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30:00

Who wants? I. Think I need a nap?