Making money in the stock market doesn’t need to be complicated. And paying an active account manager to actively manage your funds may sound like a great idea. But that paying for active investing not always be better and actually being a passive investor by buying a total market index fund could potentially be more beneficial.
00:00 – Start
00:25 – Stock Market
1:11 – Index Funds/ETF
2:26 – Index Fund Historical Growth
2:55 – Index Fund Fees
3:25 – Pay To Win?
3:52 – Active Account Manager Fees
4:35 – Better Than Passive Investing?
7:01 – Should You Use An Account Manager?
Be sure to check out MaxRewards and receive receive 1 month of MaxRewards Gold for free:
🔥 Waller’s Wallet YouTube Channel Member:
📈 WeBull Free Stock:
📈 Robinhood Free Stock:
💸 Wealthfront Fee Free Money Management: bit.ly/Wealthfront-5k
💵 Easy Money Signing Up For Wealthfront Checking: bit.ly/Wealthfrontchecking
💵 Get Easy Money Signing Up For Sofi Money:
📰 Subscribe to my newsletter:
Support Waller’s Wallet when shopping at Amazon:
My Camera Equipment:
Canon M50:
Lighting:
Main Mic:
Shotgun Mic:
Switchpod Tripod:
Colored Background lights:
iPad Pro:
Magic Keyboard:
Airbnb – Get $40 off your first booking-
Rakuten – Get $10 when you sign up –
Social Media:
FaceBook Group:
Twitter:
Instagram:
Advertiser Disclosure: Many of the listings that appear on this website are from companies which we receive compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
27 comments
First!
Passive investing? But Dustin, Wall Street Bets told me to YOLO my entire portfolio on GameStop because STONKS only go UP!
I just got out of grad school last year and have close to zero knowledge on investment. I chose to put my money in Betterment with a 95% stock portfolio. Decided to use this robo-advisor while I take my time to learn how to do active investment.
Active is a scam. People only need VTI or VTSAX!
My question is who manages the s&p 500 like who picks which company gets to stay in or go
In my experience the new investor should hire an advisor. The reason I say this is because I see it all the time where people will as incredibly basic or stupid questions that could've been answered on their brokers front page or will talk about investments that they don't understand.
Interesting info D! I usually have a mouthful to say but not this time. Of the things I don’t speak of is investing, politics, and religion. Folks get too upset when you challenge their thoughts or beliefs. I will finish my comment the way I started, interesting info.
2018 = A small loss (-4% for the S&P 500)
2019 = Easy stock market money.
2020 = Looked like a losing year, but came out ahead (18% gains on average)
2021= ????
Saint Elon Musk help lots of investor/traders pay off their debts to include me LoL. Absolutely insane run since March last year.
I have money in both and have been more impressed with active management. I feel though swings are more violent in active management while passive just plugs along.
New subscriber here! Such a detailed video! I hold a mixture of managed funds, ETF’s and individual shares. I’ve loved investing so far!
I look forward to more of your content!
What I like doing is keeping 10-20% of my portfolio in specific companies and 80-90% of it in index funds
My man coming out with another fire video!
Passive Investing is my favorite when I don't feel like buying individual stocks. For most people, they should invest passively in ETFs until the ETF market becomes a bubble.
Passive investing sucks Waller! Ain't nobody got time for that!
So I'd like to point a couple of things out here. I used to be a licensed active portfolio manager myself. And while it's true that most active managers trail the benchmark, it's important to put things in perspective. Pretty much anyone can become a financial advisor and actively manage portfolios or launch their own mutual funds. In fact there are more funds than the number of stocks listed on the exchange. It's really not difficult to get into that industry. When anyone can get into it, you'll have a good 90% of wannabe investors underperforming. The analogy I'd give is someone using the statistic that 9/10 businesses fail within the first 5 years, so they encourage you to never invest in businesses. But the whole stock market is made up of investing in businesses, and the stock market has statistically made people a lot of money. Also I'd like to point out that the average hedge fund beats the benchmark even with 2% fees and taking 20% of the total profits. Hedge funds are for the big leagues, and not any ol Joe Schmo can get into that industry and start managing high roller clients. So although if you open up a phone book and select a random advisor and ask him/her to actively manage it, or if you randomly select an active fund, they'll more than likely underperform. But if you do a little research, active is actually better.
You are entirely correct. Jack Bogle (the founder of Vanguard, who I'm sure you already know about) wrote many books about how the vast majority of "professional" money managers UNDERPERFORM the market. They all crowd into the same trades when the stocks are going up, and they all rush for the exits when the stocks go down.
I trade myself it would be great to you review stocks maybe start with ge or T
Active managers are much more than maximizing returns, but also about risk management.
There is a famous character, a Google search for "signals walter bulls". He made a fortune for himself back in 2018. Recently, such services have appeared that allow copying the results of professional players. This guy shows how to copy after him automatically using such a service. We must try while the market is on the rise.
I am a fan of your CC videos. I am a CFP and in the industry. I view the Active vs. Passive a bit different. It is a bit more of a spectrum.
For example, the most “active” thing is to day trade stocks. Conversely, the most passive is to hold an index fund for the rest of your life. Somewhere in the middle you can passively manage mutual funds run by managers or actively manage index funds. Lots of middle ground depending on the goal. As for the fee for the “active” manager. It is important to distinguish the actual manager of a mutual fund versus a person giving financial advice. In my opinion, with the rise of passive investing, the price of “active” funds are going down quickly. Eventually, will probably be a moot point.
As for financial advisors/planners/professionals If they are just managing your investment and talking to you once a year to meet compliance from the back office, probably not worth it. However, if you are paying with expectation of full service financial planning, it can be worth it to a lot of people. People that watch these sort of videos on YouTube tend to be biased against advisors. It is completely understandable.
Just my two cents. Keep up the good work!
Based on actual data, I think you're doing the smart thing. I love index funds. Take care man and keep the family safe!
Can you talk about Gamestop (GME) stock and how the small investor is finally getting justice against the hedge fund managers. Big institution is complaining that they are treated unfairly by the common investor because they (big institution) can no longer manipulate the market at their will. It is like saying, "You caught me manipulating the stock market and now you are manipulating me. That's unfair, only WE (big institution) are free to manipulate without getting caught." Time for the retail investor to fight back!
Thumbs up! Well done! 😍
Hey Waller a vid request- can you do a more detail vid on Wealthfront since ur a client. Also, any new work around to get those US bank no AF credit cards. Thx.
If you want to make a killing, buy Gamestop (GME) and hold. Predicted highs can go from 500 to 1000 to 5000 to 10000 to 25000. HECK YES!!!
Mark Cuban and Elon Musk both supports GAMESTOP (GME).
I have used Betterment for the past 5 years and my internal rate of return has been about 12% a year. I always says it’s best to BE THE MARKET not try to BEAT THE MARKET. Great video Dustin!
Hey Dustin! What about robo investing? Follow up vid?👀