5 ETF Portfolios for Every Goal — Full Breakdown & Transcript

[00:01] build a three ETF portfolio depending on your goal. And I'm going to go over five different goals. Number one, for those of you that want an ETF portfolio for your kids, so you can set them up for financial success. Number two, an ETF

[00:13] portfolio for cash flow. Number three, an ETF portfolio for growth. Number that want slow and steady growth and less volatility. And number five, for those of you that want protection against the dollar losing value. And the

[00:28] is they're all going to have three different ETFs in the portfolio. That way you can invest your money directly into the portfolio and then they could be split up amongst ETF one, two, and three. Now, I got to give you the

[00:41] disclosure, okay? Investing has risks. You are never guaranteed to make money money at some point. So, make sure you always do your own due diligence and YouTube. Everything that I talk about today is for educational purposes only.

[00:55] because I'm just a random guy on YouTube. I'm not your financial adviser. like an investor. Because if any of these are your goals, well, maybe you'll

[01:07] opportunities that will be interesting to you. Now, just so we're on the same Because you have the ability now because of the stock market to invest in some of the biggest companies in the world.

[01:20] Instead of you going out and eating Big Macs and McDonald's, you can own a piece of the McDonald's Corporation. And now, instead of spending the five or seven or $10 on a Big Mac, you can take the same amount of money and buy a little piece

[01:32] of the McDonald's corporation. Now, if you spend $10 buying the McDonald's corporation, you're not going to tell McDonald's what to do, but you will get to share in their profits. Meaning, when McDonald's makes more money, you now get

[01:45] richer. If you spend $10 eating a Big Mac and fries, you don't get any richer. richer. So, when you buy one share of McDonald's or a piece of a share of McDonald's, because yes, you can buy a piece of one share of one company. If

[02:00] you buy any share of a company, you now get to share in the profits. But the problem is if you buy the McDonald's stock, which by the way goes by the ticker MCD. So if you go into any brokerage and you want to buy one share

[02:14] of the McDonald's company, it is MCD. That's how it is traded. If you buy one That's how it is traded. If you buy one share of the McDonald's stock, your success depends on the McDonald's company. If McDonald's does very well,

[02:29] they open up a store in every street corner across the world and they're making money hand over fist, you're going to get richer. Why? because their they're going to make bigger profits and then pay out bigger dividends, meaning

[02:43] you're going to get bigger cash flow checks. But then there's also a risk because if McDonald's starts to do really bad, they now get sued because of disgusting hamburgers and people are getting sick and now McDonald's now

[02:56] starts to close stores and now they're on the verge of bankruptcy, you pay the price. If McDonald's goes bankrupt, you lose all of your money. So when you all the upside but also all the downside. And this is where an ETF

[03:13] offers diversification because what an ETF is is it stands for exchange fund. The key word that I want you to understand is fund which means it is a group of stocks, a basket of stocks. So now this fund might give you exposure to

[03:27] something like McDonald's, but it also might give you exposure to Coca-Cola and might give you exposure to Coca-Cola and Apple and Amazon and Meta and hundreds

[03:39] of other companies. And so now when you buy one share of this fund, you're getting ownership into a lot of different companies. And now if McDonald's does very good, that will benefit the fund, but it might be

[03:52] balanced out by some of the losers in the fund. Likewise, if McDonald's goes bankrupt, that's going to hurt the fund, but it'll be balanced out by some of the winners. So investing in ETF gives you better diversification. And this is

[04:05] where there are ETFs for pretty much anything that you can imagine. There's There are ETFs that might be better for cash flow. There are ETFs that might be better for growth or slow and steady growth in the markets and protecting

[04:18] your money against the United States dollar. So, what I want to do today is portfolios that you can build with three ETFs each. That way, hopefully they can help you make smarter decisions as an investor. So, let's break it down. Now,

[04:32] investor today versus even just 5 years ago is we now have access to AI things like ChatCBT and Claude, which can help you find ETFs and research stocks and find investment opportunities. But the problem is a lot of people don't know

[04:47] how to actually prompt their AIS because the better you prompt, the better you answer. And a lot of people don't know how to actually use their chat GPT or their Claude or their AI tools on how to actually research stocks and find better

[05:00] ETFs and find better stock picks. And that's why for the first time ever, I'm hosting a live stream on November 17th where I'm going to show you how I and my analysts use AI tools like ChatGpt and Claude to research stocks, find better

[05:17] It's a completely free live stream. I've never done this before. course, my first of fun. I'm doing it twice on November 17th. Once in the morning at 10:30 a.m. Eastern time, again in the evening at 8:00 p.m. Eastern time. So, if you are

[05:31] an investor and you want to see how you can use AI better to research stocks, find better stock opportunities, I invite you to join me for free on there's a limited number of people that can join me live. I think this is going

[05:44] to be very popular, so I'd recommend you register soon. So, if you're interested, description below. Let's start with number one, creating an ETF portfolio different ways that you can take this. You could take this as more of a kind of

[05:57] a slower and steady approach or more of a growth approach. So, I'm going to take this one more as a just general broad approach for kids because you don't know what type of investor your kid might be. The best is just to get them started

[06:11] somewhere. So the portfolio that I have here for kids is V, SCD, and VXUS. VO as a disclosure, I'm personally invested in VO and SCHD. VO is going to give you

[06:23] exposure to the SNP500. That's a group of the 500 largest companies in the stock market. So this is going to give you essentially broad exposure to the United States economy. Then there is SCHD. This is an ETF that

[06:38] is created by Schwab giving exposure to some of the fastest growing dividend This is focusing on number one strong companies but also number two companies that have been working to grow their dividends. So this is a great slow and

[06:52] steady growth for also cash flow. And then number three is VXUS. This is another fund created by Vanguard. This one is going to give investors exposure to international companies outside of the United States because this is the

[07:07] total international stock ETF. So, this is going to invest in thousands of companies that are just not in the United States. Now, if your kids are aggressive with some of these ETFs and focus more on some of the growth ones

[07:19] that I'm going to show you here. Number three, this is more of just a broad exposure to the world economy, the United States economy, and dividends. So global economy because we don't really know what the world is going to look

[07:34] like in five years, 10 years, 15 years or 21 years from now. So this is giving the kids broad exposure to the world economy. And while past performance let's take a look at how these funds have done over the last 10 years and

[07:49] then we can project out what that would mean if we saw similar returns over the next 10 or 20 years. Over the last 10 years, we've seen VO grow by 15.6. 6% a years, we've seen VO grow by 15.6. 6% a year on average. SCHD grow by 12.5%. And

[08:02] the total international fund outside of the United States grow by 9.2% a year on average, which is an average growth of 12.4% a year. So now you can do the math. If you invest $500 a month and you're able

[08:18] to sustain a 12.4% annual return a year, keep in mind this is not the return you're going to see every year. We've seen years of recessions. We've seen average that we've seen over the last 10 years. Now, you can project out what

[08:32] your returns will look like over the next 10, 20, or 30 years. If you invest $500 a month into these funds, and you got the average 12.4% a year, over 10 years, your money is going to grow to about $17,000.

[08:46] Over 20 years, your money would grow to about $450,000. and over 30 years, your money would grow to a little over $1.5 million. That's the power of compounding. Now that we've talked about kids, let's talk about cash

[09:01] flow. Some companies like McDonald's make huge profits every single year. And now when they have these billions of dollars of profit sitting in their bank can do with that extra money. Number one is they can just save that money in

[09:13] their emergency account for an emergency. Number two is they can reinvest that money to open more stores, create better burgers, and do more things inside of their company. Or option number three is they can give

[09:26] that money away to their shareholders. And one way they can do that is with a cash payment called a dividend. It is literally money being deposited into your brokerage account, a cash dividend, a cash payment, just because you own one

[09:39] share of the company. This is what dividends are. And the nice things about these dividends is it can provide you with reoccurring cash flow without having to do anything. But there are cons. The cons are if a company is

[09:52] making big profits, that means they're not reinvesting that money back into the those billions of dollars and open up more stores faster. They could open up new chains, new lines, new branding, new

[10:04] stuff. That way they can grow their business faster. Instead, certain companies like McDonald's are saying, "We have reached a certain level of maturity, and we're not trying to grow extremely fast. We just want to continue

[10:18] the slow and steady growth. That way, we can continue paying out strong dividends to our investors." So, you're not going to see the same explosive growth with McDonald's in their stock price that you would maybe SpaceX or Nvidia because

[10:32] SpaceX, Nvidia, Meta, those types of companies are focused in on their growth more than they are cash flow. McDonald's likes cash flow and there are other cash flow types of companies. And so, now let's talk about a few different types

[10:45] of these cash flow ETFs for those of you that are like me and like cash flow. Number one is one that we just talked about, SCHD. Again, this is an ETF exposure to number one strong companies and strong cash flow growing companies.

[11:00] That's the key because companies can pay out a dividend one time, but what SCHD is focused in on is companies that have been focused on not only paying out a dividend every year for many years, but also increasing their dividend year

[11:13] after year after year. So, it's kind of an exclusive club which companies SCHD invests in. So it wants to focus in on healthy companies that are working to grow their stock price but also increase how much their dividend is year after

[11:27] year after year. So it's giving exposure to broad types of companies but strong dividend paying companies. And number two is VNQ. This is a fund created by Vanguard that's giving you exposure to the real estate space. And the real

[11:39] estate space is a very popular one for cash flow investors because the way the real estate works is investors buy real estate to make cash flow. you buy an apartment building so that the tenants pay your expenses and put some cash flow

[11:52] so now you can get exposure to the real estate space whether it's apartments, offices and whatever through an ETF like VNQ which is giving you broad exposure to the real estate industry because you want cash flow. So generally you will

[12:07] see higher cash flow with these types of real estate funds. And then number three is VMI. This is a fund created by Vanguard giving exposure to international high dividend yielding companies. Now

[12:21] disclosure I'm personally invested of VIMI is because many of these companies overseas actually have higher paying dividends than the United States because number

[12:34] one it's the company working to grow but it's also the country growing as well. So the United States is a more mature country. is the largest economy in the world versus there are smaller countries in the world where the country is

[12:47] growing, the population is growing faster, their economy is growing faster, faster. So they're seeing a lot of growth in the economy versus the United States where we're only seeing a few% growth in our economy a year because

[13:00] we're already so large and mature. For some of these other countries, they want a lot more growth as a country. And so these companies are able to grow much faster because the countries are growing faster. So you kind of get the double

[13:12] win which is why you can see faster dividend growth and also higher dividend payments. But [snorts] there's also risk because it's not the United States. Their currencies could be less stable. So you could see more volatility with

[13:26] that. But that volatility and risk comes with higher yields as well. So let's over the last 10 years. Over the last 10 years, SCHD has grown by 12 1.5%. VNQ years, SCHD has grown by 12 1.5%. VNQ 5%, VYMI 10.4%. But that's just half the

[13:41] picture here because we're also talking about cash flow. So, let's also take a look at how their dividends have grown over the last 10 years. So, these ETFs on average grew by 9.3% a year over the last 10 years. And the dividends

[13:55] last 10 years. And the dividends currently are 3.8% for SCD, 3.7% for currently are 3.8% for SCD, 3.7% for VNQ, and around 3.6% for VMI. Again, video, which means that the average dividend payout is 3.7%.

[14:11] But that's not all. The dividends on average for these three ETFs have been average for these three ETFs have been growing by right around 6.5% a year. returns for the next 10 years and you invested $500 a month into this

[14:25] portfolio, you'd have a portfolio worth around $100,000 and is paying you about $3,700 a year in cash flow. If you invested $500 a month for the next 20 years into the same portfolio, now you'd have a

[14:40] the same portfolio, now you'd have a portfolio worth around $356,000 and you'd be making cash flow of around $13,200 a year. And you've invested this portfolio for 30 years with $500 a

[14:52] month, now your portfolio is going to be worth a little bit over $1 million and you're going to be making a little bit over $37,000 a year passively of cash flow. This brings me to number three, talking about growth. This is where you

[15:06] are now investing in ETFs that are trying to invest in the faster growing market share. Many of these companies because they're taking all of their money that they're making and reinvested

[15:19] customers, get more market share, and grow as big as possible as fast as possible. So, you'll see a lot more volatility here. You'll see more upside, but also the risk that some of these companies could go bankrupt faster when

[15:32] markets go down. So, more upside potential, but also more risk because And let's talk about some of the ETFs here. Number one is VUG. This is a fund created by Vanguard focused in on high growth companies. This is focused on

[15:46] their market share, grow their users, grow their customer base as fast as grow their customer base as fast as possible. Then we have QQQ. This is going to give you exposure to the NASDAQ 100. This is a group of the 100 largest

[16:00] companies in the stock market that are not financial, meaning they're primarily tech companies. And a lot of these big tech companies are not interested in give away in the form of dividends. They're making huge money to reinvest,

[16:14] to grow bigger, to grow faster, to take advantage of AI, and to take advantage of what's changing in technology. That's what QQQ is going to give you. And then there's VBK. This is another fund created by Vanguard give you exposure to

[16:26] small fast growing companies. This their small cap growth ETF. So focus on the smaller companies that are trying to grow as big as possible as fast as possible. So over the last 10 years, we've seen VUG grow by 18.3% a year, QQQ

[16:42] grow by 21% a year, and VBK grow by 10.9% a year, which is an average of a little bit over 16% a year over the last 10 years. Now, I got to give an extra disclosure here that the last 10 years

[16:56] have been kind of exceptional because we've had very long periods of low interest rates. Those low interest rates are great for growth companies because that means they can borrow a lot of money and grow quicker, faster. Low

[17:09] interest rates also fuel higher valuations. Higher valuations are great for these growth companies. If we enter a decade of higher interest rates and slower growth, these are the ones that are going to suffer. So we've

[17:23] seen very fast growth over the last 10 years due to all the money printing, due to the low interest rates and due to the high valuations. If that continues, then yeah, that's great for these funds. But if we see the opposite, that would hurt

[17:37] these funds. So remember, growth companies more volatile, more upside, also more risk. That's what you're taking. But if you can get 16% returns a year, let's take a look at what would happen to your money if you invest $500

[17:50] a month for 10 years. Now your money is going to grow to about $127,000. If you invest the $500 a month, you get the 16% returns every year for the next 20 years. Now your money is going to grow to about $692,000.

[18:05] And if you invest $500 a month, you get these 16% returns for the next 30 years. Now your money is going to grow to over $3.1 million. That's the power of compound interest. This brings us to number four, slow and steady growth.

[18:19] This is for those of you who say things like, you know what, ah, I like the idea of growth, but it just sounds scary and risky. I don't know where our economy is going. I'm concerned about a recession. I'm concerned about a slowdown. I'm

[18:32] concerned that we could see a true decade of slowdown in the economy. And so I don't want to get into that riskier, faster growth stuff because hurt if we see a prolonged economic slowdown. I rather invest in more

[18:46] valuebased companies, more of the slow and steady growth companies because to me that's just safer and I have less stress worrying about all that volatility. Let me go over some ETFs for those of you. Number one is BND. This is

[19:01] an ETF that's created by Vanguard, giving exposure to the total bond market ETF. This is giving exposure to loans around the world, not just in the United States. Now, the difference between a bond and a stock is when you invest in a

[19:15] You're investing in the ownership in a company. When you invest in a bond, you're investing for interest payments. A country or a company that signs a contract, take a loan, is going to pay you a set amount of interest. Now, it

[19:30] doesn't matter how much money is made. They're just going to have to pay that interest unless they default. So, it's less risk, but also less upside. And this is giving exposure to these types of bonds globally, not just the United

[19:43] States. Then there's VIG. This is an ETF created by Vanguard, giving exposure to dividend companies, companies that have been paying out steady cash flow that dividends year-over-year. It's called the Dividend Appreciation ETF. looking

[19:57] for those long history of companies that are regularly increasing those dividends. So again, these are companies that have had long profits. They've had growing profits and now the assumption is because they've not only had big

[20:10] profits, they should be growing their profits in the future, or at least going to be continuing to grow their profits in the future. And then again, there's the VO S&P 500 ETF. I like to talk about that here because well,

[20:24] American economy and the strongest economy and the strongest government and the strongest military in the world is the United States. So, where else better BND over the last 10 years has only grown by 1.2% because remember, you're

[20:37] just trying to generate some interest. And a lot of the last 10 years has been And a lot of the last 10 years has been relatively low interest years. VIG has grown by around 13.2% a year. and VO the S&P 500 has grown by a little bit over

[20:51] S&P 500 has grown by a little bit over 15% a year. That is an average of 10% a your money would have grown. If you invest $500 a month, you get the 10% return a year. After 10 years, your money is going to grow to $95,000.

[21:07] your money is going to grow for $343,000. And if you do this for 30 years, your money is going to grow to just under $1 million. And this brings us to number five. Protecting your money against the

[21:21] United States dollar losing value. The United States dollar is not backed by gold is backed by a promise. And so as the United States government spends more than $40 trillion worth of national debt. So that's going to continue

[21:34] happening. But as the government spends money that it doesn't have, more money has to be printed. As more money gets printed, that means more dollars enter our circulation. As there are more dollars in circulation, the value of

[21:46] each individual dollar goes down, causing the prices of things to go up. there's more wealth. It just means that there's more units of currency out there. So, we print more dollars. The

[21:59] value of each unit of currency, meaning each dollar goes down, the prices of concern to you that the dollar is going to lose value, well, let's talk about what some ETFs are that could benefit as a result of that. Number one is GLD.

[22:12] This is an ETF that's going to give you exposure to gold because gold is known United States dollar. Number two is VXUS. This is the total international ETF giving exposure to countries outside

[22:25] of the United States. A very broad approach to everything that's not the United States. And number three is SCHP, an ETF that's going to give you exposure to TIPS. A TIPS, what that means is are treasuries that are protected by

[22:39] inflation. meaning that these treasury bonds, these loans by the government are they pay out based off of what the inflation rate is. When inflation is higher, you're going to make higher

[22:52] you're going to make lower interest. So, let's go over how this is done over the last 10 years. GLD has grown by around 12.1% a year over the last 10 years. 12.1% a year over the last 10 years. VXUS about 9.2% over the last 10 years

[23:05] and SCHP only 2.2% 2% over the last 10 years because inflation really only became a concern post pandemic and so the inflation tips interest rates were very low before that. Gold was really not a very attractive investment until

[23:21] the pandemic. So over the last 10 years we've seen things flip as to what is investment. So now let's just project this out into the future. If the average this out into the future. If the average is 7.9% a year based off of these ETFs,

[23:34] how does that same 7.9% look over the next 10, 20, and 30 years? If you invest $500 a month, in 10 years, your money would grow to about $86,000. In 20 years, your money would grow to about $271,000.

[23:49] And in 30 years, your money would grow to approximately $660,000. Again, this is just assuming that the previous returns are the same in the just gives you some sort of idea and some sort of talking point. So, now that

[24:04] we've talked about these five different types of ETF portfolios, I want to talk because the reality is investing has risks and people get emotional. So, the way that I talk about investing in ETFs, again, I don't recommend what I do to

[24:19] YouTube. But the thing that I teach is a concept called ABB. Always be buying. ETF portfolios, the way that you build wealth is through always be buying. Set

[24:32] up a system automatic where every week, every two weeks, or every month, money account and invested into your portfolio of ETFs. And you do that when markets are up. You do it when markets are down. You do it when markets are sideways. You

[24:45] do it when you're in a recession. You do it when there's a Republican in the when it's raining. And do it when it's sunny. You see what I'm trying to say? You do it no matter what. Because what happens is when markets are booming,

[24:59] "Oh my god, should I buy now? It's still too expensive." When markets are down, some people say, "You have to buy now because it's cheap." Other people say, And instead of trying to play that game of trying to time the market, what you

[25:12] of trying to time the market, what you do is, hey, always be buying. Buy no matter what. And this has been a proven way to build wealth no matter what is happening in the economy as you're just always trying to accumulate more. And

[25:25] now when you follow this type of system, it has been proven to build wealth if you have good ETFs because now you're just buying the markets no matter where the market is. And over a long enough period of time, this has been proven to

[25:39] win. Again, I want to remind you that if you want to see how you can research ETFs, find ETFs, find stocks, and research stocks better with AI with Chachi PT or Claude, join me on my free live stream on November 17th. I'm going

[25:53] going to do an interactive session. You're going to see it happen live. So, 17th yet, that link is free down in the description. When I first started learning about money management, I avoided using a credit card because I

[26:06] evil. And then when I realized that I knew how to spend my money, and I wasn't going to spend money I didn't have for credit card perks and points, I realized could earn more perks and points for doing nothing except making the

[26:20] anyways with a credit card instead of a with my sponsor, Finance Buzz, to put together an article of some of my caveat. If you don't know how to manage your money, don't use a credit card. But

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[27:13] of my top credit cards right now in the free article that I have for you down in the description. What we talked about in this video is that an ETF gives you broad exposure to a basket of stocks as opposed to one stock. It gives you less

[27:25] risk but also less upside but it's been a great way for investors to diversify whole different type of investment. So what we talked about today are five different types of portfolios. One for you and your kids. Number two is for

[27:39] Number four is for slow and steady. And number five is for dollar protection. We each one. And then we laid [snorts] out how these ETFs have done over the last how these ETFs have done over the last 10 years. And then we projected that if

[27:53] history stays true and we see the same returns going forward, which will never happen because past performance doesn't guarantee future performance, but it guarantee future performance, but it gives us some sort of starting point. If

[28:05] those past performances were to continue in the future, what does that mean for your investments going forward? And so we laid that out with all five of these portfolios. And then after we did that, I talked about ABB, which is the system

[28:18] to actually make this work. Always be buying. Buy when markets are up, down, and sideways as a way to build wealth and grow your wealth through markets growing around the world. If you got value out of this video, the best thank

[28:31] please share this video with a friend, family member, colleague, or fellow investor. That way, we can continue to spread this type of financial education. somebody stopped me and said, "Just PRIT, I have $10,000 in the bank. What

[28:45] all into the stock market right now? But what happens if the stock market crashes? Or should I slowly put this money into the stock market? Or should I do something more risky that can give me better returns like preipo stocks?

[28:58] That's what I'm going to break down step by