00:00:00
Now, just investing in the S&P 500 is a
00:00:03
great investment and on average produces
00:00:05
a return of over 10% per year, but my
00:00:09
new three fund portfolio has been
00:00:10
blowing that out of the water for the
00:00:12
past 10 years and does so while
00:00:15
producing a higher cash flow and a
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higher ceiling to be able to reach even
00:00:19
further gains, especially if AI and
00:00:22
technology keep producing at the levels
00:00:25
they've been going. To simplify for an
00:00:27
example for this video, I set this
00:00:29
portfolio to be even amounts of VU for
00:00:32
the S&P 500, SCD for dividend/v valueue,
00:00:38
and then SCHG for growth. Compared to
00:00:41
the S&P 500 alone over the past 10
00:00:44
years, it's winning by a landslide. The
00:00:47
S&P 500's up 194.34%,
00:00:52
but my new three fund portfolio is up a
00:00:54
whopping 267.74%.
00:00:58
Like I said before, the S&P 500 brings a
00:01:01
great average annualized return, and
00:01:03
over the past 10 years, it's averaged a
00:01:06
return of 11.49%
00:01:09
per year. My new threeund portfolio has
00:01:12
had an average yearly return of about
00:01:14
14%.
00:01:16
If one starts with $50,000 and puts $500
00:01:20
per month into a portfolio that returns
00:01:22
14% per year on average, in 20 years
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they would have 1,233,324.
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All from just $500 per month invested.
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This year alone, I've seen an increase
00:01:37
of about 25% on some of my investments.
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So, let me share with you how I did it
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and then how you can do so in the
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future. My name is Nolan Goa. My
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students call me Professor G, and I made
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this channel to make investing
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simplified. So, obviously, this year's
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been crazy in the stock market with
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Trump tariffs and Fed rate talks and
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geopolitical issues. We saw a huge
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market decline in April. And during that
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time, so many people either exited their
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US-based funds or just stayed out of the
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market altogether. Many people saw the
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S&P 500 and other US indexes down 10 to
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15% and decided to cut their losses and
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throw it into something that maybe was a
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bit more attractive because it was at
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least stable. At the time, bonds was one
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of the only things that was actually
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positive within the US and it was
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something that at least could provide
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some stability because people didn't
00:02:30
like seeing their portfolio drop so much
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day after day. During that big dip in
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April, I explained that I would be
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continuing to buy and actually buy more
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heavy and double down into the three
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fund portfolio rather than head for the
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bonds. Those that did that same thing
00:02:46
saw some monster returns. I'm going to
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go over the year-to-ate returns for a
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bunch of different assets, but even more
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so after this one, I'm going to show you
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how much you would have made if you just
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would have bought the dip at the time
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that I said that I was buying the dip.
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So overall, here's the year-to-date
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returns as of right now in the middle of
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July in 2025. The S&P 500 is about 7%
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year-to date. The Nasdaq Composits up
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about 6.6%.
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Dow Jones Industrials up about 4.3%
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and the US aggregate bonds is up about
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3.2%.
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So bonds have stayed at about 3% all
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year. So, when the S&P 500 was falling
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like crazy and it's down like negative
00:03:30
10 15% and you see something like bonds
00:03:33
that's up 3%. Psychologically, it seems
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like the move to be in something that's
00:03:38
up rather than down, right? Well, the
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problem is that just a couple months
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later, now we're seeing, even including
00:03:45
that huge dip that we saw in April, the
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S&P 500 for the year to date is up 7%
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when bonds is still just at 3% or so. At
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the very least, the better move would
00:03:57
have just been to stay in that asset,
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stay in the S&P 500 rather than jump
00:04:02
ship. But even bigger than that was to
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do what I did, which was to buy the dip,
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especially at that time. Here are the
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numbers. Had you bought during that dip
00:04:12
in April? For QQQM, the price bounce was
00:04:16
20 to 25% depending on when you bought.
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For VU or the S&P 500, that's up 20 to
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24% since that April time. And then even
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SCHD is up 7 to 8% from that initial
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drop. Understanding market cycles and
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understanding that people just make
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emotional decisions and they usually
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panic during those situations is so
00:04:40
important if you're going to be a
00:04:41
long-term investor and you're trying to
00:04:43
build long-term wealth. I knew that the
00:04:45
market was overreacting to the tariffs
00:04:47
or the announced tariffs and to the
00:04:49
whole situation at hand. Even more
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important though was that I did deep
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research on those three funds and
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understood deeply what the heck they
00:04:58
actually were. And so when I saw such a
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big price drop in all of those, I knew
00:05:04
that it was a steal to be getting in at
00:05:06
that point. I'm perfectly happy buying
00:05:09
in right now at the levels they are
00:05:11
today. So when I saw something that was
00:05:13
10, 15 or more% down, I just knew for a
00:05:17
fact I needed to get in on that and
00:05:19
double down. Now, I'm sure that you
00:05:21
know, and I'm sure that you understand,
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but it's not just time to buy just
00:05:25
because things drop in price. like it's
00:05:28
not necessarily going to be your best
00:05:30
move. If you see some individual stock
00:05:32
down 25%, that just doesn't mean okay
00:05:36
100% buy right now. That could very much
00:05:39
mean this stock is bad and that it's
00:05:42
going to head for some bankruptcy or
00:05:44
something. But when we're talking about
00:05:45
ETFs, especially tried and trueue ETFs
00:05:48
that are broad, that are solid, that
00:05:50
have been solid, and have a 20 or more
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year track record, when they drop by
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that percentage, I'm all in. And yes,
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the elephant in the room, SCHD has
00:06:01
lagged the other two in the three fund
00:06:03
portfolio. It's pretty much lagged most
00:06:05
of the ETFs that people are interested
00:06:07
in. Many people are hating on value
00:06:10
style and specifically SCHD right now.
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And if I'm just going to be real, it's
00:06:15
because they don't understand long-term
00:06:17
investing or they're just not a very
00:06:19
mature investor as it is. If your goal
00:06:21
is long-term sustainability and
00:06:24
long-term growth for this portfolio and
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to actually build real wealth, you need
00:06:30
to mitigate risk. Do you really think
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that technology and AI is going to boom
00:06:35
as hard as it has, literally forever? If
00:06:39
you think that, look back to the dot
00:06:41
bubble. At that point, people were
00:06:43
putting crazy high valuations on the hot
00:06:46
thing at that point, which was www or
00:06:50
the internet. Literally, any stock that
00:06:52
had the words.com in it was blowing up
00:06:55
by crazy multitudes. And nobody thought
00:06:58
that any of that was ever going to stop
00:07:01
until it did. And that bubble popped
00:07:03
hard. Now, I'm not saying that AI right
00:07:06
now or even technology is in a bubble,
00:07:08
but it is overvalued. And at some point
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it just has to at least stall out,
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possibly drop. And when that happens,
00:07:16
value is going to have its day, just
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like it has multiple times. If you look
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back in the history of the stock market,
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SCD does not have much technology within
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the fund. And obviously right now, AI
00:07:29
and tech are the hot ticket. Everything
00:07:31
moves in cycles. And right now AI is the
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hot hand which is great because
00:07:36
twothirds of this portfolio has a very
00:07:38
heavy amount of AI technology and those
00:07:41
growth style companies within it. But
00:07:43
even in my underperformer of SCHD I've
00:07:47
made about 8% on my investments
00:07:50
especially buying in at the dip time.
00:07:52
Since midappril lows, SCHD climbed to
00:07:55
about 2733 by July 12th, marking a 7.5%
00:08:01
price recovery. On a total return basis,
00:08:04
SCHD's returned about 2% year-to date as
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of July 11th, highlighting a slower,
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more income oriented rebound. SHD is a
00:08:13
stability first profile. as a
00:08:15
dividend/value ETF, SCHD prioritizes
00:08:19
stability and income over fast recovery.
00:08:22
So, what does this all mean and why is
00:08:24
SCHD still a very core piece of this
00:08:27
three fund portfolio? If you're income
00:08:29
focused, this downturn presented a
00:08:31
chance to buy at a discount while
00:08:33
collecting dividends. And looking ahead,
00:08:36
SCHD's performance may stabilize, but
00:08:39
unless large cap value rebounds
00:08:41
materially, it may continue to trail
00:08:43
momentumdriven indices. Also remember
00:08:46
that you do get an income cushion.
00:08:48
There's quarterly payouts which provide
00:08:51
some return support during the dip. You
00:08:53
also have to very much keep in mind this
00:08:55
higher rate environment that we're in.
00:08:58
Everybody's talking about and
00:08:59
everybody's watching the news for this
00:09:01
Fed rate drop, right? this Fed rate cut
00:09:04
that's supposed to happen either in the
00:09:07
next month. I think it's going to be
00:09:08
more so in September and then again by
00:09:10
the end of the year and then a bunch of
00:09:12
times in 2026.
00:09:14
But when that rate gets cut, that means
00:09:16
things like your high yield savings
00:09:18
account and certain bonds and other
00:09:20
types of accounts like money market
00:09:22
accounts are going to start lessening as
00:09:24
well. If you're getting 4% right now in
00:09:26
your money market account, soon it's
00:09:28
going to be something like 2%. At that
00:09:31
point, wealthy investors will find the
00:09:33
next least risky assets and those will
00:09:35
be value funds like SCHD and VM that are
00:09:40
gaining about that 4% dividend in a
00:09:42
safer sustainable way. The time to get
00:09:45
into something like SCHD and VM is not
00:09:48
then when everything has come down and
00:09:51
when now it's attractive to get into the
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fund. It's right now when everybody's
00:09:56
kind of overlooking it and just seeing
00:09:58
the hot hand at this point because later
00:10:00
on when SCD is way more attractive, it's
00:10:04
not going to only be at about $27 a
00:10:06
share. It's going to be something like
00:10:08
$30 or $35 a share. And so then you're
00:10:11
going to have to buy in at much more
00:10:12
expensive. This is the genius of the
00:10:14
three fund portfolio, though. When
00:10:17
growth and momentum are taking off,
00:10:19
you'll benefit from the growth section
00:10:21
in some of the S&P 500 foundational
00:10:24
section. When growth stalls out a bit
00:10:26
and value takes over for a couple years,
00:10:29
you'll benefit from the SCHD portion and
00:10:32
some of the value section of the S&P 500
00:10:35
foundational section. To be the best
00:10:37
investor possible, you need to not only
00:10:40
have just a very good two or three
00:10:42
years, you need to have a consistent
00:10:44
solid return no matter what part of the
00:10:47
cycle that we're in. Since we have no
00:10:49
crystal ball as to when this AI and
00:10:52
technology part of it is going to slow
00:10:54
down, you need to keep yourself covered
00:10:57
by having some value there and ready so
00:11:00
that there is no lapse there. The issue
00:11:02
that I'm seeing a lot of with this three
00:11:05
fund portfolio and the push back that
00:11:06
I'm getting is people are asking why not
00:11:09
just invest fully in growth right now.
00:11:11
Put a 100% in that because that is the
00:11:13
hot hand. And then when growth drops
00:11:16
then you're going to buy into like an
00:11:17
SCD when that goes up. Well, if you
00:11:20
really think about what's going to
00:11:21
happen there, if you're doing that 100%
00:11:24
growth, it goes up a certain amount. The
00:11:26
only way you're going to know that it's
00:11:28
time to switch is when growth starts
00:11:30
dropping. So that means inevitably your
00:11:32
100% of your portfolio will drop 5%,
00:11:36
10%, 15% possibly. Not only that, on the
00:11:40
other end, SCHD will be going up at that
00:11:43
point. So this is getting more
00:11:45
expensive. So now you're going to sell
00:11:47
at a loss, buy into something that's
00:11:49
more expensive at that time, and you
00:11:51
will have lost out on something like 15
00:11:53
to 30% because of what you're doing
00:11:57
there. So in theory, it only works out
00:11:59
if it's absolutely perfect. Once that
00:12:02
growth hits the absolute top, you need
00:12:04
to have sold it to then buy at the
00:12:07
bottom of SCD possibly and then ride
00:12:10
that up. And that is almost impossible.
00:12:13
I've been preaching the new three fund
00:12:15
portfolio ever since I developed it
00:12:17
after doing a whole bunch of studies for
00:12:19
my masters and in my PhD program. I
00:12:22
started investing primarily in that
00:12:24
format for years before I even started
00:12:27
this YouTube channel and then I just
00:12:29
started telling people about what I'm
00:12:30
doing now. Many of my richest clients
00:12:33
invest in that exact same way and have
00:12:35
for quite some time. And so I have data
00:12:38
to prove that this is a very solid and
00:12:40
sustainable way to invest. It's also
00:12:43
incredibly simple and it helps you be
00:12:45
able to sleep at night while not having
00:12:46
to look at your portfolio each and every
00:12:48
day. To learn more about the exact
00:12:50
percentage based off of your age, watch
00:12:53
this video here because it does change
00:12:55
based off of your age or life stage. Or
00:12:57
watch this video to keep you going
00:12:59
strong in investing. And remember to
00:13:01
keep investing simplified.
