A very warm welcome to the early retirement show, the show dedicated to helping you navigate the nuances of an early retirement, a non-traditional retirement.

Now, let's get right into the episode so we can learn how to retire early.

Welcome back to the early retirement podcast. I'm your host Ari Taublieb, and today we are going to be talking about how you can build the best portfolio for your goals.

The questions that I'm going to answer today are, are you invested the right way?

Am I owning the right types of investments for my goals?

Where do I even start when it comes to designing the optimal portfolio, not just for retirement, but just where you are in your stage of life?

How do you start thinking about that? Maybe you're a few years out from retirement. Maybe you're say, 5, 10, 15, 20, 30 plus years away from that retirement word, which if you've been listening to this podcast long enough, you know it's not that word that I love. What I love is financial freedom. When are you in a position where if you love what you do, great, keep doing it. But if you don't love what you do, when are you in a position where you no longer need to, when it's truly optional? So as a reminder, all of this and more is on my YouTube channel where I make content that sometimes is a little bit easier to follow along when I'm going through numbers and specifics. Other than that, if you enjoy listening to this podcast, I know I do get a ton of messages from you guys saying, Ari, I love listening when I am working out or when I'm on my way to work. Great. I will continue to make the episodes here. You do not have to worry about the show leaving to YouTube for any reason. I did get one comment saying, don't stop podcasting. I don't like

YouTube. To those people, totally fine. I will continue to do the podcast, but please know I'm on YouTube as well. And if this podcast has been helpful whatsoever, I do kindly ask that you leave a review, hopefully a five-star review if it's been helpful, and you rate the show, as that's how more people continue to find it so they can retire early. Thank you for all of that. And what I want to say next is when it comes to designing a portfolio, there's a few steps and what I'll say is a few pieces of noise. And there is so much noise when it comes to investing of how much should I have in stocks and how much should I have in bonds and should I have bonds and when does it make sense to have cash and what's too much cash and there's just a ton of noise

out there so my goal is in the next five, ten, fifteen minutes you have a very simple way of

understanding how do you design a portfolio. So step number one of the five steps I'm going to

go through today is don't try to outsmart the market and over the past 20 years out of all of the five steps I'm going to go through today is don't try to outsmart the market.

And over the past 20 years, out of all of the U.S. active fund managers that exist, from 2000 as

2019, only 41% of them are still in existence today. Now, when I say that, some people go,

all right, what about the other 59%? Well, the 41% that are still in existence today, they do not outperform.

That they're just still employed, which means 59% of them are completely out of business.

And of those that exist, only 22% of them beat the market.

So the most highly intelligent people, even they rarely

outsmart the market and even fewer do so consistently. So that 22% that beat the market, that's

wonderful. And if you could get that every single year, I'd be the first person to say,

hey, who is picking that? But on average, those people will beat the the market but it's not on a consistent basis

and that's the key here the way that you win in retirement and really in your financial life is not by

hitting a big home run but by hitting a bunch of singles and doubles and for those of you who are

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