 Guys, welcome back to the Independent Investor Channel. We'll pop you in here and we'll show you our M1 Finance account says they've reacted to market volatility. I think a lot of people are freaking out right now because they're not diversified. Why don't you sit back for a second and entertain the prospects of just investing for the long term, no matter what the markets are, okay? There are philosophies out there that would suggest perhaps that stock picking your way through all markets is the way to go and there's a lot of folks out there that have got 10, 15, 20, 25 stock portfolios and they're getting punched in the face, okay? True diversification is not made through single stock investing. It's made through indexing of markets. It's made through ETFs. If that's your choice, it is my specific choice and or managed mutual funds which carry with them a higher than average expense and it's a route that I truly, truly would suggest that you look into the impacts of fees over time. That's why I'm an ETF investor. That's why I suggest that people get involved passively in the markets and get themselves up to the first 10, 15, 20, 25,000 bucks on the market and then they can start to branch out if that's what they want to do but you can win long term with just passive investing and passive investing is not done by just buying a half a dozen or a dozen stocks and just holding those for the long term. You're going to get crushed at some point. You may outperform. There's no doubt about that but passive investing using tried and true diversification in the stock market is the best way just to establish a defensive mechanism up front. With that guys, we're going to kick you into the Vanguard's sector specialty portfolio. It's comprised of all 11 of the sectors, S&P sectors and I use the power of M1 Finance to control my allocation. I provide that openly for you guys. With that guys, we'll kick you into the account here and we'll check progress in the M1 account that's passively set up through the specialty ETFs. I appreciate you guys joining me inside the M1 Finance Vanguard sector specialty ETF portfolio for you guys that have been with me a while. You've seen me roll these videos out on occasion. I think in times of market volatility, these types of videos make the most sense and they can really put a lot of investors at ease and understanding that the tolerance that you have to have to succeed in stock market investing doesn't need to be at the insanity scale. I think so many people want to buy a 10 or a 12 stock portfolio and they want to celebrate when everything is wonderful and then they want to crap their pants and leave the market when everything is bad. This style of investing takes all that emotion out of stock market investing. Now I've been investing in this since the beginning of 2019. This portfolio is going to be going on three years old. I have funded this fairly conservatively over the last three years with a few hundred bucks a month anyway and I've gradually built this up over time and I just want to bring your guys's attention over here to the right hand side of this graph where my cursor is where I'm actually showing you guys why I don't crap my pants. Why I sleep easy at night when it comes to this style of investing which dominates the majority of my portfolio. I was just reading an article this morning that we just had a record number of millionaires come through as disclosed from an annual perspective and I think a lot of people would guess that a lot of them were made from cryptocurrency investing and NFTs and the like and that that wasn't wasn't the truth. The truth is that good old boring IRA investing and thrift savings plan investing and 401k investing took the cake for making 30% more millionaires year over year than last year up significantly with people just working regular jobs contributing to the market on a regular schedule not paying attention to the injects to the market you know things that a person who pays attention to the markets every day maybe more subjects react to but regular every day investors that are just adding a little bit where they can how they can a vast majority of those millionaires actually had saved over the course of 30 years plus and all the while never making six figures in their in their income so something really for you to stop and think about if you're trying to outsmart the investing game I give you all the best of luck to you I'm not telling that you that you can't get lucky I'm not saying that but you can get lucky with the lottery and how many people actually win the lottery this is a tried and true reflection of what works passively in stock market investing and I just saw a comment come through one of the Facebook groups discussing you know whether or not they if they had a 10 or a 20 or 30 or 40 or even a 50 stock portfolio would they consider that diversified and I said none of the above you cannot seek out diversification in the stock market using single stock it doesn't work that way you have to seek out diversification true diversification in that you're looking to match market performance you're not going to match market performance by owning 50 stocks it's just not going to work for you at times domestic stock markets will downturn and your portfolio will suffer when compared to the S&P 500 which is comprised of 450 other offerings that you may not hold in your 50 stock portfolio of companies that you may never even have heard of before that will end up outperforming the market now over the short term you may do really really well and you may say Ryan you're 100 wrong what's new you know I can do better I can beat the market every year with my 50 stock portfolio the truth is you can't and if you want to have an ego about this game no problem if you want to argue with me up and down no problem the sheer fact of the matter is that there's a lot of people who don't have the time to spend scouring over balance sheets and income statements to come up with a thesis and in a lot of cases an uneducated thesis on what stocks to buy when all they really need to do is enjoy a program that I'm going to demonstrate for you here now this is on a fairly conservative type of perspective this has got less than 20 000 it's rolled off a little bit with the market volatility but it's all good I still sleep good at night this is attractive for a lot of people out there that are scared of stock market investing but want to understand how to seek out exposure to markets using diversification and dollar cost averaging it's really just that simple net cash flows into the account a little less than 14 000 and we've had just over five and a half thousand in gains with with a nice little stipend a dividends not to shake a stick at now in the eyes of the stock market three years of investing is relatively light and as of late I've actually stopped funding this account I need to initiate it back again I'm just trying to determine what amount I want to have flowing into this and at what schedule I'm thinking about maybe $50 a week as a good rule of thumb 200 bucks a month I think that'll work fine but for right now I'm just kind of taking it easy and I'll get around to it this portfolio I put no effort into I built it initially three years ago and it has not been touched I do not mess with this I do not touch the portfolio when new funds funds flow into the portfolio they go to my recommended allocation and always trying to seek that optimal allocation within the portfolio as declared over here by the target amount here so the target is what I've set and then the actual is up here and it reflects what's been going on in the market technology has been selling off so the technology has been selling off a little bit faster than the fundings can can reallocate to meet my target here which is fine I mean a relatively small amount of money rendering you know just over a nine hundred dollar gain over the time frame of owning this this this one specific holding is is impressive to say the least now what I've done here for you guys that are new to this portfolio and this kind of style of investing I just want to premise a couple of things this was a little bit exploratory and a lot of people would say why didn't you just buy the S&P 500 well I do own the S&P in my Roth IRA this is a taxable account you could own these equities within a Roth no problem they are very very low cost to own a little bit more than the S&P it's the ability to take these individual sectors and what I mean by that is technology financials healthcare energy industrials those are all the different segments or slices of the S&P per se and they're divvied up across the 11 major sectors in the S&P and that way I can control the amount of money that flows into technology the amount of money that flows into the financials and the amount of money that flows into you know healthcare here conversely if you just invest in the S&P 500 a majority of the wealth is actually tied up in the top 10 holdings and that might not be something that is so attractive to you as Tesla is one of the top 10 and and may not be one of those areas that you want to invest in this allows you to kind of break it up a little bit and seek out some nice exposure now on the low end I've got at the bottom here I believe it's telecommunications that's correct and then materials here both at 6% stepped it up to 8% here for real estate and utilities respectively and then 9% here this is kind of interesting this didn't flow down here that's because I'm overweight that's interesting staples have just done quite well here as the markets rolling off people are flooding into value and that's where this comes in so you know the cool thing I think in in summary of this is the reason why I wanted to own them all all the sectors is because while technology is selling off chances are it's probably flowing into some of these other areas and I want to own those other areas because when those outflows happen chances are I'm going to benefit from the inflow as well so this is just a really really cool way of investing I enjoy this perspective I enjoy the performance and I really just enjoy the safety of this account through diversification and the ability to control and throttle the amount of money that I flow into this account it's it's a it's an easy way of investing you do not need to have huge knowledge of investing to invest this way the work is already done for you I provide this for you as a benchmark if you're interested I provide this portfolio link in the description of all my videos I am affiliated with M1 finance so if you do click on the links I can receive small compensation flow back to the channel for providing awareness content like this on M1 finance I'm obviously a product user I love the product I love the account I love the shareability of the account and the ability to to really streamline the opportunity to investing by taking you know an educated investor like myself who's been doing stock market investing for over 25 years and helped streamline that to you guys in a very very simple link that you guys can link over to take a look at adjust as you see accordingly or just you know throw it into your M1 account just just monitor it you know it never hurts to monitor it you don't have to put one single dime into it if you're not ready or if you never want to that's fine too the idea is just to understand how investors like myself and many others are seeking out exposure to the market how to seek out diversification how to seek out dollar cost averaging i.e. adding a little bit to the market over time and what could be the anticipated performance over those actions so you can have a realistic expectation about what to expect in stock market investing and I think you'll find that it's a whole heck of a lot scarier than a lot of people will lead it to be or that a lot of people are naive too and they get in over their head because they just don't explore options like this guys thank you so much for tuning in and I'll kick you back and we'll conclude the video all right guys so we've come out of the account it's held up nicely a lot of people are freaking out right now the market's come off a couple bits and accounts like this they don't they don't suffer the market you know when it rolls off actually was something to acknowledge you know accounts like this will will come back with markets and just quite simply you buy the markets when that happens very very simple you don't have to lose your your mind the stock market you're not going to beat the quicker you can come to reality on that the better off you'll be unless you're willing to step into a realm of risk tolerance that most people don't have and they also don't have the time and most people are honest with themselves as to what you know the amount of time that they have to devote to this craft and you know you can win over the long term with passive investing no more no less and the quicker you can come to that realization just understand that you own the markets and up markets and down you fund the markets all the time maybe fund a little bit heavier as the market goes down do the complete opposite of what everybody else does set yourself apart invest in all markets up and down invest for the long term invest using diversified assets like the ones that i've demonstrated in this video to you and you'll be better off over the long run put yourself in control don't follow anybody else you're you're the you're the only one that cares as much about your personal finance as anybody on this earth man trust yourself okay become an empowered investor invest in these passive assets that are low cost in a tax advantaged account like a Roth IRA for yourself and you'd be so glad that you did guys if you appreciate the message make sure and subscribe to the channel leave your comments at the bottom of the video share the message with anybody out there that needs to understand investing one-on-one this is investing for all anybody can invest in this way it does not require a knowledge of the stock market beyond a desire to start and a desire to fund that is it what i've demonstrated to you in a quick 10 minute video over youtube has taken 25 years of philosophy to understand and psychology of how this can relate to somebody without any experience in the stock market you can win with this philosophy and it is it does indeed apply to the masses guys thank you so much for tuning in to the message and good luck in your investment future