That's where I've been and will continue to do with the same lack of stress. Do you mean you're in VOO and VT? Think VTI is just domestic?
I’m in VOO which is the SP500, US based companies but keep in mind they’re going to have exposure to international naturally. I’m also in VTI which is the whole world. It’s grabbing not only US based companies but also the rest of the world. So you’d get exposure to foreign based companies. They’re going to both move in the same direction. But if you look at the top 30 holdings of VTI, it’s American based companies that are going to be pretty much the same holdings of VOO, so the percentage difference between the two on a 30 year timeline isn’t going to be significant IMO. I don’t stress about my 401k and IRA, but I’m also 30 turning 31. I’ve got 30 years to retirement, at least, since I’d be bored as shit if I was to retire at 50. If I want to retire at 50, I’ll probably go teach at a community college. If you’re at 45, looking to retire in 10 years, consider going to a professional so you can effectively balance growth vs. Diversification.
Really a nuanced question where we would need more info but at 36 I’d have most of my money between Fidelity Total Market Index and Vanguard Developed Market Index
VTI is based on CRSP index, which is US only. It just includes another 15-20% of diversification of mid and small cap US companies in addition to the S&P in VOO. VT is vanguard's world ETF
Ahhhh. Sorry. Thanks- learned something there. Don’t think it changes anything for my purposes if I had gone VT instead of VTI.
VTI is total US market. VEU is total world sans US VOO + VTI are pretty redundant, think VTI has performed slightly better historically.
The difference in expense ratios are usually pretty negligible, though, right? And the withdraw fee would make sense if it was a taxable account I guess. My, admittedly somewhat limited, understanding of the main difference was that ETFs allowed for essentially real time trading (which isnt a huge deal if you're buying and holding) and usually had lower minimums for starting an account. I think the one drawback for me when I initially looked into ETFs vs mutual funds was a restriction Vanguard had (may not apply to other institutions) that you couldn't set up auto withdraws into the ETF accounts. I may be hazy there, but I think that was the deciding factor for me.
Finished portfolio spreadsheet. Now I just update the values for each account every month/quarter whatever and I'll be able to see the % per Account and % per Category. Allocation goal was about 70 (us stock) /20 (intl stock) /10 (bonds), so was happy to see it pretty close at: US Stock 69.1% Intl Stock 22.8% US Bond 7.7% Intl Bond 0.4% To get that accurate view of it, I had to breakout the underlying funds of my Target Retirement Fund (Vanguard 2045): VTSMX Vanguard Total Stock Market Index Fund Investor Shares 53.40% VGTSX Vanguard Total International Stock Index Fund Investor Shares 36.00% VTBIX Vanguard Total Bond Market II Index Fund Investor Shares 7.50% VTIBX Vanguard Total International Bond Index Fund Investor Shares 3.10% VTILX Vanguard Total International Bond II Index Fund 0.00%
I wouldn’t say negligible, many mutual funds can be quite high. That’s a drag on your returns long term, and when you consider something like 80% of actively managed funds don’t outperform their benchmarks - that’s an unnecessary drag + underperform compared to a low cost ETF.
Very true. If making decision about funds, do the math on the ER comparison. The difference between 0.10% and 0.75% will surprise you.
I think the consensus in that discussion was go with passively managed and obviously the difference in expenses is going to be contextual but I was just comparing the fund that was referenced in the original question (VOO - ETF at 0.03% vs VFIAX - Mutual Fund at 0.04%). Again, each fund is going to be different, but if you're looking at low cost index funds I would imagine most MF equivalents would be somewhat close in expenses compared to their ETF counterpart.
And sales in general. These guys are making others feel good about themselves by buying their product. That shit was in play on the Silk Road 5,000 years ago.
I actually only made that layout to present it TMB for advice. I assumed the people more knowledgeable than me would know the underlying fund %. What you suggested is a great idea, and I think someone provided a website many pages ago (might have been last year) where you can plug in your fund ticker and it will populate the underlying investments. I wouldn't want to manually track the underlying investment percentages. My new ADP/Voya 401K has a partnership with https://www.edelmanfinancialengines.com/ and they provide the breakdown based on my portfolio.
Sold it in February at $11 because I thought the magic was done and I am the worst when it comes to spec stocks
The Year is 2023. You are allocating your 401(k) money. “I mean I guess my safest bet is to put 100% of my allocation into Vanguard Diamond Hands Meme Stonk Inv...”
I’ve got a pretty decent chunk just sitting in my Vanguard money market settlement fund that I’m auto-drawing out of monthly into my VFIAX. I think I’m milking it too slow since it will take 4 years to drain. Should I throw all of that shit in at once or drain it quicker? I like having some in there just to be able to throw in the market of the market tanks. I could just take the same amount out of my checking into VFIAX every month and throw the chunk at two 529s or the higher interest % of our 2 mortgages (3.75%). I suck at pulling the trigger on decisions like this.
Been cruuuuushing the market for at least a week. Can't remember my last red day so I'm sure tomorrow all these gains will go bye bye. Only 60 away from a milestone, BA surge has been carrying me, #1 holding.
I need someone to explain this to me like I'm 5. I'm thinking about opening a HSA through my employer, with the intent of investing my contributions. They told me they only offer an interest bearing account. No other investment options. Do I have options here? Such as withdrawing the funds and putting them into my brokerage account? Would that even make sense? Or would I just need to look at opening one outside of my employer?
I think I’ll give the HSA a try. They finally changed the monthly premium so the HSA is lower than the other high deductible PPO plans, which makes sense. And the investment options has some decent low ER funds like Vanguard. I just need to wrap my head around what a “normal no major medical issues” year will look like out of pocket, since everything on the HSA plan goes towards the 5k annual deductible and after that 20% coinsurance. No copays at all. Only thing covered is one annual checkup/wellness visit is free.
The deductible and annual out-of-pocket max should be identical or very close. OOPM is what your damage is for the most extreme medical expenses for the calendar year, after that the insurance picks up everything at 100%.
anyone use Lively? orphan HSA account now going to start charging fees since its not part of a company account anymore
Made the switch. I'll have an HSA for the first time next month. Now just to figure out how to max that sucker out. $7200/year max limit. To do it without changing my budget... I'd just have to reduce 401k contributions by $600/month and put that towards the HSA to max the HSA. Then just look for ways I can keep bumping up the 401k back up. If HSA really is the best retirement plan that's the smart way to go about this right?
$7200 assuming you are married. Only $3600 if single. I would make sure you get any matching covered in the 401k and not reduce below that % (free money).
Are you sure about required to be married? I read the $7200 was for Family coverage, meaning I could do that as head of household / me & my two kids. However to make this more complicated, I claim 1 child on my tax return and my ex-wife claims 1 child on her tax return. But I pay 100% of medical insurance premiums for both children. And yes regarding the 401k my employer match is pretty low so I'm getting that.
Last thing I'd want is to do all this and then find out I have excess contributions and have to pay tax on them. Going to read https://www.irs.gov/pub/irs-pdf/p969.pdf for now to see if I can be confident in an answer...
Capital gains question: I averaged into a large Peloton position last year and now want to reduce my exposure a little more. I have gains that have gone long-term and gains that are still short-term. If I sell part of my position at what rate will the gains be taxed?