Official Investing Thread

Discussion in 'The Mainboard' started by Joe Louis, Jul 12, 2010.

  1. ned's head

    ned's head Well-Known Member
    Donor

    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?
     
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  2. NothingIsOT

    NothingIsOT Fuller is a sarcastic asshole
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    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.
     
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  3. The Blackfish

    The Blackfish The Fish in Black
    Staff Donor TMB OG
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    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
     
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  4. ned's head

    ned's head Well-Known Member
    Donor

    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
     
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  5. NothingIsOT

    NothingIsOT Fuller is a sarcastic asshole
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    Ahhhh. Sorry. Thanks- learned something there. Don’t think it changes anything for my purposes if I had gone VT instead of VTI.
     
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  6. Chumbolone

    Chumbolone Well-Known Member
    Notre Dame Fighting IrishChicago CubsChicago BullsChicago BearsChicago BlackhawksChicago Fire

    VTI is total US market.
    VEU is total world sans US

    VOO + VTI are pretty redundant, think VTI has performed slightly better historically.
     
  7. kentucky_dawg

    kentucky_dawg Fan of: Georgia :\
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    Georgia Bulldogs

    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.
     
  8. kinghill

    kinghill Well-Known Member
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    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%
     
  9. Chumbolone

    Chumbolone Well-Known Member
    Notre Dame Fighting IrishChicago CubsChicago BullsChicago BearsChicago BlackhawksChicago Fire

    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.
     
  10. kinghill

    kinghill Well-Known Member
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    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.
     
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  11. kentucky_dawg

    kentucky_dawg Fan of: Georgia :\
    Donor
    Georgia Bulldogs

    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.
     
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  12. Lyrtch

    Lyrtch My second favorite meat is hamburger
    Staff Donor



    this is basically the entirety of investing and crypto twitter
     
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  13. Paddy Murphy

    Paddy Murphy Well-Known Member
    Atlanta BravesCarolina PanthersWofford TerriersUnited States Men's National Soccer TeamLiverpoolCharlotte FC

    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.
     
  14. Nashville Knight

    Nashville Knight Logistics
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    UCF KnightsTampa Bay BuccaneersTampa Bay LightningNashville Predators

    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.

    upload_2021-6-2_13-5-1.png
     
    #25414 Nashville Knight, Jun 2, 2021
    Last edited: Jun 2, 2021
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  15. Lyrtch

    Lyrtch My second favorite meat is hamburger
    Staff Donor

    The shit they told me as propaganda at my one and only sales gig was hilarious
     
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  16. dukebuckeye

    dukebuckeye P.G.I.T
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    Bought AMC at $12 in January.
     
  17. dukebuckeye

    dukebuckeye P.G.I.T
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    Sold it in February at $11 because I thought the magic was done and I am the worst when it comes to spec stocks
     
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  18. dukebuckeye

    dukebuckeye P.G.I.T
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    I think it broke $70 today.
     
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  19. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
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    This is not how you stonk
     
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  20. MORBO!

    MORBO! Hello, Tiny Man. I WILL DESTROY YOU!!!!
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    New York GiantsNew York YankeesAtlanta UnitedUCF Knights

    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...”
     
  21. dukebuckeye

    dukebuckeye P.G.I.T
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    That is EXACTLY how I stonk
     
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  22. Corky Bucek

    Corky Bucek Placeholder for a Custom Title
    Staff Donor TMB OG
    Auburn TigersLos Angeles LakersLos Angeles RamsAnaheim DucksManchester UnitedLos Angeles Angels of AnaheimPoker

    Bought AMC at $15 back at the peak of the WSB. Not a high volume of shares though :(
     
  23. Smuggy

    Smuggy Well-Known Member
    Alabama Crimson Tide

    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.
     
  24. BP

    BP Bout to Regulate.
    Donor
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    Yeah keep climbing BB, getting close to breaking even
     
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  25. kinghill

    kinghill Well-Known Member
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    Heh, I ended up doing it manually.
     
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  26. burnttatertot

    burnttatertot Super Necessary
    Donor
    Washington State CougarsSeattle MarinersHartford WhalersSeattle SupersonicsMetal

    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.
     
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  27. fish

    fish Impossible, Germany
    Los Angeles DodgersLos Angeles RamsLos Angeles KingsSouthern California Trojans

    Are you going to realize the gains or let it continue to ride?
     
  28. burnttatertot

    burnttatertot Super Necessary
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    I'm done day trading, the taxes last year were more brutal than Cannibal Corpse.
     
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  29. fish

    fish Impossible, Germany
    Los Angeles DodgersLos Angeles RamsLos Angeles KingsSouthern California Trojans

    If you had to pay a lot of tax then you must’ve done well.
     
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  30. NothingIsOT

    NothingIsOT Fuller is a sarcastic asshole
    Donor
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    I rotated into BA too last week. Haven’t had a down day since rotating.
     
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  31. BUstang

    BUstang Lawyer

    I got a $1k hole burning in my pocket. Give me something fun to waste it on.
     
  32. dukebuckeye

    dukebuckeye P.G.I.T
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    Dogecoin
     
  33. burnttatertot

    burnttatertot Super Necessary
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    Down 7k today :clap:
     
  34. burnttatertot

    burnttatertot Super Necessary
    Donor
    Washington State CougarsSeattle MarinersHartford WhalersSeattle SupersonicsMetal

    Not bad for a 5-6 week old play, now if they'd just bring back the divy.

    [​IMG]

    Value stocks are the best <3
     
  35. fish

    fish Impossible, Germany
    Los Angeles DodgersLos Angeles RamsLos Angeles KingsSouthern California Trojans

    That's a good looking line. Nice work.
     
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  36. Seavie

    Seavie Loading tweet...
    Donor TMB OG
    Alabama Crimson Tide

    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?
     
    #25436 Seavie, Jun 8, 2021
    Last edited: Jun 8, 2021
  37. billdozer

    billdozer Well-Known Member
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    I would just open one outside of your employer.
     
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  38. The Blackfish

    The Blackfish The Fish in Black
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    I think it’s pretty universally accepted that Fidelity has the best HSAs so I would do it there
     
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  39. billdozer

    billdozer Well-Known Member
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    Clemson TigersCarolina Panthers

    That's who I have through work and no complaints.
     
  40. kinghill

    kinghill Well-Known Member
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    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.
     
  41. Frankie Carbone

    Frankie Carbone eh che se dice
    Florida State SeminolesNew York YankeesNew York KnicksTampa Bay BuccaneersOrlando CityLazio

    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%.
     
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  42. kinghill

    kinghill Well-Known Member
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    deductible 5k
    OOPM 8k
     
  43. Lyrtch

    Lyrtch My second favorite meat is hamburger
    Staff Donor

    anyone use Lively?

    orphan HSA account now going to start charging fees since its not part of a company account anymore
     
  44. The Blackfish

    The Blackfish The Fish in Black
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    Alabama Crimson TideIndianapolis Colts

    Most people agree Fidelity has the best HSAs. No fees and great investment options.
     
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  45. kinghill

    kinghill Well-Known Member
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    Miami HurricanesMiami MarlinsMiami DolphinsMiami Heat

    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?
     
  46. billdozer

    billdozer Well-Known Member
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    Clemson TigersCarolina Panthers

    $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).
     
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  47. kinghill

    kinghill Well-Known Member
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    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.
     
  48. kinghill

    kinghill Well-Known Member
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    Miami HurricanesMiami MarlinsMiami DolphinsMiami Heat

    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...
     
  49. billdozer

    billdozer Well-Known Member
    Donor
    Clemson TigersCarolina Panthers

    Ah, sorry, not sure on the "head of household" or whatever you would fall under.
     
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  50. stringmusic24

    stringmusic24 Iconoclast, Aspiring Misanthrope

    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?