I don't think this is correct, at least if you are comparing apples to apples. VTI (ETF) and VTSAX (index fund) are going to cost almost the exact same in your Roth IRA. ETF does provide some additional flexibility, but some of that comes with a slight risk if you get too much into the timing aspects.
I think the distinction is between actively-managed funds and passive/index funds. That's where the fees/costs/savings come from, not from the ETF characteristics. There are expensive ETFs
if we keep going down i'll throw some more in taxable but the same * I put on all my posts, this shit is being invested on a 20+ year time frame
I’m guessing cause of Targets success, I think people like ordering and picking up in store that day.
I don't think that is what he meant. ETFs have better tax efficiency than Mutual Funds. The reason is that ETFs have a set number of shares available to trade between investors, like a company's stock. Mutual Funds (at least open ones) sell shares as people want to buy and then need to cash out the shares that people want to sell. So if more people want to sell and redeem their Mutual Fund shares than the Fund has cash on hand, the Fund needs to sell some of its holdings to get the cash for the redemptions. It may be selling at a bigger capital gain than it would like, or selling a security that it doesn't really want to sell, just to meet those redemption requirements. That leads to more capital gains passed on to the Fund holders.
My VTSAX holdings down $15,000 in the last 2 weeks. Will probably make that back and the surpass it in the next 2-3 weeks. I'm not worried about it. Peaks and valleys .
I don't agree with this, but to give you a chance to apply this to a real world example, please explain how VTSAX (total market mutual fund) is more expensive and less tax efficient than VTI (total market ETF)
And then explain how that matters in the specific context of a Roth IRA (which is what the poster's original question was asking about)
At an index fund level I don't think there's enough difference to say one is superior to the other. You're counting pennies on the thousand(s) of dollars. At that point I'd consider how liquid you want it to be rather than tax differential.
Agree with this, and in the context of the question about where to put money for a Roth IRA, questions about liquidity and tax efficiency should all be thrown out the window. At that point, you should purely focus on return vs fees.
In a tax sheltered account the tax efficiency is not a concern but the mutual fund still may need to make trades it doesn’t want to make so the return could be affected in ways the ETF return is not affected.
Well it’s not any guarantee that they’ll need to make unwanted trades or that the trades will end up poorly. Just more risk. But everyone should do what they want. It’s not worth arguing. I did miss that it was a tax sheltered account.
Ok idgaf if it’s a mutual fund or etf. I short handed it for actively versus passively managed because mutual funds are far more likely to be actively managed than etfs. Whatever it is just make sure it’s a low expense ratio.
https://www.cbsnews.com/news/vangua...l-fund-management-dead/?intcid=CNM-00-10abd1h Old article on mutual funds vs index
So I recently switched jobs in mid December and had to transfer my 401k to a traditional IRA. I’ve been able to buy back in slowly over the last few weeks. Still hurts though.
I’m actually planning to do this later this year. It doesn’t count against your normal contributions right?
Nope. I almost went all back in at once but a buddy of mine said just buy in slowly over the next few weeks. Need to treat him to a steak dinner.
PROFESSOR'S COMMENT (PCD) A few Sunday morning thougts. 012322 - Sun, Jan 23rd, 2022 -:- 7 : 21 : 41 After spending some time with the charts yesterday, it appears that Wave 3 down is underway in all markets. This means that except for the Russell 2K (RUT), all the major indexes topped in late December - early January, and the Bear Market that we were expecting is now underway. The RUT appears to have topped in early November. The thing we need to figure out now is where can we expect support to come in now that the markets are plunging. Hmmm? Good question. On the Dow, the first level of potential support is the 1 December low of 34,006. This level was Wave ‘C’ down within the Expanding Diagonal. Like I said, it’s possible that this level could provide temporary support, but because the Dow was only there for 1-2 days, I’m not sure it can stop a wave 3 decline. Wave 3’s has power behind them, and this one is no exception. So, we need to look further. The 20 September low of 33,616 is in the same boat. It too is also a single point low within the Expanding Diagonal and could provide support for a temporary bounce. But we need to go all the way back to the 18 June low of 33,271 for real support. This is where Major Wave 4 down ended. Wave 4s are always a natural target for any diagonal pattern as this is where the ED rally began. The only real question is how will the Dow get there? In other words, we know that even Wave 3 don’t drop straight down. They also have retracement waves. So, it’s likely that somewhere along the way, probably near one of the two minor support levels, 34,000 and 33,516, the Dow will experience some type of short-term rally. The Arrows on the short-term (15 min bars) to intermediate-term (1-4 hour bars) should pick these turns up. BTW, the worst possible scenario for Monday is to see the Dow rally early and then give back all its gain by the close. That’s because whenever two intraday reversal sessions take place within a 3-4 day period, it's usually a sign of EXTREME weakness which leads to even more selling. Some of these declines have been really large, so watch out for this on Monday. On the other hand, I did find some evidence that what we saw on Friday could be the start of some bottoming action. It’s not much, but IF…and it’s a big IF, the Dow can move back above its 200-day moving average and hold, (not give up its intraday gains), there’s a chance it could spark a short-term rally driven by short-covering. The rally could last a week or more. At this point, I must give this scenario low odds, but if the Dow rallies on Monday and holds, the odds on this scenario will go up. Gold: After looking at a few gold charts, it still appears that a Wave 3 down could be getting ready to start. I'm currently watching both the 15 min and 4-hour charts on GLD. If I see a Red Arrow, I’ll look to buy a trial position (based on the 15s) on GLL, an aggressive inverse Gold ETF, and ZSL, a similar inverse ETF for silver. Then if I get a signal on the 4-hour chart, I'll establish another, separate, position for each as a longer therm hold. Bottom Line: Watch the Arrows. If you’re watching on the 15 minute bars, think of each successive bar as a bet at the crap table. All I’ll be doing early Monday is watching my bets. If the color of the bar turns against me, I’ll take my bets off and look to trade the opposite side. Same thing for my Doctor’s Trade on TZA. If I see a red bar, it could be warning me that I might have to make a decision. If that happens, I’ll be watching the Safety Valve. Otherwise, if the bar stays Green, I’ll stay in. Remember, we have momentum working for us on this bet. A red bar will tell me when the momentum is slowing and provide an alert that defensive action might be needed. Have a great rest of the weekend. That’s what I’m doing, h
That's where I am. My Brokerage is just being slaughtered, but I don't plan on touching that money for a long time, so I'll just grin and bear it.
Only stock Im holding in a non-retirement account right now is RIVN. Down 55.55% right now, after being up like 30% the first day. Not checking my accounts until further notice, someone tag me when RIVN goes bankrupt.
BooThisMan btw, I’ve determined that the bottom was at 10AM this morning and moved all of my cash in. (At least what was in my brokerage account.) from 10:15 to 10:45 I thought I was a genius.
my MIL opened a brokerage account with i forget who as it gave her access to the rivian IPO, she told me this over christmas and it's only tanked even worse since i do not want to know how much she bought at like....110? 120?
probably robinhood i think they've given retail investors access to like 20 IPOs and every single one of them is down
Feel like Build Back Better not passing is going to have a bigger impact than most think. Cutting off liquidity to regular households will prob lower demand and slow buying.
not sure how many families were spending their 600/kid or whatever on stonks but every friend i know who was getting that was 100% investing it
Either retail investing or product demand, I think it’s going to make an impact. Even if that extra dough was being used for regular expenses so people could do something like contribute to a work retirement account for the first time or put new tires on their car.
Welp I'm very curious to see how Jerome comes out on Wednesday, if he still is full tilt stop inflation like Biden wants or if he tries to placate markets that are showing material weakness.