SWTSX
SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES
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Maxed Roth IRA 2024.... invest or save money held for 2025 Roth IRA?
Would a combination of say, 80/20 SWTSX/SWISX be a good idea for my Roth? Should I also include ab emerging market fund since that isn’t included in SWISX? If so, which one? Is SCHB an emerging market fund?
Best aggressive investment strategy/fund type (long-time horizon)
Rate of return from Dec. 2019 to Nov. 2023 is -10%. What can I do from here?
21 Year Old Looking for Most Value/Growth for a Roth IRA
Why diversify a growth portfolio with international markets?
Wanting to invest recent VA backpay - thoughts on how I'm proceeding about doing so
Does VOO rebalance stocks for the shares I already own over time?
Recommendations for Roth IRA investments with Charles Schwab
3-Fund Portfolio Comparison: Vanguard, Schwab, Fidelity
If Schwab goes belly up, what happens to investments in their mutual funds?
New 2 investing. Schwab Traditional IRA. In 2021 I contributed 6k and will do again this year. It’s down 10%, how should I invest/change my options/investments? Any advice?
If you were to buy & hold only 1-3 ETFs till retirement, what would it/they be?
Mentions
I didn’t like the SIP either, but don’t have any issues with Schwab. Have them convert to a normal brokerage account (they will close the SIP account and transfer to a new one) and just put it into SCHB+SCHF or SWTSX+SWISX.
Yeah, definitely bail on that. Schwab's robo advisor takes like 0.3% annually for basically doing what you could do with a simple 3-fund portfolio. Just move it to SWTSX/SWISX/SWAGX or similar low cost index funds and you'll save thousands over 20 years. Same diversification, way lower fees.
SCHA is redundant because you already have US small cap in SWTSX. SCHE is not redundant because you don't have exposure to emerging markets. A core global stock position using Schwab funds would be SCHB (or SWTSX), SCHF, and SCHE. F and E are only large cap, so if you wanted to fill in there you'd need to add additional funds.
Is it too redundant to add SCHA and SCHE to my portfolio of SCHG SCHF and SWTSX? I have a large growth tilt going that I am ok with but I want to be sure I am fully diversified too. I am 23 and will hold this for 40 years
I am 23 with 5k in my Roth IRA looking to save for 40 years. As of this month I will be contributing 300 a month plus additional money I will have left over a few months per year. Currently my portfolio is ~50% SCHG, ~30% SWTSX and ~20% SCHF. I think I am set with these 3 but am keeping my options open for possibly adding one more. Is there any glaring issues with this?
hi everyone, a few weeks into learning about investing in general and would appreciate if anyone had any input or ways I could improve where I started or if it looks pretty good. I’m fortunate to be able to invest or save basically ~3k month for the next year or so (no 401k through work). My plan was to put about $600 into my Roth IRA, $2000 into a MMF at Schwab (SNSXX), and the $400 or so left into a taxable account every month. Below is what I’m invested in for each. I have everything in a Schwab mutual fund as I like being able to invest partial shares. I like the idea of having a somewhat simple portfolio to start but I also want good growth as well as I’m just about to turn 24. I really appreciate any input/advice on this as I’m still a newbie and learning. Thank you. Roth IRA - SWTSX (60%) SWLGX (25%) SWISX (15%) TAXABLE - SWPPX (70%) SWLGX (10%) SWISX (10%) SFENX (10%) MMF - SNSXX (100%)
I sold 55K of SWTSX and kept everything else in my target lifecycle fund and kept my 401(k) alpine as well. I don’t believe it’s the end of the bottom and we are just getting started. I’d rather have the 55K cash to reallocate and diversify it all out of US equities.
Index funds. Period. SWTSX, SWGLX, SWISX, SFENX, SCHD. Easy
You started early, that's a great advantage. Invest a fixed amount into broad market index funds such as SWTSX. Most importantly, work on making more money, so you can invest more. Your goal of investing 50K over the next 6y is pretty modest, that's 700/month, which you probably can do already. I.e., you're assuming you'll still earn 4k/month in 25y when you should be earning way more than that by then. Grow your earning potential, increase your investment contributions proportionally, let it compound, and in \~25y you can start planning for retirement.
* Why have any dividend focus at all? * Have you considered either SWTSX or SCHB to combine SWPPX + SCHA into one? * You're currently taking on a tilt towards emerging markets compared to developed (market cap weight would be roughly 35% of stock as combined international, within that roughly 70-75% would be developed, the rest emerging). The 2 are fine, but if you want further simplicity and are willing to give up the emerging tilt, you could use VXUS or IXUS instead for your international coverage (Schwab went free to trade on ETFs, even those from other issuers, back in 2019).
Dividends aren’t always distributed evenly across the year, so your assumption is wrong. For example, [SWTSX does dividends once a year](https://www.tipranks.com/mutual-funds/swtsx/dividends).
blindly Yes, but your not blind about it. You can see it right there in the details. I’d rather have it in a no cost broad market index fund. Something like SWTSX.
I ran some models on [https://www.portfoliovisualizer.com/](https://www.portfoliovisualizer.com/) and was surprised how little variation there was between the two (less than 0.5%). For it to significantly matter, you would need to have started very early and had at least 30 years of growth. It seems to me, another thing with ETFs is your ability to get in and out of the market easier than with a MF (which I know is contrarian to what most people hold them for). I had a good feeling market would panic yesterday (get greedy when other get scared :-)) on the tariff news, only to rebound. But I thought it would have taken at least a few days. I had some cash that I put an order in for SWTSX, but because it closed at EOD, I missed the AM dip.
Are your ETFs total market indexes or something else? Assuming that they are held in an IRA, what I'm trying to figure out is, if your have a MF (for example SWTSX) that pays a single annual distribution in December, and an ETF (for example SCHK) that pays quarterly, wouldn't the ETF be more advantageous because an end of year market decline could eliminate the MF distribution, whereas you would already have three quarters of dividends from the ETF in hand? The fees and performance of both of these securities are for all intents and purposes equal, with a slight edge of performance going to SCHK.
Contrary to common misperceptions, mutual funds don't always distribute capital gains. SWTSX didn't distribute any capital gains in 2018, 2020, 2022, 2023, or 2024. In the years when SWTSX did distribute capital gains they were very small and just a fraction of the dividends that both ETFs and mutual funds distribute. Any concern about "tax efficiency" of ETFs vs mutual funds when it comes to broad index funds that have little portfolio turnover is overblown. In tax-advantaged accounts like IRAs it is a non-issue.
So I read that ETFs are more tax-efficient due to the lack of capital gains distributions. However I was looking at the distribution yield for SCHB versus SWTSX, and they're currently more or less the same. Are capital gains distributions not included in this statistic, and that's why they're so similar?
Mutual funds transactions are between you and the fund provider, not person to person like ETFs and stocks. Places would prefer you to use their mutual funds, so those tend to be free to trade, while those from other providers get an extra fee (why would you pay $75 per purchase of SWTSX if you can get FSKAX for nothing?), if allowed at all. ETrade I believe has agreements in place to offer Vanguard mutual funds at no extra cost.
Idk look at 1. Vanguard Total Stock Market ETF (VTI) Mutual Fund Equivalent: Vanguard Total Stock Market Index Fund (VTSAX) 2. Vanguard Total International Stock ETF (VXUS) Mutual Fund Equivalent: Vanguard Total International Stock Index Fund (VTIAX) 3. Vanguard Total World Stock ETF (VT) Mutual Fund Equivalent: Vanguard Total World Stock Index Fund (VTWAX) 4. Schwab U.S. Broad Market ETF (SCHB) Mutual Fund Equivalent: Schwab Total Stock Market Index Fund (SWTSX) 5. Schwab International Equity ETF (SCHF) Mutual Fund Equivalent: Schwab International Index Fund (SWISX) --- Expense Ratios: ETFs often have lower expense ratios than their mutual fund equivalents, especially compared to the mutual fund’s investor share class. The Schwab ones have significant differences (over 1% in the returns)
I decided I’m just going to do a mutual fund (SWTSX) and invest by the dollar amount to try to hit the max before the tax year ends
Schwab does not allow fractional share purchases of ETFs, only mutual funds. That is why you can buy dollar amounts of SWPPX, but only whole shares of funds such as SCHB, SCHD, SCHG, etc. If you want to throw exactly $7000 into one fund, you’ll have to choose a mutual fund. Be careful though, if you try to buy a mutual fund that isn’t a Charles Schwab product, they will charge a transaction fee, so I would suggest looking at something like SWPPX or SWTSX. If fractional ETFs are important to you, I would look at Fidelty before you contribute to your Schwab Roth IRA
Schwab only allows partial shares on stocks that make up the S&P500 index, it does not allow partial shares on ETFs or stocks out side the S&P500 Mutual funds are not stocks or ETFs they are mutual funds and they have always allowed for partial shares. So you cannot buy VTI what is an ETF by the dollar , the schwab equivalent MF is SWTSX .
You should never buy another company’s mutual fund on a different brokerage. They charge a $75 transaction fee each time. If you’re on Schwab, then use Schwabs fund SWTSX instead of VTSAX, or buy the ETF version VTI with 0 fees. If you only want to buy VTSAX, then move to Vanguard.
Schwab is great. There you could invest in SWTSX, a total stock market index fund, and own a piece of thousands of companies. It pays dividends too.
You don't need a lot of knowledge to invest in a total market index like FSKAX\[or FZROX\](Fidelity)/SWTSX(Schwab)/VTSAX(Vanguard) on a regular basis and just let it grow. Who operates the index only matters so much as they may not be available at your brokerage, or you may want to opt for one that is related to your brokerage.
So you would suggest to allocate 100% of the funds to the brokerage account and then choose like SWISX and SWTSX from there?
27% international is ok, I'd even increase that some. Favor can switch very quickly and unexpectedly (to some at least, there are many making the case for US under performance going forward that show their logic). I'd drop SWPPX. It is fully contained inside SWTSX.
I get you on the bond avoidance… you’re certainly not alone there. I think you may be missing out on some benefits regardless of your investment horizon (I’m 22 so in the same boat) but we can forget about that for now unless you’re interested. Overlap isn’t inherently bad it just increases complication unnecessarily. If you wanted to simplify my default would be to go for SWTSX since it is slightly more diversified albeit negligibly due to market weighting. Alternatively you could do SWPPX + AVUV to capture U.S. large cap and small cap value. I do something similar in my own Roth for my U.S. allocations.
Thank you for responnding. I don't have a bond fund as I believe there are better returns to be had. I 100% understand the stability of them. But I am ok with risk and I am not in it for the short haul. So even if things go South for a bit I feel in the long run things will work out, like they pretty much have over the past century or so. Do you feel it would be better to just eliminate SWTSX and have the money in SWPPX? Or is there enough non-overlapping that makes it ok to be in both? Or even sell the SWTSX and put it in something else? (If you say yes and put it in a bond fund, I will cast a Halloween spell on you that will attract teens with eggs!!! j/k)
It’s not bad! Just realize that SWTSX and SWPPX overlap massively so you’re getting almost the same thing with two different funds.
You're misinterpreting what it is saying. You're looking at it's risk score vs its category but these funds are in different categories. If you look at the overall portfolio risk score, Morningstar gives SWTSX a 73 and SWLGX a 77, indicating that the large growth fund is riskier...
I hear you, but isn’t SWTSX and SWGLX very similar in make-up to QQQ? They’re heavily weighted in the mag 7 and technology sectors
Drop it into a no cost broad market index fund like Schwab’s SWTSX.
Then you want a traditional mutual fund. To use the SWTSX example, you can invest $1. ETFs have some advantages but they are minor, especially for the new investor.
Buy SWTSX. My wife has a small play account, and I understand the gaming aspect. But don't delude yourself. if you are trading slivers of stock then you are not investing, and you and Scwhab are not good fits for each other.
I have SWTSX 70% and SWISX 30% in my Roth. I’ll probably keep that ratio until I retire in 30 years.
ETFs like SCHH & VNQ generally don’t matter, but SWTSX, VTSAX, SWISX & VTIAX are mutual funds and mutual funds typically have load fees when bought through a different brokerage than the fund provider.
Depends on your risk tolerance and goals!SWTSX/VTSAX is popular for US exposure, while SCHH/VNQ is real estate-focused.SWISX/VTIAX offers international diversification.
I’ve set it to auto-invest in SWTSX since I switched over, definitely available and no issues!
Been digging thru Reddit posts to find info about what you can and cannot buy thru the Choice plan. I got another email from HSA Bank today that says some of the holdings I have at Schwab will not be available in the Choice plan: *While many of the investments in the Schwab Health Savings Brokerage Account (HSBA) program are available in HSA Invest, certain investment types are not offered in HSA Invest. As of Sept. 3, you have holdings in one or more of the investment types not offered in HSA Invest. Certain investments in the below categories aren’t available in HSA Invest. If you have holdings in one of these investment categories call the number on the back of your card or review the list of unavailable investments to find out if your specific holding is impacted. American depositary receipt Mutual funds Common stock Convertible preferred stock Foreign Canadian and ordinaries Limited partnership Mixed unit Preferred stock Real estate investment trust Synthetic preferred (fixed rate capital securities) Unit investment trust (UIT) – exchange-traded Unlisted foreign ordinaries Warrant* Since it specifically called out Mutual Funds I was concerned, but if SWTSX is an option that's a relief. Ill let the rest sit at Schwab.
At my HSA there are no fees for using the Schwab account but you have to move the money their manually. I'd use Schwab's Index funds, like SWTSX which is their total US Market fund.
The Schwab (SWTSX) and Fidelity (FSKAX) versions of VSTAX have lower expense ratios (0.03% and 0.015%, respectively).
1. Why are you using two brokerages and Acorns? We have two brokerage accounts because we each had our own accounts before we got together. We also use Acorns because I had been using it personally for a while and decided to continue adding money to it. 2. How do you allocate funds between Vanguard and Schwab? When we say “the rest,” we mean that we allocate about $100-$200 to both Vanguard and Schwab. In our Vanguard account, we invest in VTSAX, and in our Schwab account, we invest in SWTSX. 3. How much are you contributing to your 401Ks? We both contribute 10% of our income to our 401Ks, and our employers match up to 5%. Currently, I have around $7,000 in my 401K after this year, while my fiancé is just starting her contributions this week. 4. What are your monthly expenses and savings? Our monthly expenses are already accounted for in our budget. After covering all our monthly expenses, we have $5,300 left in savings. 5. What are your incomes? My income is $120,000, and my fiancé’s income is approximately $150,000. We are both new to our jobs. 6. What are your savings and investing goals? Our primary goal is to save for a home within the next 5-7 years while continuing to pay off our loans and save for retirement. If you have any advice, feel free to let me know. We are very new to this
Broad market US index fund with a low fee. At Schwab it would be SWTSX.
Basically. We were something like 96% in the Broad Market (mostly SWTSX) for 34 years. When we started moving 401Ks to IRAs this year, I just tossed mine into MMF until I could setup our DCA routine. I still haven’t done that so now we’re about 30% MMF. When you’re retired with our NW it’s hard to ignite that 5% returns $250,000.
Throw 75% in SWTSX, then the remainder a company that produces a product or service that he uses frequently. Kid plays video games, the Roblox . Fan of Marvel movies? Disney. Virtual Reality or Instagram, META. Burritos? Chipotle. Coffee SBUX. Something that might give him an a reason to be a little bit more intersted, and actually consider the implications when he occasionally sees his company in the news. Or when he goes to Starbucks he can jokingly thank his friends for giving him money.
When I was 16 I had a Schwab custodial account with some stocks that I liked at the time (RACE, CQQQ, AAPL). I was very glad that my father did this for me, primarily because it exposed me to the world of investing at a young age. If I were you, I'd open a Schwab custodial account for him and put half in index funds. I wouldn't recommend SWTSX because it's a mutual fund, choose index ETFs instead (VTI/SCHB). The other half I'd put in something a little more fun, such as individual stocks that he knows. If he uses iPhone maybe he could own some AAPL, if he like Nike shoes he could own some NKE, if he plays Xbox he could own MSFT, if he shops on Amazon he could own AMZN, etc. I lot of people on this subreddit hate investing on individual stocks and only care about index funds, but I truly believe investing in individual stocks is important to understand what these index funds are really made of and besides, it makes it more fun.
75-80% SWTSX + 20-25% SWISX would be my vote
Seconding SWTSX. It's the equivalent of VTSAX but with lower fees.
The cost-per-share on the mutual fund version doesn't really matter—you invest arbitrary dollar amounts, no cash drag. (Consider SWTSX.)
Use a Schwab index fund, like SWTSX. You can invest as little as $1.
Sell and rebuy SWTSX for some tax loss harvesting.
Good idea. Let’s pick, oh let me see, how about the top 5,000? Hmmm 🤔 I wonder if there’s an easy way to do this? Hey, let’s get Chuck to buy them for us. Wonder if he should call it SWTSX?
What you guys think about this? SWTSX 40 SWAGX 20 VXUS 20 SCHD 10 SCHG 10
I will stick to my original strategy. SWTSX 60 SWISX 20 SWAGX 20
Why extra weight on dividends? Everything in SCHD should be included within SWTSX already and dividends aren't free money: the share price drops by the distribution amount.
Yes I got it from Professor G! Originally I was planning on doing all index funds 60 - SWTSX 20 - SWAGX 20 - SWISX
>Is this a good alternative to the 3 fund Portfolio? Not at all. The 3 fund profile uses the categories it does for a reason, only SWTSX of this set fills any of the roles of the 3 fund (the US stock part). US stock and international stocks are for gains. Recent history has hacked the US strongly over international, but that's been plenty of times where that was reversed. Having global coverage can both help increase returns and reduce volatility compared to 100% US (which your proposed portfolio would be) in the long run. Single country risk is also uncompensated risk by definition. Bonds help provide stability and an information asset class. A dividend stock fund absolutely does not fill that role. Did you get this from professor g?
My bias is towards simplicity - fewer funds are often better. You can consolidate the first three into SWTSX, which is a total market fund.
I got this email today as well and switched over. Definitely Choice - lower fees and more flexibility - not sure who would benefit from Select. Your options with Select are very limited (I didn't look very closely, but it was about 20 funds, including a lot of target date funds). With Choice your options are wide open (much like a traditional brokerage) and likely include whatever you were investing in via Schwab. I had all my Schwab funds in SWTSX, which is available with Choice, so this was a quick and painless transition for me.
What about it? Save into a brokerage account. DCA into SWTSX or equivalent on a regular basis. We’ve done it in an automatic account twice a month (5th & 20th). $350 each time. We’ve done this for over 30 years.
I personally use Fidelity as a brokerage - I sort mutual funds by their 10-year performance and their Morning Star rating. I look for expense ratios under 0.5-1% (the smaller the better). Just as an example, not recommended per se --- I have FSELX, SPY, FGRTX, FSKAX, SWTSX. Fidelity offers zero expense funds like FZROX too
SWPPX is Schwab’s S&P 500 mutual fund and has a similar return (“Over the past 10 years, SWTSX has underperformed SWPPX with an annualized return of 12.26%, while SWPPX has yielded a comparatively higher 13.02% annualized return.”) with a 0.02% ER vs SWTSX’s 0.03%. SWPPX does have a slightly larger max drawdown since inception (“The maximum SWTSX drawdown since its inception was -54.60%, roughly equal to the maximum SWPPX drawdown of -55.06%.”), however the March 2020 dip for SWPPX was -26.86% while SWTSX had a -28.29% dip. Quotes’ Source: [https://portfolioslab.com/tools/stock-comparison/SWTSX/SWPPX](https://portfolioslab.com/tools/stock-comparison/SWTSX/SWPPX)
SWTSX is already total US stock market (including REITS and S&P 500). Adding those positions to your portfolio wouldn’t diversify it; it would weight it. To diversify you would need to add international position(s). SWISX is Schwab’s international mutual fund (developed markets). For an ETF version (since you were looking at SCHH) you have SCHF (developed international markets).
Just keep investing in SWTSX. It takes a lot of time and effort to find the right individual stock. If you actually like to spend that time and effort, then go for it. But if you are looking for the highest return for the lowest amount of effort, then stick with SWTSX.
SWTSX should already include REITs at market cap weight.
S&P 500 is already included within the SWTSX that OP holds.
I am a complete newbie to investing. While skimming over the book, "Random Walk down Wall Street". 12th edition, I decided to follow the strategy given there. I am purchasing index mutual funds for my Roth IRA through Fidelity. On the long run, I want to maximize my Roth IRA. For today, I am making a purchase worth $300 - $42 - FFMAX (14%) $42 - SWISX (14%) $81 - SWTSX (27%) $37.5 - FRXIX (12.5%) $15 - FXLXX (5%) $22.5 - VCLT (7.5%) $22.5 - VGAVX (7.5%) $37.7 - VDIGX (12.5%) Am I making any newbie mistake here?
Hi all, I have a question about my portfolio. It's a simple question, but I'll lay out my situation first. I'm a 39-year-old male, married, and living in the US. I work full-time as a school head custodian, making $43k a year. I'm currently on the state pension plan and just started this job a year ago. They offer a 403b and a 457b. I read up on the plans and decided I would rather open a Roth IRA and invest in an account that I can manage as I learn more about investing over time. They contribute 14% to my pension, and I contribute 10%. Health insurance costs and union dues are currently holding back my current savings contributions from where I want them to be, but I just landed a part-time evening job that pays $200 a month, which should cover that. The money I'm asking about was from a previous 401k that I will admit I wasn't contributing enough to. I'm looking to retire in 27-28 years. I feel like I would like to keep these funds in a moderate-risk portfolio. I have $73k in a rollover IRA spread out over a few different funds, https://imgur.com/a/7kZ3mdb My home is paid off, my vehicles are paid off, we have a camper that I'm probably going to sell because I feel it's a bad investment, and we have $20k in liquid savings in a savings account that I'm trying to convince my wife to move to a HYSA. I just opened a Roth IRA and am investing in a Bogleheads fashion with Schwab. I only opened it about two months ago with $500. Currently, I'm putting $100 a month in and spreading it as follows: 60% SWTSX, 30% SWISX, 10% SWAGX. I plan to put all future raises into this account. I do use a frequent flyer miles rewards credit card to pay essential bills. I pay this off every month. Ultimately, I'm considering closing all other positions in my rollover IRA and going all in on VOO. Does this seem like a good idea to you all? My current dividend income is roughly $2k a year, and it's all being reinvested, but I'm not sure how these other funds will hold their value compared to straight VOO. I also know that putting all of your eggs in one basket is not always the best option. I'm just looking for some advice if anyone is willing to look over this. Thanks.
>The difference between SWTSX and SWISX is pretty minimal Did you mean SWPPX instead of SWISX? SWTSX and SWISX don't have any country overlap (SWTSX being US only, SWISX being only developed non-US). >but I would argue that small and mid caps are not absolutely necessary for an index investor. Not necessary, maybe, but for the same effortand only a 1 basis point difference (as long as either nothing has been bought yet or taxes aren't an issue, like in an IRA), I don't see much reason to exclude the US extended market. Oh, /u/Sentinel_1116: Common current recommendations seem more like 30-40% of stock be international.
The difference between SWTSX and SWISX is pretty minimal, but I would argue that small and mid caps are not absolutely necessary for an index investor. They are pretty volatile and really offer only a minimal long-term edge. I personally own a good chunk of small and mid caps in my 401k, but have put my Roth in SWPPX. Honestly, picking between SWTSX and SWPPX is a coin flip over a fraction of a percent. He can't really fuck up with either.
Really overwhelmed by all the options and trying to do the research, but it’s going a bit over my head! Could anyone offer any advice on my plan below? For context, I’m 31. I hope to retire at 55. Here’s my current plan. 403b: 70% VSTIX / 30% VCNIX My employer uses Valic and it sucks, but the two above seem to have not ludicrous expense ratios. The former tracks the S&P 500. VCNIX is a NASDAQ 100 fund, and actually has been outperforming VSTIX it looks like, but seems to be more volatile so I did this split. Valic does have VASGX as an option with an expense ratio of .14% (the other two funds range from .25 - .5), but the returns seem lower than my current picks. Roth IRA: 80% SWTSX / 20% SWISX This is with Schwab. Taxable Brokerage: 100% VT* *I’ve maxed out my retirement accounts and don’t have an HSA, so I’m opening a taxable account with Fidelity since I have a random 403b with them as well and was curious about opening a cash management account since I currently have $50k in liquid cash/emergency fund (of which $10k I will move to the taxable brokerage). I could also just open it with Schwab and do 100% SCHB? My time horizon for the taxable brokerage would be about 20 years — I assume I would dip into this first before dipping into my retirement accounts since I hope to retire early. I don’t have any bonds, and my portfolios are 2 fund portfolios at most, but I’m not risk averse. They are US heavy, but I think I feel comfortable with that. My plan is to mainly hold, I don’t think I’ll be doing much tinkering. I want to avoid rebalancing as much as possible with my taxable brokerage and I think I’m gravitating towards simplicity. The target date options on my 403b have crazy expense ratios and not as great returns.
I'd make 2 changes: * SWTSX instead of SWPPX. Why ignore thousands of US companies? SWTSX is a US total market style fund, so it'll fully include S&P 500 as a large percentage of the weight of its holdings (above 80% currently I believe), but also holds thousands of additional US companies * If you're ok with ETFs, use VXUS or IXUS for example instead of SWISX. SWISX is developed markets only, while VXUS and IXUS (and some others) combine both developed and emerging into one fund.
Assuming you will retire with a pension in the next decade, you can be somewhat aggressive with your investing. A mutual fund tied to whole stock market (VTSAX or SWTSX) or a sp 500 (VOO, SWPPX). I gave Charles Schwab and Vanguard options, there are others. If you are comfortable with working a brokerage, use their fund to keep the expense ratio low.
I have a Roth IRA with Charles I started this last year. I am 20 years old and I currently have most of my funding in SWTSX, VXUS, and VOO. I am mostly curious, is having VOO and VXUS in the same portfolio poor diversification? Is there a better international fund than VXUS? I am also curious if VTI is a more profitable choice than VOO or if it’s too close to matter? I’m really trying to establish a solid portfolio for my age with good risk/return and diversification Any other suggestions of funds or categories of funds I should have in here to achieve good risk/return/diverse portfolio, I would love to hear what anyone has to say. I’m trying to learn all I can! Thanks!
Opened my Roth IRA at 20 years old with Charles earlier this year and I have a few funds I have selected and invested into. I am curious if I am missing a major bullet in the portfolio that I should consider adding to this.. Curious what I may be lacking that I am not even aware of. Funds Currently: SWTSX VXUS VOO
QQQM because I wanted something to track large-cap growth and to be riskier with I chose against AVUV/AVGE since SWTSX covers smallcap and qqqm is where I play riskier with 10% to diversify
Difference in SWPPX and SWTSX?
I’ve heard consistent saving into SWTSX is a smart thing to do. 
Look at the Distributions tab for each Schwab fund and you'll see what it's done in the past. There's no way to predict the future. You'll owe tax on 15% of any distribution. [https://www.schwabassetmanagement.com/products/swtsx](https://www.schwabassetmanagement.com/products/swtsx) For example if you bought SWTSX now with your full $100k at its NAV of $90.56, you'd get 1104 shares. The last capital gain distribution in December 2021 was 0.2022 per share long term and 0.0352 short term. That's $223.28 taxed at 15% and $38.87 taxed at your marginal rate, say 22%. So you'd owe $33.49 + $8.55 = $42.04 in tax on this distribution. Is that worth the convenience of auto-investment? It always helps to actually do the math.
It may be different in your country, but in the US, you can buy ETFs through any broker while many index mutual funds are available to one or a few brokers. Like you can recommend VTI without knowing what broker someone has, just their country, but you can't do the same for VTSAX/FZROX/SWTSX.
They got any kind of total market index fund like SWTSX? Or a 500 fund like SWPPX?
Thank you for the response. Lastly, and if you don't mind, I've been doing some browsing today and a part of me wants to do the basic 3 fund portfolio in a separate brokerage account. Not my Roth IRA. SWTSX 60% , SWISX 20% , & SWAGX 20%. Is there anything inheritantly wrong with this approach? I always see the quote, " time in the market beats timing the market." I just hate missed opportunities. Again, this is for 15-20 years from now in case I need available funds that is NOT my Roth IRA. If my questions are vague, I apologize. Still learning. Thoughts? Suggestions? Cheers.
* 36, HCOL * Employed. Now making $89k, this is about a 30k raise from 3 years ago. I expect a raise at the end of the year that bumps me up 6% * Objectives: Buy a house * Timeline: 1-2years * Down payment savings: around $65k, $48k of which is in investments (SWPPX, SWTSX with a few thousand in stocks that are doing surprisingly well. I will likely leave the stocks alone). Percent gain is about 52% My question is when and how to start pulling money out of stocks. * I'm in a HCOL area where I currently can afford 0 houses. I'm hoping that in the next few years with this newer high income, that could become a possibility. I am lucky to have very cheap rent, but it comes at the price of a tiny, tiny studio. I can handle it for a bit longer, but I want to be prepared for when prices come into range. * I am able to put around $1000 a month into a down payment savings (combo of Ally HYSA and CDs/Treasury Bills) and am not putting any into stock market. This is after retirement and other savings. * The money in the brokerage account is for a down payment, I just realize there's not a lot of great information about what to do in this stage. If there are threads floating around about this, please link - I did some searching but couldn't find any.
Not a bad plan at all. There are plenty of other things you could invest in like smaller companies (via a total US market index fund like SWTSX) or companies in other developed countries (like SWISX) but there's nothing saying you *have* to. Important thing is you're saving early and investing, that should do you quite well. The rest of this is kind of a tangent, but since you mentioned sticking with it until your 60's & 70's: As you get closer to retirement age, whenever that is, you'll probably want to pull some money out of stocks and into something more stable like bonds or Treasury bills, or perhaps a fund that focuses on [current income](https://www.schwabassetmanagement.com/products/income) rather than growing your wealth. Reason for this is [sequence of returns risk](https://www.usbank.com/retirement-planning/financial-perspectives/sequence-of-returns-risk-impact-when-to-retire.html), the idea that a market downturn early in your retirement could seriously compromise how long your money lasts. As an [extreme example](https://www.fool.com/retirement/2016/10/23/the-10-most-important-years-of-your-retirement-pla.aspx), imagine someone had $1,000,000 saved up for retirement, all of it invested in a NASDAQ index fund (QQQ), and they retired on January 1, 2000. They plan to withdraw 4% ($40,000 + inflation) per year, which is generally considered pretty safe. Then the dot-com bubble bursts and the value of their portfolio craters. What was originally 4% of their portfolio becomes 10%+, and the retiree burns through their funds within 10 years. The eventual market recovery doesn't do much good because they've already spent most of their nest egg. Having some bonds or cash equivalents provides a buffer against that. How much to pull from the market is a personal choice. Conventional wisdom is [around 40%](https://www.schwab.com/retirement-portfolio) into things that aren't stocks, but then you have folks like Warren Buffett who plans to leave his wife a fund that's [90% stock](https://www.investopedia.com/articles/personal-finance/121815/buffetts-9010-asset-allocation-sound.asp) and 10% Treasury bills.
International fund, S&P 500 fund, Total Stock Market fund. There's some overlap with your SWPPX and SWTSX, but from a diversification stand point what you are doing is fine. Try not to be discouraged. Remind yourself that anything is better than $0. And that's not meant to be a dig. It's great that you're putting in effort to investing for your future. Keep it up.
ROTH IRA Advice? I opened a Roth IRA with Charles Schwab about a year and a half go and have been putting in about $100 a month (yes this is what I can afford right now). Can someone please tell me if I’m doing this right? I’ve been pretty much breaking the 100 into an even mix of SWSIX, SWPPX and SWTSX. (Maybe a little more invested into the SWPPX). Is this even going to help or do anything for me? Lol. I have absolutely no idea what I’m doing. I’d like to be able to start putting more towards it but I’m currently trying to pay off some heavy credit card debt that needs to be dealt with first. Please help a girl out lol. I’m not aiming to do anything crazy, I’d just like to maximize what I can so I can at least retire at some point.
ROTH IRA Advice for a Newbie? I opened a Roth IRA with Charles Schwab about a year and a half go and have been putting in about $100 a month (yes this is what I can afford right now). Can someone please tell me if I’m doing this right? I’ve been pretty much breaking the 100 into an even mix of SWSIX, SWPPX and SWTSX. (Maybe a little more invested into the SWPPX). Is this even going to help or do anything for me? Lol. I have absolutely no idea what I’m doing. I’d like to be able to start putting more towards it but I’m currently trying to pay off some heavy credit card debt that needs to be dealt with first. Please help a girl out lol. I’m not aiming to do anything crazy, I’d just like to maximize what I can so I can at least retire at some point.
Switch to Robinhood. Otherwise use SWTSX.
They are very highly correlated and so from a performance perspective there might not be much of a difference in the long run. One is a mutual fund and the other is an ETF FYI. If your personal brokerage is with Schwab you may have lower expense ratios and buy/sell fees going with Schwab funds. Something to look into and consider for future contributions. Selling one and buying the other may cause a taxable event you may want to avoid. I have a sizable SWTSX investment in my taxable brokerage and have considered moving to SWPPX or ETFs and overall I don’t think switching is worth it due to tax realization and minimal differences.
SWTSX is a better comparison to VTI than SWPPX is.
Schwab’s SWTSX or equivalent. Low cost. Decent results v. Market.
Not going to happen because of the way they trade it using “heartbeat trades”. But let’s say that “it could happen”. Why would that be any different than an equivalent fund like FSKAX, SWTSX, WFIVX, etc. People should consider that? What’s the alternative? Please elaborate on how they should mitigate such risk?
Diversification comes not from the number of funds, not what the funds hold. One to three funds can provide full diversification. See: https://www.bogleheads.org/wiki/Three-fund_portfolio and see the note about VT (2 letters) being able to cover the 2 stock parts, which allows a 2 fund portfolio that follows this concept. Or a target date (index) fund or target allocation (index) fund are fully diversified for you (they can usually essentially be boiled down to the 3 fund concept, just managed for you), apartment a 1 fund portfolio. ETF Overlap Tool: https://www.etfrc.com/funds/overlap.php I can tell you that your SWTSX and VTI fill the same role, you aren't really getting any diversification benefits from holding both.
>I'm considering reinvesting everything into either SWPPX or SWTSX so I can setup reoccurring investment each month set I can forget about it and let it grow. You'd be going (further) under weight on ex-US then. You should have a target US to ex-US ratio and work to find a way to accomplish that. Treat all accounts intended for the same purpose as if they were 1. >Is there any other mutual funds that you would recommend to go with SWPPX/SWSTX? SWISX adds developed markets, but not emerging. The only emerging mutual fund I know of from Schwab (SFENX) has a much higher expense ratio.
I think we're going on bull run #3 for NVDA and we see a stock split somewhere between $1k and $1.5k per share. GTC heavily influenced my decision. I rebalance twice a year. I would say if these positions grew to near 50% of my port value I would sell to rebalance towards 90/5/5 SWTSX/NVDL/FBTC. Otherwise, I will leave as-is because it's long-term position in my IRA
Whichever tool you like more. Some don't let you auto-invest into ETFs, but most do auto-invest into their mutual fund equivalent. For example I auto-invest into VTWAX, which is the mutual fund equivalent to VT. For Schwab the funds would be: SWPPX (S&P 500) SWTSX (Total US Market) VT (there is no direct Schwab equivalent) would be a 60/40 split between SWTSX and SWISX(International) You could also just put a weekly or monthly reminder and still buy ETFs, where you log in and click a few buttons.
No, not more than. I prefer SWTSX over S&P 500. But sometimes it’s easier for an absolutely brand new investor to see a plethora of information supporting the S&P 500 investment. It’s better to just lock them in than quibbling over the minor differences between the two
If it helps, think of SWTSX as being VOO + VXF combined into one, and SWPPX the same as just VOO. By holding only SWTSX, you win no matter which part (VOO or VXF) win. By holding both, you water down your results if it is VXF that wins.
>I have money in SWPPX and SWTSX You realize that SWTSX fully contains SWPPX already, right? >Do i have any reason to keep the stock slices when I already have SWPPX? Is that redundant or is there any sort of advantage? It is redundant (as is SWPPX when you have SWTSX). The advantage would be if you think that those companies will grow faster than the broader market during the duration you hold them.