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
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.
>Currently my portfolio is just 70% SWPPX and 30% VXUS. Honestly considering selling my SWPPX and buying SWTSX instead. That would be going riskier (as smaller caps are more risky than large). >Or is that old already for investing? How many late 20s and 30-somethings don't have any investments due to things like student loans or poor life choices? Over at /r/personalfinance there's often even people in their 40s and 50s asking about starting investing. >Wondering if there's any way to have a more aggressive portfolio since I am only 30 yrs old at the moment. Extra weight to small, value, and possibly emerging. These can take a while to pay off, but they have been identified as risks that should pay off over time. Factor investing: • https://www.investopedia.com/terms/f/factor-investing.asp • https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) >And was looking into QQQM and the likes but unsure if those will benefit me given my current investments. This almost always seems more like performance chasing (a better way to end up behind, not ahead) rather than one with a solid reason for expected continued out performance. IT is currently very heavy into large and growth, the complete opposite corner from what factor investing would favor. Then have you looked at the inclusion criteria? Does it actually make any sense to you?
Oh only because SWTSX and SWPPX are almost identical as far as I know? And was leaning more into the total market than just s&p 500.
Not an issue today with fractional shares. Also, don't overly invest into 1 company. Too much time and research. Just go with a tech ETF for 30% of your investment and call it a day. Examples: FTEC, XLK, or VGT. The other 70% portion of your investing portfolio, invest into a Total USA fund. VTSAX, VTI, SWTSX, SCHB, FSKAX, or ITOT.
A. Low fee broad market index funds. Total US and total ex-US is a great core. I stay around 80/20ish. B. The losses and gains will offset. C. I'd use ETFs in a taxable account. VTI and VXUS are great choices. If you want to automate investing on the Schwab platform, SWTSX and SWISX are pretty similar. SWISX does not contain emerging markets or small cap.
The short answer is yes. Assuming that you don't sell, taxes will be triggered by dividends and capital gains. There's nothing you can really do about the former. As for the latter, that can happen in mutual funds when the portfolio manager has to sell something inside of it. However, Vanguard has some method of preventing this in their mutual funds. If you're at another brokerage then you won't be able to buy the Vanguard mutual fund without paying an additional fee, and their equivalent (SWTSX, for example) could have those capital gains. This is why a lot of people promote the ETF versions (VTI) since you don't have to worry about the capital gains until you sell. All of that being said, in most index mutual funds the tax hit is pretty small.
OP, go to the bogleheads sub and read the wiki there. Pick a s&p500 fund (SWPPX) *or* total stock market fund (SWTSX). Add International if you like (VXUS or your brokerage equivalent). Bonds if you are close to retirement (BND). Give up on stock picking.
This type of transaction is best done via a mutual fund because there is no question on fills, VTI trades through out the day and if you buy at 10 am vs 3pm you will get a different price Mutual fund orders settle at end of day at NAV price so there is no real question on order execution Schwab/Fidelity will allow automatic buys but you have to use their corresponding mutual funds (schwab has SWTSX , Fidelity has FSKAX) If you insist on using VTI there are brokerages like M1 finance that will allow you to do this, however even M1 will only execute 1 trade per day (I think you can pay a subscription to get a second trading window) so it basically acts as a mutual fund anyway.
You’re coming in at a good time, lots of brokers have cut the basic commissions and fees to zero or close to it. In addition to newer entrants like Robinhood and Webull, established houses like Fidelity and Ameritrade/Schwab (recently merged) charge next to nothing for basic buy & hold investments. In terms of what to invest in, if you don’t have much to invest and/or don’t have a really good reason to hold a specific company, the best bet is typically an index fund. That more or less means a fund that doesn’t try to hand-pick companies, just buys everything within a certain basic criterion: - The stocks on the S&P 500, which are more or less the 500 biggest US companies - funds include VOO, IVV, or SPLG - Basically all US stocks - funds include VTI, ITOT, or FSKAX - Basically every stock worldwide - only one comes to mind, VT, but you could accomplish the same by splitting the money across two funds, one US and one not, like SWTSX & SWISX. (Side note, the reason for multiple funds using the same approach is basically different companies. It shouldn’t matter a ton who you pick.) The benefits to this approach are: 1. You’re not attaching your fortunes to any one company, but to the overall idea that companies will keep inventing and selling things. 2. As a result you don’t have to monitor things that closely; the fund adjusts as companies grow and shrink, appear and disappear. 3. These funds charge very low fees. Of the funds I listed, I believe SWISX has the highest fees at 0.06% per year of your balance.
Don’t buy VOO at Schwab, buy SWTSX
IRA limits right now are $7,000, so the fact you can max that out at $19k/yr is awesome—especially if you can put it in Roth. Previous poster suggested that you check if you can switch to a 1099 (basically, self-employment) and open a Solo 401k for yourself. If your employer doesn’t offer health insurance, either, then this is a solid plan. I recommend Vanguard or Schwab for the Solo 401k. If you already have Schwab, then a brokerage account with them, investing in VTSAX (might need to get the ETF version) or SWTSX would be a great way to go. Both those funds are very tax efficient even in a brokerage account. You want to have your emergency fund in either a high yield savings account or in government bonds (series I or series EE) so that your emergency fund money can do a little work for you while also being very secure.
That's perfect, Schwab is a great firm to invest your money with. Literally all you need is to put all your taxable brokerage investment money into SWTSX. <- that's it.
Active mutual funds like PRMTX need to distribute most of their gains for tax reasons. Usually they make major capital gains distributions in december. If you look at total returns, PRMTX is doing about as well as SWTSX. https://stockcharts.com/freecharts/perf.php?SWTSX,PRMTX
PRMTX - Fund situation Hello all, this is a fund that I am not sure how I could read. I invested some in late 2020, at which time the fund was about $180 per share. Obviously, it took a hit subsequently in 2022. However, I can not understand how it is only $ 130 per share now when the market is at a record breaking high. The companies in the portfolio have made good gains, but why is this fund lagging? (Comparatively, a total stock fund like SWTSX faired better). I know it could go down to not understanding something about this fund PRMTX. I am hoping that long term, it might recover, but I can not understand the current status. Could someone explain why so I could educate myself better? Thanks
>SWTSX Im surprised but it looks like SWTSX is lower expense fees than Vanguard, so I would stick to it. But I believe that every year the SP500 has outperformed the total stock market, so I would pick a SP500 index instead. $VOO is on every brokerage.
20 yo college student in the US, maxing out my Roth IRA with Charles Schwab for the 2023 contribution year. I also have about a quarter of my 2024 contribution so far. Looking for some recommendations for what to invest in. Thinking more along the lines of index funds because of the tax exemption and partial shares. Right now I am thinking: \- SWTSX (95%) \- SWISX (5%) I could also split into the smaller holdings: \- SWPPX (80%) \- SWMCX (10%) \- SWSSX (5%) \- SWISX (5%) Could switch it around and buy ETFs instead: \- VTI (95%) \- VXUS (5%) Any recommendations or advice would be greatly appreciated!
Not every mutual fund has capital gains each year. For example, SWTSX (the Schawb mutual fund equivalent to VTI) had none in 2020, 2022, and 2023. You can go to Schwab's website and look it up for each of your funds.
You only need one fund. SWTSX Schwab Total Stock Market. There is an ETF version with ticker SCHB. Keep it simple. If you want, we can discuss the other funds you hold. For example, SCHD is 100 companies already held in your S&P500 fund. Why continue to use that? Good luck with your results. There's a promising future if you consistently invest.
I currently have an old Roth IRA through Schwab with 100% allocation of SWTSX. I plan on transferring this to Robinhood in order to take advantage of the 3% match. I know I can’t transfer mutual funds, but is there any way to transfer this without losing my current cost basis? It seems like my only option is to sell and transfer as an equivalent ETF or transfer as cash.
>Should I put all my money into VTI from this point on? I wouldn't. Why are you thinking this. >Or should I continue to invest in SWYMX? Per4fectly good option. >Or should I start moving my SWYMX into SWTSX? Why intentionally go less diverse? >aren’t I supposed to “diversify”? Yes. So why are you asking about going less diverse?
SWYMX is probably as diversified as you can get if you are going to move that to VTI/SWTSX you are going to be a whole lot less diversified. You would be missing out on bonds and international .
I have a Roth IRA invested in the following funds: * SWPPX * SWTSX * SWISX * SWAGX I'm wondering about going for a proper 3-fund portfolio by selling what I have in SWPPX and reallocating to the other funds. Is this advisable? Does it matter either way?
I think an 80/20 allocation between SWTSX/VXUS is fine as is. However, if you really want to add QQQM (even though SWTSX has exposure to Tech, etc already), then I would personally take the allocation away from SWTSX and do a 70/20/10 allocation.
I thought about that also, I was thinking of moving SWTSX for SNXFX for potential more growth but a little less risk
SWTSX being a total market fund already has you in tech (and all other industries) in their proportionate market weight
This is not investing advice, just something that I may or may not do myself. 50/50 SWTSX/VGT. Best of luck with your investment goals.
SWTSX, SWISX, SWAGX- keeping it simple!
SWTSX or VTI is a good place to plop it while you figure things out. They're cap-weighted total US market funds. SWTSX is a mutual fund will allow you to automate contributions at Schwab which is convenient.
If you are on Schwab and want VTSAX just buy SWTSX, it’s the same thing and doesn’t have a transaction fee. FSKAX on Fidelity is the same also.
If you cannot directly purchase fractional shares where ever your account is then I don’t like ETFs retirement accounts. SWTSX is a lot more diversified so ideally reduces risk. My view on expense ratios is that anything 0.1% and below is great; but if two funds are largely similar then I’ll go with the lower expense ratio. As for growth vs value investing, I tend to not like choosing funds that complicate how they select the stocks that they hold; that’s just largely personal preference.
As a Schwab user what do you think of SWTSX/VXUS/SCHZ at 70/10/20
Hi, I'm not the OP but am curious if you have some advice for me. I am wondering how best to handle my 401k. I was looking at 80% total stock market and like 20% International. Of that 80% I could go all in SWTSX or SWPPX but wasn't sure if I should also look at SCHG or SCHB. I'm not 100% sure how to think of expense ratio. Thanks!
SWPPX is Schwab’s S&P 500 index Mutual Fund. It has an expense ratio of 0.02%. As a mutual fund it is bought/sold by dollar value instead of number of shares (useful for ensuring all of your contribution is invested). SWTSX is their Total US Stock market Mutual Fund. It has an expense ratio of 0.03%. This can be used if you want exposure to mid and small cap stocks as well (it is market cap weighted so it won’t be huge exposure, but still something). SWISX for international equities exposure. It has an expense ratio of 0.06%. This fund is specific to large cap developed foreign markets so if you want exposure to emerging markets or mid/small cap foreign you’ll need to find something else.
Long time to go.....so you have the luxury of time to recover from any losses (You can be more aggressive and less conservative with investments) You mentioned not knowing anything so the easiest thing would be \>100% in a total market fund like SWTSX as that is the entire stock market and is diversified. Over time you would buy into more conservative funds. Or even easier \>Index Target date fund (Key word index) this is a managed fund for very very low cost that will over time change your asset allocation to being more conservative as you get closer and closer to retirement. You basically choose a year to retire and how much to put in and it does everything for you.
SWTSX. Schwabs Total Market Index.
I will have a similar situation by that age. My pension will be about 65% of my final average salary which could be upwards of $175,000 a year by the time I reach retirement age, but I’m investing as if I don’t have a pension. I contribute 12% of my $140,000 salary into broad market index through my 401k, and $100 a week into SWTSX through my Roth Schwab. I can’t guarantee the future and I don’t pretend to know what will happen
The global market cap is 60/40 (U.S./International). I lean a bit towards the U.S. so I go 70/30. I also follow a three fund portfolio minus the bond fund, I will allocate to bonds when I am closer to retirement. At your age I wouldn't bother with bonds. My portfolio would be: 70% SWTSX 30% SWISX This is a 100% stock portfolio, it will experience all the market lows and highs but that's okay. You are young, time is on your side and you just have to remember to have a long term investment mindset and stick with your allocation (do not let short term events cause you to change your investment strategy). Take a lesson from Bob, the world's worst market timer: [https://youtu.be/pFgPNVytlwA?si=N-Ml-gKvAZLAmJ8o](https://youtu.be/pFgPNVytlwA?si=N-Ml-gKvAZLAmJ8o) Topic of bonds: [https://www.bogleheads.org/forum/viewtopic.php?t=328019](https://www.bogleheads.org/forum/viewtopic.php?t=328019) Topic of international: https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as\_a\_us\_based\_investor\_what\_percentage\_of\_your/ In general, ETFs are more tax efficient than mutual funds. This is why ETFs are preferred in a taxable brokerage account versus mutual funds. That said, index mutual funds are plenty efficient but if I wanted to optimize my investments I would choose ETFs for a taxable account. Tax efficiency does not matter for a Roth IRA. You would normally want to max out all your tax advantaged accounts (401k, Roth IRA, HSA, etc) before investing in a taxable brokerage account. The tax drag caused by a taxable brokerage account normally makes it fall well behind tax advantaged accounts. Also, if you plan to retire early there are ways to access your money early in your 401k, Roth IRA, etc. Money management tips: https://www.reddit.com/r/personalfinance/wiki/commontopics/
Hi all, Looking for some general investing advice for retirement on a 68% SWTSX/ 23% SWISX/ 9% SWAGX Roth IRA portfolio before I invest the funds and make it official. I’m a 23 y/o graduated college this past May, living at home $70,000 annual income working in consulting NYC. So, Im really just looking for some input here, does my portfolio make sense and does anyone have suggested changes/different weights? I am curious about the differences between investing in ETFs rather than mutual funds, is it true Mutual Funds are better for IRA and ETF for Individual Investing?
SWTSX and SPM perform almost identically, you can compare them at any web site that tracks stock performance. I prefer SWTSX because I can buy in dollar amounts rather than using whole shares.
Thank you for the responses, also do you only prefer SWTSX to SPTM because of the fractional share buying? Or is it performance?
SPTM and SWTSX are very closely correlated. I see no reason to hold both. At Schwab you may find it easier to purchase SWTSX since you can purchase by the dollar instead of by the share. SPDW is a developed market fund. It does not give you access to emerging markets. So if you truly want to diversify, add emerging markets. I am a Boglehead so my bias is towards simplicity. Adding more funds does not necessarily increase diversification. You can usually get by with one or two funds and be done. Consider either a Total World Stock Market Index Fund or a combination of a Total US + a Total International Stock Market Index Fund.
401k fund selection guide: [https://www.reddit.com/r/personalfinance/wiki/401k\_funds/](https://www.reddit.com/r/personalfinance/wiki/401k_funds/) So you have a Roth IRA at Vanguard and a taxable brokerage account at Schwab, why not have it all in one place? >Is it redundant to invest in VTI or SWTSX in my brokerage account at schwab? Ideally you want to follow an asset allocation strategy and allocate your investments to follow that same strategy. The exception is a taxable brokerage account where you may want to consider tax efficiency (like leaving out bonds) and wash sales. It can be beneficial to have a long term mindset when retirement investing and avoid performance chasing or recency bias. Please avoid the "youtube portfolio" of just a bunch of random funds because they are popular. [https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/](https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/) Currently I follow a three fund porfolio minus the bond fund, I will allocate to bonds when I am closer to retirement: [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) Did you know you too are following an investment strategy similar to a three fund portfolio? VTTSX is basically a three fund portfolio with an added international bond fund. Just look under 'Portfolio Composition' in the link below: [https://investor.vanguard.com/investment-products/mutual-funds/profile/vttsx#price](https://investor.vanguard.com/investment-products/mutual-funds/profile/vttsx#price) Have you maxed out your 401k and Roth IRA? If not, why are you bothering with investing in a taxable brokerage account. Don't tell me early retirement because there are ways to access your retirement funds early if you do decide to retire early. In general you want to max out tax advantaged accounts (401k, Roth IRA, HSA, etc) before investing in a taxable brokerage account. The tax benefits of tax advantaged accounts far outweigh a taxable brokerage account, you will generally come out ahead with the tax advantaged accounts. Money management tips, these can help you build a successful financial foundation: https://www.reddit.com/r/personalfinance/wiki/commontopics/
beginner question: I have VTTSX in my Vanguard Roth IRA and looking to invest in my brokerage account at schwab. For context, I’m 25 so I can be slightly aggressive but I also want to be able to auto invest and not have to worry. Is it redundant to invest in VTI or SWTSX in my brokerage account at schwab? Any suggestions? I also have a 401k with my employer in which I have not chosen an investment. any suggestions on this?
80/20 VTI/VXUS..or 100% SWTSX..you’re not going to get rich quick and your best friend is time in the market
>I'm not sure how this is but I know there is some overlap I assume since I hold SWTSX It is likely that SWTSX holds either everything or nearly so that SCHD does. SWTSX should have no overlap with SWISX. >I have heard of other funds like VOO and SCHG and so on. Both should be fully included within SWTSX already. Factor investing theory would favor small and value, not large and growth for long term returns. >Is there anything I should change as a 32m? Since you're ok with ETFs, consider swapping SWWISX out for VXUS or IXUS instead: SWISX is developed markets only, the other 2 also include emerging.
It's a great question but portfolio allocation modeling is not something that I am comfortable offering an opinion. SWTSX is similar to the ETF VTI which you also mentioned. The difference with SWTSX is that the fund is benchmarked against all listed US companies. So it's broadly diversified because it also includes exposure to midcap and smallcap companies. There are some people who prefer to include the entire market and not just large cap companies. You can always hold both funds if you wanted to overweight your allocation toward large cap stocks. However, there is also an argument that the S&P 500 is too heavily weighted towards a small handful of companies ("the magnificient 7") so a total market fund alone could also make sense. In the long run - it may not matter much and you may find yourself adjusting your allocation as your financial situation and risk tolerance changes.
You have been very helpful, I only have one more question. I see the SWPPX and SWTSX are commonly talked about and I see the difference. For a 30 year buy and hold strategy, does it really matter which one is better or should I just pick one?
Hello, Finally at a stage where I have enough disposable income to start investing. I want to invest around $1000 a month in a mutual fund, with main goal being to accrue enough funds to secure a loan for some investment properties (to rent) by time I am 45. I am looking for something that I can simply deposit money into and basically “set and forget”. So investing wise, I’m in it for the long term, not short term. I am 33 years old (non-U.S. [based in the Caribbean]) and I will be earning 110k usd p/a starting in January. My degree is in finance, so I have “theoretical” knowledge of investing, but I never actually traded/invested before. I will be using Interactive Brokers as my platform of choice. I am leaning towards the SWPPX and/or SWTSX. Does my plan make sense? What do you recommend? Thanks in advance for the assistance.
I'm assuming you're at Schwab due to the SCHD and SPAXX. You do NOT want to invest in Fidelity or Vanguard mutual funds (this includes FSKAX) because Schwab will charge you a transaction fee up to $75 for every buy. Fido and VG do this to Schwab mutual funds, as well. The fee is deliberately punitive, to discourage account holders from buying competitor's mutual funds. Note that there are no transaction fees for buying a competitor's ETF e.g. Schwab account holders can buy VTI without a fee. The Schwab equivalent MF to FSKAX is SWTSX. You're invested WAY to conservatively for someone your age. I wouldn't "ease" out of bonds, I'd sell everything but the CDs and buy SWTSX. As the CDs mature, that money goes into SWTSX as well. If you don't want to be 100% in equities, consider the target index fund SWYJX.
The safer answer would be to use 1 mutual fund (SWAGX? SWTSX?) to grab that leftover money due to the lack of fractional ETFs at Schwab.
Keep $20k in your high yield savings account. Open an IRA, preferably a Roth IRA, with a top trusted broker. Vanguard, Fidelity, or Charles Schwab. Invest $6,500 into Total USA index mutual fund. VTSAX with Vanguard, FZROX with Fidelity, and SWTSX with Schwab. Hold an additional $7,000 for January 2024 year and do the same thing. Do not pull the money out until you retiree. Start investing monthly into this account again in 2025 year. Open a taxable brokerage account with the same broker and put the remaining $1,500 into a Total USA ETF. Either VTI or SCHB. From February 2024 onward, invest a set amount into this account. It can be $100 per month to keep it simple.
I think that may have been more true in the past, but these days, IRAs are basically free and have no fees, and people have access to funds with very low overhead these days even with small amounts of money. Like if I were to do it, I'd have to go from VITSX to VTI, but both are 0.03% overhead. Or at worst, VTSAX at 0.04% if I was dead set on a mutual fund over an ETF. Unless my IRA isn't at Vanguard and there are mutal fund trade fees, so maybe SWTSX (Schwab) at 0.03%, or FSKAX (Fideloty) with 0.015% overhead.
Total Stock Market Index Fund (SWTSX, FSKAX, or VTSAX). You could also go with the ETF version if you like. Also check out the /r/Bogleheads sub and wiki.
>401k in Principal, there's a Fidelity 500 ETF in there FXAIX. That's a mutual fund, not an ETF. >My main question is there a reason to invest also in VOO, SWPPX or SWTSX on top of my 401k S&P 500 ETF? SWTSX would add coverage of the rest of the US market, but finding an extended market only fund could be better (S&P 500 + extended market in the right ratio = US total market). Long term factor investing may actually favor those additional companies. Adding an international fund can both help increase returns and reduce volatility compared to a 100% US portfolio.
>SWISX, SWPPX, SWSSX and lastly, SWTSX SWTSX already holds SWPPX and SWSSX, you can drop those last 2 and keep SWTSX, SWAGX, and maybe SWISX (while I do strongly support international diversification, Schwab doesn't have a combined developed + emerging fund to do so, so using VXUS or similar instead of SWISX may be a decent idea). Due partially to the overlap (fully contained within) issue I mention above, and partially based off "winners don't stay winners forever, going based off just the best returns isn't a good idea. See https://www.bogleheads.org/wiki/Three-fund_portfolio
Many of them, but not all. Got to look under the hood SWTSX and VTI are basically identical twins
Oh by the way, no need to wait until the end of the year, you should be regularly buying on a schedule that likes up with your direct deposit. My deposits are bi-weekly with payroll, so I setup an automated buy in my Schwab account to buy the exact dollar amount of SWTSX a couple days after my deposit hits.
If you want to keep your originally defined small caps then get the total market fund. I also wanted to add VXUS is a total market fund for international and includes developed and emerging economy stocks. So if you were 100% stocks then I think 60% SWTSX and 40% VXUS will cover you. I am not fully familiar with Schwab’s mutual funds but they may have an in-house fund that replicates VXUS at lower expense ratio.
Historically, the S&P 500 tracks pretty closely with the total us market. SWPPX is the S&P 500. SWTSX is the entire us market. If you’re interested is the concept of passive investing in index funds, and the rationale behind it, trying googling about Jack Bogle and Bogleheads.
Hey everyone. I just turned 21 and have finally been able to earn $6500 to invest in my Roth. Most of my money is in a high yield savings account in Wealthfront. For my Roth IRA, I'm thinking about the following mix: 70% Large Cap ETFS = 70% SCHG 10% Small Cap ETFS = 10% SCHA 15% International ETFS = 15% SCHF 5% Emerging ETFS = 5% SCHE I also want to invest in SWTSX but don't know how I would include that in my mix. If I was to input my SWTSX, I'm thinking 50% SCHG and 20% SWTSX. Thoughts?
Follow this advice: A) Get a free checking account from Capital One or a local Credit Union. B) Get a high interest savings account. Capital One or a local Credit Union. This is for your emergency funds and when you are not working. C) Open a Roth IRA with Fidelity or Charles Schwab and start investing into a Total USA index mutual fund while working. FZROX with Fidelity or SWTSX with Charles Scwhab. You can start with as little $50 per month. Stay consistent investing while working.
SWTSX for total market or SWPPX for S&P ( I buy this one in my Roth. Look up “How to Buy Funds on Schwab” and you’ll find a bunch of resources and videos explaining the trade functions and terminology.
>I was thinking of doing 60% SWPPX, 20% SWTSX, and 20% VT ETF. No. That'd be tripling down on the S&P 500, as it is fully contained within both SWTSX and VT. Most of SWTSX is also in VT. >I would invest in the mutual fund equivalent of VT but I'm investing a small portion of my paycheck each week vs depositing lump sums on an annual/semiannual basis so I can't afford the minimums required for a lot of the mutual funds. Using a Vanguard mutual fund in a Schwab account is a terrible idea anyway: there's a few for each purchase. >Does this sound good? No. >Diverse enough? 100% VT would be more diverse.
Really 3 options: A) Point them to the professionals with Vanguard, Fidelity, or Charles Schwab. This removes any negative feelings if it goes wrong for things outside of your control (stock market crash like 2008). B) A Total world ETF or index mutual fund from Vanguard. VT is the ETF, and VTWSX is the index mutual fund. Total world diversity with 52% from the USA stocks and 48% internationals stocks. Unless the whole world collapses, your parents should be covered. C) A Total USA ETF or index mutual fund. Similar to option B but excluding the international market. It has outperformed the international market since the 90s. If the USA remains an economic powerhouse, then it is a drastically better long-term bet. ETFs in this category are: VTI, SCHB, and ITOT. Typical Index mutual funds within IRAs are VTSAX, FSKAX, FZROX, or SWTSX.
I actually used to do this, but when you set up automatic buys for SWPPX and SWTSX the minimum amount is $100. So I did just over $100 for SWPPX biweekly, and then save up a couple weeks and buy SWTSX every month or so. My goal is to automate as much as I can and buy in frequently, but the fractional share issue and $100 mutual fund threshold are keeping me involved more than I like.
Us total stock market . These options are: SWTSX (Schwab ) VTSAX, (vanguard) FSKAX (fidelity) — (index fund) VTI (vanguard) (etf) They all track the total market , just pick one , preferable lowest cost . Returns are similar. Or you can include 15-20% total foreign market stocks as well for extra diversification : VXUS (vanguard total international) , SCHF (Schwab foreign)
Put $3,500 in a high interest savings account. This is for emergency needs. Put $6,500 in a Roth Individual Retirement Account (Roth IRA) if you are working. Use Fidelity or Schwab as your broker. Roth IRAs use post tax money, so Amy gains are tax free in retirement. Remember to invest into a Total USA fund. FZROX for Fidelity and SWTSX with Schwab.
Because Target Date Funds (TDFs) underperform the S&P 500 over a 20 year period. VOO is an Index ETF that follows the S&P 500 index, so it also outperforms all TDFs for long-term investing. VTSAX (an index mutual fund) offers good diversity like a TDF, but with better long-term returns due to no bonds and no international exposure. If you want diversity with simple singular fund, pick VTSAX for your Roth IRA. VTSAX equivalents at other brokers are FZROX or FSKAX at Fidelity. SWTSX at Schwab.
It’s not just SPY. It’s IVV, ITOT, VOO, VTI, VTSAX, SCHB, SWTSX, and a hundred other funds that offer slice and diced versions of the global equity market with quarterly dividends. And we’re not talking about the long term return, we’re talking about a few minutes, hours, and days of inefficiency in the market. These inefficiencies are rapidly corrected by creation/redemption of funds, but WSB is trading on a second to second basis with massive leverage. These inefficiencies wouldn’t exist in a perfect free market, but US securities and tax law means these inefficiencies will regularly form and be corrected by the market. In this case, I’m one of the active traders trying to take advantage of it. There’s more sophisticated ways to do this at quant funds, but my approach is much cheaper, if a bit riskier.
So there's a whole bunch of different things going on. 1. Selling shares of that scam they got you into. I don't know -- there may be back-end load associated with that fund. If there is, they're going to take a percentage, but that's likely true no matter when you sell. 2. Load on what you're buying into. Simply don't buy into any funds with load. 3. Fees for buying something else. This depends on the brokerage. For the brokers I mentioned, stocks and ETFs generally have no fees unless you're doing something odd like buying on a foreign exchange or over the counter (ie. stocks not listed on exchanges at all). For mutual funds, it depends on the broker. For instance, I have Schwab. They have some list of preferred mutual funds that I can trade with zero fees. For other funds, I might have to pay a trade fee to trade in those mutual funds. For example, if I wanted to buy VTSAX (Vanguard Total Stock Market Index Fund), I would have to pay a fee. But I can buy VTI (same thing but in ETF form) for no fees. So I'd just buy VTI. Or if I wanted to stick with a mutual fund over an ETF, I could buy something similar from their list of funds with no trade fees, like SWTSX. But I'd just buy VTI. 4. Rolling your money out of one account and into another. Generally no fees associated with that, but you can verify with your new, less-shitty broker before doing anything. As long as you're rolling it from one retirement account to another retirement account, you're generally good. Make sure you know whether your current account is Traditional or Roth, as that will affect what sort of account you need to open at your new broker to roll it over into. In fact, verify everything I'm saying, because I'm just some rando on the internet and you shouldn't trust me implicitly. I'm not lying, but there could be something I don't know about.
Transitioning to an all-equity allocation like SWTSX at age 33 can be a reasonable strategy, especially if you have a higher risk tolerance and a long investment horizon.
Just replace TDFs with a Total USA index mutual funds. Schwab - SWTSX on their platform. Vanguard - VTSAX if you have over $3k to invest on their platform. If you don't have $3k, then invest into ETF VTI using fractional shares. Manual orders only though.
At your age just do 100% SWTSX. You don’t need bonds
If you are with a good brokerage outside of Vanguard like Schwab or Fidelity, their equivalent index funds are good. Schwab's total us market mutual fund SWTSX, for example, has an expense ratio of .03% compared to VTSAX which is .04%. Fidelity has zero cost funds if you plan on staying with them. If your using a brokerage that kinda sucks, like say T Rowe Price, their in house S&P 500 index fund PREIX has an ER of .20%. So in that case, using a Vanguard ETF or fund would be a better choice.
Remember the tax savings make no difference in a IRA/Roth IRA / 401k Also remember its more of a tax deferment with a MF you will get a negligible amount of capital gains paid out every year and get taxed on it, where with a ETF it just gets rolled into a cost basis Meaning you will still pay the taxes just potentially when you sell the ETF. However most cap weighted index fund have low turning just doing some quick math on schwab total market fund SWTSX. In the past 5 years it only had a cap gain distribution in 2021 an 2019. 2021 had a distribution of 0.29% 2019 had a distribution of 0.24% Meaning if you had an average of 100k invested you would get a distribution of $291 and $244 respectively These are long term gains so your tax liability per 100k would be approx $43 and $36. Meaning over the 5 year average on every 100k invested you pay about $16 of cap gains tax a year. I really think people make way too big of deal over this stuff, also remember with ETF you do not skip the tax altogether you just deffer it what is a benefit but is it that big?
Open up a Roth IRA and max it for this year (2023) and next (Jan 1, 2024). Invest that RothIRA money in any index fund (SWTSX or VTSAX). Forget the money ever existed until you're ready to retire.
Here are the top 5 index funds I can recommend. 1. Wilshire 5000 Index Fund (WFIVX) 2. Fidelity Total Market Index Fund (FSKAX) 3. Vanguard Russell 3000 Index Fund (VRTTX) 4. Schwab Total Stock Market Index (SWTSX) 5. Fidelity ZERO Total Market Index Fund (FZROX) If you want to know why I chose these top 5 index funds, you can read my full article here. https://www.munifali.com/top-5-index-funds-to-invest-in-2022/
You need to understand how bid-ask spreads work to understand this topic. * When you see a stock price, it’s the last price the stock was bought/sold for. For example say a stock was last traded for 58.32. That’s the price you’ll see listed everywhere. * When you see a bid price, it’s the most a buyer is willing to pay to buy. For example, it might be an offer to buy 100 shares of the stock at $58.31. * If you look at Level II options, you can see that the next bid might be 1000 shares for $58.30. So the first 100 shares might be sold for $58.31 and then $58.30 becomes the new bid price for the next 1000 shares. * When you see an ask price, it’s the lowest price a seller is willing to accept. This might be 200 shares at $58.32. This means the buyer and seller have to haggle a bit to come to an agreement. One or the other has to increase or decrease their offer to buy or sell. * The mark price is the mid point between the bid and the ask prices. This would be $58.315. * You might also notice that supply of shares to be sold is 200, but there is an offer to buy only 100. This suggests that there are more sellers than buyers so the price should go down. * But often times, big institutional investors say they want to buy or sell 100 shares when it’s really 1000 or more. They slowly buy or sell into the market to give more buyers and sellers time to react. * The real price is whatever you and the seller negotiate. You can only see it after you’re done making the deal. Then it becomes the new last price. The issue is that one lot is the standard order. That’s 100 shares. If you’re offering to buy 1-99 shares, that’s an odd lot and it’s clearly being placed by a retail trader. Market makers buy up all the odd lots and bundle the orders into standard lots when making trades with other institutions. The bid ask-spread is 1 penny above. If you buy at the ask price of 58.32, you’re losing about half a penny compared to the mark of 58.315. And if you compare it to the true priced based on the supply and demand of orders, maybe the real price is closer to 58.3133. So you overpaid $0.0066 aka 2/3rds of a penny. That’s basically nothing on small orders. But if you bundle 100 together. It’s 66 cents. You can then sell it to someone at the mark of $58.315. That’s a 16 cent difference in 100 shares aka 1 lot. And since it costs you almost nothing besides electricity, a computer, and a super fast internet connection, you can set up a market making system to handle a ton of these lightening fast trades per day. You’re just collecting the tiny sub penny increments. Over high volume, it adds up. But if there’s a competing market maker, you can offer the brokerage a rebate to give you the trade instead of someone else. The retail trader wants the stock for 58.32 and that’s the best price being offered to the retail trader anywhere. That 16 cent difference over 100 shares is all the money you have to work with. You have to pay for electricity, pay the brokerage for sending you the trades (which they might pay to the individual trader), and then you keep the rest. There’s little major risk to you though. You’re just a lightening fast middleman retailer who buys in bulk and who has slightly faster shipping and handling than others. Worst case scenario in real life us your ship sinks, and the worst case scenario is you buy and expensive stock hoping to sell it immediately, but you get stuck with it as the price tanks. Anyways, I switched from TDA to Robinhood. In my experience, the options spreads are the same. TDA doesn’t have any price improvement on options. The 65 cent per contract commission (which represents 100 shares) means if TDA could save me 1 cent on the price of a contract, it would be worth it. 1 dollar savings means I’d be 35 cents ahead. But I’ve never seen this happen. The same applies to stocks and ETFs. Robinhood’s pricing is the same as TDA’s in my experience. Fidelity used to have better execution, but they’ve gotten worse as they realized that their retail customers don’t really notice or care. I never keep cash in my Schwab or TDA account. I always put leftover cash in SPY, SGOV, a mutual fund like SWTSX, or transfer it to an HYSA. Fidelity and Robinhood Gold are solid places to keep cash these days though. The study I mentioned is in my first comment. Second hyperlink. Robinhood and WeBull don’t charge a spread. They get a rebate from the market maker who has to do better than the best price available on a lit exchange. You wouldn’t be able to get that price anyways. So the maximum amount you’d lose is the amount of the bid ask spread. Imagine paying half when you buy and half when you sell. That’s a penny in the example above. A spread is when they tack on an extra fee. They buy at 58.32 and sell to you at 58.33. The extra penny is a spread. A commission would be charging you $10 to buy at 58.32. Ultimately, new tech has made trading super cheap. A 1 cent bid ask spread is plenty of room for market makers to work within. Note this only applies to liquid securities though. Some ETFs might have a 10 cent bid ask spread. I tend to stick to the most liquid securities like SPY. I’m happy to let Robinhood or any other broker route my order to any market maker or exchange and I don’t particularly mind if they keep a cut if the spread. There’s lots of games for bigger traders. Hedge funds are trying to outcompete one another. And this is rough for less sophisticated institutional traders. But it’s much cheaper for me. I like Vanguard and Robinhood for figuring out a way for passive retail investors to profit off of large active traders trying to fight with one another. Cash sweeps, PFOF, securities lending, etc. are all good for smaller dollar investors. The whole industry is in a race to the bottom on price. Investing and trading are now cheap enough for the masses to participate. Pretty cool stuff.
Assuming you are working: A) Open a Roth IRA account with either Fidelity or Scwhab (if you travel often). It is a tax protected account as long as the money stays in the account or you turn 60 years old. B) In that Roth IRA account, invest into a Total USA fund. Set it to auto invest monthly for your $200. FZROX for Fidelity or SWTSX for Schwab. In case you are not working and family/scholarship is giving this money, open a regular taxable brokerage account. From there invest into ETF SCHB. ETFs are more tax efficient than index mutual funds most of the time. Vanguard index mutual funds are the exception to the rule.
Follow these steps: 1) Open a Roth IRA with Fidelity or Charles Schwab. Invest $541 monthly into a Total USA index mutual fund. FZROX with Fidelity or SWTSX with Schwab. 2) Open a regular taxable brokerage account with the same broker as mentioned above. Invest the rest, $959 per month, into Total USA ETF "SCHB". For definitions, check out Investopedia website. Good books: - "I'll teach you how to get rich" by Ramit Sethi. - "Millionaire Next Door" by Thomas J Stanley.
Follow this plan: A) Leave $500 in your checking account. B) Put $9,500 into a high yield savings acccount. Discover or Capital One. This is your emergency savings. Car repairs, new laptop, or rent/mortgage money for 3-6 months. C) Put the rest in a Roth IRA if you have a job currently. Fidelity or Charles Schwab for brokers, and invest into a Total USA fund. SWTSX with Schwab or FZROX with Fidelity.
Seriously, OP is getting punished for… being disabled? To answer the question: look for a total-market index fund or ETF with a low cost ratio. It’s basically a simple way to invest in the entire stock market at once. For Schwab, I recommend SWTSX.
Good job getting started. Order of investing process: A) While working, invest up to the employer percentage match in the company 401k or 403B plan. Example: if the employer pushes for 3% match, invest 3% of your check pre-tax into a Target Date fund or S&P 500 index mutual fund. B) Also if working, max out your Roth IRA if possible or as much as you can reasonably put in. You have flexibility to choose the broker and the Index mutual fund to invest with. I highly recommend Fidelity, Charles Schwab, or Vanguard. Pick a Total USA index mutual fund and don't look back. SWTSX for Schwab, FZROX for Fidelity, or VTSAX for Vanguard. Max annual deposit is $6,500 per year currently, or $541 per month. C) If you are not working or maxed out A and B, the open a regular taxable brokerage account. Invest into 80% into a Total USA ETF and the remaining 20% into either international ETF or individual stocks (Apple, Microsoft, or AMD).
Here's what I mean: Acorns tracks 5 or 6 portfolios with very broad index funds, the most notable being VOO and iShares mixed in with over 6,000 others in stocks and bonds. Overall, Acorns tries to get a 6% return rate on your investments. Their strategy is compounding safely, so you are more risk-averse. Whereas if you were to invest through a brokerage and pick individual ETFs or funds like SWTSX, VOO, or VGT you would have a rate of 17%, 16%, and 33% return respectively. Keep in mind, you are more risk-on with these investments as they are directly correlated with what sector in the market they follow. For some if the S&P500 tanks, these ETFs drop. If tech tanks, then tech ETFs drop. And so on. You have to be comfortable with knowing what sectors you are investing in and what your risk tolerance is. Then you have to do a lot of research and pick stocks, bonds, treasuries, and ETFs that appeal to you. If you aren't sure where to start, this sub and many others like it are a great place to begin. And if you still aren't comfortable doing your own research, hire a financial advisor and then decide what the best course of action is for you.
Thank you! So you’d suggest transferring it to schwab or fidelity and my return would be much greater? I heard that investing in SWTSX for schwab is the way to go but i don’t really understand why that’s different than acorns