VBK
Vanguard Small-Cap Growth Index Fund ETF Shares
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Not me. I use to be an index only guy. Got bored during COVID. It was just too obvious to not buy the biggest dips. I sold VOO and went like 70% in on VBK (small cap) because they took a bigger hit. IIRC it gained more than VOO as well. Then I bought VDE (Energy) dip. Then I bought AMC meme just for fun, only $500 worth unfortunately. Then I sold VBK in 2021 for NVDA, PLTR, COST, AXP, MSFT. Imagine if I had listened to Reddit advice...
Same. It was just too obvious to not buy the biggest dips. I sold VOO and went like 70% in on VBK (small cap) because they took a bigger hit. IIRC it gained more than VOO as well. Then I bought VDE (Energy) dip. Then I bought AMC meme just for fun, only $500 worth unfortunately. Then I sold VBK in 2021 for NVDA, PLTR, COST, AXP, MSFT Imagine if I had listened to Reddit advice...
Surely these are all small cap growth rather than small cap value? It would impact something like VBK more. In fact, even outside of tech I wonder how many companies IPO at SCV valuations?
Because my current age: VUG VOO VBK
>**However, in my research of index funds, it seems like all of them are at nearly all-time highs** (VT, VXUS, VTI, VBK)! Markets are regularly near ATHs. [https://www.schwab.com/learn/story/does-market-timing-work](https://www.schwab.com/learn/story/does-market-timing-work) >Should I just keep the funds in my HYS account for the time being? What is your time horizon for needing the money? If +10 years, it should be in the market. If <7 years, it shouldn't be in the market.
VBK for small caps. Interest rates will start going down, which will be a boost for small caps in the short-mid term.
The best time to start investing was yesterday. The next best time to invest is today! Look into index funds (VOO,QQQ, VBK) consider AMD and META. If you’re feeling crazy buy some small caps like HNST, RCAT. Tons of opportunities out there just gotta do research and HODL. In terms of crypto, I would look into ISO 20022 compliant tokens
VBK has been lagging quite a bit and think it will outperform VOO in the next year. It’s showing an inverse head and shoulders (which just broke) and when the Fed starts decreasing rates, VBK will break out and catch up with VOO. Once it’s caught up, I’ll be selling it and all into VOO. VTI is a smart choice for those who want all large - mid - and small caps rolled into one, but I choose to neglect the middle child 😉
> That’s could be all well and true but the simple fact is that under historical PE ratios, tech vastly outperformed the rest of the market. That is because P/E for tech has risen. If you go from a P/E of 15 to 30, for example, you double in value even if you don't achieve any growth. In comparison, if you go from a P/E of 20 to a P/E of 10, and double your earnings, your value stays the same. >Therefore the market adjusts and gives it a higher premium until it’s at a price the market believes will make it trade with the rest of the market. You are correct that market expectations for tech are very high right now. Investors are willing to pay a lot because they think earnings will grow very fast due to AI. Most investors are piling into tech, willing to pay any price, while leaving the rest of the market ignored. However, this also means that there is a very high bar set for tech. They need to achieve outstanding results, or their values will tank immensely. We saw in 2022 what can happen when growth stocks are aggressively valued. VUG, VBK, VGT all dropped by 30-40%. They were then only saved when market expectations improved due to AI. The dip we saw this week shows what happens when earnings don't grow fast enough to meet sky-high expectations. Despite Nvidia having solid results, they still declined by 8-9%. This is the issue with high P/E. If you have a high P/E, you need insane earnings growth just to maintain your current value.
This is my current breakdown: 5% crypto 10% bonds - 70% allocation to BND 30% allocation to BNDX 85% stocks- 50% VOO 30% VXUS 7% VO 7% VBK 7%VGT - last three are small cap, mid cap, and IT ETF's. Some of the IT stocks are already included in the VOO but I just think with the the way tech is heading I wanted to make sure I had allocation in a fund specifically weighted towards only tech related companies. My 1 year return on this portfolio is 24% 10 year is 11.5% but I really only started heavily investing about 3 years ago.
If you’re looking for small companies poised to grow, you can look through the holdings of a fund like [VBK](https://finance.yahoo.com/quote/VBK/holdings/). Two problems with that approach though: 1. Everyone else expects the company to grow, so it’s priced accordingly. It’s not just about how much they grow, but how much their actual growth exceeds expectations. 2. The market’s average return is driven up by a [relative handful](https://www.sci.co.bw/planning/why-do-most-stocks-underperform-their-index). For every company in that group that takes off, ten others will stagnate or fail. How do you intend to identify tomorrow’s best performers?
Drop the advisor and consider a more general ETF allocation rather than sector investments. By going the sector route, you create the risk of choosing poor performing sectors. A better approach would be to put the majority (80%) of the funds in VOO. Then, if you want to up the risk/reward profile a bit because of your young age, sprinkle in your VGT (10%) for tech, VXUS (5%) for some foreign exposure and VBK (5%) for small caps. I would definitely avoid putting 30% into something like a healthcare ETF that could very well underperform the broad market perpetually. Good luck!
Short term its going up baby up yessiree. This *is* financial advice. Also, dont buy VBK. Bad choice.
IWO IWP IWF IWV VBK VBR All these have performed for me
Same goal but I'm older. I'm throwing a big chunk into growth funds like CGGR, SOXQ, IVOO, SCHG, and VBK.
A lot of interest in small caps lately, a lot of excitement being generated around the idea that rate cuts are substantial tailwinds. I was interested in the relative performance of various ETFs about 8 months into the year. Here is a table of the 8 largest small cap ETFs by AUM. Note this is delayed data as of Thursday close. Since a lot of movement occurred Friday, I will try to put up another one tomorrow. Still should give you an idea of relative performance and it appears rankings between them did not change too much, [they all did great Friday.](https://i.imgur.com/UExjX7q.png) |**Symbol**|**ETF Name**|**Total Assets ($MM)**|**YTD Price Change**|**Avg. Daily Volume**| :-:|:-:|:-:|:-:|:-:| |IJR|iShares Core S&P Small-Cap ETF|$84,851|5.15%|3,539,714| |IWM|iShares Russell 2000 ETF|$68,282|6.97%|31,931,624| |VB|Vanguard Small Cap ETF|$58,188|7.55%|601,177| |VBR|Vanguard Small Cap Value ETF|$29,433|8.32%|409,989| |SCHA|Schwab U.S. Small-Cap ETF|$17,571|5.84%|856,555| |VBK|Vanguard Small Cap Growth ETF|$17,542|6.59%|291,578| |AVUV|Avantis U.S. Small Cap Value ETF|$12,682|3.99%|735,970| |IWO|iShares Russell 2000 Growth ETF|$11,666|8.78%|411,345| Very different benchmark and a poor comparison but S&P 500 is 18.1% YTD.
A lot of interest in small caps lately, the thesis being that cuts are good for them. I was interested in the relative performance of various ETFs about 8 months into the year. Here is a table of the 8 largest small cap ETFs by AUM. Note this is delayed data as of Thursday close. Since a lot of movement occurred Friday, I will try to put up another one tomorrow. Still should give you an idea of relative performance and it appears rankings between them did not change too much, [they all did great Friday.](https://i.imgur.com/UExjX7q.png) |**Symbol**|**ETF Name**|**Total Assets ($MM)**|**YTD Price Change**|**Avg. Daily Volume**| :-:|:-:|:-:|:-:|:-:| |IJR|iShares Core S&P Small-Cap ETF|$84,851|5.15%|3,539,714| |IWM|iShares Russell 2000 ETF|$68,282|6.97%|31,931,624| |VB|Vanguard Small Cap ETF|$58,188|7.55%|601,177| |VBR|Vanguard Small Cap Value ETF|$29,433|8.32%|409,989| |SCHA|Schwab U.S. Small-Cap ETF|$17,571|5.84%|856,555| |VBK|Vanguard Small Cap Growth ETF|$17,542|6.59%|291,578| |AVUV|Avantis U.S. Small Cap Value ETF|$12,682|3.99%|735,970| |IWO|iShares Russell 2000 Growth ETF|$11,666|8.78%|411,345| Very different benchmark and a poor comparison but S&P 500 is 18.1% YTD.
A lot of interest in small caps lately, the thesis being that cuts are good for them. I was interested in the relative performance of various ETFs about 8 months into the year. Here is a table of the 8 largest small cap ETFs by AUM. Note this is delayed data as of Thursday close. Since a lot of movement occurred Friday, I will try to put up another one tomorrow. Still should give you an idea of relative performance and it appears relative rankings did not change too much: [https://i.imgur.com/UExjX7q.png](https://i.imgur.com/UExjX7q.png) || || |**Symbol** |**ETF Name** |**Total Assets ($MM)** |**YTD Price Change** |**Avg. Daily Volume** | |IJR|iShares Core S&P Small-Cap ETF|$84,851|5.15%|3,539,714| |IWM|iShares Russell 2000 ETF|$68,282|6.97%|31,931,624| |VB|Vanguard Small Cap ETF|$58,188|7.55%|601,177| |VBR|Vanguard Small Cap Value ETF|$29,433|8.32%|409,989| |SCHA|Schwab U.S. Small-Cap ETF|$17,571|5.84%|856,555| |VBK|Vanguard Small Cap Growth ETF|$17,542|6.59%|291,578| |AVUV|Avantis U.S. Small Cap Value ETF|$12,682|3.99%|735,970| |IWO|iShares Russell 2000 Growth ETF|$11,666|8.78%|411,345|
F, RKT, HITI, INTC (LOL), VBK, VOO, VOT For a crand total of up 1.6% in 3.5 years on 110k invested
No worries, it looks like SPYI and QQQI are high income ETF’s and VONG is a growth ETF for large capitalization companies. A few small cap growth ETFs you can check out are ISCG, VBK, VIOG, or VTWG. These are only examples and not recommendations, but they should give you an idea of what you’re looking for, just make sure you pay attention to the expense ratio which is the fee for holding the fund that covers management expenses on the fund’s end. I’m not familiar with the app you use, but they may be a screener included in which you could filter a search for ETF’s in a specific cap size/industry to make things a little easier. There are definitely other apps and websites you could use in conjunction: ETF Database: https://etfdb.com/screener/ Yahoo Finance: https://finance.yahoo.com/screener/etf/new/ TradingView: https://www.tradingview.com/etf-screener/ Make sure to familiarize yourself with the fund before purchasing to avoid issues such as portfolio overlap, unsuitable diversity, or unnecessarily high expense ratio’s.
Nah VBK is still trash.
If it was me at 25 I would probably be BND 60% VTI 40% and get more aggressive near the end of the rate cut cycle to VTI 25% VGT 25% VBK 25% VCR 25%. Maybe even have UPRO or TQQQ if the market crashes.
I get the strong temptation to assume future will be just like the past. What has done badly only recently MUST do well again, it MUST revert to the mean. Whatever crunching of the numbers produced, hold it close to your chest like a bible and trust it will repeat... But if I'm being honest... sometimes the small caps thesis feels like it boils down to driving a car by looking out the rearview mirror. This applies not just to value actually. I hear this a lot with VBK as well.
Probably talk to a tax specialist, but i think depends on how complex you want to get. You could consider keeping "growth" ETFs in taxable accounts and value funds in tax-advantaged accounts. Ex-US funds also tend to throw off more income, so you'd want to keep that in a tax-advantaged accounts as well to keep your MAGI as low as possible. For example.... VUG (large cap growth) has a 3 year tax cost ratio of .17, VBK (small cap growth) is .17 In comparison, VTV (large cap value) is .70 and VBR (small/mid cap value) is .65 VTI is .44 VXUX is 1.10 Combine that all with the fact that growth stocks have lower expected returns than value stocks going forward (but who knows), you could ***potentially*** slightly lower your MAGI in the near and long-term. Too complex more me though.
Is holding VTSAX and VTI redundant in a Roth IRA? For context, Roth was set up long ago when I was employed and I'm just holding until I can contribute again (current student). I've learned little bits here and there but know next to nothing about tax differences and efficiency, all that stuff. While it sits and reinvests dividends, I want to make sure its doing the best it can (with the small amount that's in there). I also have VT, VOO, VEU, and VBK in there. The largest holdings are in VTSAX, VTI, then VOO, respectively. ​ Appreciate the advice!
Think that's a pretty safe strategy honestly. I've been trying to be a bit more aggressive buying MGK and VBK but you do you. Since it sounds like you have a decent chunk of change that you need to protect, it might not be a bad idea to pick some global stocks for more diversity. However, I'm kind of broke so I'm trying to be as aggressive as possible.
Things that could compliment VOO VXUS - International exposure VB, VBR, VBK - small cap funds to go with VOOs large cap SCHD - more focused on dividend and different style of investing, historically a strong performer but has lagged in 2023 as it didn't have the magnificent 7
I'm going to spend the day looking at the holdings of VBK and see if there's anything that stands out. Let me know if you find something.
I never luck with small cap. I held VBK for years along side VGT and vbk pretty much just stagnated. Picking single stocks is even harder. But maybe now is the time .
I’d just like to point out that I’m still bagholding a VBK position that I bought in early 2021. Over 3 years have passed and I’m still down 8%. If you’re going in, you really better be willing to hold for years because that’s a Vanguard ETF that literally did shit for me over the past 3+ years. If you’re not investing for 5+ years then forget about it and hold cash
IJT or VBK ETF? please those that know give advice.
Looking for help with my ETF portfolio. Currently about 70% of my overall portfolio is in QQQ, which I have seen solid returns from. However I am looking to diversify/ play the long game (next 20 years or so). For context I am 18 years old and still in high school. I don't have a job but any money I receive I immediately invest/ put into savings. Recently I have considered selling some of my QQQ shares and investing in VTI and VT but have seen a lot of talk on here about overlap. Is this a good strategy? Open to any advice ETFs I currently own 70% QQQ 3.13% VYM 3.22% VBK The rest is made up primarily of FAANG stocks as well as $1020 in ROTH IRA was well as $3000 in a HYSA. Im all ears.
We are different people so I wouldn't have anything you have, but your choices of the a large cap, mid cap and small cap fund is a sensible philosophy plus then the separate concept of the growth one works fine. You could do other things too. Also there are many small and midcap factor ETFs that would perform differently than your choices (for example compare VBK to XSMO), but your choices aren't "wrong"... its just like a sports draft where teams pick the player they think is best. They might miss something better or find a diamond. You should just be confident in your own choice though. You can rebalance, but you don't need to. I wouldn't rebalance at a calendar date, but might because the current environment favors one type of stock now more than others. If one of my ETFs outperforms the others, I'm not going to punish it or cut it down. I want the more money in it. But again, just making them all the same at the start of each year is a valid idea too.
Opened an account around 2019 with a weekly auto invest and didn't really know much about investing/stocks. I forgot about it for the most part and recently have checked it out and noted that my two main holdings are too similar. I don't mind (I don't think I do anyway) the taxable situation I guess, is it worth selling one to buy more of the other, as well as a little more of the other holdings? I was thinking of selling SPY and splitting it across the other three holdings or opening opening a $3k position of SCHD and spreading the other 1.4k across the other three. Thoughts? Account balance ~$9,800 55% of whole account is in the following: %50 SCHG $2.7k %25 VBK $1.3k %25 VOT $1.3k Rest of the 45% of account is in SPY $4.4k
Hi all, I have a question and then would like your opinion on my proposed portfolio. A vanguard target date fund has an expense ration of 0.08%. I'm considering this or doing my own portfolio with 5 index funds each one has a small expense ratio - the 5 totaling 0.27%. So- am I correct in thinking that doing my own portfolio will be .19% higher in fees? Yikes- that's not good right? My personal proposed portfolio is: VOO -60% VXUS-15% VBK-7.5% VOT-7.5% BND-10% Does that seem like a good portfolio? Is it better than the target date fund (approx. 2050)? Do I have the right information regarding the difference in fees (.19%) and is that something to consider? Many thanks! 37 yo, male, single, 70k salary. Goals- just to have success seeing a portfolio grow slow and steady.
Well have another good year in the stock market even though many stocks are already highly valued. Bitcoin will be the asset class with the greatest returns. There's the (likely) spot BTC ETF approval in January, the having in April and the FASB account rule changes, all of which make it easier for large institutions to hold (even a small percentage) Bitcoin. Real estate rates will come down a bit, prices have already come down a bit in the areas that appreciated the most. I don't think anything dramatic is going to change however due to the limited supply and the cost of building more new housing. I think the second half of 2025 and 2026 will be where the down cycle occurs. That includes Bitcoin as well. The business cycle, the Bitcoin cycle and the Presidential election cycle all seem to be about 4 years. With Bitcoin you have 1 down year, with the business cycle two years is a typical length for a down cycle when they do occur and it's the middle years that are usually worse in the Presidential cycle. For anyone in the U.S. with a Roth IRA, the best thing you could do, IMO, would be to move that into a newly approved BTC spot ETF. Pay your taxes now and get 20 years (or more) of gains tax free for your retirement years. A good financial gameplan, IMO, would be 40% in QQQ, 10% in SCHD, 10% in VBK, 10% in O, 20% in BTC ETF, and 10% in cash in a money market fund with todays rates of 5% or so. Buy a house when you can.
Small cap value tends to outperform small cap growth. Consider VBR or AVUV over VBK.
This is the way. 👍 A lot of us are in the same situation. Diversification is the best strategy long term. You will come out ahead, never chase or try to time the market. I personally will try to rebalance something like 20% each VOO (s&p 500), VTI (total Mkt), VGT (info tech) and VBK (small-cap growth). All low cost ExRat ETF's. Add a dash of 10% international and mid-cap for flavor. Rebalance periodically and don't sweat Mkt volatility. Research what you like, diversify and you will come out ahead.
Large cap growth ETF is VUG. There is also mid cap growth VOT, and small cap growth VBK. There are also value ETF's based on market cap so that you can tailor your ratio of growth to value. Personally, I like the mid cap (VO), small cap (VB), international (VXUS), and emerging market (VWO) funds with very small allocations. And then large cap (VOO) and large cap growth (VUG) in very large allocations.
What do you guys think about a n IRA composed of VUG, VOT, and VBK (Vanguard large, mid, and small cap growth ETF)? About $300k invested and still 20+ years away from retirement.
VOO VONG VTI and VBK. That’s all you need man
No one, I mean no one, knows which way the market is going. Anyone who thinks/pretends to know is either lying or in a fantasy land or mostly likely a little of both. Here is some basic advice I give people. I has worked very well for me over the years. ................. As for learning-- Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
Not for most-- but sound advice I have used over 35 years... As for learning-- Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
I have lived by this for many years, evolving to today. Just my 2 cents, but I think it works. How to get started -- 1st get a good emergency fund. 3 to 6 months of your mandatory expenses in case you lose your job (look worst case). Then your 401K, to at least get your company match, then do the Roth IRA. Once you have done that, go back and max out your 401K. Then if you still have money, put it in a regular brokerage account (Ameritrade I use). Plan for major purchases, like a car, far enough out so you can pay cash if possible. Debt, especially credit card, is what kills people. Hope this helps and best of luck. As for learning-- Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
Just some basic advice I put out occasionally. Get the matching from your 401K, do a traditional IRA, go back to the 401K and max it and some other stuff below. Best of luck. CD's are a great place to park money now. Most of the below I think you probably already know and not trying to insult your intelligence, but just by 2 cents. I didn't want to edit it. How to get started -- 1st get a good emergency fund. 3 to 6 months of your mandatory expenses in case you lose your job (look worst case). Then your 401K, to at least get your company match, then do the Roth IRA. Once you have done that, go back and max out your 401K. Then if you still have money, put it in a regular brokerage account (Ameritrade I use). Plan for major purchases, like a car, far enough out so you can pay cash if possible. Debt, especially credit card, is what kills people. Hope this helps and best of luck. Learn: As for learning-- Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motley Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
CDs and then slowly read this advice: Also, it was easy for me to cut and paste the below (I actually wrote it though). If you didn't earn the $20K with your blood, sweat and tears, it will be just as easy for you to blow it. Best of luck. And as for the stock market-- the easiest way to make money, without sweating or losing sleep. How to get started -- 1st get a good emergency fund. 3 to 6 months of your mandatory expenses in case you lose your job (look worst case). Then your 401K, to at least get your company match, then do the Roth IRA. Once you have done that, go back and max out your 401K. Then if you still have money, put it in a regular brokerage account (Ameritrade I use). Plan for major purchases, like a car, far enough out so you can pay cash if possible. Debt, especially credit card, is what kills people. Hope this helps and best of luck. Learn: As for learning-- Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
Roth IRA Composition Looking for some thoughts. Am I doing to much? I mostly looked for solid ETF's with low expense ratios. And mixed between Large/Med/Small cap. Under 30, will not be touching for a while 20+, max it every year. Large cap * VOO * VUG * VTI Mid Cap * BBMC Small Cap * VBK * VB Sectors * VGT * VHT I think it might be a bit much so I was thinking of dropping the small cap and VTI. Also what are thoughts on CCRV? Seems to good to be true but it looks attractive for the div payout. No major growth but 30% yield. There has to be a catch, and I'm just not realizing it. And what are thoughts on tossing some of the big holding in the large cap index's such as apple/XOM/msft/Amazon. I know the obvious, more risk but bigger upside and that's tempting but then i know there is a lot of apple in VGT/VOO for example. I would probally go 25% VUG 20% VOO BBMC 5% VGT 20% VHT 10% CCRV 10% Bluechips 10% Thank you
Do: invest as much as you can regularly into ETFs & Blue chips. Don’t: try get rich quick and YouTube guru methods. You don’t have the knowledge to evaluate more complex strategy. An ETF portfolio I really like is 25% DIA, 30% XLK, 24.5% FNDX, 3.5% XLY, 13.5% SCHA, 3.5% VBK. Similar systematic risk to the S&P500 and well diversified. ≈ 2% alpha to SPY. You save a bit on expense ratios. Since you’re young, I might take some out of DIA and invest in some high growth blue chip tech individuals, maybe NVDA or other AI exposure — do some homework
What do yall think of this asset allocation. I am 24 btw, and this is a small secondary brokerage that I take a bit more risk in and have some fun with. My main one has 24k in a 90/10 split of VTI/VXUS. 3k total 18% Bitcoin 7% Ethereum 25% VUG 20% VBK 10% SKYY 10% VHT 10% FIW Anything you would change, add, or take out? Thanks!
Rate my portfolio: Background: I am 24, investing for the long term >20 years, 72% savings rate currently, make $110k renting in LCOL. No debt. I am just answering the questions above, I can answer anything I missed. I have a company 403b - at 30k, holding <25 most aggressive 90% stock/10% bond Roth IRA - at 7k, holding 90% VTI, 10% VXUS Fidelity brokerage - at 23k, holding 90% VTI, 10% VXUS Robinhood brokerage - at 3k, holding 25% VUG, 25% VBK, 10% SKYY, 10% VHT, 10% FIW, 20% ethereum/bitcoin CD ladder 5% - 8.5k Emergency HYSA 4.25% - 5k Anything you would change? Different ETF allocation? No CD ladder? I have been setting this up since I graduated college 1.5 years ago, I would just like some feedback now on this particular setup.
Yes and no. What I've learned is that it is easier to manage with a 3 or 4 positions. Look up Rob Berger on Youtube, he has a good explanation. If you go with VTI, then I would take out VOT and VBK. Happy Investing, you'll do well in life.
Rate my Vanguard Growth Portfolio: **Large Cap ETFs - 40%** * VUG - 28% * VTV - 12% **Mid Cap ETFs - 15%** * VOT - 11% * VOE - 4% **Small Cap ETFs - 15%** * VBK - 11% * VBR - 4% **International ETFs - 15%** * VXUS - 15% **REIT ETFs - 15%** * VNQ - 15%
Just something I throw out occasionally -- has helped me immensely over 30+ years. Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
Some other free advice I throw out--- note "Free" -- take it for what it is worth. It has worked for me though. Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
I would not sell and it sounds like you have learned some good lessons. Life is a challenge for everyone. Important thing is to learn and move on. Don't have your $10,000 in individual stocks, See my advice below I offer to young people. Best of luck. Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
Here is a little more advice I give out to young people..... Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
Not having enough patience. Over the years I have come up with the following advice: Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
Just my Two Cents on investing-- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
Bottom line-- save as much as you can, as early as you can. 401K -- max it. Some other general bits of advice -- Learning-- Recommend listening regularly to a couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never too late to help yourself. Two simple steps: 1. Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2. Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
You know what I think my mistake was, I used specific Vanguard ETFs instead of overall categories. So VBK was overperforming VBR. I suspect that could be the difference, but then why would VBK outperform VBR?
So I will use Ramsey's notoriously amazing investing advice as a backbone for my suggestions, and I'm going to use the ETFs, but you can just look for the mutual fund versions. "Growth": Blue chips. For this, VTI and/or VOO. "Growth and income": Blue chips with dividends. This honestly is not the best growth strategy and is instead more of where to move money once you actually retire. You can safely ignore this pre-retirement. My pick is SCHD. "Aggressive Growth": This is where I actually like what Ramsey says differently. Putting 25% in something more volitile with more potential can pay off big. My picks are VUG, QQQM, and VBK. "International": VXUS yo. This leaves you with 50% VTI/VOO, 25% VXUS, and 25% aggressive growth. This is a solid mix. Ramsey still thinks beating the S&P 500 is easy, but he's wrong. He would also have you pay high fees for actively managed funds. Eww.
25% VTI, 25% VOO (redundant but was my response to indecision, 50% in either works), 25% VXUS, and 25% "aggressive growth" which is a mix of VUG, VBK, and QQQM.
You have $150k in savings and are looking to only put $5k in VTI? You are holding way too much cash and are under invested. Take like $60k - $100k and invest in index funds. r/Bogleheads has a lot of info for you. But you are losing A TON on money in opportunity cost with so much cash uninvested. I suggest taking enough to fill a Roth IRA and do it for this year and last year (last year can be filled up to tax day). That's $12.5k. Make a portfolio that is 75% VTI and 25% VXUS and hold for the next 3 decades with everything auto reinvesting. Start pushing the rest of the money into a taxable account. VXUS is like VTI for international stocks. This fund will likely underperform VTI but will give you excellent diversification at 25% of your portfolio. Another alternative is to make 20-25% targeted at aggressive growth funds. VUG, VBK, and QQQM are what I use for this category. This would mean 50-25-25 as your precentages. SPY is heavily traded but is totally outclassed by VOO and it's 0.03% fee. VOO is also a share class of VFIAX, the largest index fund in the world and the granddaddy of index funds.
75% VTI and 25% VXUS gives international exposure. I actually do 50% VTI, 25% VXUS, and 25% "aggressive growth" split between VUG, QQQM, and VBK. Its not for everyone though.
SCHA, RWJ, and XSVM are some that come to mind. VBK as a *growth* not value might be worth looking at in Vanguard world.
Small cap VBR/VBK. QQQ, tech is our future still.
Does the 401k have an S&P fund? IRA, I like your allocation of VOO and VB, but i would choose VBK instead. Brokerage I wouldnt touch. If you do add money to this account just buy VOO and bring it up to 50%+.
Check out VBK and VOT. Overall I like Vanguards expense ratios.
>I believe that growth stocks will continue to outperform in the 2-5 year outlook. I would recommend adding more VUG and VBK to your portfolio, as these are both excellent growth stocks. You might also want to consider adding some VTI for a little value exposure.
Then you're good. Later you might want to add a bit of VXUS for diversification but still have 75% VTI. I get frisky and have QQQM, VUG, and VBK as 25% (I consider them one block I label as aggressive growth).
Sorry, but you will lose your other $3K also. Sorry you lost everything, but following 99% of the advice on reddit will get you there again. Depending on your age you can easily recover your $90K in a few years. But not with Crypto and penny stocks. And not by taking shortcuts. Best of luck! All I can offer is: Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never to late to help yourself. Two simple steps: 1) Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2) Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
This was going to be my next post -- As for learning-- Recommend listening regularly toa couple podcasts a day -- The Money Guy, Choose FI, Investtalk, and Motely Fool (in that order, as your time permits). Countless youtube videos out there. Just watch one or two a day (no more than 5 or 10 minutes) and before you know it you will start seeing the big picture. Step 1 and 2 below is what you need to do in the next few days. ​ Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never to late to help yourself. Two simple steps: 1) Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2) Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Younger folks- Now is a once in a decade time for you. Over your investing life you might see something like we saw in 2022 maybe five to eight times. Take advantage of it. Four basic concepts you have to remember if you want to be successful in the long run in the stock market. • The turtle always wins over the hare -- slowly but surely. Don't buy junk -- Most unprofitable tech companies and all Crypto falls into this category. Except with your casino/entertainment money which you are free to do whatever with including buying pizza, video games, cypto, slots…... Remember, if you are in your 20’s/early 30s, every dollar you use on a $4 Starbucks coffee is conservatively worth about $10.00 (30 years at 8%). Over my investing life (past 40 years), each dollar I saved initially is now worth about $36. Said another way, if I would have bought that $25,000 sports car coming out of college, I would have cost myself about $902,000 at retirement. • Dollar cost average -- buy some every month regardless of what the market is doing. When the market was like 2022 and probably 2023 buy as much as you possibly can on a big down day. • Diversify -- good cheap, broad market ETFs from Vanguard or Fidelity are great. • Let physics or whatever heavenly name you want to call it be your friend -- "COMPOUND INTEREST" has no equal, except lack of time. A young person can get rich in 30-35 years if they follow these rules.
I was about to post this -- Just my Two Cents -- You don’t need to make investing difficult. It is one of the easiest things you will ever do if you follow the KISS principal. And if you are young enough you can easily retire well off. If you aren’t young, it is never to late to help yourself. Two simple steps: 1) Take Action and get started. Time is your biggest friend or enemy in becoming financially independent. You can either waste it by not starting early enough (your 20s and early 30s are ideal) and/or throwing your money away on terrible stocks and other “investments.” Open a Fidelity or Vanguard account today. Either a regular brokerage or IRA. Most people have both. Chances are you may have done this step already. 2) Buy low cost, well diversified ETFs. Vanguard and Fidelity are both super cheap. I personally use Vanguard and would start with VOO and VBK. My four basic concepts below, again easy and straight forward, should be followed. Lastly, don't put anything in the stock market you need back in less than 5 to 7 years. The whole idea is to really never sell until you get to retirement age.
This but I do VBK/VSGAX. I'm in my early 30's so I am fine with more risk.
>Yes, I was shooting for some overweight on small & emerging. So another option that may simplify things if you want something a little more complex than the basic 3 fund portfolio ; just split it between 5 funds VV- USA Large Cap VO- USA Mid cap VB- USA small cap VWO - Emerging markets VEA - developed markets Now you have 5 non-overlapping (or very minimal overlapping) funds that you can very easily see your allocations vs trying to figure out your small cap allocation if you hold (VTI/VBR/VBK) what all hold small cap. Or trying to figure out your developed/emerging market holdings if you hold (VXUS/VWO)
Looks pretty however you might be able to simplify it a bit, I take it you want to be slightly overweight in small cap/emerging markets? small cap -VBR/VBK you could just buy VB and that just holds small cap International- VXUS does include emerging markets so adding VWO (emerging markets) is only necessary if you want to be overweight in emerging markets a bit USA Large Cap - VTI/VOO is a bit redundant they are almost the same fund except VTI holds mid/small cap (what you already have exposure to ) and SCHD is a subset of VTI/VOO ; although SCHD leans to value personally I like VTV to get value exposure . So I would just choose one VTI or VOO. SCHD isn't bad but VTV will include value stocks that may not pay dividends (like bershire) and would only be needed if you wanted a value tilt
VTI is basically VUG/VTV/VOE/VOT/VBR/VBK You can manage the sub asset classes if you think you can do it better than they can. Probably wont benefit you any more than just buying VTI though. Buying individual stocks is not smart, experts who have done 9-10 years of advanced schooling with credentials on par with a doctor, then spend 40 hours a week 2080 hours per year picking stocks, and still underperform markets in most cases. VT includes international which tends to add big diversification and return benefits over very long time periods, but although international stocks have underperformed the US for 15 years, that has started to change recently with the US dollar weakening.
I am not as big of a fan of small cap growth , as historically its been a sub par performer, but who knows it may be a lot better in the future. If it were me and I absolutely wanted to have VBK, I probably would still do VTI+VBK for scg overweight.
I prefer VTI but I could see VOO and VBK being one way you could increase volatility and hope to increase returns. You do miss out on some mid caps though.
Go to Portfolio Visualizer and backtest it. 50/25/25% MGK/VOT/VBK (rebalanced annually) beats 100% VOO by about 1.3% (final total return) over the last 10 years. It started to massively outperform during the COVID bubble, but now it's right back to about par. It performed slightly better with no rebalancing. Overall, doesn't look worth the effort. It's like an extra $900 from an initial $10k over 10 years.
What are your guys thoughts on VUG 50% VOT 25% VBK 25%
Even though I have a long time horizon I heard the talking heads mention small and mid cap markets, so I bought a couple of ETFs(VOT and VBK) as well as took advantage of Alphabet and Amazon’s stock splits. It was a smart play.
Thanks for the help. For the small and mid cap etfs, should I invest in the growth portion or just the default funds? ie VO vs VOT and VB and VBK
Still a lot of overlap. VTI and VUG are basically VOO, but VTI adds a lot of companies at tiny weightings and VUG overweights companies designated as "growth companies". Which is okay as long as you realize that you're getting the S&P 500 in three different pieces, and making much smaller bets on either (stocks that aren't in the 500) or (growth vs. every other strategy). I don't keep both VTI and VOO because they don't deviate over time and picking the right day to arbitrage them would be too much work. I did add VUG to my VOO as the downturn happened because it does have a higher beta and I expect to make more in the recovery from it than if I just added more VOO. But I'll be shedding the VUG once I think the recovery is done. The caveat to this is that the reasons for the recovery include a reduction in Fed money in the system, and the excess cash was preferential to growth companies, so if that money isn't there during the recovery it might dull the beta of growth companies a bit. But so far, as this bear-market rally continues, the beta of VUG seems robust, so I'm sticking to the plan for now. VOT and VBK will duplicate things that are in VTI. Which may make sense in a recovery situation, if we're actually in one, which I'm not completely convinced of. But they do make VTI even less necessary, since its weightings of small- and mid-cap will be way lower than VOT+VBK gets you. Again, VTI is just VOO with more steps. VXUS is def not overlapping VOO or VTI. So it's a good arbitrage of world vs. US.
VBK crushing it, small cap on a complete tear lately. Cleveland Fed forecasting 8.8% YoY headline print. **0.4%** core print well below 0.7% in June. Bears are completely fucked.
Typically small- and mid-cap growth funds would be classified as ‘most risky’ in terms of ETFs. VOT is their Mid-Cap Growth ETF, VBK is their Small-Cap Growth ETF. The two are down about 22% and 21% YTD, respectively. I’m biased towards VOO as a long-term core position, but understand the resilience of mega cap tech this year makes for arguably more opportunistic entry points in alternate funds. Hope this helps.
Getting better. Though "large cap" and "mega cap" are not the separate and distinct categories you are assuming. They are basically synonyms. MGK is Apple + Microsoft + Amazon + Google + Tesla + Facebook + Nvidia + Visa. SCHG is Apple + Microsoft + Amazon + Google + Tesla + Facebook + Nvidia + Visa. You might as well just do SCHG+SCHG instead of MGK+SCHG. Again, use the "portfolio" tab at the Morningstar website like the links I gave to check for overlap, or use [https://www.etfrc.com/funds/overlap.php](https://www.etfrc.com/funds/overlap.php) >MGK Vanguard Mega Cap Growth (0%) SCHG Schwab U.S. Large-Cap Growth(35%) VOT Vanguard Mid-Cap Growth (10%) VBK Vanguard Small-Cap Growth (10%) > >SCHV Schwab U.S. Large-Cap Value (16%) MGV Vanguard Mega Cap Value (0%) VOEVanguard Mid-Cap Value (8%) VBR Vanguard Small-Cap Value (8%) That portfolio is functionally equilivant to the portfolio you listed but with less complexity.
Nooooo! Please don’t screech, I’m trying I promise! If I get what your saying correctly basically the portfolio I suggested would not give me the diverse exposure I’m trying to gain to Lg, Mid and Sm cap holdings so Ive reworked it to get more specific. I know your getting to the edge of your rope but please know I am EXTREMELY thankful for the feedback! I’m learning I swear! MGK Vanguard Mega Cap Growth (20%) SCHG Schwab U.S. Large-Cap Growth(15%) VOT Vanguard Mid-Cap Growth (10%) VBK Vanguard Small-Cap Growth (10%) SCHV Schwab U.S. Large-Cap Value (8%) MGV Vanguard Mega Cap Value (8%) VOEVanguard Mid-Cap Value (8%) VBR Vanguard Small-Cap Value (8%) How bout this? More specific I think?
Small caps. Think VIOO, VBK, VBR
I recently opened positions in VOT, VBK, and AMZN. So, will keep averaging down in those. My Apple and NVDA stocks are on sale as well.
I would probably buy some VBK or similar, which is a small cap growth fund. I might also do some stock picking with companies like Apple, Amazon and Google.
Wait VOO is Vanguard's S&P 500, literally the general stock market; O is one of the largest REITs as well as a dividend aristocrat (paying a growing a dividend for at least 25 years), they generate revenue from common brick and mortar store like 7/11, Walgreens ect. safe play; STAG is another REIT but this time specializing in industrial properties, strong dividend history from what I'm seeing, but not as quality as O; VUG is Vanguard's Large Cap Growth stock like GOOG, AMZN, and TSLA, smiliar to VOO, but more aggressive on growth; VBK is just like VUG but focused on small cap growth, likely to see this one pop off more in the near future; and finally SCHD which is Schwab's US dividend equity, personally I like this one least of all the one's you got up there but to each their own, solid pick for reducing volatility.
VBK index should be a safe play. I’m putting money there along with VO and VOO
I've been eyeing VBK and AVUV.... further we get into this (likely) recession the better these small caps will look as investors look for growth to lead us out of the doldrums. I have exposure to ~8% individual small cap growth names so I'm not buying VBK. I am buying AVUV though.