VFIAX
VANGUARD 500 INDEX FUND ADMIRAL SHARES
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Question about moving money from one index fund to another
Vanguard roth won't let me set up auto investment to SCHD
25, long hold, should I invest in target date funds or VFIAX? VOO or VTI + VSUX?
Rate my portfolio please: 30% VTSAX - 25% MSCI - 20% QQQ - 15% VLXVX - 10% SUSA
I have a Vanguard self managed brokerage account. Take a look at my holdings.
Am I spreading my portfolio too thin without actually adding any diversification?
Same ETFs, does it matter regarding performance and fees?
Should I go higher on VFIAX in my company matched 401k
Solid data comparing S&P500 index returns to Total Market index returns over the last 30 years?
Debating adding dividend position and adjusting stock portfolio allocations
Recommendations for long term stock portfolio involving index funds.
VFIAX vs VOO, what are the differences to buying a fund vs an ETF?
Why does VOO have lower expense ratio than VFIAX?
What would happen if a Billionaire wanted to invest billions in a mutual fund like VFIAX?
How long do you think it'll be before an AI will be able to crush the stock market?
VFIAX vs. VTSAX - Vanguard 500 vs. Vanguard Total Stock Market
Which one would you pick? VFIAX (0.04%) vs. VIIIX (0.02%)
Requesting assistance with Vanguard index selection for HSA
20% of my portfolio is in cash. Continue to hold for now or invest in long term ETFs?
Wash sale rule "substantially identical security"
Investing to set it and forget it: Roth IRA, general investing account, or both?
Investing in ETFs... good to have both a Roth IRA and general investing account?
Is it dumb to put all my money in these four funds?
What's the ultimate difference between VFIAX and SWPPX?
Too many mutual funds, analysis paralysis. Seeking input
VFIAX vs VOO, Why Not Identical Performance between MF and ETF? I own both.
Differences between Vanguard S&P 500 offers (and better understand the market)
Do ppl usually invest in either an index fund (VFIAX), the ETF version (VOO), or both?
Mentions
Thanks everyone. No more daytrading. I will hold NVDA , META, CHIPOTLE, and AMAZON, they will recover. I will buy QQQ and VFIAX with the other funds.
Thanks, I’ll go with VFIAX!
It’s highly unlikely that anyone is going to look up all of those tickers for you. VFIAX is the Vanguard S&P 500 mutual fund.
You need to hold a minimum of $1k in cash in the HSA (iirc) and you can invest any amount over that. So if you just started, it might take some time to get there depending on your saving strategy. VFIAX is one of the vanguard S&p 500 funds, great choice to go with. Top 500 companies (generally.. There are some qualifications) in the USA, so just go with that as you start out considering your time horizon. Well diversified and an easy place to start. As you grow, learn, and change your investment strategies, you can look into different ones as well.
Is there any benefit to VFIAX compared to VOO which has a slightly lower expense ratio?
I personally do a 50/50 split between VFIAX(SP5000) and VTWAX(Total World). Gets me to a 80/20 US to Int mix which I'm quite happy with. But for simplicity sake you could just do VTWAX and call it a day. It'll adapt to the world markets as they change and you'll never have to think about equities ever again.
10.5%? That’s impossible. As of 4/22/2024 VFIAX YTD return is 5.48%.
[VFIAX-Vanguard 500 Index Fund Admiral Shares | Vanguard](https://investor.vanguard.com/investment-products/mutual-funds/profile/vfiax)
I've been looking at S&P 500 index funds such as FNILX, VOO, SPY, IVV, SWPPX, VFIAX, and FXAIX. I've also been looking at world stock ETFs like VT. At the core of my misunderstanding is what is the difference between individual S&P 500 indexes? Aside from different brokers and slightly different expense ratios. For example: As I write this, FNILX is $17.77 (0 exp ratio), and VOO is $462.20 (.03 exp ratio). They both have similar, if not identical, holdings yet are drastically different prices. Expense ratios aside, is FNILX a better buy because it has a much lower cost "per share" or do the prices here not matter because we're only looking for % increase as a goal?Is it even logical to think "I should buy FNILX because it's roughly $17 and may grow to $500 versus buying VOO because it's already almost $500 and is probably near its ceiling for growth?" Also, why the dramatic price differences for the same holdings?
New to index funds - VFIAX. I’m pretty sure what you’re going to say, the market fluctuates. I understand. That said, I’d never invested before and finally invested $3k in vfiax a couple of months ago. It was going up, a couple hundred bucks. Then I thought, put the $30k I had in savings into it, too. Since I’ve done that it’s consistently gone down. I’m almost down $2k. I’ve definitely gotten cold feet and scared. I’ve looked at the charts and it definitely grows over time. I’m beginning to wonder if I pull it out and just go with a CD from my bank, it’s currently at 5.15% for 10 months. Just looking for thoughts.
You ant go wrong with Vanguard S&P500 Mutual funds (VFIAX) or its ETF variant (VOO). I can't speak to the other two requirements as I am just setting it and forgetting it in the S&P500. There are leveraged options if you want that super high risk but with big gains/rewards come just as equally detrimental losses. It's your retirement, I would personally be consistent into the S&P and screw around with excess cash in a taxable brokerage on the side. Consistency and time are your friend being young.
Fund (ticker) 5-year annual returns Expense ratio iShares Core S&P 500 ETF (IVV) 14.5% 0.03% Schwab S&P 500 Index (SWPPX) 14.5% 0.02% Vanguard 500 Index Fund (VFIAX) 14.5% 0.04% Those are the normal 3 for sp500, i don't know if they are available in your country or what one is cheapest for you. Also remember to consider how it's taxed as that also can be weird to each country. Most have a Germany/UK version if you are from EU
Hello everyone i’m 22 years old and I live in the united states. Im currently in college and i’m set to graduate this december. Im making 20 an hour + bonus at my internship as a project engineer and in 2 weeks i’ll be switching to full time making 70+ plus bonus. My asset breakdown at the moment is below: Ally HYSA: $8000 Vanguard Roth IRA: $7600 50/50 VFIAX and VTTSX Vanguard Brokerage: $16000 VFIAX Truist Checking: $3000 Plan to open company 401k when i go full time Goals: Buy a home by 27, if possible millionaire by 30…. (Might be unrealistic) Since i’m only 22 I feel like I can make some more “risky” investments because i’m in a good position. I have 0 debt , my car is paid off, i don’t pay for my housing/school/insurance/etc. All of my money i’m making until I graduate goes towards investments. I just want to know if I’m on the right track and i’m investing in the right funds. I’m very new to this and my brother helped me setup my vanguard so i’m not sure if i’m investing in the right things. Any help/advice is greatly appreciated! Thank yoy
Most vanguard index mutual funds, including VFIAX, benefit from a special fund structure in which they include both the mutual fund and the ETF as share classes of the same fund, allowing the mutual fund version to benefit from the same tax maneuver as the ETF. There would be no benefit for you to switch to an ETF.
I inherited less than 50 shares of VFIAX and transferred them to my brokerage account. The shares received the step up basis and if I sold today, would still cost me $1000+ in income tax since I haven’t held them a year. If I plan on building the brokerage account for long term, would it make financial sense to bite the bullet and sell them and buy an ETF? I don’t truly understand the tax efficiency of ETFs vs MFs well enough to determine this myself. This is in a Fidelity brokerage.
That sounds fishy. If they offer VEIRX and VWIGX, they should have VTSAX and VFIAX, or something similar. You should look for "US Large Cap Growth", or "US Total Market."
>I didn’t know if it was just because it was a popular brand. I see a lot of Vanguard but very little Schwab mentions. If you want to compare SP500 MF to SP500 MF, you'll want to compare SWPPX to VFIAX
Why not invest in both the target funds and mutual funds? VFIAX is a Vanguard 500 mutual fund, the ETF version is VOO. For setting and forgetting, investing in a mutual fund is better, I can only speak on Vanguard as I use it as well, if you decide to invest in VOO through Vanguard, you would have to login and actually purchase shares of VOO as Vanguard does not allow auto investment into their ETFs.
Outperformed? Nope https://portfolioslab.com/tools/stock-comparison/DODGX/VFIAX Has Microsoft and Google as 2 of the top 10 holdings currently.
There are a number of funds that have out perform the S&P500 fund consistently, but there is a strong bias against them as they are deemed riskier due to being concentrated in a single sector (US large cap technology). Past performance of this funds, like VIGAX, VONG, FSPGX, SCHG, etc, is claimed to not to be trusted and that only the S&P500 can be trusted. Some rational to this position as we are talking about 30 years versus 100 years. PRWAX has a large expense ratio, 0.76%, but over 5 year and 10 year it has outperform VFIAX. It under performed over 3 years as large cap growth took a larger beating in 2022 than the S&P500 did. For comparisons, I like to use Portfolio Labs https://portfolioslab.com/tools/stock-comparison/PRWAX/VFIAX
I don't think it's been 20 years of underperformance of small vs large, as opposed to the recent underperformance of small vs large hasn't been this large in over 20 years. If you take a look at something like VSMAX vs VFIAX, since 2001 inception for both VSMAX is still up (9.25% avg annual vs VFIAX's 8.00% avg annual), but for example the last 10 years has significantly been in VFIAX's favor.
I'm 38 in USA. Currently maxing out my 401k annually and trying to max out my Roth IRA as well. Since I started putting money into retirement I've just been putting it into target date fund 2050 with Vanguard. I'm wondering if that is the best for me or if I should move it to something like S&P500 or even VFIAX. When comparing to S&P 500 looks like I missed out on a lot of growth the last 10 years. Both my accounts are with Vanguard. 401k: $330k. Fund: Target Retirement 2050 Trust I. cant find a ticker name for it. Roth IRA: $55k Fund: VFIX Not sure if I should stay the course or try and start putting funds in higher risk higher reward. Any suggestions on where to start?
So that’s what happened to my VFIAX
You need to start letting your money work for you. Your IRA can be invested in VTSAX (a mutual fund that invests in ALL publicly traded companies), or VFIAX (a fund that invests in the 500 largest companies in the US). You should have your emergency money in money market fund that earns you about 5% of interest. I think you can benefit from this video: [https://www.youtube.com/watch?v=T71ibcZAX3I](https://www.youtube.com/watch?v=T71ibcZAX3I) Good luck!
>Currently I have a Vanguard Roth IRA with about ~50/50 split into VLXVX and VTSAX I'd use VTWAX instead of VTSAX if you insist on holding a TDF + something else. >VFIAX Is unnecessary as it is fully contained within the TDF, VTSAX, and VTWAX. If you want to go even more aggressive, look into factor investing. Factor investing starting points: • 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)
The truth is it doesn't make much difference -- they generally move in lockstep. Over the next 20 years, one will surely outperform the other by a small amount, but it's not going to make or break your retirement. VOO is an exchange traded fund, VTSAX is a mutual fund. In a retirement account, there's really not much reason to prefer one over the other. Plus if you for some reason preferred a mutual fund to an ETF, you could buy VFIAX which is equivalent to VOO. Or if you preferred ETFs, VTI is the ETF equivalent to VTSAX. So the format of the fund isn't really a reason to pick one index over another.
VT is excellent, as it gives you total world coverage. Not all time periods favor the US like the last few years have, VT ensures you don't miss out when it is ex-US in favor. It'll provide better diversification than only VTI/VTSAX or VOO/VFIAX.
Tbh I only use the app I did this to make it easier to display how much of my portfolio the stocks take up The UI of fidelity just makes sense to me it feels like “Microsoft” if that makes sense lol Although, might open a vanguard IRA next year to take advantage of that VFIAX without the $75 fee
Job titles? No, that isn't needed. Go to one of the big four low/zero cost financial companies, ETrade, Schwab, Vanguard or Fidelity. Open a Roth IRA account, transfer funds from your bank to the Roth IRA (you can do this for the year 2023 until April 15th and 2024) up to the amount of your earned income for the year (if you only had income of $5,000 in 2023 then you can only contribute $5,000 for 2023). Once the money is in the account do one of the following: * Buy a Target date fund for 2065 or 2070 (the year you would retire) like VSVNX (Vanguard Target Retirement 2070) * Buy a S&P500 fund with low expense ratio like VFIAX (Vanguard), FXAIX (Fidelity), or SWPPX (Schwab) Recommending buying the mutual fund version of the S&P500 over the ETF so that you can invest in dollars and not have to buy whole shares.
>If I invest $10.5k (2 shares) into the S&P 500 today, how much would it grow to in 35 years? First, small thing, but you don't buy shares of the S&P500 directly. It's an index, basically a model portfolio that so-called "index funds" will track. So, if you wanted to invest in the S&P, you'd buy an S&P index fund like VFIAX, VOO, FXAIX, or SWPPX. $10.5k invested is $10.5k invested (the share *price* of these funds is different, but that's irrelevant: a 5% jump in the S&P should yield essentially a 5% jump in these funds, e.g.), just wanted to clarify that. As to your actual question, there are absolutely no guarantees, so nobody can tell you the answer definitively. However, you've identified the usual rules of thumb used to provide a estimate: (1) the S&P has *historically* returned 10+% annually (on average) *over the long-term* and (2) if you want to inflation-adjust those returns (so that you're talking entirely in today's $$$s), [inflation has been on the order of ~3% over the last several decades](https://www.advisorperspectives.com/dshort/updates/2024/03/12/inflation-cpi-since-1872). Combined, that would mean on the order of ~7% "real" returns from the S&P in the past several decades. Again, that's not guaranteed to occur—the market could suddenly get hotter/colder than usual for a long spell, or inflation could be way better/worse over the next 35 years than it's been the previous 35—it's just a reasonable historical baseline to start from. From there, yeah, it's just a compound interest calculator. [I like this one, as it's simple and you can add in some +/- variance ranges](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator). 10.5k, with no further contributions, growing at 7% annually (I did compounding daily, looks like you did annually, whatever) is $121,649.06. At 6% it's $85,729.99 and at 8% it's $172,615.82. You are guaranteed that return in 35 years, but if general historical trends hold true in the future, that's a fair estimate of what you'd see. Small final caveat: if you held this in a so-called "taxable" account (i.e., a normal brokerage account instead of a "tax-advantaged" retirement account like a 401k or an IRA) your investment would be subject to *slight* taxation over the course of the 35 years. No major capital gains/losses to worry about if you're not selling, but it would likely generate *small* dividends each year, which would be taxable. E.g., [VFIAX has a 'yield' the past twelve months of 1.35%](https://www.morningstar.com/funds/xnas/vfiax/quote), meaning it paid out 1.35% of its value in dividends (which are likely taxable, if it's held in a normal brokerage) the past 12 months. Those dividend returns (which you'd be reinvesting) are part of the return you're expecting in this hypothetical, but because they're taxed, you'll actually end up netting *slightly* less after paying Uncle Sam. However, that's not a huge impact: e.g., 1.35% is $10.5k is $141.75, how much would you owe in taxes on an extra $141.75? Not much. Nonetheless, wanted to mention it.
Yeah, I'm using Principal for my 401k. Minimal investment options--basically one fund each for the S&P500, DJIA, and NASDAQ, then a couple of international funds. Also a small-cap fund that didn't seem to be going anywhere last I checked. I'm staying away from the target date funds, because I feel I'll be savvy enough to lower my risk profile as I see fit when the time comes. I'm investing in * 50% VFIAX -- Vanguard 500 Index Admiral Fund (S&P 500 fund) * 50% RNPGX -- American Funds New Perspective R6 Fund (international equities) Try not to get hung up on comparing returns--the NASDAQ will probably outperform the S&P 500, but it also tends to drop further during pullbacks. If you post which funds are available to you, you may get some more detailed responses.
What is the difference between VTSAX vs VFIAX? I get the one is s&p500 and the other is entire stock market but why the big price difference? Why would someone choose one over the other?
Sure. By VOO, VFIAX, FXAIX, IVV, and SPY
Money in brokerage is currently invested with about 50% in SPAXX/Fidelity cash and the rest in a few stocks and otherwise funds (VFIAX, VTIAX, and VOO respectively). I do have other emergency funds for medical or pet emergencies (about 50k) and my husband has a small business. Honestly I have no idea. The remote tech market is a shitshow. I'm about to run out the clock on unemployment. I took some summer work (we live in a resort town) that will keep me from eating at much of it. My goal is to touch as little of it as possible, but perhaps access some of it in case I end up having to halve my previous salary forever (a real possibility and what I'm effectively doing this summer). Anyway, no need to answer any more of this! Thanks a ton y'all.
I did a re balance of my funds for my Roth and IRA, let me know if this is a good idea. My allocation right now is 80/20 each pay period or should I just allocate 100% to Van 500 index fund? VFIAX VANGUARD 500 INDEX ADMIRAL CL VTIAX VANGUARD TOTAL INTL STOCK INDEX ADMIRAL CL IRA VFIAX VANGUARD 500 INDEX ADMIRAL CL ​ As of now, I am 98% stocks 2% international. Pulled out of the Target 2045 fund, sold all ARK ETF's and fidelity funds to reinvest into the VFIAX and VTIAX
If you’re purely looking for investment advice, here are the exact steps to take: 1. Go to Vanguard in your search browser. Open up a Roth IRA or an investment (aka brokerage) account. A Roth IRA is used for retirement investing, a brokerage account is used for regular investing. Either will work in this scenario but a Roth is preferred if you’re looking for long term retirement investing. 2. Fund the account from your bank account (you put a max of $7k/ yr into a Roth IRA, I believe unlimited for brokerage). 3. Let the money “settle” in your settlement account for a couple days (just processing time for the deposit). 4. Put this money into the index fund VFIAX. It’s an index fund following the S&P 500. It spreads your risk across many different companies and will adjust which companies are in the fund based on their performance. And that’s it. That’s where you should start. From there you can research and learn, but that’s the most low risk, long term high upside investing you can do. If you want to get your financial future in order, I suggest reading “I will teach you to be rich” by ramit sethi. He’s a straightforward, no nonsense no get rich quick scheme kind of personal finance advisor. Best of luck!
I am 40 year old from from USA and has full time job I'm relatively new to investing and looking to start building my portfolio with Vanguard ETFs. After doing some research, I've narrowed down my options to the following stocks: VFIAX (Vanguard 500 Index Fund Admiral Shares) - 10K VTWAX (Vanguard Total World Stock Index Fund Admiral Shares) - 10K VOO (Vanguard S&P 500 ETF) - 8K VUG (Vanguard Growth ETF) - 8K VTI (Vanguard Total Stock Market ETF) - 4K VGT (Vanguard Information Technology ETF) - 8K VHT (Vanguard Health Care ETF) - 7K I'm aiming to invest for a balanced portfolio that offers good potential for returns over the long term. I'm particularly interested in knowing the differences between VFIAX and VTWAX, and which one might be a better fit for my investment goals. Additionally, any insights or advice on the other ETFs listed above would be greatly appreciated. I'm open to hearing about your experiences with these funds, any pros and cons you've observed, and how you've incorporated them into your own investment strategy. Thanks in advance for your help!
100k on NVDIA 150 on VFIAX blow the rest have fun! Go on a vacation whatever
I would just put it in a bunch of VIGAX or VFIAX and forget about it for as long as possible.
I have some questions about Roth contribution limits and allocations of investments. Particularly with how the minimum investment thresholds work. For example, I max out my Roth IRA every year, and I'm looking to implement the 3-fund portfolio strategy. I use Vanguard and heavily invest in VFIAX. It's my sole investment and I like to keep investing simple. However I'm looking to buy an international market index fund/ETF. I have already invested a considerable amount this year into my Roth IRA. My question: Should I buy the VTIAX index fund or the ETF version? My reasoning for this question is that the 3,000 minimum investment threshold for the index fund will take up most of my contributions for the year. Should I just swallow the pill and buy the index fund for 2024 that way I can buy fractional shares in the future. Seeing as Vanguard bumped up the maximum contribution limit to $7,000 I would prefer just to buy it and leave the $3,000 for the rest of the year...or should I just get the ETF and sacrifice the convenience of fractional shares in the future?
Something's either not adding up or reading correctly. I see VFIAX 30 times a day and even the retail version of the fund's expense ratio isn't that high. Is there any way your or they can send me a screenshot of the fund line up or a copy of a participant fee disclosure? I'd love to help. Feel free to DM me if you would rather do it there.
It doesn't provide a ticker, just the Vanguard 500 Index Fund Adm, but the expense ratio for the VFIAX is 0.04 vs 0.69 so who knows?
I have both Vanguard and Schwab accounts (work/personal). Vanguards VFIAX has a 0.04% expense ratio. Schwabs SWPPX has a 0.02% expense ratio. Move the money out of the 401k and into an IRA. Or talk to HR about the costs and finding a different provider, because thats nuts.
[really](https://finance.yahoo.com/chart/VFIAX?showOptin=1#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)
>I switched from (VTIVX) 2045 Target fund over into the (VFIAX) Vanguard 500 Index to be more aggressive. In doing so you gave up coverage of at least 2 things that were more aggressive than VFIAX: US extended market and emerging markets. Only the reduction of bond actually adjusted the risk level to be more aggressive (dropping ex-US developed may be seen as dropping something that shouldn't be too far off the safety of VFIAX). >Should I just sell the fidelity and invest all into the Vangaurd 500 admiral or find another vanguard fund? Personally, in any account where you aren't limited to a short list to pick from, I consider S&P 500 to be obsolete (due to the existence of total US market and total world funds). * Single fund portfolios: https://www.reddit.com/r/Bogleheads/comments/tg1az5/should_i_invest_in_x_index_fund_a_simple_faq/ * https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index - invest in the S&P 500, but don't end there (this covers info on both the US extended market and ex-US markets) [a total US market fund combines S&P 500 + extended market into one]
I apologize for not being so clear on the type of IRA accounts. But you you are correct both were rolled over from a 401k. Would it make sense to put my current Traditional IRA into VFIAX or VOO and leave the Roth IRA wit the Target fund? As for my 457 I will keep adding to that but I need to find out if there is another fund I can choose from, it sitting in their Target Fund 2045 Empower
You should be specific about what types of account you have, as this is key information. I *think* you have a Roth IRA and a traditional IRA, both created when you rolled over a mixed 401(k). If so, then you can contribute a total of $7,000 (in 2024) total to your IRAs combined. If you are already maxing out the Roth IRA, which you should if your income qualifies you, then you are done with that avenue. No more IRA contributions. Keep enough cash in your Ally account to protect you for 6 months from a job loss, or a medical or vehicular emergency. This prevents you from dipping into long term savings, which is the bane of existence for people who don't plan well financially. If that's all $48k, then so be it. You need to tally your essential expenses and make a judgment. Aim to max out the 457. Once done there, open a regular taxable brokerage account at Vanguard where you already have your IRAs, and move on to that. Regarding holdings; I would get rid of all the risky nonsense and move it to an S&P 500 index fund such as VOO or VFIAX. I would also move your target funds to an S&P fund. There is no tax consequence for any such movement in an IRA or 457.
You can always buy equivalent mutual funds instead of ETF. VFIAX is the one. Put 3k as one time and setup auto invest every week or month.
I would personally try to get 2 years of max-out-of-pocket into DODIX, then go 100% into VFIAX. This way you'll be able to cover emergencies even if there is a major market crash. You could go 100% DODIX first to fill up your emergency investment, and once you reach your goal, switch to 100% VFIAX. Or go 50/50 until you have your emergency fund and then switch to VFIAX only. I assume you keep the minimum threshold in cash and invest as much as possible. Longer term, try to never use any of your HSA money but keep your HSA eligible receipts. You can reimburse yourself later in life when your HSA grows faster than your max-out-of-pocket.
VTWAX, VFIAX if I'm feeling spicy.
Im 100% in VFIAX for my 401k. It tracks the top 500 companies in the U.S.
I have VFIAX and FNCMX. There are ETF versions but I wanted to set up monthly automatic investments.
Start simple. Open a brokerage at Vanguard/Fidelity and simple invest as much as you can/are comfortable with every month into the S&P 500. VFIAX for Vanguard or FXAIX for Fidelity. Once you get that going, I'd look into a bit more diversification, maybe some international. (Like 80% VFIAX/20% VTIAX), or even VTWAX(which is the whole stock market). Let compound interest be your best friend, get it in there, and let it just grow and grow and grow.
VFIAX is 100% fine being young. It's never a bad time to invest in it. I do VTWAX in my brokerage (since I like international) but my 401ks are all VFIAX.
Im (22M) and make about 40k right now. I feel like I can be a bit more aggressive in investing during my early 20s. I have a 403b with my employer and just checked it for the first time seeing it was 100% in a Diversified Retirement fund VTTSX, this got me a 5% return first year. I just reallocated everything from that fund to VFIAX (Vanguard 500) as it was at a 9% the past year. I understand its not diversified but shoudl this be okay to do for my early 20s?
Does it make sense for me to buy VFIAX in my 401(k) if I’m also buying VOO in my brokerage account?
>I currently have two brokerage accounts with Vanguard. One is for stocks primarily and a bond ETF or two thrown in. So one is a Roth IRA and the other is a taxable brokerage account? >One is for stocks primarily and a bond ETF or two thrown in. If this is a taxable account, I would take tax efficiency into consideration when picking investments (this might mean leaving out most bonds in this account). https://www.bogleheads.org/wiki/Tax-efficient\_fund\_placement#Assigning\_asset\_classes\_to\_different\_accounts In general, you want to max out your tax advantaged accounts (401k/TSP, Roth IRA, HSA, etc) before investing in a taxable account because of the tax drag. [https://www.reddit.com/r/Bogleheads/comments/t8vqbx/taxable\_accounts\_101/](https://www.reddit.com/r/Bogleheads/comments/t8vqbx/taxable_accounts_101/) >Another is a Roth IRA where I plan to invest in the VFIAX Mutual Fund, and the Target 2045 Fund, contributing monthly dollar amounts until retirement in USA (probably around 65 years old). I plan to add ETFs and Bond ETFs to the Roth account as well. Have you looked at the portfolio of the Vanguard 2045 fund? It is basically a three fund portfolio that include a Total U.S. Market Index Fund, Total International Index Fund, Total U.S. Bond Index, and Total International Bond Index. For this reason I would not bother adding additional funds to the Roth IRA beyond the 2045 fund. VFIAX is an S&P 500 index fund, the S&P 500 stocks are included in the Total U.S. Market Index Fund. [https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#price](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#price) https://www.bogleheads.org/wiki/Three-fund\_portfolio >I have over 50K in my TSP account which I plan to reinvest in my Vanguard accounts once I exit military service (in the next 3-5 years hopefully). Are you planning to work after you exit the military? If so, I would keep the TSP plan. The TSP allows you to rollover 401k's from other jobs you may have in the future, they allow these rollovers even if you have separated from military service (this is a rare benefit in retirement plans). [https://www.tsp.gov/tsp-basics/move-money-into-tsp/](https://www.tsp.gov/tsp-basics/move-money-into-tsp/) Other resources you may like: Money management tips: [https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) Book suggestion: The Bogleheads Guide to Investing (2nd edition)
Hello all, I've recently become interested in investing, and I need some help making good choices. I currently have two brokerage accounts with Vanguard. One is for stocks primarily and a bond ETF or two thrown in. Another is a Roth IRA where I plan to invest in the VFIAX Mutual Fund, and the Target 2045 Fund, contributing monthly dollar amounts until retirement in USA (probably around 65 years old). I plan to add ETFs and Bond ETFs to the Roth account as well. But like I said, I'm just starting out. My goal is to play a little bit with the regular account with the stocks...a "Plug and Play" account if you will. And my Roth IRA will be more of a "Set and Forget" account. I'm 40 years old now and plan to keep both accounts for 25 years (until I turn 65) or longer. I have over 50K in my TSP account which I plan to reinvest in my Vanguard accounts once I exit military service (in the next 3-5 years hopefully). I'm also anticipating some form of decent inheritance in the next 10 years of so when my parents pass away (that sucks to think about, but it's the truth, they told me). I have a wife and two kids to consider as well, but these accounts are for me. I plan on turning my kids on to investing as soon as they turn 18, if not sooner. My kids already have savings accounts with a fairly decent amount in them for their current ages. Am I complete idiot with my ideas? Please be gentle though, I'm just starting out/getting into investing. Thank you and any advice is welcome.
I put 75% in VWCE 25% VFIAX
Put 1/3 in a safe etf like VOO or index fund like VFIAX. Put the the rest in a high yield savings account like Ally.com.
Put it on auto invest with some fixed number monthly to s&p 500 fund VFIAX 50% and rest in small cap or mid cap or international funds in the ratio that you are comfortable with. Or just put everything in s&p 500 index funds. Keep doing it for next couple years so you will beat market downturns if there are any
Yep nasdaq-100 I believe. I am mostly in VFIAX but figured I could handle a bit of risk at my age.
There’s varying opinions on this. You can check out r/personalfinance for more. But I would ask you what your timeline is. When do you plan to use this money? If it’s within three years high, yield savings account. If it’s not, VFIAX is not a bad choice for 10 years or more.
Appreciate the info! As for my initial question. Do you think abandoning the VFIAX and just sticking everything in a HYSA for now is a good idea? Or going like 75/25 or 60/40 between HYSA/VFIAX?
Just go with the gold standard FXAIX and call it a day. No need to overthink it. (For reference I'm at Vanguard and it's all VFIAX for me)
Hello! 25yo, married, my wife’s PhD program provides us with free housing for the next 5 years. Once that PhD program ends (or close to then) is when we’d love to buy our first house. My current financial breakdown (not counting money I can’t touch like my work Roth IRA) $14.5k in VFIAX, I contribute $600 monthly $15k (includes $10k emergency fund) in our Capital One savings accounts (4.35% APY), I contribute $600 monthly $4k in checking I’m realizing that if I want to put a down payment on a house in 5 years that having $14.5k in a full stocks portfolio like VFIAX might be a bit risky. If I were to take all of that out (like $13.9k after taxes roughly) and combine it with my savings and put all of my contributions there, an investment calculator says that $28.9k with a $1,200 monthly investment at 4.35% would net me $115k in 5 years. Does that seem like my best course of action? Or maybe like 75% in the savings and 25% in VFIAX? It seems like a safe bet unless Capital One goes bankrupt in the next 5 years
Why would my family know my portfolio. Weird. Half a million is in $VFIAX I did buy a house at 34 and maybe got a $100K in appreciation off that.
The problem with target date funds is that they are *way* too conservative, especially for younger people. They're a very good way to 'set and forget' but so is sticking it all into VFIAX or a combination of VFIAX/VTIAX. I do 80% VFIAX an 20% VTIAX just because I want a little international diversification, but honestly you can do 100% VFIAX and call it a day. There has never not been a good time to buy it.
If you're going to be a market timer, ATH is not the metric to use; valuation is. A market can be cheaper at ATH than it is after a 15% correction. Most of the time markets are ATH because over time they go up. If you're uncomfortable with the valuations, it is curious to me why you'd prefer a growth ETF such as VIGAX over a standard VTSAX (aka VTI) or VFIAX (aka VOO). 47% of VIGAX is tech, but if you look at the 15.4% in consumer cyclical and 13% in communication services, you'll find that AMZN/TSLA are 40% of consumer cyclical and Google/META are 62% of communication services. So if you do the math, that's 61% of the fund either in tech companies or Mag 7 companies. By comparison, VTSAX is 29% tech, 10.5% consumer cyclical, and 8% communication services, that's 38% of the fund in tech companies / Mag 7. So you could buy the tried/true VOO or VTI at ATH, or you could double down on an even more concentrated/growthier equivalent at ATH.
Mainly VFIAX. It’s like 0.01% higher expense ratio than VOO, but it allows for automatic recurring investments which is worth it to me.
So like a lot of people, my parents set up a vanguard account for me when I was in my 20’s. I’m now in my mid 30’s and would like to plan out my portfolio and see when I can retire. I never have paid much attention to it and know very little about investing, but would like to start learning now. How does my portfolio look? I’m a 35 year old self employed male, make around 125K a year. I have about 180K in stocks and bonds, and about 40K in a Roth IRA. I know almost nothing about investing and want advice on where my money should be, where to put my earnings each year, etc. How much should I be investing each year and where should I invest the money? Here is a breakdown of what I have with vanguard. Total stocks and bonds about $180,000 VBLAX (vanguard long term index bond) - 1,654 shares, $18,000 VEMAX (vanguard emerging markets) - 177 shares, $6,147 VFIAX (vanguard 500 index) - 134 shares, $64,060 VIGAX (vanguard growth index) - 277 shares, $49,109 VVIAX (vanguard value index) - 700 shares, $42,843 Roth IRA - $40,000 SEP IRA - $5,000
You also have to factor in the other SP 500 ETFs. IVV, VOO, and SPLG have almost $1 trillion under management. Then you have numerous Index mutual funds. FXAIX has $373 billion SWPPX has $60 billion. VFIAX has $792 billion. And it’s worth noting that IWM has $67 billion and VTWO has just $8.3 billion.
Just throw the entire $350k into VFIAX and forget about it for ten years. You'll be absolutely fine and wealthy.
Put that in VFIAX and never open the app again
What is TIAA charging you? My answer is a gentle "yes". Move to vanguard and VFIAX and chill. Slowly add bonds as you age.
Investing routinely in diversified, low expense equity index funds is a good strategy. I would not pick VOO and SCHD, but you could do a lot worse. Vanguard does not allow auto investing in ETFs, only in Vanguard mutual funds. VFIAX is the Vanguard mutual fund equivalent of VOO. It has a $3000 minimum initial investment. Vanguard has some dividend funds, like VDADX, VDIGX, VHYAX. I don't know how similar they are to SCHD.
Nothing wrong with the target date fund for most people. If you want to be more "aggressive" you could do something like 70/30 VFIAX/VTIAX
Looks like the closest options I have to what I listed are VFIAX and VTIAX.
https://investor.vanguard.com/investment-products/mutual-funds/profile/vttsx#portfolio-composition It’s basically a mix of Vanguard total stock index 54%(VTI), vanguard total international index (VTIAX)totaling about 90%. The other 10% is bonds index and international bond index. VTI nearly tracks S&P index VTIAX always seems like a good idea but it really tends to significantly underperform US only indexes. At 30 I think, yeah, you might be better off going all in on VTI or the Vanguard S&P index (VFIAX). 10% in bonds seems very risk averse considering how long you’ll be leaving this in your account. But, and this is important, if you make a change don’t reconsider your choices for at least 5-10 years. If you go back after a market drop because you lose your nerve you’ll really be screwing yourself
What firm currently holds the UTMA? If it is one of the big four low cost brokerages, eTrade, Schwab, Vanguard or Fidelity then just cancel the advising services and switch to a self directed account. Then sell all of the crap, and buy a straight S&P500 index fund. If you aren't with one of the big four then open a new UTMA account first then initiate an account transfer from the new account to pull the money out of the old account. The quickest and easiest way is for the account to be all cash. Most people suggest VOO which is an ETF and trades intra-day like a stock and this means that you have to buy full shares. The equivalent mutual fund version is VFIAX and you can place buy/sell orders in $$$ and buy fractional shares. There is a very tiny expense ratio difference, VOO=0.03% vs VFIAX=0.04%, but this is negligible difference and with VFIAX you always trade at the 100% Net Asset Value (NAV) versus the ETF that will trade at a premium/discount to the NAV depending on the supply/demand on any given day. The VOO and VFIAX distributions are almost identical, so the tax impact will be very similar between the two. This isn't true for every ETF vs mutual fund with mutual fund. If you decide on VTI then the equivalent mutual fund is VTSAX and the distributions are also very similar after adjusting for the price/share difference.
Hello, 34M, USA, Engineer, 114k/yr I am curious what 'index fund mix' others are investing in during their mid-30s? I chose index funds because that is what everyone I worked with was doing. I've done this for 7 years. I made a decision to get serious about my investment choices this year. I want to stay in index funds. I do not have the discipline required for playing individual stocks successfully. My only real goal is to invest my money wisely. I am not aiming FIRE (obviously) or changing my lifestyle. I max out my 401K with Roth contributions every year. If you are in my age bracket (or have passed through it) what index mix would (should have been) you be contributing to? Current Stock Investments: Roth IRA = $193,500: 50% VFIAX, 30% VSMAX, 20% BRKB. Rollover IRA = $149,600: 90% VFIAX, 10% VSMAX Employer 401K (Roth Contributions): $63,300: 50% BLKRK Equity Index, 30% BLKRK EX-US Index, 20% BLKRK Russell 2500. I have about 2X the capital in real estate investments (rental houses), but I don't think that fits in this Sub. Thanks!
I opened my daughter’s brokerage account with Vanguard on 9/2022 with 3k into VFIAX and have been adding $50 a month since. She’s up over $1300 right now. A 22% return. Ditch your broker and move to vanguard/fidelity/Schwab and put it all in the S&P.
Invest in index funds and view the market as a long-term investment. Don't invest money you can't afford to lose, it sounds like you can't afford to lose money right now. You're buying lotto tickets here. If your time horizon isn't at least several years, you're not investing smart. Recommendations: VOO, SPY, VFIAX. Don't put in money you need in the next 12 months.
Dude do not ever do this again… seriously. Put that money into VOO or VFIAX and you wouldn’t have to add another penny to it and you could be a millionaire in 5 years. Depending on how old you are you could retire early as a multimillionaire
As others have mentioned, the main benefit of Wealthfront is tax-loss harvesting, but you can do this yourself without much difficulty, so I don't think it makes sense to move any money there. Are you familiar with tax-loss harvesting? If so, you can ignore the rest of what I'll write. If not, it's just a basic piece of portfolio maintenance for taxable accounts. The first step is to set the cost basis in your taxable account to SpecID. This allows you to select specific lots when selling or exchanging funds. After that, it helps to turn off dividend reinvestment, as that can cause wash sales (a temporarily disallowed loss). Wash sales are not illegal, but they reduce the benefit of tax-loss harvesting. We have the dividends sent to our checking account to be spent or reinvested later, but you can send them to a money market account or elsewhere if you prefer that instead. From there, select one or two tax-loss harvest partners for your taxable investments. For VTSAX, VFIAX or VLCAX will probably work. For VTIAX, you can use VFWAX or VTMGX. When markets are down significantly, take a look at all of the individual lots for each of your funds. Select all lots with losses and exchange them for one of your tax-loss harvest partner funds: example - VTSAX for VFIAX. If, in the future, your tax-loss harvest partner fund also suffers a loss, you can exchange those lots again for your third partner fund. If your third fund also suffers a loss, and 30 days have elapsed since your first exchange, you can then exchange back into your original fund. Good luck.
Well I've always been more lucky than smart. I'm frugal by modern standards and I'm a pretty good saver. I retired in 2008 which seemed like it was a mistake at first. The S&P crashed to about 1,200 by the end of the year. Housing also crashed. I bought my retirement house for $100k then and just rebalanced to add more to VFIAX and the other stock funds that I had. My house value has gone up 3.5x since then. You know what the S&P 500 has done. I lived off my rollover IRA and didn't start taking Social Security until 2022. I'm worth more now than the day I retired 16 years ago.
Hello all, I'm 26 years old and I have always been thinking about starting investing for retirement. I was researching on my Vanguard account and had $500 laying around. I was trying to save $3000 for VFIAX, but then I noticed that VOO was basically an ETF of it. So instead, I bought my first share of VOO. I plan on contributing more money every month now starting next month. The reason I bought an ETF was that I've been seeing that the S&P 500 has been trending upwards and so I wanted to get my foot through the door at least. I recently paid off my loans and credit cards so that I would be able to invest and I already have a mortgage. Is this the right move? Should I still consider investing in VOO or should I later on shift into VFIAX? I mean it's the same thing essentially right? I'm sorry for any dumb questions. I have little experience in investing.
I was in the same boat as you in the beginning of 2022, thought I should spread out my 401K more and revamp it. Turns out digging around the company 401k most of the options listed (20 to choose from) were all super high fee target date funds, bonds, and some "ARDXXXXXX funds, which most were still comprised of VFIAX, which is what I settled on, 80% that, 10% Midcap(FSMDX), and 10% international (FSPSX) has been working well so far!
First of all, I assume that your portfolio is bad and you shouldn't invest for now, because you ask us on this subreddit. *If you don't know the ford, don't go into the water*! Why not to just simply buy an index funds with low costs (for example VFIAX) and hold it for a long time? It much more diversificated than your portfolio, and this diversification, I assume, will not harm your profits, but will reduce your loses if they will happen. And I think, that you really have no idea how much risk you have took, because where are bonds in the portfolio? All this stocks are Americans, and for now they cost too much comparing to their profits, the risk is very high. I think, that for now you should start from understanding your risk profile except asking us about location between stocks. If your tolerance is low (and many investors are the such), you should buy more government bonds (throw low cost fund of course) and less stocks (throw low cost index fund or low cost index ETF of course). If your risk tolerance is high, you may let yourself less bonds and more stocks (throw index fund or index ETF of course). And it's not my opinion, it's SEC recommendation to US investors.
Just rolled over my Roth IRA amount from another investing firm (realized I was paying way too much for quarterly investor fee) into a new personal vanguard account. Looking for advice on what funds to invest in…I’ve been looking at VFIAX and VOO but really have little clue as to what I’m doing. Also thought about just copying what the previous investors had money in lol. If it matters I’m 29, been contributing for ~5 years and plan to max out each year. Please help!! Thanks
It's probably because VFIAX is a Vanguard S&P 500 index fund. If you have a Schwab account, you should use SWPPX instead. SWPPX also has a lower expense ratio.
I have a Schwab brokerage account where I contribute to the following funds: VFIAX SWISX I've been auto-invest into the SWISX fund but NOT to the VFIAX fund. Can someone clarify why that is? I am trying to do as much as possible automatically with the least about of brokerage accounts so appreciate any suggestions. TIA!
I too have had those dreams! Still do once in a while. Let me first say that I'm doing all my trading in a traditional IRA account. So it's not a taxable event when my calls are assigned. My strategy is this...sell weekly calls because they will yield larger premiums. I don't look at deltas or IV. I only look at the ratio of contract price to underlying stock price. I see this as the ROI for my money tied up in the stock. The way I see it, the contract price is derived off the delta and IV. It's just another data point to key off of. Let's take our beloved NVDA as an example. Say I bought 100 shares for the current price of 721. If I want to sell a call at the strike of 725 expiring on 3/8 (4 weeks out). I will make 4400 from the premium. That is a return of 6.1% (4400 / 72100). That's very good! But if I sold a weekly that expired on 2/16, the premium would be 1400. That's a 1.9% ROI. If I can do that every week, 1.9 x 4 weeks is 7.6%. Granted I might not be able to get 1.9% every week. Let me first say that I'm doing all my trading in a traditional IRA account. So it's not a taxable event when my calls are assigned. My strategy is this...sell weekly calls because they will yield larger premiums. I don't look at deltas or IV. I only look at the ratio of contract price to underlying stock price. I see this as the ROI for my money tied up in the stock. The way I see it, the contract price is derived from the delta and IV. It's just another data point to key off of. Executing this strategy doesn't take too much time. I spend about 45 minutes every Monday morning buying my shares and selling the contracts. Then I don't touch it for the week. I check in every other day to see how it's doing, but that's just out of curiosity. I have a spreadsheet to keep track of how I'm doing. I also wrote a program that lists stocks with the highest ROI. So that makes it quicker to pick the stock. But like I said, NVDA is too rich for my blood. I prefer to diversify with other high-ROI stocks. My goal is to consistently hit singles, even if it means giving up the occasional homerun. Just this week, I lost a lot of upside on ARM. The stock went bananas after earnings came out. I had 100 shares that appreciated 3700. Instead, I made only 219 from the premium. But as I see it, if I make 1% ROI every week, that's a 52% return at the end of the year. This whole thing is sort of an experiment for me. I want to see if this strategy will beat the S&P 500 in 2024. So I use half my money in the IRA selling calls and the other half tucked away in VFIAX. So far VFIAX is winning lol, but the year's still young. I plan to follow through for the entire year and then reassess. My dogs so far have been TSLA and RIVN :( Down 24% and 20% respectively. Let me know if you see any holes in this strategy. I have no one else to bounce it off with in the real world. Their eyes just glaze over when I start talking about covered calls.
My son will be born soon, so we haven't opened the account yet. My plan is to use New York. The "expense ratio" changed by the state was best among those that allow you to invest in vanguard. I plan to do 50% in VFIAX(VOO) and 50% in a target date fund. (Also vanguard SP500 based)
Best advice: Do not ask random idiots on reddit for advice. What if I claim to be an investment expert with $5m net worth but really am a middle aged man, disabled, living off $1300/mo disability checks, wearing the same sweatpants that I had on yesterday and my trailer smells of cat urine from my 4 cats? ​ and "VFIAX, SWPPX, VOO, and SPY" - same damn thing. Pick the one with lowest fees or the one from the company you trust, dump it in there and relax. Or get a professional invest with. Warren Buffet says that when he dies, he will dump his fortune into a single sp500 index for his wife... that should tell you something
Your risk tolerance shouldn't increase with age, so I wouldn't necessarily pursue a more aggressive portfolio just for the purposes of catching up. Most people are best off with a low cost index fund (ETF or mutual fund, it does not really matter). You could go with a classic S&P 500 fund (VOO / VFIAX) or total US stock market fund (VTI / VTSAX). Or for global exposure, try VTI + VXUS or VOO + VXUS or just VT. That way you can control the US tilts. Some people will find 60/40 US/ex-US way too globally tilted. You could do 80/20 this way. And skip the bonds if you so choose. Or you could use a more diversified/conservative Target Retirement Date Fund. A TDF will automatically include bonds and increase the allocation over time as you near retirement (and will have globally diversified stocks). You can think of it as VT (the world) + bonds. Generally the bond allocation is only like 10% until you hit your 40s and then it slowly increases from there. If you want to delay the increase, you could simply choose a later TDF, such as 2065 or 2070 instead of say 2040 (when you might actually retire). [If all that is confusing, I wrote a post a while back on why beginners need to stop overcomplicating ETFs](https://www.reddit.com/r/stocks/comments/ulkp5x/please_stop_recommending_overcomplicated/). This [graphic might help](https://i.imgur.com/sPrFT7D.png). Personally I think global diversification is good, and especially since you are starting late, a stagnant decade for the S&P 500 could hit the undiversified investor hard. But I don't think it's all that bad for 100% S&P 500. Only once you've established a base of index funds would I consider buying individual stocks. And only if you're willing to do the due diligence on those stocks that is NOT limited to: "Stock went up a lot in the past" "Tech is the future" "We will always need ___" "It's the best company in the world."
Ok so they're 55% identical by weight, still a lot of overlap. Not saying it's bad just making sure they're aware. Every third post in this group is "I bought VOO/SPY/VFIAX, am I diversified enough?"
Vanguard. I auto invest into VFIAX every Friday
VFIAX is an S&P 500 index fund. VTI is basically the S&P 500 plus small and mid cap stocks. Lots of overlap between VFIAX and VTI. Personally, I would just hold VTI and VXUS. When I was younger I wasted a lot of time picking investments thinking this would make me rich, instead I learned that I should have focused more on improving my income and increasing my contribution rate. Your greatest wealth building tool is your income. The more money you earn the more money you can invest and reach your goals even sooner, it's as simple as that.