VTIVX
Vanguard Target Retirement 2045 Fund Investor Shares
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Can I invest "separately" from within my Vanguard account for child's college?
Looking for more Risk than my Target Date Fund
Hey y’all, what’s up with the VTIVX index fund today?
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You could just put it in a 2045 Target Date Fund like Vanguard's VTIVX. That will have a mix of stocks and bonds.
My smaller investment account is like less than 5% of my retirement savings. ALL of my retirement savings is in the same VTIVX Vanguard retirement thing. Should I be splitting this into other ETF's if I'm concerned about an AI bubble bursting? I see some chatter about other country ETFs? Probably too late for gold, but my smaller account has been doing well lately on critical minerals (though those are domestic things that seem inflated with the US market manipulation. Any advice? Thanks!
A target date fund like Vanguard 2040 or 2045 fund (VFORX or VTIVX) has a 80/20 mix of stocks and bonds.
VTIVX = target retirement fund VTIAX = international stocks fund VMFXX = money market fund When the announcement first came out I sold all my target retirement fund, and put most of it in a money market fund and the rest in international stocks and bought the dip as best I could, buying back into my target retirement fund weekly ever since from the money market fund. I stand by that decision, if for no other reason than my mental health, but also international stocks have actually done amazing. That said, my target retirement account invests heavily in international stocks too and also did great and in hindsight rather than fuck around I should've just left my target retirement account alone. Which is to say (not surprisingly) just leave it alone. You don't know what this fucker is gonna do, and I probably cost myself $2k trying to make moves.
ChatGPT does not actually _understand_ anything the way a human does. It is just very good at repeating words that are often strung together in its corpus in such a way as to often appear like it understands you. It is fundamentally inappropriate for this sort of question. Also, neither it nor us can actually predict the short-term future with precision. https://www.bogleheads.org/wiki/Dollar-cost_averaging has some statistical information on lump sum versus DCA. My take: you're still two decades away from retirement and so movement here is probably going to have minimal impact on your retirement goals (especially look at [the impact this year has had on this fund - [only about 9% down at the peak ytd](https://finance.yahoo.com/chart/VTIVX#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), versus 15% for SPY). [Timing the market doesn't work](https://www.schwab.com/learn/story/when-markets-dip-dont-drop-out), so don't do it.
100%, moved it out the day Trump held up his little sign about starting a trade war with the whole planet. Prior to that I had been in VTIVX for 15 years and I was just plunking more money in it every month. He is still a moron, the difference this time is he's surrounded by kooks, yes men, and other grifters. In his first presidency, he had some sane people around him. There is nobody to keep him under control and rein in his stupidity. I used to think maybe they are evil geniuses who have some sort of master plan. After the trade war and Signal scandal, now I know we are being led by amateurs and fools. So I'm betting against the US for at least the next couple years.
I successfully dodged the 2008 recession by putting all my 401k into money market. I went back in close to the bottom. I've been in VTIVX ever since. Whether Trump and his cronies are corrupt or incompetent, or both, doesn't matter. The economy is going to crash with these guys in charge. They don't know what they are doing. There's a big crash coming.
If you're over 50 yo you can invest all 8k this year. Otherwise, limit is $7k. BRK is fine, so as VTIVX. You can always more them elsewhere later as long as you don't take it out of Roth.
You are correct, VTIVX is a 2045 target retirement fund currently at 84% stocks and 17% bonds while VFORX is a 2040 target retirement fund and currently at 76% stocks and 24% bonds.
VTIVX is 2045 retirement target date. Also, look at their objective. It is categorized as Moderate to Aggressive growth. This isn't for everyone. Thus, my % were conservative as I have no other relevant information to help the poster.
As you are not planning on drawing from your Roth until your late 60s, I think your Roth investment should be in VTIVX (Vanguard 2045).
Yes, VTIVX. Note that if your account is not with Vanguard you might have a transaction fee to buy it (varies by brokerages). I think I paid $70 to buy a Vanguard fund in my Schwab brokerage. I don't know if there are subsequent fees if you add to it each month.
Thanks for the information. That would be VTIVX, right?
If you truly want a set and forget approach, the easiest would be a low expense ratio target date fund like VTIVX. The next best approach would be an asset allocation fund ( such as a balanced fund) that does not have the stock/bond glide path of a TDF. Target date funds tend to have lower management fees which would end up being a lot on $1.5M.
I started taking over my wife's finances. She has a 401k matching. looked over everything that her wok established for her. Seems balanced for most part. But I think she coul do without the two small caps and target date fund. But 1 would like to hear from those who are well versed in creatin a solid portfolio? Her current funds are listed below. We are medium risk people-. Plus as a side note: I am not familiar with vanguard, and it seems like their platform (especially the app) is not that user friendly. VSMAX, VDADX VFIAX VSGAX VTIVX VBIAX VDIGX VIMAX
I am not a fan of the Target date funds, a lot of time the expense ratio is way to high. Average being .3% according to [morningstar](https://www.morningstar.com/business/insights/blog/retirement/target-date-mutual-funds) and can be as high at .5%. Lets take the best case and say you got a good one like Vanguard VTIVX which has an expense ratio of .08%, well lets take a look at the returns - [2023 "16.83%" and 2019 "22.22%"](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#performance-fees) how does that compare to something that just follows the S&P500? Normally 401k/403b come with a low expense ratio S&P500 option. These on average have a ~.015% expense ratio, with a [25% in '23 and 28% in '19.](https://www.fool.com/investing/how-to-invest/index-funds/best-sp-500-index-funds/) I am not making investment advise, just stating what I use personally.
It's great that you're taking steps to help your husband with his retirement planning. Let's break down some key points to consider: 1. Diversification: VOO and VTIVX serve different purposes. VOO focuses on large U.S. companies, while VTIVX provides a diversified mix of stocks and bonds that automatically adjusts as you approach retirement. 2. Target Date Funds: VTIVX, being a target date fund, might be a good "set it and forget it" option for someone who doesn't want to manage their own asset allocation. It automatically becomes more conservative as the target retirement date approaches. 3. Traditional IRA vs Roth IRA: Having both can provide tax diversification in retirement. Contributions to a Traditional IRA may be tax-deductible now, while Roth IRA withdrawals are tax-free in retirement. 4. Catch-up Contributions: At 50, your husband will be eligible for catch-up contributions to both his Traditional and Roth IRAs, allowing him to contribute more. 5. Asset Allocation: Consider your husband's risk tolerance and time horizon when deciding on an allocation between stocks and bonds. 6. Employer Plans: If available, consider maxing out any employer-sponsored retirement plans before contributing to an IRA, especially if there's an employer match. 7. Income Limits: Be aware of income limits for Roth IRA contributions and Traditional IRA deductions. 8. Overall Financial Picture: Retirement planning should be part of a broader financial strategy, including emergency savings and debt management. Remember, investment decisions should align with your overall financial goals and risk tolerance. Generally, each individual will need to open the account for themselves. [Disclosures.](https://m1.com/social-media-disclosures/)
With his traditional IRA already in place, a Roth IRA would definitely be a smart move for tax diversification, especially since you’re looking long-term. Since his traditional IRA is with Vanguard, you’re already in a good spot to make use of their solid low-cost options. VTIVX is a solid choice as it’s a target-date retirement fund that adjusts the asset mix as he gets closer to retirement, which can be a good set-it-and-forget-it option. VOO is also great for broad market exposure with low fees, perfect if you’re looking for something simple and long-term. For the Roth IRA, you could keep it with Vanguard for ease of managing everything in one place or stick with Fidelity, where you already have your Roth. Either way, consistently contributing to both IRAs and making sure they’re invested in diversified funds will put you both on a great path towards retirement.
The 12b1 fee is in addition to the net expense fee of.30%. A 12b1 fee is a junk fee for promoting the fund. You may ask yourself why does a good fund need to be promoted and who is it being promoted to... .35% for an index is unnecessarily high. Index funds simply buy the stocks that are part of the underlying index (SP500) and do not require active management teams researching and making trading decisions. I'd go with a Vanguard fund as they are rock solid and low expense. The Vanguard target fund VTIVX will adjust the amount of bonds automatically as you age, reducing your portfolio volatility and risk. Currently it is: 51% Vanguard total stock market index 34% Vanguard total international stock market index 11% Vanguard total bond market index 4% Vanguard total international bond index So 85% stock, 15% bond, with international mixed in for both. It's known as a fund of funds: the one fund (VTIVX) contains a mix of four other Vanguard funds (see above) It will become less risky (more bonds, less stock) as you approach your retirement year (2045) Great choice IMO for your entire 401K to be in this one fund. Very low fees, good mix of stocks and bonds, international exposure, and will automatically adjust bond allocation as you age. Look into Bogleheads 3 fund portfolio for more information. With your international bond % you'd actually have a 4 fund portfolio but it's basically equivalent (with a little more diversification in international bonds) https://www.bogleheads.org/wiki/Three-fund_portfolio All the best.
* Vanguard Target RET 2045 VTIVX .08% 5 This is just a typical 4 fund portfolio: Vanguard Total Stock Market 50.90%, Vanguard Total International Stock Index Fund Investor 33.60%,, Vanguard Total Bond Market II 10.70%, Vanguard Total International Bond II 4.80%. Low cost cap weighted, Vanguard.... BTW good rule of thumb is to get a target date that is designed for someone about a decade younger than yourself. So consider the 2055. * DFA U.S small cap fund DFSTX. Slightly smaller and more value oriented than a cap weighted blend. A little focus on profitability. You are paying a lot for the screening but it might help some. * MFS MID CAP growth fund OTCHX Literally the oldest open ended mutual fund house. Above average management. Last thing you need is more growth though with the Vanguard. A good choice if you disliked Vanguard, but it doesn't appear you do. * Science and technology fund JESTX More in tech. Sort of actively managed QQQ. Skip. * Vanguard mid-cap value etf VOE Vanguard small cap value index VSIAX .07% Seriously worth considering both as you could use some more small and value. This is designed to work well with the target date. I'd load up here. * 500 index fund JFIVX skip. You have total market from Vanguard. * John Hancock disciplined fund JDVWX A nice actively managed value fund that is not expensive. I'd consider it You sure there is no more international in there? I'd like to add the value tilt but not at the expense of the international tilt.
I wouldn't get any fund with an ER 0.7%. If you wanted something more aggressive (because you're young, won't need the money for decades, and can keep yourself from not panicking when the market dips), the something like an S&P500 fund would be good. VOO, VINIX, FXAIX, etc. Whatever you were considering buying to "diversify", it is probably not adding diversity to your portfolio. VTIVX is already extremely diversified. The VSMPX makes up like 50% of the fund, and is invested in >3,700 companies in the US market. The VTIAX portion of the fund is 33%, and invested in >8,600 international companies. Most index funds you would buy (especially something with a fee 0.7%, which I suspect is some sort of sector heavy ETF) will actually decrease your overall diversification compared to this target date fund. But overall, no. Don't buy funds with expense ratios that high. Anything over 0.1% should be proceed with caution. I think it's fair to say anything over 0.2% shouldn't be considered at all.
Adding just about anything to VTIVX actually decreases your diversification, not increases it. That's because internally, VTIVX is already a fully diversified portfolio in one fund.
>a computer program essentially handles 99% of the management of the fund itself Including the changes in allocation that OP mentions. That's once every five years, and even manually that's only a few minutes of work if you already know what your funds and target percentages are. Which they would, because VFIFX in five years should look a lot like VTIVX does today.
>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 did too :D Sell the losers / small value stuff if you can, and then just reinvest in either VTIVX or VOO/VTI/VT. I personally like VT the best because I literally buy THE entire stock market globally and never have to ever rebalance my US vs. International exposure!
The funds I have now in my vanguard account was from a rollover 401k. When I did a roll over, part of was split into an IRA and the other into a Roth. As I explained, I am already maxing out the Roth. Is there anything different I should be doing with the IRA, I don't make contributions. Holdings in the IRA VTIVX Target FPURX FSCSX ETF ARKG FElC
>Thanks to reading Ramit Sethi's book highlighting the importance of paying attention to your IRA investments I haven't read his book, but from what I have read in articles and heard on his podcast, that's not so much about picking specific funds as just making a deliberate choice. People miss out on doing that in two main ways, depending on the type of account: * Sometimes people [contribute money to their IRA](https://www.nasdaq.com/articles/ramit-sethi:-this-one-investing-mistake-could-cost-you-thousands) thinking that the IRA itself is an investment. It's not, the IRA is a container to *hold* investments, and everything within that container is allowed to grow tax-deferred or tax-free. If you don't pick a fund or other asset to invest that money in, it'll sit in a money market account earning a couple percent per year. * Banks contribute to the confusion by labeling some of their Certificates of Deposit as IRAs. That's probably the first place most people would have heard the term. * With a 401k your default investment may be safer (or riskier) than you'd like. In years past this too was usually a money market fund, though [target date funds](https://www.fool.com/investing/2021/12/10/are-401k-contributions-automatically-invested-well/) are getting more popular. * To use myself as an example, my conventional retirement date is around 2045, and target funds like [VTIVX](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#portfolio-composition) or [SWYHX](https://www.schwab.com/research/mutual-funds/quotes/portfolio/swyhx) would put me 30% into international stock and 15% into bonds. That's fine, nothing wrong with that, but the US market has [done really well](https://www.hartfordfunds.com/practice-management/client-conversations/investing-for-growth/us-and-international-markets-have-moved-in-cycles.html) the last 15 years so target funds have generally lagged. (Then again that could go the other way, as it did in the 2000s.) That focus on just making *a* choice is consistent with other research. Assuming a portfolio is reasonably well diversified, asset allocation (how much you put into stocks, bonds, real estate, or commodities; foreign or domestic; and so forth) is the single biggest determinant of returns. Pretty much any fund holding large-cap US stocks should perform about the same. This is why index funds are so popular; they do basically the same as an equivalent actively-managed fund but at a lower cost.
To analyze the performance of VTIVX and compare it with that of VTSAX during the end of 2021 and throughout 2022, you need to consider several factors beyond just the pandemic's impact. The pandemic certainly influenced market dynamics, but it's not the sole factor to consider when analyzing fund performance differences. 1. Fund Composition and Diversification: VTIVX is a target-date retirement fund, which means its asset allocation is designed to change over time, becoming more conservative as the target date approaches. This fund is diversified across stocks and bonds, including domestic and international holdings. As the fund nears its target date, it automatically shifts more towards bonds, which are generally considered safer than stocks. This reallocation could explain why VTIVX might underperform compared to VTSAX in a market recovery, as bonds typically offer lower returns than stocks. 2. Market Volatility and Interest Rates: The period in question saw significant market volatility and shifts in interest rates, impacting stocks and bonds differently. Increased interest rates can negatively affect bond prices, which could further explain VTIVX's underperformance if its bond holdings were impacted more than the equity components of VTSAX. 3. Sector Performances: VTSAX, being a total stock market index fund, is fully invested in stocks, including sectors that may have rebounded or performed well even during uncertain times. The performance of VTSAX would thus be more directly tied to the stock market's overall performance, whereas VTIVX's broader diversification across asset classes could dilute its gains from any stock market recovery. 4. Investor Behavior and Fund Flows: Investor sentiment and the resulting fund flows can also impact fund performance. If investors in VTIVX were more risk-averse, leading to higher redemptions, this could necessitate the fund selling assets at less-than-ideal times, potentially impacting performance. Considering these factors, the difference in performance between VTIVX and VTSAX can be attributed to their fundamental differences in investment strategy and composition rather than the pandemic alone. Before deciding to shift your investment from the target-date fund to a total stock market index fund, consider your risk tolerance, investment timeline, and the diversification benefits of a target-date fund. Each type of fund serves different investment objectives and risk profiles.
Looking at price alone is completely worthless. Completely worthless. Less than doing nothing. Total return is all that matters. A target date fund is going to have some portion of bonds. Bonds issue interest payments as large dividends. The price of a stock/etf/mf goes down by the exact amount of the dividend. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=2Fkljeoo8S5aXzl4o0LKvJ Note that VTIVX has a lower total return than VTSAX but the effect is less pronounced looking at total return. It is going to have a lower total return because it is lower risk.
Assuming that VTIVX was the target date fund you were referring to, it's current longest reported yearly returns (10 years) averaged to around 8%, which is below your desired 9%. Taking one of the S&P 500 funds, one of them has a reported 12.8% average 10 year return. A target date fund is going to hold a mixture of equities and bonds, with the mixture adjusting more into bonds as the target date approaches. With the presumption that bonds in general under perform equities, if the current yield on the TD fund is 8% and it it only going to get heavier into bonds I wouldn't expect that return to increase more in the future (when compared to a pure equities investment).
My spouse left her employer and has 140k from 401k that we're rolling over to Vanguard. We're down to either [VFIFX](https://finance.yahoo.com/quote/VFIFX/) or [VTIVX](https://finance.yahoo.com/quote/VTIVX/). The stock prices are vastly different ($44 vs $26), but otherwise appear to perform similarly over their lifetime with identical expense ratios. What would your recommendation be? Would it be VTIVX because we'd be purchasing more shares? We're 34 and are planning for a 'normal' track to retire by 2050 or so.
Vanguard's numbers: 10-Year Return VTSAX: 10.47% VTIVX: 6.93%
One must account for splits, dividends, capital gains when looking at returns. Generally sites only chart prices accounting for splits. You can go to yahoo's historical data tab and look at adjusted close prices, which accounts for all three. VTIVX 44% (7.6% annualized) VFIAX 77% (12.1% annualized) VTSAX 72% (11.4% annualized) So it's underperforming the S&P but not that severely. From their site, you can see it's roughly 1/2 US markets, 1/3 international markets, and 1/6 bonds. Both VXUS and bonds have sucked over the last 5 years. So that accounts for the lower returns.
The answer as to why VTIVX hasn’t performed is in the composition of the fund. https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#portfolio-composition Funds Vanguard Total Stock Market Index Fund Institutional Plus Shares - 51.60% Vanguard Total International Stock Index Fund Investor Shares - 33.50% Vanguard Total Bond Market II Index Fund - 10.50% Vanguard Total International Bond II Index Fund - 4.40% First, it is a fund of funds meaning it is overly diversified and any time you overly diversify you tend to water down your returns. Second, a major part of the fund is invested in international stocks which have far under performed the S&P 500 over the past 20 years. Third, and most importantly, it is invested in bonds and no one should have been invested in bonds while interest rates were virtually zero as that completely ignored the massive interest rate risks to bonds, as interest rates rise bonds fall in value. What you have in VTIVX is essentially an MPT based portfolio and sadly MPT basically hasn’t worked since its creation primarily due to underperformance of international stocks. You are correct to question your decision to invest in VTIVX. You should continue to monitor your investments and adjust as necessary. Currently MPT shows no signs of improvement but that doesn’t mean MPT won’t work again in the future. While bonds were a terrible investment up to a year or two ago, they are now a more reasonable investment as interest rate risks are much lower. If I were you I would consider doing two things. First I would consider moving out of VTIVX and into something like VFAIX, VTSAX, or some other fund which tracks the S&P 500. I would also consider allocating some of the portfolio to bonds depending on what you personally believe will happen with interest rates over the next 6 months. If you think interest rates will stay where they are or fall then investing in bonds is a pretty good idea, if you think interest rates will rise then steer clear of bonds. Whatever you do, you must keep your eyes on your investments because times do change sometimes and what works today won’t work as well at some point in the future.
Firstly, your stated returns are incorrect. Secondly, VTIVX has exposure to small caps and fixed income, two parts of the market that have gotten beaten up the last 2 years compared to large caps. But, fixed income and small caps are now historically cheap compared to large caps so this performance deficit should mean revert looking forward 5 years. Nothing is guaranteed but I’d rather have an allocation to bonds with 5% yields than 0% yields where bonds were 2 years ago.
I've been putting most of my 401k into VTIVX Vanguards 2045 target date fund and it's returns have been kinda bad. I know it's not supposed to track the S&P but adjust risk over time. But since it is still mostly equities at this point I thought it would be a little bit close to the market. Should I switch up my contributions? VTIVX S&P 2yrs -22% -3 1yr 7.4% 11.6 ytd 6% 10%
What do you recommend? I've had terrible luck picking my own stocks, so I'd prefer a managed fund. I own VTIVX, should I just buy more of that?
Need guidance how to invest $800,000 cash Extremely blessed to have received a nice windfall but need serious guidance where to put the cash, especially because of my current circumstances. Background: \- 42 yrs old, not married, no kids \- \*\*Currently unemployed and majorly struggling w/ career direction (☹) \- Interest income: $4,000 p/mo; Expenses $2,500 p/ mo \- Do not own real estate \- 0 debt \- Dollar cost averaging $1,000 per month among investments Financial Breakdown: \- $1,121,700 in liquid cash (currently in HYS @ 4.55%, generating $4,000 mo. income) \- $98,000 in SCHD (dividend equity) \- $10,000 in iBond \- $19,000 in ROTH IRA (VTIVX) \- $36,000 in Vanguard Brokerage - ETF’s & Stocks - (VEIPX, VGSTX, VTIVX, AMZ, DIS, SBUX, T) \- $15,000 in Wealthfront ETF’s (45% stock, 15% RE, 11% Foreign, 10% div growth, 9% emerging, 5% muni bonds, 5% commodities I would like to leave $300K liquid cash so that leaves me about $800K to invest. Should I invest more in growth (regardless of no employment income)? CD Ladder? REIT’s? Buy property? I previously had help with my current investments but I am not too savvy and desperately need guidance. Thank you in advance!
Today is my birthday, officially 20 years out from my target retirement age. Here is my investment strategy for 2023. It is based on my risk tolerance, age, family situation (I have two kids I adore who take up my time), historical savings for retirement (I have done some but could have done better) and interest in following the market: Max out my 25% SEP-IRA with my Vanguard TDF (VTIVX), or at least get damn close to it. My monthly income fluctuates and so I cannot say for certain what I will bring home by the end of the year, but I usually have a general idea and can add extra funds in December to get me in the 22-25% range. This TDF isn't sexy, the return doesn't shoot to the moon, but it is well diversified, reallocates automatically, and if I continue to stick with my retirement savings goal will give me a decent nest egg. Wife and I max our ROTH IRAs (wife is SAHM) with a 60/40 split between SCHD and VUG via weekly deposits for dollar cost averaging. Because I can take everything out of my ROTH tax free, I use these accounts to chase growth with some dividends too. The wife and I will each put a couple hundred each in our regular brokerage accounts each month. She just buys stocks YOLO style.... I split my money between individual shares of large cap (preferably dividend generating) stocks and various ETFS. This lets me "play" with individual stocks that I think are good investments, but also keeps me investing in something with more consistent returns over long periods of time. Thoughts?
Regarding rebalancing, a simple target date fund is an option... Something like VTIVX has a 0.08% expense rate, which ain't bad. Rebalancing doesn't have to be a frequent thing either -- even once every few years is probably fine. Re: crypto/NFT, it may be best to split the money into fun money and retirement money -- do your stupid schemes with $70k and ensure your future with the other $630k.
I have 213k (cash + TIRA in MMF), what do I do? \*\*How old are you? What country do you live in?\*\*40yo, US as an expat Aussie \*\*Are you employed/making income? How much?\*\*Currently fUnemployed taking a break. Last full annual income 320k (software)/intend to be employed again soon. This year closer to $70k. \*\*What are your objectives with this money? (Buy a house? Retirement savings?)\*\*Would be nice to own a house someday, but whatever works out best long term is my goal. \*\*What is your time horizon? Do you need this money next month? Next 20yrs?\*\*I need living expenses in the short term (my spending has been \~10k/mo but will be lower coming months. \*\*What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)\*\*Higher than average (poker player, so understand "good" risk) \*\*What are you current holdings? (Do you already have exposure to specific funds and sectors? Any other assets?)\*\*TIRA: 13k cash, Roth IRA: 21k Vanguard 2045 TDF (VTIVX), 401K: (Vanguard Target date 2045). Australian Superannuation: 70k (unsure how allocated). Robinhood: 2k crypto \*\*Any big debts (include interest rate) or expenses?\*\*40k left on car loan @ 1.8% \*\*And any other relevant financial information will be useful to give you a proper answer.\*\*3k rent/mo, 401k can be rolled over due to leaving my job earlier this year. Considering a Roth conversion given my lower than usual income. Not sure what to do regarding exposure to international funds. Have fully funded my 401k this year already, but have not yet contributed to either TIRA or Roth (unsure) **Questions:** * What should I do with the cash? * Robadvisors - which one? Is tax loss harvesting likely going to net me a good return. TDF have lost value this year, so there's a large loss to offset in my 401k. Is this a lot of work to do on my own? * Personal Financial advisor - not sure if I have enough money for this to be worth it, and if so, which (fidelity / vanguard / other / robo)? * 401k rollover - better fund access? Why? * 401k / roth IRA conversion - normally I have a much higher income, this year is a down year while I'm taking a break, so does this make the money work for me while I'm doing it. * Tax planning - what does a tax planner (cpa?) cost that handles this sort of thing?
I have 213k (cash + TIRA in MMF), what do I do? **How old are you? What country do you live in?** 40yo, US as an expat Aussie **Are you employed/making income? How much?** Currently fUnemployed taking a break. Last full annual income 320k (software)/intend to be employed again soon. This year closer to $70k. **What are your objectives with this money? (Buy a house? Retirement savings?)** Would be nice to own a house someday, but whatever works out best long term is my goal. **What is your time horizon? Do you need this money next month? Next 20yrs?** I need living expenses in the short term (my spending has been \~10k/mo but will be lower coming months. **What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)** Higher than average (poker player, so understand "good" risk) **What are you current holdings? (Do you already have exposure to specific funds and sectors? Any other assets?)** TIRA: 13k cash, Roth IRA: 21k Vanguard 2045 TDF (VTIVX), 401K: (Vanguard Target date 2045). Australian Superannuation: 70k (unsure how allocated). Robinhood: 2k crypto **Any big debts (include interest rate) or expenses?** 40k left on car loan @ 1.8% **And any other relevant financial information will be useful to give you a proper answer.** 3k rent/mo, 401k can be rolled over due to leaving my job earlier this year. Considering a Roth conversion given my lower than usual income. Not sure what to do regarding exposure to international funds. Have fully funded my 401k this year already, but have not yet contributed to either TIRA or Roth (unsure) **Questions:** * What should I do with the cash? * Robadvisors - which one? Is tax loss harvesting likely going to net me a good return. TDF have lost value this year, so there's a large loss to offset in my 401k. Is this a lot of work to do on my own? * Persona Financial advisor - not sure if I have enough money for this to be worth it, and if so, which (fidelity / vanguard / other / robo)? * 401k rollover - better fund access? Why? * 401k / roth IRA conversion - normally I have a much higher income, this year is a down year while I'm taking a break, so does this make the money work for me while I'm doing it. * Tax planning - what does a tax planner (cpa?) cost that handles this sort of thing?
>While a tiny bit higher than low expense options, they're hardly "terrible". VTIVX is like .08%. I believe both Vanguard's and possibly Schwab's index based ones are essentially the same ER as the weighted ER of the component funds if you were to mirror it using Admiral shares yourself or Schwab ETFs.
They're fantastic for investors who want a moderately conservative path/allocation that they don't have to think about. We use one for my wife's IRA. She knows nothing about investing. She has no interest in learning. So, it's a great solution. They usually have relatively low expense ratios. While a tiny bit higher than low expense options, they're hardly "terrible". VTIVX is like .08%.
My portfolio primarily consists of my Roth (mostly VTIVX) and a brokerage consisting of VSTAX (80%) and VTIAX (20%). I do have some Apple stock, and MSOS as well as some penny stock that I keep around as a reminder that I am too ignorant to get cheeky with such things and should stick with ETFs for now. I start the year by fully funding my ROTH and then (by April) putting it into my brokerage. This year, I'm considering holding my money in a savings account for a few months and possibly buying some land or something else other than putting it into the market. Is this crazy talk or should I just continue to throw money on the pile for my plan?
I am a bot. You submitted a picture of a banned ticker, VTIVX. This check will fire if you included unnecessary pictures that have bad phrases or a bad crop with news about cryptocoins, for example. Repost with the useless pictures omitted if you did that. Yell at /u/zjz if it's above 1.5 billion-ish market cap and not related to crypto/pennies/OTC.
28.42 is the price I see: https://finance.yahoo.com/quote/VTIVX And yes the drop is related to the sticky thread at the top of the subreddit.
Can anyone help me out? Vanguard seems to be reporting things really wrong. To search VTIVX on Google, the fund states that on Dec 29 it dropped from 32.82 to 32.78. However on the Vanguard website it shows the same fund dropping from 32.82 to 28.42 on Dec 29 (more than 13%!). Most other funds on Vanguard are showing a similar big drop that doesn't correspond to reporting on those same funds elsewhere online. Is Vanguard having technical issues? Is it at all related to the topic stickied at the top of the subreddit? Thanks!