VTSAX

bigmac9

Just keep in mind Fidelity charges a fee for buying Vanguard mutual funds like VTSAX. ETFs are ok.

Far-Doctor3527

TLDR: VT and chill Hello, responding here because I am also unhappy that my passive funds will buy SpaceX. I have decided to not take any action regarding the SpaceX IPO, and accepting that my funds will buy it even though this IPO seems like an obvious grift. I am not trying to convince you to take action or not take action, just explaining my reasoning because this IPO has made me worry about my portfolio and maybe this will be helpful to you in your own decision. First let's understand what types of funds could be affected by the IPO: \- Total world market funds (VT and the like). These track the total world's equities market, which is roughly $154 trillion in market cap. \- Total US market funds (FSKAX, FZEROX, VTI, VTSAX, and the like). These track the total US equities market, which is roughly $77 trillion in market cap. \- S&P 500 funds (FXAIX, VOO, and the like). These track the largest 500 companies in the US by market cap, which total to about $62 trillion. Note that this is about 80% of the total market. \- S&P 100 funds / Mega cap funds (FGRTX, QQQ, and the like). These track roughly the top 100 companies in the US, totaling roughly $55 trillion. Note that this is roughly 70% of the total market, and roughly 89% of the S&P 500 \- Large cap funds (FNILX, FSPGX, and the like). These are functionally equivalent to the S&P 500 so I will not add anything here, they may be slightly larger or smaller percent of the total market than the S&P 500 depending on holdings. \- Mid cap, small cap, and international funds: unaffected The first thing you want to think about is: what are you invested in? You don't have to go super granular but most passive investors have their investments in some version of the above funds. Are you more of a total market person, or more S&P 100? It doesn't matter which one you are, but take a look at your portfolio and understand what you are invested in. Now let's assume SpaceX does IPO at $2 trillion and let's look at how the SpaceX IPO affects the broad categories: \- Total World Market Funds: 2 / 154 = 1.2% of the total world market \- Total US Market Funds: 2 / 77 = 2.6% of the total US market \- S&P 500 and other large caps: 2 / 62 = 3.2% of the S&P 500 \- S&P 100 and other mega caps: 2 / 55 = 3.6% of the S&P 100 Now let's assume that the worst case happens: SpaceX IPOs at 2 trillion, and then the price goes literally to 0. If you are mostly in total market funds, your portfolio would go down by 2.6%. If you are mostly in large cap funds, your portfolio would go down by 3.2%. If you are mostly in mega caps, your portfolio would go down by 3.6%. But let's be realistic, even with this IPO likely being an Elon grift, do we really think this is going to 0? I don't. Maybe it loses 50% of its price, maybe 80%, I don't know. But it's a real company with real revenue (though small revenue compared to its huge valuation), so it's not going to 0. I'm not going to redo all the calcs but just for example, assuming it goes down by 50% and you are mostly in S&P 500 funds, your portfolio would go down by 1.6%. But here is the biggest consideration: 100% of SpaceX is not going to be publicly tradable. We don't know exactly what the percent it is going to be but likely only like 5%. This means that the indexes will only track 5% of SpaceX's market cap. So assuming SpaceX IPOs at 2 trillion and goes down by 50% and you are mostly in S&P 500 funds, your portfolio would go down by (2 \* .05)/62 = .16%. To be clear, this is like a fifth of a percent, which is inconsequential, the market moves more than this on a daily basis. Another point: I don't know what is going to happen in the future: I don't know if SpaceX's price will actually shoot up for whatever reason, so as an uninformed person, I think actively shorting SpaceX is not a good idea. Remember the famous quote "the market can remain irrational longer than you can remain solvent". I am a regular person and don't have any privileged information about what is going on with SpaceX so I think shorting it would be equally risky to shorting any other company that doesn't have a high-profile controversial figurehead as Elon Musk, which is something I wouldn't do (and likely something other passive investors wouldn't do either). At the end of the day, passive investors get to benefit from all of the companies in the market without having to do the work of researching and understanding each business, and making bets about which one will go up or down. We have benefitted from all the other great businesses that have continued to skyrocket without having to use a second of time to evaluate them. If you want to take action against the SpaceX IPO that is totally ok, but you could be introducing complexity to your portfolio, and spending your valuable time thinking about how to hedge against something that will impact your portfolio less than regular daily market fluctuations. Again, not trying to convince you one way or another, and to reiterate, I am not happy that I will be buying into this IPO passively because I do think it is a grift, but by looking at the actual numbers I have decided that this is not consequential. So to summarize all of this information, even though I am more of a Fidelity stan than Vanguard, "VT and chill".

RphAnonymous

VTSAX for diversification outside the purview of the US market and/or SP500?. Other than that, if you are buying individual securities, make sure you are well diversified across sectors, especially sectors that don't benefit or decline so much in the presence or failure of AI. Make sure you have decent bond exposure for some mitigation, but understand that bonds might themselves become risky in the near future- right now is a great time to buy as they are going on sale, but definitely The irony I'm seeing is that these changes are actually driving the death of the value of these indexes in terms of diversification. This may actually serve to boost the value of bonds and other securities in investor's eyes. I've even considered rolling my 401k out into an individual 401k investing account to have more investment options than just indexes.

meat-critter

Just voo or VTSAX and let professionals do it.

Icy-Sheepherder-7595

I'm working with much less capital than you but I've been struggling with the same emotional selling and poor timing. I keep trying to tell myself it is what it is and it's a lesson pretty much every investor has to learn at some point. Nobody's line ever just goes straight up. I recently took a $7k loss on LULU after finally deciding I was done with it after holding and averaging down for almost 2 years, then I see it starting to move up again although the value is still way off its highs, I sold MELI a few weeks ago and again that's going back up, sold out of half my UNH position at the bottom and lost a little money despite knowing I bought in really cheap and probably could've held it all, I made $4k instead of the $10k I should have had I held. The thing is though you have to move on once you sell a stock. Beating yourself up and, I'm guilty of it, I made a similar post in the value investing sub about how over the last few years I traded like $300k just to barely break even, but beating yourself up and dwelling does no good for your mental health or investing strategy it will only cause you to keep losing money. Not financial advice in the slightest but I think if you let go of META and MSFT you'll find yourself feeling sad again once they go back up. MSFT is my largest position so far and I'm not selling until it at least doubles which could take time but I don't think as much as the projections are showing. If it drops below my entry price of just under $400 again I'm loading the boat. It's the one stock I have 100% conviction in right now they'll never go away, corporate America runs on their products I wouldn't bet against that at all. META is riskier but I hold that too although much less. Earnings are good, no reason the stock should stay this low for long. I would just close the app and hold and see where things go if I were you. And also it sounds like you already have about $400-500k liquid net worth so you're already ahead of most people, if you're smart and can get a handle on the emotional aspect which is just as important as the technical analysis side of investing, you can make that money compound quickly. No need to be chasing anything too risky like options when you have that much to lose. If anything sell your current positions after you're in the green and throw it in VOO/VTI/VXUS/VTSAX take your pick at whatever low cost index fund and then just never sell. That's the beauty of index investing, if it goes down it just means you can buy more cheaper, unlike individual stocks where your gambling it all on horse to win it all but with indexes they pretty much always go up in the long term. Even buying at the top of the market you're still guaranteed to come out profitable unless a nuclear war breaks out or something of that magnitude.

2019_Stealth

In order from most to least: VFIAX, VFTAX, VTSAX.

point_of_you

1.25% is too high of a fee I recently spoke with a money manager guy who shat all over my portfolio and proposed a bunch of random shit like this too at a 1.00% fee... with that much money you are probably better off minimizing risk and fees with a Vanguard fund like VOO/VTI/VTSAX and your annual fee becomes 0.04% Only thing I have on that list is CEG and it's been a turd for me but I'm still throwing a little money at it... Also thinking about starting a position on Chipotle CMG soon lol

therealswimshady

I split between 75% S&P, and 25% International in my 401k. I do VTSAX in my roth IRA.

GailaMonster

> Fed bonds are yielding over 5% right now, but I use munis in order to get no state tax as well (I’m in NY). Federal savings bonds/ T bills are already exempt from state and local taxes, so not sure what you’re on about there. Still subject to federal income tax. Again, don’t have enough deductions to itemize. No debt besides our mortgage. Sounds like you don’t have a guaranteed tax free return over 5.625 to share after all. Which I knew, but you didn’t need to call me naive just because we have some money leftover after maxing out retirement accounts and plowing more into the market and tbill via brokerage. Different strokes. We’re 7 figures deep with mostly VTSAX, still buying just ALSO paying down the mortgage for peace of mind. Missed the abnormally low mortgage rates but that just means we aren’t trapped and could happily move if we decided we wanted/needed to. I thought schedule c was for bad business debt. I guess interest paid on business debt is still deductible, but that’s not a “return”- you still paid that interest money to someone, you just excluded it from your taxable income.

bkweathe

No, VTI is no more tax-efficient than VTSAX. ETFs are often a bit more tax-efficient than a comparable mutual fund, but that doesn't apply to this pair. Nor does it apply to several other popular Vanguard funds. Please see my reply to the OP for details.

IdioticPrototype

Some ETFs are more tax-efficient than some mutual funds. VTI for example is more efficient than VTSAX, but the difference tends to be quite small.  Start with the basics, you can min/max to your heart's content once you have a good grasp of the foundational stuff https://www.reddit.com/r/financialindependence/wiki/faq

mhoepfin

VTSAX and chill.

Rymasq

My VTSAX is up 45% over a few years, you have to be a really bad investor

totally_possible

make sure you're maximizing 401k company match and roth IRA and invest in those accounts first. As for what to buy? I'd look at whatever total market funds are available in those accounts - VT or VTSAX are usually available. After you're maxing those out (on a per-paycheck basis) then you can/should look at what remaining allocation you have for saving/investing. Personally I like to take a little more risk here with the retirement accounts secure, so these funds go towards buying companies I like. I encourage you to do your own research there -- it's kind of fun to pick out companies you're interested in and decide for yourself if they're worth investment.

dmiller224

Walk away and take the chips off the table. You’re set for life if you just throw into VTSAX OR FSKAX. I know someone who got greedy and lost it all, multiple times. Not worth it.

goosefraba1

Dude. Stop this shit and throw it all into VTSAX. Retire on the 4% rule. 80k a year for life.... probably.

InvestingNerd2020

0% net expense ratio. The only issue I see is lower dividend percentage. 0.5% for ETTOX. FZROX has 0.97%, SWTSX has 1.04%, and VTSAX has 1.05%.

tad_bril

VTSAX and chill.

lance_klusener

VTSAX and chill

nichijouuuu

Is this a serious question or a rhetorical one? Most of the big, notable total market index funds double about every 7.5 to 8 years on average. Putting your money in VTI, VTO, VTSAX, etc. is a great place to invest daily or weekly.

John___Miller___

Sorry what is this VTSAX that automatically doubles your money every few years?

nichijouuuu

The thought of having $7M in VTSAX that turns to 14 and 25+ over 7.5 and 15 years respectively has me salivating. I would bite the hand that offers $7M. No... $2M. Because same thing happens. $2M -> 4M -> 8M in less than 2 decades.

HappyCaterpillar2409

VTSAX for the win!

SuperDada

VTSAX and forget it

GailaMonster

What kind of exposure does VTSAX have to the spacex IPO? Trying to really understand what I can/should do to avoid buying that stock thru an index. I know NADSAQ bent the knee and changed its rules to allow Musk to hand this flaming bag to retail investors, but doesn’t VTSAX have its own rules re float, market cap, etc? Sincerely, A stupid person trying to sidestep this mess

ChicanoBexar

Buy an index fund that track the S&P 500 or a total US or World index like VTSAX or VT.

atari2600forever

To answer your questions, 1. I'm not worried at all. 2. The market will either go up or down in the short term and go up in the long term. 3. I'm buying as much VTSAX as I can, no matter if we're at market highs or lows. I'm 20 years out from retirement so the price today is completely irrelevant.

InvestingNerd2020

Assuming you are still eligible for a Roth IRA (Less than $153,000 per year income), follow the following order of operations: A) Max out your Roth IRA contribution ($7,500 per year or $625 per month) at a respectable broker. Fidelity, Charles Schwab, or Vanguard. Anyone will do. Just a style issue. Research via YouTube each and pick the one that resonates with you the most. Keep it simple with a Total USA index mutual fund. FZROX with Fidelity, SWTSX with Charles Schwab, or VTSAX with Vanguard. SoFi offers a Roth IRA with only ETFs. You can use ETF VTI. B) Any money left over ($4,075 per month) split between emergency funds in your HYSA at SoFi and taxable brokerage account. You can continue it with VTI in the taxable brokerage account. An alternative to your emergency fund is SGOV ETF for tax exemption from state income taxes in interest.

THAC0-Tuesday

Because "VT and chill" and "VTSAX and relax" sound cooler *VTI is the ETF equivalent of VTSAX and also good

January212018

I'm 38. About $800K networth, no house. I never had a "real" job with benefits. I invested young into VTSAX and have been living extremely frugally for my whole life but still traveling the world. My lovely apartment near the beach is $288 a month. I spend about $500 a month to live a nice life (I am American but I left 14 years ago). I'm making about $3,000 a month and investing most of it still.

dolenees676

Take that money right back out of the Edward Jones and put it in a Vanguard account, then dump 100% of it in something like VTSAX - and chill. EJ is a total ripoff. Huge commissions and fees. In the era of discount brokers, there is no need to pay the massive fees to EJ just to have a friendly face at your local strip mall.

zxn11

VOO, VTSAX, etc. for your retirement account though, you can definitely consider one of the target date funds.

holymacaronibatman

Paging /u/ALL_IN_VTSAX

Pale_Drink4455

Low cost S&P 5OO funds are your reliable good long term performers. Not financial advice but VTSAX, VOO, VTI etc are popular ones. Also open and max fund a ROTH yearly too if you can. Anything extra throw in a brokerage account but make sure you do have some cash on hand because shit happens in life unexpectedly.

lasagnaman

How does paying 20% on gains even compare to a slightly worse expense ratio? I'm assuming like 1-3% or something compared to VTSAX or comparable’s ~0%.

Cruian

There are differences: * Most, but possibly not all, will have free ETF trading * Not all have fractional ETF trading * Free to trade mutual fund lists will be different based on who you use, though brokerage A and brokerage B may have very similar offerings of what I'd call the "essentials" (such as VTSAX is Vanguard's version of US total market index and FSKAX is Fidelity's)

HappilyDisengaged

3 funds are all you need. VTSAX, VTIAX and VBTLX. I like to keep it simple and lazy

f1modsarethebest

Not only did you not crack the market, you underperformed QQQ and were marginally better than VTSAX and VOO. Seems like a lotta effort and risk for no reward to me.

charliekunkel

I'm avout years out and my Roth is now all JEPI/Q, and 1/2 of my 401k is SPYI. That way if there's another recession coming, I'll be fine. The other half of my 401k and my personal brokerage is target date funds, VTI/VTSAX/VTWAX, and a few individual companies. I worked too hard for my money to put it in anything riskier than that just for the sake of greed. Will i miss out on some gains? Probably. Will i also not get set back from retirement by 10 years if theres a crash? Yup. Totally worth it IMO.

lance_klusener

To make sure I get it - if you have 100 K , place it in VTSAX and chill ?

InvestingNerd2020

Index mutual funds are fine, and don't have front-end nor back-end fees. Examples: \- VTSAX, SWTSX, or FZROX. However, ETFs are the better choice for taxable brokerage accounts.

iamdebbar

To be honest, that's my assessment as well. But I started to seriously think about this when I started teaching my kid (9yo) about investing. I want her to follow the simple path to wealth: VTSAX and relax lol. But that would stretch the timeline to 80 years (until kid's EOL) not only 30 years.

IdioticPrototype

VTSAX and relax. 

GailaMonster

Pausing contributions still prevents plowing further funds into the index until a more realistic prices is reached. Then again I’m in VTSAX and i actually think my exposure is pretty minimal

H0stusM0stus

You seem to be in a similar situation as I was up until recently. I had a relatively large amount (\~175K) of VWIAX. I started investing in that fund, along with VTSAX and VWUAX, when my annual income was low and my knowledge of investing was minimal. Fast forward 8-9 years and I find myself getting absolutely crushed in taxes every year due to 1) huge capital gains distributions by VWUAX, 2) moderate capital gains payouts by VWIAX. It appears very similar to VSEQX and VWNAX. Not sure what your taxes usually look like, but those capital gains hits can be brutal So what I did is on Vanguard's site, I went to the "Sell" page for VWIAX and selected "SpecID". With that, I was able to see each lot that I had purchased and whether those lots were sitting with long term gains or losses. In my case, I was able to sell my whole position in VWIAX and the net effect was still $4700 long term loss (7900 loss / 3200 gain). I did the same thing with VWUAX and was able to harvest another $2800 of long term capital losses. The nice thing is now I have over $10K to help offset any capital gains that my remaining shares of VWUAX pay out, and I was able to move \~175K into a MUCH more tax efficient structure. Right now you are in a good position with low AGI, but once that business grows the capital gains payouts of those two actively managed funds could be the difference between being in the 22% or 24% tax bracket. If I was in your shoes, I would be looking at the SpecID for both of your actively managed funds to see what kind of losses you might have. Perhaps try to harvest some losses now to help offset the capital gains payouts, especially from VWNAX because that one looks notoriously high. And even if you do have gains, your AGI is still low enough to where you could realistically sell a significant portion of those two funds without moving into a higher tax bracket. Granted you would have to pay the 15% capital gains tax on any of those gains, but better now than when you are making $100K+ per year. I'd look at putting the proceeds towards your VTI ETF. That's just my 0.02

mistressbitcoin

If index investors are the cash cow, can you blame the market for taking advantage of it? And if the SPY/VTI/VTSAX is so safe, why cant the average person borrow against them? Why only millionaires?

Prestigious_Suit_202

VTSAX for investing 👌 we dont talk about investing here tho

AlfB63

Pick one of the three. VTI and VTSAX are the same thing and VTI/VTSAX holds everything in VOO and more but the overlap by weight is over 88% so they will all have similar returns.

FutureMobile399

Bro you're 21 with 16k already in Roth, you're doing great 🔥 But yeah that commenter is right - VTSAX and VTI are basically same thing, just one is ETF and other is mutual fund. You'd be doubling up for no reason I went through this same confusion when I started few years back. VTI already gives you total market exposure so adding VOO (which is just S&P 500) is kinda redundant since VTI includes those companies anyway. Maybe just stick with VTI for now and add some international later when you understand it better, even if returns aren't as flashy the diversification helps 😂

Immediate-Run-7085

Have you actually looked into what VTI, VOO and VTSAX hold? Put in some work into researching instead if of just blindly following

PashasMom

You could also look at VTCLX, Vanguard Tax-Managed Capital Appreciation. It typically keeps yield at or under 1%. It isn't quite as diversified as VTSAX, but it does have over 800 holdings in its portfolio and a low expense ratio (.05).

gunslinger_006

Dont take on bad debt. Invest for the long term, not the short term. Dont try to time the market. Time IN the market is more important than timing the market. Dollar cost averaging is a great way to slowly build your stack without having to stress about market timing. Almost no one has gone wrong investing in well balanced index funds like VTSAX and others. Dont put all your eggs in one basket.

RChickenMan

Isn't that quite literally how the vast majority of people interact with the stock market? "VTSAX and Chill"? Or am I not understanding what you mean by "go long"?

GailaMonster

I’m strongly considering buying a bigger house. I’ll probably take a dividend from a company I own that owns oil wells. If I don’t buy bigger, I’ll probably finish an outbuilding on our current parcel into a full ADU (been dragging our feet on trenching water out there). Might buy some IVF and have another kid (I’m an old bitch). This money was gonna get plowed into the market, but avoiding a mortgage by paying cash for the next house is still a fine play. If the market does take a proper shit this year (Europe running out of jet fuel might rattle folks to the exits, for example), I’ll probably do the boring thing and plow more money into VTSAX. I might just go to our place in Santa Fe and turn my phone off for a month. That might be my best “investment” of the year. Signing my daughter up for golf lessons counts as an investment, right? How about you?

GailaMonster

Pausing buying with my after-tax money didn’t stop my employer from throwing 10k into my 401k (profit sharing) which is set to auto-buy VTSAX. So yeah, I did keep some powder dry. And also yeah, I did keep buying thru the dip. I hope something good happens in your real life offline to help you with your issues.

NativePlant870

I’m about to just copy my Gen X parents moves. They’re kicking my ass just throwing it into VTSAX

TellBackground9239

Hey all, If this isn't the right sub, or if I missed a relevant megathread, please let me know. I got a pretty good inheritance, and my anxiety has prevented me from investing much, which isn't helping my future at all. I'm 28 years old and single. I have about $110k in checking, $28k in an inherited IRA, $750 in a savings, and $650k in a legacy trust. My only retirement account is a Roth IRA 100% invested in VTSAX that's worth $66k. I max that out at the beginning of each year to maximize time in the market. The inherited IRA has taxed distributions. The legacy trust doesn't, but I have to get the trustees' approval for any distributions. I'm unemployed but actively job searching for roles around $82k annually, so I don't have a 401k right now. According to my tracker, I've applied to over 300 jobs and had around 10 interviews, so hopefully I'll luck out soon. I'm renting an apartment by myself but my lease is ending in May, and I'm planning to move back in with family until I get another job. If you were me, what are some next steps that you would take?

missusamazing

I don't take profits. I prefer the long game and to let it grow, because cash is constantly losing value from inflation, and the benefits of bigger dividends by leaving in as much as possible.  I was under contract to buy a home in January, but it fell through. I said YOLO, and put the down payment money back into the market (GOOG & VTSAX) while I searched for another house I liked. Yes, I know this is dangerous, but I did not anticipate King Orange to do some ultra unconstitutional whack shit that'd crater the global markets. Two or three weeks ago, I was sure I'd need to sell and eat the losses ahead of a new closing date, because it didn't look like it'd be coming back in time for me to safely exit. Fortunately we've been on a tear the last week or so, so I'm actually up on my positions, and closed out what I need for the down payment and related expenses, but it was looking spicy for a minute. UNH, which I'd been bag holding since October had a $30+ day on some Medicare news and I said I'm done with this bitch 😂  I didn't have the reserves to buy the dip this time (because house), but I did very well during COVID. But, I am holding GOOG long term, will be interesting to see what the SpaceX IPO does to it.

hacking99percent

You should mindlessly buy VTSAX though

jonnno_

IRS says they must be “substantially different”. I’m not a financial adviser or tax lawyer, but in practice I interpret this to mean that two funds different indices are OK, two funds of the same index issued by different fund managers are probably OK, but two funds of the same index and issuer but different classes (eg. VTI and VTSAX are probably not OK.

GailaMonster

this quip only really works if people are moving large amounts of money into/out of the market based on what they think will happen (and also if they don't keep anything out of the market, such that they don't suddenly need to liquidate at a stupid/crappy time). my secret: I can stay boring longer than the market can stay irrational. i can continue to stick 25-50k in the market in some basic-bitch thing like VTSAX and ignore it for a few more decades without it mattering to my quality of life. i have no intention of stopping unless shit gets really gnarly, and even then i'm more likely to lean into sale prices. My whole post is just looking at reality, looking at the market, and wondering "what's up with dat?"

GailaMonster

Again, still maxing out my 401k contribution and buying VTSAX because I know myself well enough to not pick stocks. Don’t know how posting a question on Reddit is costing me money. But ok.

Aware-Excitement8215

your edge is your age. put that 8% match in, keep emergency buffer, then auto-invest VTSAX or VTI and stop checking it...

McKnuckle_Brewery

Nobody charges for VT, including Fidelity. It's an ETF. VTSAX, a mutual fund, that's another story.

khearan

VTSAX and VTIAX and chill, dude. My family has been poor as shit for as long as I can remember and I am knocking on the door of never completely drawing down my investments with a very comfortable standard of living. Sure, I’m not getting lucky investing early in something like Google or Apple, but a diversified fund that tracks S&P with very diligent and disciplined saving can change a family’s future.

nick898

My brokerage has a mix of VTIAX and VTSAX. I’m not selling anything I previously bought, but I am buying more VTIAX than VTSAX every purchase order going forward so I can build up my position there

Janus67

So you mean VTSAX/VTIAX (US and EX-US)? VTSAX (US)+VTWAX (whole world) is basically VTSAX+ (VTSAX+VTIAX) You could consolidate the entire thing to VTWAX to get both.

GaylrdFocker

>70/30 VTSAX/VTWAX new Nasdaq rules They don't really affect you at all. You are well diversified and shouldn't worry about the new rules

postpartum-blues

thanks, I'm currently 70/30 VTSAX/VTWAX.

WeAre0N3

you need to get off of this subreddit and find a different one. VT, VTI, or VTSAX set it and forget it my guy

thisisredditsparta

Well if you are like me, and I did this 12 years ago, simple 4 fund portfolio. 25% to VTIAX and 25% to VTSAX, guess which one ballooned 3x and which one only started to make some gains in the last year.

GaylrdFocker

What are they recommending? You have everything in equities, the BlackRock index is basically an S&P 500 fund that is way more expensive, and the MFS fund is an expensive growth fund. You should probably just sell everything except the Vanguard Intl and move the rest into VTI/VTSAX which is the Total US Market.

Pop-Consistent

Max 401k,, VTSAX, time.

Fun-Personality-8008

A thousand bucks going into VTSAX every Friday just like the last 15 years

GailaMonster

> VTSAX contains the entire Nasdaq100, but I appreciate your point that it indexes so much more as to smooth out my exposure.

GailaMonster

VTSAX contains the entire Nasdaq100, but I appreciate your point that it indexes so much more as to smooth out my exposure. thanks.

SilentHuntah

Don't IPO'd companies get included right away regardless in indexes like VTI/VTSAX?

SirGlass

This isn't going to affect VTSAX , VTSAX does not follow the nasdaq 100 index, it follows the CRSP US Total Market Index. I really doubt the CRSP indexes will change their rules

GailaMonster

This is exactly what I have been uncomfortable about since hearing it, and absolutely makes me want to pause investing into indices until the wealthy market manipulators have finished fucking over the little guy to exit their positions. This reminds me of when banks started changing lending requirements to find more people to take mortgages, because they had literally run out of low-risk borrowers. It screams “this would go terribly/wouldn’t happen at all unless we relax the rules!!” Then that outcome is exactly WHY those rules existed in the first place. I don’t want to be forced to buy at inflated IPO prices. The apparent solution for me is to pull way back on buying my typical VTSAX when the ipo happens, and find someplace less reckless to put my money while these rules work try the market.

NuclearKnives

Yes.... It's literally on sale....  VTSAX AND CHILL

retirement_savings

For reference, I've been 65/35 VTSAX/VXUS since I started investing. But I didn't make that decision based on one year of data. If US starts outperforming again, are you going to sell your international stock?

collegeberry

Sucks my net worth is going down on paper (had a certain number in mind soon) but still happy to buy at a discount. Im purchasing the target retirement fund for my age group for work 401k and VTSAX for Roth/everything else every paycheck. 

Pale_Drink4455

Space stocks like RKLB and LUNR, PL, NBIS, APLD, etc all can be absolute big home runs by 2030. In my opinion, I think Google doubles up or more by then too. Do your own research for sure on how to proceed based on your risk tolerance, etc. I though you don’t prefer funds but nothing wrong doing it the boring way in VOO, VTI, VTSAX that the majority do over individual stock picks.

GailaMonster

I'm currently just buying VTSAX every pay period with my 401k contribution, because i'm busy and somewhat risk averse. what exactly is my exposure to the new Nasdaq rules fast-tracking IPOs into the index?

GailaMonster

I don't want to time the market, but I don't want to buy spacex at a ridiculous pumped price. I don't want my 401k to function as a bailout for a billionaire who overpaid for a company because he lacks a filter on the internet. I am a very boring investor largely because i don't know enough not to screw something up- currently just dumping the max 401k contribution into VTSAX, paying down my ~6% mortgage aggressively with anything leftover, winding down a treasury ladder from when those rates were higher, etc. VERY boring, VERY hands-off. I'm considering pausing my 401k contributions shortly before IPO and just hammering down my mortgage for a few months, then re-entering later in the year after musk exits his positions. My employer does profit sharing salary pro rata, so doing this won't affect employer contributions). I know that is timing the market. but I think "don't try to time the market" breaks down when you have open market manipulation by government leaders and the Nasdaq changing its rules to allow a piss-baby billionaire to exit his positions at our collective expense. I'm not sure how to "not time" a market that's abandoning rules for MY protection, that is being yanked around openly by the executive branch. am I really missing out on prosperity by wanting no part of this? I got a kid over here, i'm just trying to work and save enough to give her a stable launch into adulthood and not burden her in my old age.

gunslinger_006

If you dont invest, the alternative is a high yield savings account. That will do *maybe* 5% at best. That wont beat real inflation. That means your money is shrinking. Have an emergency fund first. After that, you need to decide your risk tolerance. If you want low risk but higher yield than a hysa (4-5%) or a 2 year bond (4.5%)…then something like VTSAX is probably worth considering.

A_Crafty_Platypus

I'm a 35M, and my total Vanguard overall investment portfolio currently sits quite equity-heavy with 76% in VTSAX, 17% in VTIAX, both in my taxable brokerage, and the remaining 7% in my 401K, invested in C975 Fidelity 500 Index Fund. This leaves me 100% in equities, with the US performance skewing my initial 70-30 approach I set a few years ago. I've currently turned off DRIP in my account, and am planning on using dividend dispersal from my accounts to fund slow diversification into VTAPX and possibly VBTLX with the intent to protect purchasing power, reduce early-retirement failure risk, and provide flexibility during market downturns. Does this sound like a good plan moving forward?

Accurate-Flow8078

My 401k is 100% in VTSAX. Should I switch to VT or is it too late?

No-Needleworker5429

“Just bought $7,000 of VTSAX 💀” was my Reddit comment on April 7th of last year.

mallampapi_iv

That’s my take now. My 401k is DCAing the S&P, HSA into VTSAX, and Roths got funded before Iran 🙄 All my “brokerage” excess funds are going to pay off vehicles, student loans, and extra mortgage payments. Stonks aren’t just going up anymore. I wanted liquid investments for peace of mind but now that they’re going down in value, I’ll take my guaranteed 3-7% return via interest reduction, and reduced fixed monthly expenses without car/SL payments

iphemeral

VTSAX?

Sirgolfs

VTSAX?

AutisticElon69

Buy VTSAX or VOO , dca and chill

interstellara_

i'm not an old timer but i'll tell you this, we're in a K-shaped economy and at this point, the difference between the bottom and the top of the K is an easy question: who owns stock? Who has a 401K/IRA and will be able to retire someday? With inflation like it is, what other investment is going to come close to chancing beating inflation? so i keep auto investments set to VTSAX/VTIAX to DCA, but might adjust the allocation based on geopolitics. I still do backdoor roth IRA contributions and put 60-70% in a target date fund and 30-40% in an index fund that matches vibes each year and readjust yearly. 401k is target date. you only take a loss when you sell, and if you buy ETFs/index funds, maybe you don't have to take that loss. know what you're buying.

Kinnins0n

I worked in Big tech. I knew I was supposed to sell my RSUs at each vest but after a while when you see your company stock consistently blowing past the S&P500 you do end up keeping some. I don’t have the precise math but the Mag7 companies I worked at just did incredibly well between 2017 and 2025. As of 2024 I’ve started massively selling to diversify into VTSAX/VTIAX and got the timing right on that for the most part (for instance I sold a lot of AAPL before it mostly stalled and bought VTIAX mostly before it blew up last year). This cost me an arm and a leg in capital gains tax but I’m still way ahead. tl;dr: was reckless with tech stocks. it paid off, but it wasn’t because of some sort of insight or savviness on my part. Don’t do this at home.

ZolaThaGod

I threw $5k into VTSAX today. I know, riveting.

NativePlant870

They only invest in VTSAX and never sell

No-Needleworker5429

I bought $7,000 of VTSAX on April 7th last year. That was the time tariffs were introduced and everyone was fearful.

TheDunk67

VTSAX, VT, any similar low cost broad index fund. Everything is on sale, good for anyone still accumulating and anyone at or near retirement should be on a bond glideslope or be flexible enough to ride out any volatility.

LateralEntry

Dude. Stop. This isn’t working out for you, work a boring job and contribute to a 401k invested in VTSAX