VTTSX
VANGUARD TARGET RETIREMENT 2060 FUND INVESTOR SHARES
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Swapping my 401k from a target date fund to FXAIX
Am I doing something wrong -- Account Fee's
Calculating your ownership in a fund based on your ownership in the corresponding trust
IRA advice and advice in general on long term investing
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Here's the guide: https://www.reddit.com/r/personalfinance/wiki/windfall/ The shortcut is: 1. Yep, pay off the debt 2. Then fill HYSA with about six months' of living expenses as an emergency fund 3. Then contribute to IRA and buy an index target date fund (Fidelity FDKLX, Vanguard VTTSX, Schwab SWYNX).
32yo, USA(GA), 100k salary, 10% 401k contribution+6% match, maxing out Roth IRA(evenly over 25 paychecks). Current portfolio ~33k: Rollover IRA(old 401k) 5.44 shares VOO Roth IRA 20 shares Nvidia 401k - 458 shares VTTSX(target fund 2060) Any feedback? Fairly green to this, fortunately I opted into the max match for my 401k when hired so I have a little bit going. Playing the long game, slowly putting away for a down payment on a home as well.
A competitive price is like the one offered by Employee Fiduciary (not sponsored!) who charges $1,500 per year plus 0.08% of assets for small employers. Then you can buy any mutual fund like VTTSX (Vanguard Target 2060) which charges 0.08% for a total of 0.16%. At 1.62% your HR person should be in prison.
Learn how to read a report. VTTSX total return per year is: * 14.63% in 2024 * 20.18% in 2023 * \-17.46% in 2022 * 16.44% in 2021 VTI total return is: * 23.71% in 2024 * 26.11% in 2023 * \-19.11% in 2022 * 25.64% in 2021 Both fund had stellar performance basically, for sure VTI had better performance because it is invested 100% in US funds while VTTSX has 50% US stocks, 40% INTL stocks and 10% bonds. If this was not what you wanted, you should never have been in VTTSX. But if you ask me, VTTSX is much better diversified investment than VTI and far less likely to have so bad performance is for example the USA lags because of some change in policy like tariffs. Now honestly nobody care if you go for 100% VTI. This isn't a bad investment just 100% US stocks and less diversified. More likely to perform exceptionally but also more likely to perform extremely bad.
where did you get the 4% data? Vanguard shows VTTSX averaged over 11% for the last 5 years. https://investor.vanguard.com/investment-products/mutual-funds/profile/vttsx#performance-fees
\>> seems more like poor management. It's not a managed fund. It's more of an Index fund, but not quite. They publish what they will invest in, the allocation they will use and then adjust that allocation over time as they "roll down" a glide path towards the final asset allocation used post retirement. They are a bit conservative. But I would not say poorly managed; I'd say they pretty much hit what they promise to deliver in terms of risk/reward taken. But, Vanguard will review the overall strategies of their target date fund allocations and make changes over broad period of time. As an example, they moved the TIPs allocation from longer duration funds to shorter duration funds at some recent point as short term TIPS offered better protection from inflation (although VTTSX does not hold any TIPs funds at this point but eventually would). [https://www.bogleheads.org/forum/viewtopic.php?t=443866](https://www.bogleheads.org/forum/viewtopic.php?t=443866) A deeper dive on target date funds: [https://www.bogleheads.org/wiki/Target\_date\_funds](https://www.bogleheads.org/wiki/Target_date_funds) You might enjoy this video which discusses holding 100% stocks for life (this is getting some traction as a viable strategy): [https://www.youtube.com/watch?v=-nPon8Ad\_Ug](https://www.youtube.com/watch?v=-nPon8Ad_Ug) *"The 2025 paper Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice suggests that investors should hold globally diversified 100% stock portfolios for their entire lives. It has been met with intense criticism."*
Where do you see performance for VTTSX? I see 3yr gain 9.34 % PER YEAR. 5yr is 12.84 PER YEAR. The performance for VTI is 11.3 and 15.0 %. Per year. Don’t forget 2022 was a down year for stocks and bonds.
Yeah it’s less than 10% bonds. Still doesn’t explain why VTI has a return that is DOUBLE that of VTTSX over the last 10 years. Seems more like poor management.
VTTSX under performed VTI on the 1, 5, and 10 year charts… The last 4 years has just been the most obvious example because the fund has returned essentially nil.
You could do a target date fund? e.g VTTSX
Hypothetically would you sell your shares of VTTSX 2060 retirement fund (at a 10% loss currently) and then rebuy all VOO as the market drops? No. Hell no. Remain in your TDF. > Do I do nothing? Yes.
VTTSX is about 54% total domestic market, 36% total international market, and about 9% bonds. You would be trading the international and bond exposure for increased volatility from only the domestic market, and more so since you'd be going from total domestic to just the S&P 500.
No, VTTSX will rebalance US stocks at low prices for you, and you wouldn't want to give up all its diversification for large cap stocks of a single country. \>I realize you can’t time the market. Continue to realize that.
Should I sell my mutual fund **VTTSX** and put it into other stocks? currently at a loss of 15% and probably more after closing today. VTTSX is about 30% of my entire portfolio. Almost 40, living in the U.S. and was hoping to retire in 2060. Everything Is in my IRA account and wont be needed until retirement. I know that it will eventually recover, just not sure how long. ***Hoping to prevent more loss and if possible to recover the losses faster than holding would.*** Other options include: money market funds, Bonds, Other stocks I own, or stocks that would help diversify and improve my portfolio. Owned stocks include: Broadcome (**AVGO**), Taiwan Sem. (**TSM**), Microsoft (**MSFT**), GE Aerospace (**GE**), Ratheon (**RTX**), ATT (**T**), Edison Int. (**EIX**). all of my stocks were in the green until today. EIX, and T are still in the green by a safe margin.
So... I usually see my Fidelity accounts update their data for mutual funds like VTTSX at 4:00pm PST on the dot each weekday...
Wherever you're looking must not be updated yet. The [Vanguard website](https://investor.vanguard.com/investment-products/mutual-funds/profile/vttsx#price) says VTTSX went up 0.79% today.
I'm having trouble finding fault with this. Sure, IMO, I'd say 'VTI+VXUS' or if one doesn't want to think about the next 30 years, VTTSX. But all of these are self-correcting for the companies that will go under, and will ride the sawtooth nature of the market, and will only hold the 'winners' on average, as will VOO. What I find impressive is that you are actually doing it. Some might make fun of the basic DCA nature -- but isn't that the same as my 401k contributions? You are DOING it. This is what most don't. And why you will win.
I’m a beginner at purchasing stocks and currently have 38k in VFIAX and 17k in VTTSX. I’ve heard people talking about a crash coming, should I sell some or all of these stocks? With all the news in tariffs am I too late? Can someone explain how taxes work when selling them too?
NEED ADVICE PLEASE 🙏 FXAIX, SCHG , FDVV , SCHD , SOFI ,PLTR , WBA I need to add more money 💰 to my heavy hitters this account I’ve just been letting it grow passive and me changing up my portfolio maybe once if needed a year. I mean the percentage of SoFi and PLTR has some pretty good gains I need to add more to them and I need to add more to FDVV SCHD WBA for more dividend growth. It’s at $68.61 right now all pay around the same time December. But it was a roll over from my previous employer started at 1k grown to 6.4K so far. I was wondering should I keep my portfolio in fidelity as it was ? Or should I roll it over into My portfolio with Robinhood ? I also have a SoFi portfolio two individual portfolios $900 in one and $240 in a AI portfolio. Then I have a Principal portfolio with my current employer that I am contributing 4% of my check with a 4% match so about $100 every two weeks. It’s Currenly Valued at $712 That ticker Symbol is VTTSX
Close. Some of us like VTI+VXUS -- and as we get older, mimic the glide path of tools like VTTSX by shifting into a bit of BND and BNDX. But, yeah. Other parts come into play. What tax-advantaged accounts can you use to their fullest? 401k/RothIRA/HSA/etc. What about emergency funds? CD ladders, HYSA, i-bonds. You want an argument? Look to history. What happened to each asset category through the 70s, or from 1999-2009? If leadership is attempting to have the country default on debt or tax-cut-and-spend or pick (unnecessary) trade wars with tariffs, does that affect a US-centric holding? There's so much outside of what we can see in our crystal balls.
If you had a car that was rusting out from under you and the engine sometimes didn't run well, would you keep it because you never sell? Perhaps because this is an investing sub, there's a lot of focus on individual stocks. Can you tell me how many of the original companies of the Dow30 are still in the DOW, or even around? How about Enron or Eastern Airlines or Nortel? Many here will suggest diversification is the better way to grow your wealth, if that is your bag. When you look at the historical records, they would be correct. It's your money, but selling for tax loss harvesting and moving those proceeds into something that won't stress you out as much (TDF such as VTTSX or broad ETFs such as VTI or VXUS) may be worth adding to your portfolio. Then, in a couple of year, evaluate which treated you better for future planning. Here's some reading material for a different perspective. This is an order-of-operations flowchart. It may be useful. https://www.reddit.com/r/financialindependence/s/p8Q5lErAY7 Financial blogs, books and podcasts: Library Books: Simple Path to Wealth (Collins, if you read only one, start here) - Your Money or Your Life (Robin); Broke Millennial (Lowry); CleverGirl Finance (Sokunbi); Millionaire Next Door (Stanley/Danko); The Index Card (Olen); Building Wealth And Being Happy (Falco); Get it together - organize your records so your family won't have to (Cullin, NOLO) and 8 Ways to Avoid Probate (Randolph, NOLO). Two free books: https://paulmerriman.com/millions-downloads/ New to being on your own? https://www.etf.com/docs/IfYouCan.pdf (each selection has its own voice). More ideas - https://www.reddit.com/r/financialindependence/wiki/books/ - https://www.reddit.com/r/personalfinance/wiki/readinglist/ Blogs/sites: http://mrmoneymustache.com — http://iwillteachyoutoberich.com - http://gocurrycracker.com — you don’t need to buy anything to read the blogs. How do I get started investing? https://www.bogleheads.org/wiki/Getting\_started —— https://www.reddit.com/r/financialindependence/wiki/faq/ Podcasts: Optimal Daily Finance — Stacking Benjamins — ChooseFI \* — Big Picture Retirement - lots more. Start from the earliest available episodes and work chronologically to today, as many of these build on prior episodes in knowledge and evolve over time. \* except for ChooseFI - they didn’t hit their stride until episode 100. https://www.reddit.com/r/personalfinance/wiki/commontopics/
>Have you considered diversifying with ETFs? They offer broad exposure to various markets and can be a good complement to VTTSX. Unless they go outside stock and bond based ETFs, ETFs would not provide any diversification benefit as VTTSX is already basically fully diversified.
Adding $1,300 to your current $2,800 can be a solid choice for long-term growth, especially with its diverse asset allocation. Have you considered diversifying with ETFs? They offer broad exposure to various markets and can be a good complement to VTTSX. If you're interested in a more hands-on approach, you could explore manually replicating an index fund to tailor your investments even more.
VTTSX mutual fund with vanguard
Perfect candidate for a lifecycle fund, such as VTTSX, Vanguard Target Retirement 2060. You can dump everything into that one fund, setup automatic investments, and forget it - it’s a low effort approach that you don’t have to worry about regretting. I second the suggestion to head on over to Bogleheads to learn more. There are other approaches that require a bit more work but may offer you slightly better risk-calibrated (using this word deliberately instead of “adjusted”) returns. There are really easy ways to invest - just remember that once you have chosen your target asset allocation (based on ability, willingness, and need to take risk), time in the market > timing the market and minimizing investment fees are a huge deal so don’t chase returns from high cost, trendy, “thematic” mutual funds & ETFs. You really do seem like the kind of person that will thrive with a simple, autopilot approach.
And do note the rebalancing doesn't kick in for most TDFs until you are within 25 years of the target date. Something like VTTSX (Vanguard's version for 2060) will stay 90+% whole US+intl equities and less than 10% bonds (BND+BNDX) until 2035 - with the glide path very gentle. At the Target Date, most funds are \~55% equities, 45% bonds.
Where to put money depends on how risk averse you are and how much time you want to spend thinking/optimizing your investments. Want to set it and forget? Keep going with VTTSX (or the equivalent, if you have a different brokerage) in all tax advantaged accounts. In a taxable, pick out the individual components. Check in once a year to rebalance if necessary. Is this going to max out your returns? Probably not, but how much time do you want to spend thinking about this, doing research, etc.? Plus lots of people who put in the time and create their own custom portfolio aren't able to beat something simple.
Hi income and successful may mean he's a good salesman for products his customers don't need, or is he charging 1%AUM for 'guiding' his customers into a Vanguard account and using VTTSX as the 'successful' investment. We have no idea if the OP's family member knows his shit about investing - but he does know how to set a minimum limit for AUM, perhaps taking $1000/yr for doing 7 minutes of busy work - so he knows his marketing and his market. OP's advisor isn't even investing the poster's money in a timely fashion. And yes, you can learn a lot more from those podcasts than most 'Financial Advisors' know, let alone educate or convey to their customers. As the FA term has no meaning, my hamster can be a financial advisor.
You said you're about 35 years out so you're probably looking at the 2060 Target Date Fund (TDF), which is VTTSX. The makeup of that TDF, and a lot of similar TDFs, are 50% domestic/USA stocks, 40% International, and 10% bonds. A lot of people don't like TDFs because you can't change how much goes where. Also, TDFs put a lot into bonds, 10%, which is a lot especially when you're younger (recommendation at your age is 0), and they have a lot of international exposure at ~40%. Looking at the past 25 years and especially the last 5 years for the international markets, international has performed so poorly compared the US market it hasn't even kept up with inflation. VXUS, the international ETF, is up only 22% within the past 5 years compared to VOO, which is up 91%. Since bonds are a very risk averse investment, that means with the TDF that others are suggesting, you're looking at ~50% of your port not even beating inflation. So comparing VTTSX, the TDF, in the past 5 years, it's up only 43% compared to VOO''s 91%. Of course do your own research and invest what you're most comfortable in but the US is *very* corporate friendly and coupled with the tech boom has caused the US to do so well as of late.
Example - VTTSX is mostly VTI and VXUS, with a small slice of BND and BNDX. That’s the entire us and world markets for equities and bonds.
Have you done any research as to why a 50/50 split would be best for you personally? Because I feel like there's much smarter people that have already done the research, and provided a cookie cutter diversified portfolio. Target date retirement funds like VTTSX or VLXVX for 2060 and 2065 respectively is an option. All you need to decide is which year you think you'll retire in. While this won't be an exact 50/50, 60/40 is still close enough for a much easier truly set it and forget it diversified portfolio. The fund will auto re-balance as you age to be more conservative and probably outperform your allocation.
>Do you have an example I could look at in which a target date fund you recommend over the SP500? FDKLX. SWYNX. VTTSX. These may be to young to see it directly, but instead look at what they hold (that can effectively be boiled down to being the 3 fund portfolio) and look at how different parts of that would have performed over various points in history. Obviously recent years have favored US large caps. However about half the time it is international that is doing better. Not all drops are like 2022, bonds would have helped much more during say 2008 (where we didn't have the rapidly increasing interest rate environment, as that's the big risk with bonds). >which out performed the target date funds Over what time period?
Retire by 59, ( 59 - 22 ) + 2024 = year 2061. So VTTSX being close to that date should be fine. If you want to hold a portion of equities longer, VLXVX would be fine as well. These funds are already diversified so they should be fine to have as single holdings.
22F First 401k and so clueless Hi I'm 22F still in school but also making enough money that I can put aside $500 a month so that I can meet my yearly maximum of $7000. I recently opened a traditional 401k account with Vanguard with an initial deposit of $2000. I've been doing some research and decided that I want this to be a less aggressive source of investing for me, as I later plan to invest in some stocks through thinkorswim or something. Now here is where I'm confused and desperately need some help: 1. So far l've learned that, because I'm wanting to just throw money at this and not worry about upkeep, it's in my best interest to invest in mutual funds over EFTs. I've learned about target date funds but my issue comes with choosing a target date. Ideally I would like to retire by 59 putting my target date at at least 2061. There are two mutual fund options that l'm struggling to choose between, VTTSX (2060) or VLXVX (2065). Which one would you recommend? 2. I've also been doing search on how to allocate the funds I put into my 401k. I have read that you can schedule for mutual funds to be bought and things like that. However should I invest all of my monev into one mutual fund, either the VTTSX or VLXVX or do I split it up a bit? Some people were mentioning doing 75% target date funds (25% the year u aim to retire, 25% +5 yrs, and 25% +10 yrs), then the remaining 25% as total stock market. I also saw someone recommend 55% VIIIX, 10% VIEIX, 15% VTSNX, 20% VBTIX....what do I do? 3. This is just a general if you have any advice or things you wish you knew, I am truly clueless l've been trying my best to gain some financial literacy but it is so hard when you have no support or help in any of this and you can't even turn to relatives because none of them are financially smart either
22F First 401k and so clueless Hi I’m 22F still in school but also making enough money that I can put aside $500 a month so that I can meet my yearly maximum of $7000. I recently opened a traditional 401k account with Vanguard with an initial deposit of $2000. I’ve been doing some research and decided that I want this to be a less aggressive source of investing for me, as I later plan to invest in some stocks through thinkorswim or something. Now here is where I’m confused and desperately need some help: 1. So far I’ve learned that, because I’m wanting to just throw money at this and not worry about upkeep, it’s in my best interest to invest in mutual funds over EFTs. I’ve learned about target date funds but my issue comes with choosing a target date. Ideally I would like to retire by 59 putting my target date at at least 2061. There are two mutual fund options that I’m struggling to choose between, VTTSX (2060) or VLXVX (2065). Which one would you recommend? 2. I’ve also been doing search on how to allocate the funds I put into my 401k. I have read that you can schedule for mutual funds to be bought and things like that. However should I invest all of my money into one mutual fund, either the VTTSX or VLXVX, or do I split it up a bit? Some people were mentioning doing 75% target date funds (25% the year u aim to retire, 25% +5 yrs, and 25% +10 yrs), then the remaining 25% as total stock market. I also saw someone recommend 55% VIIIX, 10% VIEIX, 15% VTSNX, 20% VBTIX….what do I do? 3. This is just a general if you have any advice or things you wish you knew, I am truly clueless I’ve been trying my best to gain some financial literacy but it is so hard when you have no support or help in any of this and you can’t even turn to relatives because none of them are financially smart either
ok.. sorry for the incorrect assumption.. The 2060 retirement fund did confuse me! I still think it looks a little over complicated and will still have the double ups. But age will alter the thinking. if it were me and I was still contributing I'd load up the VTTSX to get some broader international cover; you are very heavy on US stocks with little geographical diversity. I'd hold the individual stocks until retirement and then drawn down those first.
Firstly congrats on the huge portfolio for someone apparently in the 20's but is your post just a brag on how much you have or do you want a genuine critique? Almost all to your individual stocks are double up's of what you already own in VTI and VTTSX. Simplify massively by just off loading all the individual and splitting into VTI and VXUS. Also ditch the bonds. You don't need them at your age.
You would need to sell the mutual funds to transfer to Robinhood. Generally, mutual funds are only available in an account at the brokerage that manages the fund. You are not able to directly exchange a mutual fund for an ETF, as they trade in different ways. Your best bet will be to sell your mutual fund and buy the associated ETFs that make up the mutual fund. VTTSX is made up of holdings in 4 other Vanguard mutual funds, all of whcih have ETFs alternatives. You could do this exchange before or after transferring the account, but you are definitely running low on time. I believe they will accept any transfers that were initiated prior to the deadline for the promo.
My entire Roth IRA is with Vanguard in a target date fund (VTTSX) which I think is a mutual fund. Can I not transfer this to Robinhood as is? Do I need to change the contents to something else first? Thanks!
**Reasons against rolling Roth IRA and Roth 401(k) into a Robinhood Roth IRA?** Is there a reason I shouldn't transfer my Roth IRA and roll over my Roth 401(k) into Robinhood so I can consolidate a bunch of accounts into a single account, and claim the 3% matching bonus [Robinhood is offering](https://robinhood.com/us/en/about/retirement/) this month? I've done my research but I'm posting here before I pull the trigger so I can double check that I'm not overlooking or misunderstanding anything in regards to tax or other implications. - My Roth IRA is through Vanguard - My former employer's Roth 401(k) is through a separate thing called "[Vanguard Plan](https://my.vanguardplan.com/vanguard/account/login)" which is a totally separate account, and I believe it's offered by a separate company using the Vanguard name under license or something - 25% of those assets are in Vanguard mutual funds (VTTSX) - 75% of those 401(k) assets, the max allowed, are in a self-directed brokerage account (SDBA) administered by Schwab which I have invested in stocks (This used to be administered by TD Ameritrade and they charged substantial fees every three months just for administering the brokerage account, but it was recently transferred to Schwab and I don't think there are fees anymore) - Downsides to keeping the current situation: having to manage three nested accounts, not being able to invest those 25% in anything but mutual funds, missing out on the Robinhood 3% match which is substantial in my case - Robinhood doesn't seem to have fees besides $5/month for Gold, and I only need to commit to keeping Gold for one year after the transfer to keep the 3% match (plus I generally have to keep the IRA with Robinhood for 5 years to keep the match) I already have my stock investments through Robinhood, which I realize lacks the same level of stable reputation as the other major financial firms. But their 3% match and other good terms, today, seem to be compelling and I can always transfer my investments back to Vanguard someday if the need arises. From my research, it shouldn't be a problem to roll a Roth 401(k) into a Roth IRA, and in fact the latter seems to be generally a more flexible product. The only downside I could find is the rather unlikely case of 401(k)s having better bankruptcy protection but it looks like IRAs still have about $1.5 million in protection which is far above my needs. I recognize that rolling a 401(k) into an IRA is a one-way deal, so it means I can't roll it into another future employer's 401(k). But otherwise, I think owning an IRA is preferrable anyways? Please let me know what I may be missing. Additionally, as I read in my research, transferring the IRA between brokerages doesn't even get reported to the IRS but rolling a 401(k) into an IRA does get reported, however as long as it's a direct transfer that doesn't create a taxable event. Is that correct? What implications does that cause next year I'm filing my taxes? Are there any other tax implications I need to be aware of? A few other details about my situation: - I'm early in my career - I don't expect to need to access my retirement funds early or soon - I don't currently have any earned income and won't for a few years (I'm starting a tech business) - I need to be careful about maintaining near-zero income for health insurance reasons - I'd like all my retirement investments tied to stocks at this early point in my career because that best fits my risk-reward profile while I have plenty of time to earn and reduce my risk profile later in my career (so moving those other 25% of 401(k) funds to Robinhood would mean I can put those into stocks as well)
# Reasons against rolling Roth IRA and Roth 401(k) into a Robinhood Roth IRA? Is there a reason I shouldn't transfer my Roth IRA and roll over my Roth 401(k) into Robinhood so I can consolidate a bunch of accounts into a single account, and claim the 3% matching bonus [Robinhood is offering](https://robinhood.com/us/en/about/retirement/) this month? I've done my research but I'm posting here before I pull the trigger so I can double check that I'm not overlooking or misunderstanding anything in regards to tax or other implications. - My Roth IRA is through Vanguard - My former employer's Roth 401(k) is through a separate thing called "[Vanguard Plan](https://my.vanguardplan.com/vanguard/account/login)" which is a totally separate account, and I believe it's offered by a separate company using the Vanguard name under license or something - 25% of those assets are in Vanguard mutual funds (VTTSX) - 75% of those 401(k) assets, the max allowed, are in a self-directed brokerage account (SDBA) administered by Schwab which I have invested in stocks (This used to be administered by TD Ameritrade and they charged substantial fees every three months just for administering the brokerage account, but it was recently transferred to Schwab and I don't think there are fees anymore) - Downsides to keeping the current situation: having to manage three nested accounts, not being able to invest those 25% in anything but mutual funds, missing out on the Robinhood 3% match which is substantial in my case - Robinhood doesn't seem to have fees besides $5/month for Gold, and I only need to commit to keeping Gold for one year after the transfer to keep the 3% match (plus I generally have to keep the IRA with Robinhood for 5 years to keep the match) I already have my stock investments through Robinhood, which I realize lacks the same level of stable reputation as the other major financial firms. But their 3% match and other good terms, today, seem to be compelling and I can always transfer my investments back to Vanguard someday if the need arises. From my research, it shouldn't be a problem to roll a Roth 401(k) into a Roth IRA, and in fact the latter seems to be generally a more flexible product. The only downside I could find is the rather unlikely case of 401(k)s having better bankruptcy protection but it looks like IRAs still have about $1.5 million in protection which is far above my needs. I recognize that rolling a 401(k) into an IRA is a one-way deal, so it means I can't roll it into another future employer's 401(k). But otherwise, I think owning an IRA is preferrable anyways? Please let me know what I may be missing. Additionally, as I read in my research, transferring the IRA between brokerages doesn't even get reported to the IRS but rolling a 401(k) into an IRA does get reported, however as long as it's a direct transfer that doesn't create a taxable event. Is that correct? What implications does that cause next year I'm filing my taxes? Are there any other tax implications I need to be aware of? A few other details about my situation: - I'm early in my career - I don't expect to need to access my retirement funds early or soon - I don't currently have any earned income and won't for a few years (I'm starting a tech business) - I need to be careful about maintaining near-zero income for health insurance reasons - I'd like all my retirement investments tied to stocks at this early point in my career because that best fits my risk-reward profile while I have plenty of time to earn and reduce my risk profile later in my career (so moving those other 25% of 401(k) funds to Robinhood would mean I can put those into stocks as well)
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
What if I want to put more into my VTTSX than the Roth IRA maximum each year?
What if I want to put more into my VTTSX than the Roth IRA maximum each year?
I second VT since it is pretty much the whole stock market. If you want a true set it and forget it option you could also go for an indexed target date retirement fund. The stocks they hold are globally diversified just like VT, and they gradually shift to bonds to get more conservative as you near retirement. You can pick one based on your estimated retirement year and where your brokerage account is. Ex. If at Vanguard and retiring in 2060 you would want VTTSX
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?
While they overlap significantly i still get the benefits of a target date fund which will make my overall portfolio more conservative over time. and VT gives international diversification to my portfolio. sure, the top companies in each fund are the same. but those are the largest and most profitable companies in the world i’m not sure why i wouldn’t want them to be the main components of my portfolio. If I only held VOO i would only get the top US stocks and if the developing world overtook the US i would miss out on those gains. if i only held VTTSX my portfolio would become way too conservative over time for my liking. I can see the case for only holding VT though.
I’m not sure I quite understand this. For instance my roth has three funds that are very overlapping, VOO, VT, and VTTSX. That said, these funds have different strengths and weaknesses that i’m looking to incorporate into my portfolio. I don’t see what could possibly be the issue and in my eyes it’s certainly better than keeping everything in one fund
Hello all, the TLDR version is should I keep my money in my TSP that I had when I was in the military or roll it over to my Roth IRA? I'm 29M living in the USA. I just started as an independent contractor a few months ago making anywhere between $1,000 - $2,500 a month give or take. I also receive 70% disability from the VA which is about $1,968. I have about $13,000 sitting in my TSP in a target date fund, but the issue is I can't contribute anything to it since I separated from the military, all I can do is move it around to other funds. I opened up a Roth IRA and contributed 10% of my pay to various stocks. I just learned that I can also buy target date funds. I was looking at Vanguard's 2060 fund (VTTSX) but I need a minimum of $3,000 to start which I don't have. Should I roll over my money from the TSP to the Roth IRA or just leave it in the TSP and save up the $3,000? I could probably ask my wife to take it from the joint funds but I'd rather get it myself if I can before asking.
26 YO. Looking to begin investing with a personal brokerage account. Prefer funds or ETFs, do not like single stocks. My employer 401k is in VTTSX - Vanguard Target Fund Roth IRA is 50/50 between SCHD & SPY. Would there be overlap between my holdings and holdings such as VTI, VOO, VT?
How risky is it? A little bit. \- No one can predict the future but there is ample statistical/analytical/historical reason to think that the US will not continue to outperform international markets, including in the next decade. So there is a real risk of under-performing with an all-US portfolio. \- As you get older, statistically you are better off gradually shifting to a small but increasing bond allocation. You can play the odds and ignore this, and \*probably\* come out ahead, you can do the reallocation yourself, or... I would argue you are better off sticking it all in a target date fund for both of the above reasons, plus the one you mention - that you an "unsophisticated 'investor' who has little time to research". Target date funds are made for exactly this situation. VTTSX for example is currently 90% stocks and addresses all these issues. If you want a higher stock allocation for a more aggressive approach, go with a later target date year, or look for offerings from Schwab or others with different allocations.
VTTSX in your Roth IRA. I'd recommend reading, [The Bogleheads' Guide to Investing](https://www.amazon.com/Bogleheads-Guide-Investing-Mel-Lindauer/dp/1119847672/). To get a sense of the book, [here's a primer](https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy) on it.
So is it pointless to have the VTTSX in a brokerage account ? Or are you saying choose the VTTSX in my Roth IRA account as well?
I'd just throw it in VTTSX Retirement fund 2060 also. Keep it simple!
401k fund selection guide: [https://www.reddit.com/r/personalfinance/wiki/401k\_funds/](https://www.reddit.com/r/personalfinance/wiki/401k_funds/) So you have a Roth IRA at Vanguard and a taxable brokerage account at Schwab, why not have it all in one place? >Is it redundant to invest in VTI or SWTSX in my brokerage account at schwab? Ideally you want to follow an asset allocation strategy and allocate your investments to follow that same strategy. The exception is a taxable brokerage account where you may want to consider tax efficiency (like leaving out bonds) and wash sales. It can be beneficial to have a long term mindset when retirement investing and avoid performance chasing or recency bias. Please avoid the "youtube portfolio" of just a bunch of random funds because they are popular. [https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/](https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/) Currently I follow a three fund porfolio minus the bond fund, I will allocate to bonds when I am closer to retirement: [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) Did you know you too are following an investment strategy similar to a three fund portfolio? VTTSX is basically a three fund portfolio with an added international bond fund. Just look under 'Portfolio Composition' in the link below: [https://investor.vanguard.com/investment-products/mutual-funds/profile/vttsx#price](https://investor.vanguard.com/investment-products/mutual-funds/profile/vttsx#price) Have you maxed out your 401k and Roth IRA? If not, why are you bothering with investing in a taxable brokerage account. Don't tell me early retirement because there are ways to access your retirement funds early if you do decide to retire early. In general you want to max out tax advantaged accounts (401k, Roth IRA, HSA, etc) before investing in a taxable brokerage account. The tax benefits of tax advantaged accounts far outweigh a taxable brokerage account, you will generally come out ahead with the tax advantaged accounts. Money management tips, these can help you build a successful financial foundation: https://www.reddit.com/r/personalfinance/wiki/commontopics/
beginner question: I have VTTSX in my Vanguard Roth IRA and looking to invest in my brokerage account at schwab. For context, I’m 25 so I can be slightly aggressive but I also want to be able to auto invest and not have to worry. Is it redundant to invest in VTI or SWTSX in my brokerage account at schwab? Any suggestions? I also have a 401k with my employer in which I have not chosen an investment. any suggestions on this?
It doesn’t need to be confusing! The absolute easiest option is a low fee target date fund that will allocate a portion of your investment into broad based index funds, and the remainder into bonds. Pick a target date that matches up with your planned year of retirement. As an example using Vanguard, if you plan on retiring in 2060, you could go with VTTSX (Vanguards 2060 target date). Behind the scenes, Vanguard will balance stocks / bonds for you, applying a heavier weight to bonds as you get older. They do this because when you’re younger, your tolerance for risk is higher, and as you grow older, bonds are a safer but less profitable vehicle. Almost all large brokerages will have target date funds that are almost identical in terms of allocation and performance, so vanguard, Schwab, fidelity, it doesn’t matter. The general rule of thumb is 100-your age should be in stocks, although more aggressive philosophies push this number higher to 110 or 120 - your age. Alternatively, pick any broad based index fund, eg. VTI, and simply invest in this. It’s only complicated if you make it complicated. Pick a brokerage, and start investing! The sooner the better.
VTTSX is a 2060 target date fund that holds about 54% VTSAX, 36% VTIAX, and the rest in bond funds split 7/3 U.S. and Int'l. FXAIX is an S&P 500 index fund. Which do you prefer holding for the long term? Don't judge based on the past 18 months. Just based on what these funds actually hold and how the respective asset allocations have performed over a much longer period of time.
It's almost certainly a Collective Investment Trust [https://www.bogleheads.org/wiki/Collective\_Investment\_Trusts](https://www.bogleheads.org/wiki/Collective_Investment_Trusts) * No ticker * No dividend posts, rather funnels back into the NAV You lose nothing in this arrangement. This fund performs the same (or better with the lower ER) than VTTSX. Keep this fund. The backstory to the dividends thing is this: within retirement plans, dividends are always automatically reinvested. So it's a waste of time & money for to use a **mutual fund**, which is legally required to pay dividends, since it must be reinvested anyway. So the solution was: they created a Collective Investment trust, which is not legally a mutual fund, so doesn't have to pay dividends. Instead, the price is just reflected in the NAV. These CITs are lower cost, so save the plan millions at economies of scale. Figure a plan with $10 billion in it, cutting even a few basis points is massive savings for the plan partiicpants. Helps with ERISA fiduciary duty too. TLDR same performance, no dividend is a non-problem.
It’s also needlessly confusing. Why bother with a bunch of funds that are hard to track and cost a lot. All my tax advantaged accounts are in VTTSX (.08% er) and my after tax brokerage is in VTSAX (.04% er). Both are set to contribute automatically monthly and I never give performance a second thought and sleep easy knowing I’m paying very low fees.
I currently have a ROTH IRA through Vanguard investing in VTTSX. I am preparing to start contributing to a new Traditional IRA that I plan to setup with Vanguard as well. On top of my work's retirement account and the optional 457(b) plan, I have a portion of my pay direct deposited into VMFXX and plan to increase this soon. With my ROTH, the money gets automatically invested each pay period without any direction from me. I am planning for a 3-fund Traditional IRA. My questions: Should I go ahead and invest in VTI/VXUS/BND once I setup the Traditional IRA which would require me to login and buy ETFs regularly OR should I hold the contributions in VMFXX until I reach investment minimums for admiral shares of VTSAX, then VTIAX, then VBTLX; this would then allow for automatic investment. Would selling VTI shares once their value reaches the $3,000 minimum be acceptable or should I just stick with ETFs indefinitely? Time in the market seems better, but I'm worried about selling my ETF shares to buy into the mutual funds at a later date. Other options/suggestions??
The right answer, and the short answer is NO. Option one: Target Fund like VTTSX, which is your age range. Max it and don't touch it Option two: 90% VOO/VTI (OR not AND) and 10% Long term treasuries. Max it and don't touch it. No disrespect, but you don't have a process and you clearly don't know what you are doing. A. There is no such thing as Safe Stock. B. You don't need SCHD at your age. What the fuck is "Building the dividends" even means? C. You want to talk about aggressive growth? Look at the QQQ chart from 2000 to 2015. Could it happen again? Who knows, bullet A, again. D. I yet to see a backtesting that showed nothing but great result. With the amount of dumb money flowing into the market, the whole idea of small cap ETFs beating the market over long term seem more like myth rather than reality unless you own individual stocks You want an advice? KISS. You are not smart, and you can't see the future. Do what hundred million of people before you have done, buy a target fund and max it, and don't look up. Not an option, either VTI or VOO (or Equivalent), and 10% in long term treasuries or bonds, and don't touch it. You have more money to invest after you max out your IRA? then do whatever nonsense you are trying to do. People on here are programed to answer these retirement questions without context or comprehending what they are talking about. Anyone entertaining a 27 yo starting out buying SCHD to build up? dividends is a damn moron. The only answer to people like you starting out with small equity is option A - but you do you.
>My objective is to buy a house and to retire comfortably. > >What do you guys recommend I do? For a start, thank you for giving your goals, many people don't do that! However, these are *very* different goals. The IRA/401k are great for the retirement goal (so I won't say anything more on those here), but they do little/nothing towards a home (you *can* [tap a 401k a bit as a first-time homebuyer](https://www.investopedia.com/ask/answers/081815/can-i-take-my-401k-buy-house.asp) and of course can withdraw Roth IRA contributions at any time, but both are suboptimal). What $$$ home are we talking about? What's the time horizon on that? I'd assume shorter than 15 years? A similar mix of investments (just, perhaps, in a brokerage) *can* make sense saving for a home also, but only if your time horizon is long enough that you can handle the short term movements of the market. >What do you guys recommend I do? I was thinking doing a 75 25 split between VOO and QQQ but I am lost quite frankly. VOO and QQQ are funds, meaning they're just buckets that holding the underlying securities you're actually invested in. In this case, their holdings overlap *heavily*: essentially everything in QQQ is in VOO. This means that buying the two doesn't diversify you, it *concentrates* you in those holdings. I'd say the easiest option for retirement savings is a target date fund, something like VTTSX (a 2060 fund) or VLXVX (a 2065 fund) at your age (~40-45 years from traditional retirement age). These (1) hold a mix of US stocks, international stocks, and bonds and (2) automatically adjust that mix over time (to grow more conservative as you approach retirement). Alternatively, you could just buy those asset classes more directly. Index funds are the simplest, lowest-expense way of buying into these markets, and are likely a better choice as a novice investor (as opposed to trying to pick a winning investment fund manager, [which is generally a losing proposition, over time](https://www.ifa.com/articles/despite_brief_reprieve_2018_spiva_report_reveals_active_funds_fail_dent_indexing_lead_-_works)). VOO is a fine choice for US stocks, or VTI (to get smaller US companies as well). VXUS is then the natural international compliment to that, and something like BND for bonds (some more aggressive folks say no bonds when you're younger, up to you).
Set up a Roth IRA at a reputable firm (Vanguard and Fidelity are two good options) and put all your investment money into a target date 2060 retirement fund like VTTSX. It holds US and international stocks and bonds, and shifts the allocation over time as you near retirement age. Or you could take on more risk + reward potential and put that money in a US stock ETF. Those are good places to put your money while you gain experience and learn more about investing. Then you can adjust the portfolio as needed to fit your goals and risk tolerance.
Not specifically looking for someone to provide an investment plan here, but looking for someone to provide some guidance on where I should go to get some advise/assistance. I am 30 years old, working a white collar job making pretty good money. I have 4 accounts below with rough values indicated. Vanguard Roth IRA - $20K (VTSAX) Vanguard 401K - $20K (VTTSX) (Previous Employer than I have not been able to contribute to for 4 years) Fidelity 401K - $75K (JPMCB SR DRE 2045) Fidelity Brokerage - $8.5K Here is my dilemma, I have tried to roll the Vanguard 401K over to my Fidelity account and there was issues with Pre-tax where vanguard was going to try and hit me with fee's for pulling out of account ILO a standard roll-over. Looking for suggestions on where I can go to get a one time plan put together. I do not believe I am at the point to have an active financial planner but figured Reddit would be the best place to reach out prior to just calling JPMorgan or Fidelity. Thanks in advance.
>I've been contributing to VTTSX as my main position, which is a target retirement fund for 2060. Other options for funds include: SWPPX, FSSNX, FSKAX, FSMDX. They give us limited options, but of these, what other funds should I consider? Or keep on the current track? If you do not know how to construct an investment portfolio according to an asset allocation strategy, I would stick with the target date fund. Too many articles online bad mouthing TDF's because they know they are popular and it will get them clicks. Also, a lot of portfolio suggestions on reddit are influenced by recency bias. ​ When I was younger I wasted a lot of time thinking picking the "perfect" asset allocation and picking the "best" funds was going to benefit me in the long run, instead I learned that I should have focused more on improving my income and increasing my contribution rate. A person can easily become trapped in searching for the "best" portfolio, but in reality the best portfolio is only known in hindsight. Which matters more for building wealth: Your saving rate or your investment returns? [https://www.getrichslowly.org/building-wealth/](https://www.getrichslowly.org/building-wealth/) ​ >I am able to contribute on pre-tax or on Roth % basis. I'm currently at 8% Pre-tax, but was thinking to do a 4% split between the two. Is this wise? [https://www.reddit.com/r/personalfinance/wiki/rothortraditional/](https://www.reddit.com/r/personalfinance/wiki/rothortraditional/) [https://www.zdnet.com/finance/taxes/what-do-pre-tax-and-post-tax-mean-and-why-should-i-care/](https://www.zdnet.com/finance/taxes/what-do-pre-tax-and-post-tax-mean-and-why-should-i-care/) https://www.fidelity.com/viewpoints/retirement/how-much-money-should-I-save
I'm 30 years old and contributing 8% of earnings to my 401k. I plan to contribute more going forward, but recently purchased my first home and trying to pay down on debts. I earn base pay approximately 55k gross and tracking with commission/bonus at 80-85k total compensation. The 8% to my 401k comes out of my regular biweekly pay, and my bonuses each month are taxed at 35%. 1. Is it possible to have my employer contribute part of my commission to my 401k? 2. I am able to contribute on pre-tax or on Roth % basis. I'm currently at 8% Pre-tax, but was thinking to do a 4% split between the two. Is this wise? 3. I've been contributing to VTTSX as my main position, which is a target retirement fund for 2060. Other options for funds include: SWPPX, FSSNX, FSKAX, FSMDX. They give us limited options, but of these, what other funds should I consider? Or keep on the current track?
That's not a simple question. FXAIX is purely equities. VTTSX is a mixture of equities/bonds and will shift more towards bonds as it gets closer towards the target date. I believe that typically all equity portfolios out perform portfolios that hold bond funds, but bonds also play a part in diversification and hedging risk. It's just a question of what your risk tolerance is, how close you are to retirement, and what your goals are.
Hello, I’m looking to put a majority of money in either FXAIX or VTTSX for my IRA account. Is there a preference for one over the other?
There's almost never any reason to hold VOO and SPY, and VTI. Roughly 80% of the weight of VTI is the entirety of the other 2 (which are internally identical). Why do you believe that "which of the US exchanges a stock trades on" is a key factor in future outperformance (QQQ)? VTTSX is designed to be the only fund you gold. It already covers everything else you have there. Why have any money in SPAXX? Which brokerage is this with? You have a Vanguard TDF but a Fidelity MMF, that's usually not a good sign. How did you come up with this portfolio?
You absolutely have too much overlap. SPY/VOO/VTI/VTTSX should all be in one of those. The remaining is why QQQ and the individual stocks? Why energy sector by itself? Do you have a reason you want to over allocate into those stocks/sectors and do you still believe in those reasons? Typically with a Target date fund (VTTSX) you either put 100% into it or 0%.
Which mutual/index fund to invest cash in my Roth IRA? I saved money while working in a job without retirement benefits years ago. I didn’t realize that I never invested this portion of the money I had in the Roth IRA I opened. I recently switched from Vanguard to Charles Schwab so the other portion of my account is in VTTSX. I know that I could buy FZILX or another similar fund but I don’t really know which one as I am new to I investing. Some background: I am not planning on contributing to my new jobs Roth 401K until my emergency fund is full for 6 months of expenses at least. \* How old are you? What country do you live in? I am 26 and live in the USA \* Are you employed/making income? How much? I make $90K/year + a variable bonus \* What are your objectives with this money? (Buy a house? Retirement savings?) My current objective is to create a good emergency fund \* What is your time horizon? Do you need this money next month? Next 20yrs? I will need money for retirement but my emergency fund is my top priority at the moment. \* What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?) I like safe risk.
> VGSTX This is a 60/40 stock/bond mix fund. That's pretty conservative for a young person in their 20s. For the IRA, where you can pick your options, you might consider something like a 2060 target date fund (VTTSX), but that's up to you.
Hi guys! Please excuse me if this question is confusing, I’m not very well-versed in the finance community, but I have been investing in a Roth IRA for the past few years and I have lost over 2k. I am primarily investing in index funds because my research showed they are generally safer for beginner investors like myself, but is it typical for me to lose this much in 2 years of investing?? I understand the market goes up and down but I haven’t seen any “ups” now and I’m wondering if I should invest in something else this upcoming year. I am currently investing in VSTAX (Vanguard total stock market index funds), VTTSX (Vanguard target retirement 2060 fund) , VOO (Vanguard S&P 500 Index EFT), VT (Vanguard total world stock ETF), and VTI (Vanguard total stock market etf). Thank you so much in advance for any help and guidance!!
If you can afford 100%, and the company allows it, then I would do it. Time in the market is always good. Please note most payroll departments have a contribution change deadline and a cap on how much paycheck can be contributed. Personally I'd start with VTTSX at 100% until you know your risk tolerance, next year may be a bit bumpy still.
Understandable. I saw your other comment that you're in your 20's recently married, but don't want to be super aggressive on the risk either. It's of course good to learn about investing and such, but it takes time to build the intuition and understand some of the nuance. In the mean time you should be putting money away. I'm going to give you basically 2 steps here: Open some accounts, then buy some broad index funds. Open brokerage accounts: 401k, IRA, HSA, and brokerage. I don't know if you are familiar with these, there's resources mainly in /r/personalfinance that explains them. But in a nutshell, the first 3 are tax advantaged accounts. That means you're giving up easy access to the money to save money on taxes. The government is incentivizing you to put money away for your long term future (401k/IRA), or to put money away for health related expenses (HSA). FYI 401k is only through your employer, and HSA is often provided through an employer, but you can open one on your own. IRA and a regular brokerage are your own individual accounts, and you open those on your own. The last one, is just a normal brokerage account, you pay taxes on any dividends or realized gains, but you can access that money effectively any time for any reason (realized gains means you sold the asset back on the market and made money off of it. Unrealized gains means the assets you bought have gone up in value, but you have not yet sold them back for cash). There's lots of brokerage firms (banks) that offer these kinds of accounts. The most popular recommended around here is Vanguard. But Fidelity, Schwab, and TD Ameritrade are just fine as well. **What assets should your money be invested in when you put them in these accounts?** I recommend just getting started with a "[lazy portfolio](https://www.bogleheads.org/wiki/Lazy_portfolios)" that is most commonly recommended. Chances are you will stick with something like this for life. Again you can check /r/personalfinance. You can go with a 2 or 3 fund portfolio that's listed on that page. Go with an 75 or 80% stock, 20 or 25% bond. That's not considered super aggressive, but it's good for a young person with a lifetime of earnings ahead. The brokerage firms I listed often have their own stock and bond funds to invest in. The lazy portfolio link lists them. Generally you can buy any fund or individual asset from any brokerage (e.g. you can get Vanguard funds from a Fidelity brokerage account). But usually the trading fees are dropped if you buy the firm's own fund. Ok last bit, most of these guys have "Target retirement funds" they are labeled with a year. These are basically the lazy portfolio packaged into one easy fund you can buy (instead of buying 2, 3, or 4 funds separately). It's a fund of funds. This is the easiest thing you can do. This is the vanguard one that is relevant to you https://investor.vanguard.com/investment-products/mutual-funds/profile/vttsx. So you should just buy VTTSX or the equivalent from another brokerage while you learn more about investing. Like I said before, you're not married the strategy, when you are more knowledgeable you can always adjust. Chances are, you'll actually stick with this same strategy though, most people do! The value of your portfolio will go up AND down, just ignore it and keep investing. Particularly in the next year or so you'll see this volatility, maybe even negative returns. But just keep investing. In the long run (10+ years) you'll see net positive returns. This was longer than expected (sorry), but again it's two steps. Get access to the right accounts, then just put money into the right investment asset. I guess I'll do a separate reply on how to learn more.
> VTTSX has 0.08% Net Expense Ratio And yet, VTI has a 0.03% ER, and VT has a 0.07% ER, both lower than the target date fund. Ignoring cherry picking the company with some of the lowest ERs in the industry, you don't know what choice the OP or others who might be choosing a fund might have and its clear that target date funds if compared to the same companies and similar allocations, are strictly, if only slightly worse.
Target fund is standard bullet-proof investment. VTTSX has 0.08% Net Expense Ratio, so unlike the genius in the comment below who is just talking out of their asses, it is not that expensive relative to market prices Target Funds are great for workplaces are they are one size fit all diversified plans. Target Fund is spread as: 55% VTI = Total US 35% VXUS = Total World 7% US Bonds 3% International Bonds Which is a more diversified way of Warren Buffett's 90/10. The only difference is it balance more toward bonds and less stocks as you age, which is expected. Think of Target Fund as the money you can't live without. I highly recommend setting it up with buy it and leave it mentality until you retire IDEALLY IN 401K Plan. If that is not the cast, and you are just investing on your own outside work plan that usually contribute to it as well, Open a Roth, buy S&P ETF regardless the company (SWPPX, VOO, SPY, or whatever), and call it a day. That is as simple as you can get.
Go to the bogleheads subreddit or read “A Simple Path to Wealth”. Better yet just buy VTTSX if you don’t want to take the time to learn.
Looking for feedback on allocations in my retirement funds. Wife and I are in late 20s/early 30s grossing roughly 140k/year annually from pension-eligible jobs. Her IRAs are in Vanguard target date funds and my accounts are a DIY mix of broad mutuals to reduce expense ratio drag. Set it up a few years ago and have mostly ignored it except rebalancing maybe once or twice a year. Currently, including her target funds and before rebalancing, we're around 80% stocks, 7% RE, 5-6% bonds and 6-7% cash. If nothing changes we'll rebalance to something like 85% stocks, 6.5% each bonds/RE, and 2% cash. Account types/funds follow, if needed. Account mix is a little convoluted because I don't want to roll my TSP and the 457b has a limited catalog of funds. **Her Roth (about 50% of our portfolio):** 94% VTTSX, 6% cash **Her tIRA (~5%):** 100% VTTSX **My TSP (~8%):** 84% S Fund, 16% F Fund **My 457(b) (~14%):** 49% VINIX, 44% VTSNX, 2% VIEIX, 1% TIREX, 2% cash **My Roth (~13%):** 33% VTSAX, 31% VGSLX, 31% VEMAX, 4% cash **My tIRA (~9%):** 97% VTSAX, 3% cash
>$18k - VFIAX $11.5k - VTTSX $5k - VTSAX VTTSX is generally intended to be all or nothing. Roughly 80% of VTSAX is already the entirety of VFIAX, that's almost no reason to hold both. Factor investing theory should favor VTSAX over long time periods. You're extremely light on ex-US, even though it is about 40% of the global market cap. VTIAX is a common Vanguard fund to use in the IRA for that.
~~Limited 403(b) Fund Options~~ I would change the title to: 403(b) Fund Options Most People Wished They Had If I was in your shoes I would simply choose a single Vanguard Target Date Fund (an entire investment portfolio all in one fund and grows more conservative as it gets closer to the target date). [https://investor.vanguard.com/investment-products/mutual-funds/target-retirement-funds](https://investor.vanguard.com/investment-products/mutual-funds/target-retirement-funds) If you were planning to retire at age 65 I would go with the Vanguard Target Retirement 2055 Fund VFFVX. If you were to planning retire at age 75 I would go with the Vanguard Target Retirement 2065 Fund VLXVX In your case I would probably split the difference and go with Vanguard Target Retirement 2060 Fund VTTSX p.s. Don't be scared about the target date's year, it's just a helpful guide on which fund to select (you can retire sooner or later regardless of the fund year you choose). Personal Finance 401k fund selection guide, it can also be used for a 403(b): https://www.reddit.com/r/personalfinance/wiki/401k\_funds/ Lesson I wish I would have learned sooner: Which matters more for building wealth: Your saving rate or your investment returns? https://www.getrichslowly.org/building-wealth/
Appreciate the advice! Didn’t even realize how similar VASGX and VTTSX are, will definitely chose one or the other instead (likely going to keep VTTSX because it’s a target date fund). Not sure how I’ll allocate that, but I’ll likely put at least 10% of that into VTTSX and I might keep the remaining 5% in VASGX (because even though they’re extremely similar, the actual way the funds themselves work are much different). Though I am aware of VXUS being international (I’m not a fan of the measly 3.5% average lifetime return, but I do feel like I need *some* international exposure, which is why I’m only allocating 5% of my portfolio to that fund). As for MGK and SPY—considering I already have VOO in my Roth, that I might move some of my SPY into VYM instead, though I do feel like I should track the S&P in my 401k, so I’m definitely keeping some SPY, at least. I’ll likely move 5% of my SPY into VYM and keep the 10% in SPY. Or something like that at least. Beyond all that, I chose these funds specifically because all—but one of them—have Expense Ratios below 0.10% (VASGX has an expense ratio of 0.14%, so moving the majority of that into VTTSX has multiple upsides). As well as the low Expense Ratios, they all have average lifetime returns of 8.5%-11%, which is something I certainly appreciate. As for my Roth…yep, that’s something I’m very aware of haha. I like those individual companies very much and believe in them a lot, so I definitely did a lot of thinking around them. And I like VOO because of its very low expense ratio. But like I said, I’m thinking of adding a new fund or two to lower my dependency on my individual stocks. So yeah—my thinking around my Roth is very different compared to my 401k (for obvious reasons). But your advice is definitely noted on that end either way.
You have a lot of overlap. Your VASGX and VTTSX have almost same holdings (total stock market and total international stock) olypu also have VXUS which puts you more into total international. Your SPY and MGK also overlap in the top 10 holdings.
>100% I want to start to diversify, but I am currently not in a position to do so. The way I look at it, you're not in a position to *not* diversify. If you are, say, 25, open an account at Vanguard or Schwab or Fidelity and invest in a fund like [VTTSX](https://investor.vanguard.com/investment-products/mutual-funds/profile/vttsx) — that's a mutual fund that diversifies *for you —* stock and bonds, domestic and international *—*based on a 2060 retirement date. You can buy in with just $1,000, one time only. Put $90 in that fund every week...and put another $10 in i-Bonds, if you must. Stick to it like clockwork, increase your contributions when you can, *pay yourself first*, and don't even *think* about the money your'e accumulating (and sometimes losing). Just stay the course year after year. Voilà, now you're diversified, your investing is prudent, it requires no fuss or belly-aching or brain power, and all the same, you're on your way to a rich retirement.
I see a lot of people say target date retirement funds are too conservative and yet VTTSX is down 20% this year
Been a degenerate with y’all since getting bored of VTTSX and going all in on infinity fabric, wild times & a lot of change. Hope marty is having a good time wherever he is.
as everyone is saying, up to you, definitely good to keep a solid safe portion in something like VOO or VTI, but i also put a small % (like less than 15% in individual's). I love tesla and dont care how the P/E or any FUD people want to say, so i have a few shares of TSLA cuz in 10/20 years i do think it will be higher than it is today, lol. I also have a good portion in VTTSX (basically vanguards retirement fund for 2060 that automatically allocates money to international stocks / bonds as it gets closer to 2060). Up to you on your risk / safety tolerance, but can't hurt to throw a little into some of you favorite long term believes.
What are you buying? Same boat as OP: 25 and big down this year. Wiped out almost all my gains since investing inception. I have $35k spread between 2 Vanguard Index Funds and a Target Date fund, and another $20k in my 401k. Don't know if the Vanguard allocation is great tho. VFIAX, VTSAX, VTTSX, and some KO stock lol
For sure. My biweekly Friday autobuys of VTTSX (Vanguard 2060 target date fund) had me buying 4.9 shares back in January. Latest autobuy shows 5.5 shares were bought with the same amount of money. This is a sale, folks.
Is there any strategic advantage to holding a variety of stocks/mutual funds? I currently hold EEM, QQQ, VOO, VTI, NASDX, and VTTSX.
\+1000 VTTSX is down 10% YTD. There is absolutely no way you could do better, consistently unless you take on a much higher risk tolerance. Almost everyone is down tens to hundreds of thousands YTD. Welcome to the club :D
I'm confused on how my 401k is set up. I currently hate my employer's plans they offer us, so I just stuck it within their 2060 target date fund since it's a vanguard fund I figured that was good enough. I tried to track it against VTTSX but my fund is underperforming that fund. YTD VTTSX is down 9% while I'm down 14%. The fund is run through Vanguard but it's under a different fund number and it's holdings are specific to my company it seems, I say this because one of the holdings is "My Company name SMALL CAP INDEX FUND". It's expensive ratio is .25 but the fund is holding basically all of the other funds available to my 401k (10 holdings) and each of those funds also hold higher expense ratios. Top holding is a Large Cap core fund holding .31 expense ratio, international is .53, midcap .46 and so on. So, by investing in this fund, I'm basically paying a .25% expense for a fund to buy other funds with even more expense ratios? The vanguard website has been updated and finding information has been a pain. I can see on the performance page of the fund, it benchmarks itself against a "Target retirement 2060 composite lx" and it's underperformed this across the board since 2018 inception. The match of my company sorta makes up for the underperformance but it's left me annoyed that I don't exactly know what I'm invested in.
VTTSX 2060 Target Retirement Fund 32.XX Shares
u/AdAntique5099 thanks for sharing. Ya my 401k / rothIRA i have in safe retirement $VTTSX, my personal portfolio ive been using for stocks, but have been thinking of just putting it in $voo and not having to worry, keep a smaller % in stocks. I've had apple / msft for a while and was only a few years old when dotcom bubble happened so it's harder for me to understand how the landscape was back then which is why im interested in everyone's thoughts. Crypto is my risk play the last few years ha
VTTSX is up 50% over the last 5 years. VOO is up 90% over the same time. So it's less aggressive then the S&P500, for me I much rather invest in VOO then VTTSX. Just depends on your risk ig, but I'm young enough where putting money into something that's holding 10% bonds isn't as aggressive as I want.
The sp500 is an index. If you’re invested in the sp500 you’re investing in the index of the 500 largest companies in the US. That’s less risky than putting all your money into 1 of the companies that comprises the 500. Should you also have bonds? Probably. But at 27 you have plenty of time for the market to recover.. somewhere between 35 and 40 years of working life left. If you’re a set and forget type of investor, you might want to switch to a target date fund, which invests the majority of your money into total market indexes (worldwide, not limited to the 500 biggest US companies) and bonds, and will change the composition of how big of a percentage the bonds are for you within the fund. Examples- TRRPLX: T Rowe Price 2060 Target Fund VTTSX: Vanguard 2060 Target Fund
Looking for advice on my spouses Roth IRA portfolio in vanguard. We just added $10k to complete funding for 2021 and 2022 and would appreciate comments on how to allocate this. Other relevant data for spouse - Age 29. In USA - Employed, 100k annual salary - objective - retirement - high risk tolerance - current holdings are -- $8k in Roth IRA (50% VTSAX 25% VTIAX 25% VTTSX) -- ~$60k between 3 employer 401k plans - Debts -- ~ $10k in fed student loans -- mortgage on a house we bought in 2021
Looking for advice on my partners Roth IRA portfolio in vanguard. We just added $10k to complete funding for 2021 and 2022 and would appreciate comments on how to allocate this. Currently $8k in the following: 50% VTSAX 25% VTIAX 25% VTTSX
Betterment (like most robos) is basically just building a 3-fund portfolio for you. Its returns are more or less going to be equivalent to an index-based target date fund, with perhaps a little lag due to slightly higher fees. The robos have done OK but have lagged anything that was US-centric. For example, compare Vanguard's 2060 TDF (VTTSX) to their whole US market fund (VTSAX). VTSAX has done significantly better. Most robos would behave similar to VTTSX.