VOO

ironmemelord

could've just bought VOO and chilled but you had to be dumb

Putrid_Pollution3455

VOO and SPY adjust everything by market cap, the top companies move around quite often. If you looked at the top ten stocks in VOO, and individually bought those stocks, then you’d track only those. If you buy VOO, it updates as companies grow and shrink. It’s marvelous.

Putrid_Pollution3455

VOO? SPY? What do you mean?

Decent-Bed9289

I won’t touch any financial directly. Whatever exposure I have, comes from VOO.

jraiv420

VOO, QQQ and TLT printing 🤑

coriolis7

I’ll differ from the advice in other replies. I wouldn’t do VOO based on your circumstances. 1. I would set aside enough cash for college in 529’s in essentially cash investments, or in I Bonds (which allow tax free use for education expenses). If going I Bonds, you’re limited to $10k each between you and your wife and it’s either another $5k each or $5k total via your tax refund (so you can just overpay April 14 to buy the extra I Bonds). The limit is per year. There are some nuances with I Bonds, so you can just go 529 to keep it simple. 2. You may very well be at this point, but have an honest equivalent of 3-6 months of expenses in an emergency fund. If you are going to put that money anywhere other than a HYSA or checking account, do it in Money Market Accounts, Money Market Funds, or short term Treasuries (like 1 month or so to prevent interest rate risk exposure). You can slowly put money into I Bonds, but since you can’t withdraw I Bonds for 12 months, make sure you have enough liquidity to cover 3-6 months of expenses while waiting on the I Bonds to reach 12 months. 3. Buy a Target Date Retirement Fund. It adjusts for risk automatically as you get closer to retirement. VOO or other S&P500 following mutual funds are going to be higher risk than appropriate or desired in your situation, unless you only do them as a portion of your portfolio and buy bonds and the like for the rest. Target Date Funds just make it simple. If you aren’t familiar with the “order of operations” for where to put retirement money, it’s as follows: 1. 401(k) match 2. HSA (though payroll so you can save on FICA taxes) 3. IRA / ROTH IRA 4. Maxed out 401(k) 5. Regular brokerage account Steps 3 and 4 are so close to each other priority wise they can be swapped depending on your situation. 401(k) can be withdrawn from as early as the age of 55 if it’s the 401(k) from your last employer when you retire, so there’s more flexibility for early retirement, but you may not have as good a selection of investments. Ideally, at retirement you’ll want your money in a mix of 401(k)/IRA/HSA, Roth IRA/401(k), and Brokerage accounts (called the 3 Bucket Strategy). The Brokerage account you can withdraw from whenever you want, and can bridge between when you retire and when you can withdraw from other accounts. The other 2 buckets (Roth and non-Roth) allow you to essentially choose your tax bracket.

jay_chy

I think you and I are in agreement. My "advisor" is managing to my goal, and my goal does not include the holistic services, my goal is a laser focus on measurable portfolio value growth. My point was that I am happy with him exactly because he is not doing the "advisor" things, instead he's "merely indexing". But when shopping for advisors, the majority offered this holistic approach and services that I do not find of value. I'll manage my real estate, I'll manage my yearly retirement contributions, I'll manage my estate planning, I'll manage my insurance, I'll manage my taxes. I don't need monthly opinion newsletters or quarterly meetings. (That's just an expensive "friend") Could I do VOO instead? Yup, but as long as this guy gets me 1 point better than the benchmark, his AUM fee is justified and I'm not getting any sales pitch. I don't feel like he's trying to get his fingers into the rest of my life. I not only want to have diverse investments...I also want diversity with people that help manage them, not a one stop shop.

Superdad26

$VOO and leave it alone

richardlpalmer

My wife and I (early 50's) live in the USA. We are debt free (aside from our house, which has approximately 50% equity). We have most of our portfolio in our 401k's, company RSUs, HSA and HYSA (5%). I guess we're trying to catch some lightning in a bottle, looking for high upside, with accompanying high risk with a small gamble. We're looking at investing $1000 -- could be 2 stocks, $500 each. I know this isn't significant money for most, but it's an amount that if we lose it all we won't be too upset with our attempt. Anyway, we're looking at things like Rivian (big upside/risk), Nvidia, Tesla, AMD, SOXX... Other options are less risky, like Meta, Microsoft, Palo Alto Network, VOO/VTV/VNQ...

AP9384629344432

VOO (S&P 500) pays a dividend of 1.35%, VUG (S&P 500 growth) pays 0.55%, so your yield is somewhere in between that. It's actually on the low end. I plug my portfolio(s) into TrackYourDividends and my yield is 2.13% (2.4% yield on cost). Thanks to holdings in VXUS, AVDV (both international ETFs), cash in brokerage, my Target Retirement Fund (which has 10% bonds), and a few dividend payers like SBUX, XOM, JPM, LOW, etc.

Jupiter2002X

VOO

NVDAismygod

13k in VOO $500 in 5DTE puts 500 in 5DTE calls Profit✅

qw1ns

Just buy 25% QQQ, 25% VOO, 25% SMH and 25% IEF. Every 5% drop of QQQ or VOO or SMH whichever is lowest, sell 10% of IEF and buy with that money the lowest dropped ETF (QQQ or VOO or SMH).

SirGlass

not sure but it should be pretty easy to figure out For example look at VOO YTD the price return only is about 6.96% but that is just price appreciation Total return is about 7.40% So look up VOO and see what it list as YTD return

Cruian

Think of VTI as essentially being VOO + VXF in the right ratio. Currently it would be over 80% VOO, so VOO and VTI will act very similarly, you'll just miss out on the small VXF part.

DiscountShowHorse

Also, VTI and VOO are perfect holdings for an IRA.

Daneish09

Buy shares of VOO. Only gamble with what you can afford to lose.

thatcsguy5

Thank you for the feedback! Out of curiosity, what is the average return of VOO and VTI year after year? My Ally HYSA guarantees a 4.20% return every year. Are VOO and VTI really that much better? Or is it the fact that you don't pay taxes on VOO/VTI every year (whereas I do pay taxed on my earned Ally HYSA interest every year)?

thatcsguy5

Thank you for the feedback! Out of curiosity, what is the average return of ETFs like VOO and VTI year after year? My Ally HYSA guarantees a 4.20% return every year. Are VOO and VTI really that much better? Or is it the fact that you don't pay taxes on VOO/VTI every year (whereas I do pay taxed on my earned Ally HYSA interest every year)?

thatcsguy5

Thank you for the feedback! Out of curiosity, what is the average return of VOO and VTI year after year? My Ally HYSA guarantees a 4.20% return every year. Are VOO and VTI really that much better? Or is it the fact that you don't pay taxes on VOO/VTI every year (whereas I do pay taxed on my earned Ally HYSA interest every year)?

Aceofspades968

So I’m not wrong, great, thanks for letting us know. I was halfway expecting you to suggest VOO or SCHD. Have you met Reddits financial lord and savor?

gt35r

Id recommend just continuing to do what you're doing and not getting side tracked by social media or youtubers saying to buy things instead of it. What you're doing is what I wished I had started at that age and if you continue you'll be better off than most. Also it removes the emotion completely from investing. I personally do a few hundred a week into VOO and one lump sum per month into HYSA as an emergency fund. Set it and forget it and enjoy your life.

Scjco

Yeah didn’t expect you to know why just thinking out loud haha. I think I’ll contact the investor and ask before selling and buying VOO

rpnye523

I don’t know anything about your employer or why they’re picking AMAGX, I wouldn’t, I was just answering what Islamic principles are probably referring to. I would just buy VOO if you can sell it

Scjco

Maybe I’m just ignorant but why do I feel uneasy about that. We’ve never discussed anything about my ethical beliefs. And, idk, why not VOO, classic choice for an ira.

skinnyeffinstone

If so, the answer to OP question is: VTI or VOO for 5 years and chill.

grasshopper2jump

I keep hearing about VTI and yet I have VOO are they the same or should I have VTI?

Educational-Fun7441

If ur under 30 just buy QQQM for the next 5 years. Switch to VOO after

u_slash_spez_Hater

I’ll be the little angel on your shoulder this time, I think it’s time to buy VOO shares with that money

Nick_OS_

DCA into VOO every month and ur good

falling_knives

Awesome. Was leaning toward Etrade since they also have Roth 401k. Not sure if I'll use it but would be good to have in case I decide to use it. Their application seems like a drag though. I don't remember Vanguard asking this many questions. Will check out Fidelity's application. Etrade has options too but I'm not even gonna apply for it. Don't want to be tempted to make dumb trades. Throwing everything into VOO is the main plan.

Str8truth

Yes, VOO is available. I think you can buy any stock or ETF that you could buy through a regular Fidelity brokerage account. You can go to [fidelity.com](http://fidelity.com) even if you aren't a customer and search for a fund to see if Fidelity sells it. I asked today about options and was told that I can even trade Tier 1 options contracts in my solo 401k, so the account has everything I want.

Tuxcali1

From a retired broker: Nope and nope. K.I.S.S. Put it in VOO and just keep putting it in VOO. This is your ‘found’ money and a Huge step toward your financial security. Don’t screw it up by trying to get fancy with futures, options or IPO’s.

Karatekk2

Going to reiterate not buying individual stocks in your Roth, it is not a good idea. For 99% of people buying VTI or VOO is enough. These are total market and SP500 ETFs respectively.

fro_masterx

Congrats on starting the journey! Agree with putting it in VOO until you learn more :) don’t be frightened about movement in the market though, and sell out of a position or try and move your money around thinking “dang this other fund is doing so much better” because you likely picked a fund for its overall return/performance which factors in many many years. You seeing one fund down and another up doesn’t mean the one that is down will not end up on top in 10 years. Stay the course for at least a full calendar year, then reassess. I was chasing gains and moving money in and out of ETFs when I first started and all that did was lose me even more than if I just stuck with a target date fund, what I originally had my money in. Since you are starting later VOO has more upside potential but will have a bit more downside than a total market fund, but I think you could use the extra growth potential due to your age. The 3 most simple choices, in my order of recommendation, are: 1.) S&P 500 fund (VOO) 2.) Total Market Fund (VTI) 3.) Target Date Fund (VFFVX)

safari-dog

i sold all my VIG. the expense ratio is 2x VOO and had a lower yearly return. no poijt

Trick-Interaction396

I think there are so many unknown variables the error variance would render your analysis no better than a coin flip. I’m a statistician by trade. My number one advice when doing analysis is accept that there are things you cannot model. That’s why VOO is so popular. You’re putting your eggs in all the baskets.

Vinyl_Agenda

VOO is cheaper

Trick-Interaction396

It’s impossible to calculate. If you buy a house then immediately have a 50k expense all your math goes out the window. Then how would you compare that the VOO when you have no idea what rate of return will be.

PayYourBiIIs

Look at VOO and its dividend yield? 

CapnTidy

Buddy just invest in VOO

falling_knives

So you can even buy something like VOO through Fidelity solo 401k? I was going to go with Etrade but Fidelity might be a better choice if they have that many options. Vanguard was pretty terrible.

1UpUrBum

Cocoa already had a big run 2000 to 12000. That's a little better performance than VOO, lol. Try KC, ZW, ZC, coffee, wheat, corn.

bravohohn886

S&P 500 has averaged over 11% the last 50 years reinvesting dividends. Most people will do better than professional investors and traders just buying VOO monthly for a lifetime. I’m sure you haven’t sniffed 11% a year lol

WestmontOG07

Who said it’s wrong? I’ll put it this way: if investing solely in SPY or VOO is wrong, for the long term, then I don’t want to be right.

JonathanLi

I’m not quite sure what you mean by “does the money from investing go to that account”. Think of it like a bank account. If you transfer $100 from your checking account to your brokerage account, you need to buy something with it. Let’s say you buy $100 of VOO. You now have $0 of spending money, but $100 of VOO (which comes out to about 0.2 shares at today’s prices). If VOO doubles in value, you still have 0.2 shares, but now it’s worth about $200.

GFC_27969

Invest in $VOO and set it and forget it

frumpydrangus

VOO

Unique_Analysis800

I am still doing fine with VOO, VT, and VTI. All these drops are good buying opertunities

JonathanLi

What the hell. His posts and responses are literally saying he’s new and he doesn’t know what step one is. He’s trying to learn, and your response is “hey don’t do anything until you learn”? To OP, /u/shirosenju. Here’s a general step by step: 1. Find a brokerage you like the interface of. A brokerage is a financial institution through which you can buy ETFs, stocks, etc. I personally use Fidelity 2. Open an account, most people your age would generally open a IRA. IRAs have two classifications, Roth and Traditional. The difference is when you pay taxes. Roth accounts go in post-tax and come out tax free. Traditional accounts go in pre-tax and get taxed when you withdraw. Roth is generally recommended for people early in their careers. 3. Link your bank account, and deposit X amount that you won’t miss for the next 45 years. 4. Buy something with the money you deposit. These would be the ETFs you’re talking about. Search for broad index funds, generally the ones that people like for “set and forget” investments are things like VOO and VTI. This is where you’re able to do your own research.

connorcourtenay

Thanks so much I really appreciate all of your help. My VOO S&P 500 ETF is with my stocks and shares ISA. As for the VTI and SCHG ETFs and the stocks, what platforms do you use to buy these and how do you split your stocks if 85% goes to your VTI and 15% goes to your SCHG? How do you have any left for your individual investments? Apologies if I’m being dumb I just want to get this right and be as knowledgable as possible.

Siambretta

Just search for VTI and VOO in whatever app you’re using. Those are known as “tickers” and we use them to refer to stocks, funds and other things. I mean no disrespect but you sound very green so take it easy with the money you put in until you learn a bit more.

elitesense

Oh boy you still don't get it.... it's about percentages. Let me explain in terms you can understand.... Let's say I want to own crayons. I want 50% of my crayons to be orange, but I ALSO want some other colors mixed in, especially green, so I go and buy some boxes of crayons.... I buy 2 boxes of crayons, each with 5 in them, 10 total crayons. The first box has Orange, Green, Purple, Yellow, and Blue. The second box has Orange, Orange, Orange, Orange, and Green. I now have met MY GOAL of 50% Orange (S&P) crayons, while still retaining a mix of other colors (Global), although I'm still weighted a bit heavy in green (USA) on purpose. If I bought only the first box (Total market) I wouldn't hold enough orange, if I bought only the second (VOO) I would be weighted too heavy in orange. It doesn't matter which box (ETF) they came from, all I care about is the actual percentage of crayon colors. Does that make sense now?

FinndBors

“Wrong” is a strong word. To be “safe” you do want to avoid putting 100% of your money in one country because there are always country-specific risks. VOO is S&P 500 and while US centric, most of the companies are multinational in both employees and customers, so it isn’t too bad. I think bogleheads suggest a 60/40 split which is what VT does. I personally do a 80/20 split of VTI/VXUS. 

Putrid_Pollution3455

short term capital gains is taxed at your current income tax bracket. If you buy and hold for over a year, you currently get favorable long term capital gains tax...at least in the states. Congrats on the start of your investing journey! Try to keep speculating at a rational percentage and you'll be fine. Buy big boring assets like VOO or USFR and yolo the dividend/interest would be a smart strategy

funpolice99

Then either VTI or VOO will be a good choice

BigBoobsAreDahhBest

VTI: Total US Market (basically this ETF invests in every single public company in the US) VOO: Invests in the top 500 companies in the US SCHG: Invests in 200 growth companies in the US. VOO and SCHG is a subset of VTI. We don’t have a S&S ISA in the US, but just reading up on it, I would personally contribute the maximum amount to it with the intention that you won’t need the money for the next 10 to 20 years. Seems like a pretty sweet account you have there in the UK. I would also open a taxable account to invest your remaining cash after you have maxed out your retirement and ISA.

tdrip-y5

They have different uses depending on what you what out of it and when you need the money. A high yield savings account is the first place to start to at least earn solid interest on money you’re just saving and allows you to still have free access to that money. If you want to save for retirement a Roth IRA is a really good place to put money and build for retirement, Vanguard is what I use it is simple to set up and use. You can also open a brokerage account, when investing it’s best to just stick to low cost index funds like VOO.

ppith

We had some money managed with Fidelity. They grew my money, but the returns were always below market including fees. Most of our portfolio was already set to SPY/VOO/VTI. So we let them go and just index now.

sailphish

It’s not a matter of being in a 401k, but a problem of the asset allocation you have elected within those 401ks. Likely you have some large cap option (similar to VOO) if that’s what you want with your portfolio. If not, or if fees too high, just roll Al those 401ks to an IRA at Fidelity or Schwab, and then invest however you want without having to take any penalties.

FordBagholder

REGARDS stop selling nvda. Its a 20+ year hold. Better returns than VOO, or any other index funds. If you max out roth ira $7000 into nvda until age 59 1/2. You will have 20 million. 20 years, all fast food cashiers no más. Porqué tu venderás NVDA, no entiendo; millón de dólares más fácil

grasshopper2jump

Thank you for getting back to me. I ended up selling my pit my position with Met. I had purchased a position of $10,000 and sold it flat. I have other stocks with AI and I would prefer not to go through stages which I think it might before it makes money I'm 64 now I have to put $10,000 to work again in my retirement. I have 190 k I my sep. I want to take the opportunity to adjust it. I I made my yearly retirement contribution and added 13 k VOO but now I'm not sure how to invest this 10,000..also this money is on theceralth management side… I would like to move it in kind to edge and rework it. Any suggestions would be appreciated

twmint

Lost money for 2 years with all their picks. Same as ARK funds. Overall a complete waste of money. The investing club from Cramer has been doing better overall for the last couple of years. Best way to make money ? BUY Vanguard VOO or SPY, both ETF's that follow the S&P. If you are fixated on the Nasdaq, go with the QQQ or XLK and forget it

Only_Mushroom

It's beating the SP500 atm, doesn't guarantee future performance. But if you move 95% of it to SPY/VOO you'd still be beating the SPY thanks to the current ytd. 50/50 in 2 stocks, even if BRKB is diversified in its holdings, is still risky af

floppyfolds

It’s been beat to death here, but VOO has an expense ratio of 0.03%.  It all depends what your goal with that money is. But if your goal is just to participate in the market, that’s what you should pay - which is why 1% is outlandishly huge. I highly suggest you look at the compound interest formula, plug in relevant values and see how much a 1% fee will cost you over your investment timeline.  Here’s a link to a site that’ll calculate it for you: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

30vanquish

Not financial advice but an opinion. Move 100k from the HYSA to fidelity or Schwab. Add 50k VOO (s&p 500 fund) and 50k SCHD (dividend stocks). Leave it and it should grow.

BetweenCoffeeNSleep

Fair question. I do a lot of swing trading with financials. I focus on companies with heavy asset or wealth management tilt, market making revenue, etc. I’ve done two other swing trades of MS in the past year that outperformed S&P 500 returns over the duration of the trades, so I was already tracking earnings, basic technicals, etc. Equity markets were decidedly up and active during the quarter. Treasury and CD yields have remained strong, and money market inflows imply institutional buying to support that space. Main point: there were clear indications that the wealth management business (fees based on activity and AUM) and institutional security revenue would be strong. Investment banking activity has been muted as companies waited for rate relief, but that hold out can only take so long. The higher for longer narrative was normalizing. “Wait” fatigue seemed likely, so I predicted a reawakening of that stream no later than Q3. I pulled up an MS vs VOO chart and clicked through a few time periods, verifying that support levels were still in about the same range (fun fact: my last swing trade opened at $86.45 basis, I opened this one at $86.48). On the daily chart, I watched it start crawling back up off the second drop. My sense was that any further drops would be shallow, since the stock was near established points of demand, and that the investigation headline wasn’t sufficient to threaten a deep tank. Frankly, this set up was a lay up. The only question I had was where to set my strike. I put it at 90, expiring just after earnings. I usually don’t bridge earnings, but predicted that string earnings would fix narrative concerns and ensure a pop. The strike was +4% over basis, and I collected 1.1% on premium. It’s in an IRA, so I was looking at a very likely gain of 5.1% over about 2 weeks, with no tax drag. If I had been wrong, the most realistic outcome would be a longer wait to narrow the gap relative to the index. I would have been fine collecting premium and dividends during the wait. I went in with 40% of the account.

weaponized_teletubby

Bro you’ve already lost everything. No point in stopping now. You could try to trade the swings in a channel. Build up some buying power and make a few really risky moves to either lose everything or gain some of it back. Then just throw it in VOO and fucking stop messing with it.

Some_Quote_8898

Buy and hold. VOO or BRKB.

idontknwnething

I purchased my first index fund May be a year ago so that’s why it’s hard for me to imagine how my VOO would look like after 10 years

RapmasterD

Bad advice. I'm a certified doctor and my prescription is as follows. VOO and chill. Please....bring on the downvotes. You know what I'm going to do in response? That's right. [I'm going to chill](https://youtu.be/fAugOjG4qOc?si=Q1pz0qy3nm1EilDS).

AlgoTradingQuant

Your wife is super smart! Like others have said, one bad earnings call, one major law suit, one bad anything and you’d be mad as hell and so would your wife! Buy VOO and/or VTI and chill… if you want sprinkle in some QQQ but buy index funds!

SavingsGullible90

No brainer: just 75 to 80 into VOO and rest is VXUS ,sit back and relaxx

crazybutthole

Get good ETFs like VOO (sp500) and QQQ (NASDAQ top tech stocks like Microsoft Google Amazon Netflix etc) Buy as much as you can afford and hold for a long time.

FordBagholder

You want a safe big return play? $500 in to NVDA every week for 20 years. That's 520k. After 20 years, you should have 10 million. 20 years is enough time to see massive AI technology growth. Obviously the more you put the more money you have at the end of the 20 years. Better returns than VOO, SPY, and other funds. These funds only give you 10%, NVDA gives you average 70% a year. Trust me their products is something to look at. This is only the beginning. Once Tesla and other AI robotics company starts ramping up produce of AI robots. NVDA, AMD, INTEL, and TSMC will skyrocket. Why only NVDA? They surpass Intel and AMD for decades. NVDA never been beaten even in the gaming era of graphic cards. If NVDA price goes down. Just buy more the company is not going anywhere. NVDA released the H200 this year that revolutionized CPU servers into GPU servers. Their products are amazing. Gamers love NVDA more than AMD. Terran Orbital ($LLAP) is a short term gainer. They post first green net income in Q1 2025 or Q4 2024. Buy before the first rate cut in september.

8utterbee

This is from one of my portfolios: 33% Foundational: SPLG (or IVV or VOO) 33% Growth: QQQM and VGT (or XLK) 33% Dividend: DGRO (or SCHD) I’d make it 40% in foundational, 40% in growth, and 20% in dividend if as young as 21 years old :-)

FordBagholder

You want a safe big return play? $500 in to NVDA every week for 20 years. That's 520k. After 20 years, you should have 10 million. 20 years is enough time to see massive AI technology growth. Obviously the more you put the more money you have at the end of the 20 years. Better returns than VOO, SPY, and other funds. These funds only give you 10%, NVDA gives you average 70% a year. Trust me their products is something to look at. This is only the beginning. Once Tesla and other AI robotics company starts ramping up produce of AI robots. NVDA, AMD, INTEL, and TSMC will skyrocket. Why only NVDA? They surpass Intel and AMD for decades. NVDA never been beaten even in the gaming era of graphic cards. If NVDA price goes down. Just buy more the company is not going anywhere. NVDA released the H200 this year that revolutionized CPU servers into GPU servers. Their products are amazing. Gamers love NVDA more than AMD.

FordBagholder

You want a safe big return play? $500 in to NVDA every week for 20 years. That's 520k. After 20 years, you should have 10 million. 20 years is enough time to see massive AI technology growth. Obviously the more you put the more money you have at the end of the 20 years. Better returns than VOO, SPY, and other funds. These funds only give you 10%, NVDA gives you average 70% a year. Trust me their products is something to look at. This is only the beginning. Once Tesla and other AI robotics company starts ramping up produce of AI robots. NVDA, AMD, INTEL, and TSMC will skyrocket. Why only NVDA? They surpass Intel and AMD for decades. NVDA never been beaten even in the gaming era of graphic cards. If NVDA price goes down. Just buy more the company is not going anywhere. NVDA released the H200 this year that revolutionized CPU servers into GPU servers. Their products are amazing. Gamers love NVDA more than AMD.

BetweenCoffeeNSleep

12 trading days. I bought MS after the dump on 4/11 and sold calls expiring today. It’ll assign out tonight. That was my only stock. All of my long term holds are index based. I don’t hold any stocks without an active thesis, and it’s very hard to be specifically correct with a thesis over larger timeframes. All of my stock positions aim to be 0-7 month swing trades, built around a specific thesis. I’m always fully invested, though. I’ll park the MS capital in VOO on Monday morning. When I find another compelling opportunity, I’ll pull from VOO.

redditadk

Yes! You're 26. You can be aggressive with everything not in your emergency savings. Save for a home or your own business if that's your plan but then put everything you possibly can in VOO in your tax deferred accounts.

rupert1920

All this is great, but I think you can see how our discussion here gives OP a lot more context than your original comment of "The money that is invested is used to buy shares of SPY and VOO. That's really all you need to focus on." Perhaps OP isn't just stuck on the mechanism of ownership. Perhaps OP is curious about how the price movement would work, or how exposure changes. It sounds like OP is worried about an infinite, diverging series of buying that goes to infinity, so it will help to discuss a little further. Such "self-ownership" - just like in a stock buyback - decreases effective free float and increases leverage of existing stock. There is value in delving into the consequences of these actions, rather than making the ownership delineation and then ending the discussion, possibly misleading OP into thinking no price action or additional underlying purchases occurs from ETF purchases.

NothingButTheTea

Yes, but what I'm saying has nothing to do with that. At the end of the day, owning one of those ETFs does not put more Berk stock in your account. We own part of an underlying ETF. That's why wecannot liquidate any Berk even though we own it as an underlying security. We sell VOO or SPY because that's what's we own as a share. It just happens that in OPs case "we" includes Berk as well.

Ibagdimes

I don't think target date funds are the best. Just do VTI/VOO/XEQT

Jublex123

10% cash, 90% VOO. Save at least 20% of after tax income. Max 401k.

happy_snowy_owl

>The US stock market has been great for the last 15ish years so it’s been easy to just pump it all into a VOO and forget about it because most people this site are young and don’t really have to worry about much and didn’t live through the crash back around 2008. I'd go further and posit that most of the young investors pumping money into stock index funds still don't understand how to spreadsheet model to work backwards from their investment goals. Because they have some discretionary income and very little responsibility, they're just pumping all of their excess cash into a retirement account and patting themselves on the back for it. When you have several priorities to manage (mortgage, family / kids, retirement, college savings, etc.) then that's where financial planning comes into play. And this isn't overly complex to do from scratch, but it requires some spreadsheet skills and definitely helps if you understand stochastic modeling.

rupert1920

Buying SPY and VOO leads to creation of new shares of those ETFs, which in turns means the authorized participants will purchase more of the underlying equity that makes up those ETFs to keep their exposure low and continue tracking those indices.

BetweenCoffeeNSleep

BRKB is 1.73% of VOO. How much benefit do you think they get through the 1.73% of that fund when they hold it?

induality

Suppose VOO has $500B asset under management and $500B NAV. The two are equal so there's no need for authorized participants to do any buying or selling. Then, Berkshire spends $10B in cash to buy $10B worth of VOO. The NAV hasn't changed, because Berkshire exchanged $10B of cash for $10B of VOO shares, so it did not gain or lose any value. So VOO still has $500B NAV. But Berkshire buying $10B worth of VOO has created upward pressure on VOO price, pushing AUM higher as VOO share price goes up, causing VOO to trade at a premium to NAV. To counteract this, authorized participants start creating new VOO shares. They do this by buying the underlying securities of VOO and selling the newly assembled VOO shares. As a result, new money flows into VOO, and the NAV of VOO also increases as the APs purchase the underlying assets. This process continues until the NAV and AUM are equal again, say, once VOO reaches $510B NAV. So $10B of money flowed into VOO as as result of Berkshire purchasing $10B of VOO shares. But look! When VOO went up from $500B to $510B, it also had to purchase Berkshire shares, since Berkshire is one of VOO's holdings. So Berkshire purchasing VOO did lead to VOO purchasing Berkshire.

NothingButTheTea

The money that is invested is used to buy shares of SPY and VOO. That's really all you need to focus on. Yes, SPY and VOO has Berkshire stock in them, but it's not like Brk is getting ind8vidual stocks of it's own company into their portfolio; when they buy VOO or SPY, they just own more SPY or VOO in their actual portfolio.

notreallydeep

Well yeah, but that doesn't mean that it buys more BRK.B just because Berkshire has VOO in its portfolio. VOO is weighted by market cap, Berkshire can buy whatever it wants and if their market cap increases because investors think that purchase increases Berkshire's value, VOO will buy more BRK.B. But that's not due to VOO being in Berkshire's portfolio, it's due to investors judging the value of VOO in Berkshire's portfolio.

Bajeetthemeat

Pretty sure VOO is an open ended fund/ETF

WilliamCincinnatus

I work in the industry as well and work with a team that is absolutely amazing. We care deeply about our clients and do more than just invest the cash. There is financial planning and helping with taxes, estate planning, retirement planning, help making sure our clients have enough money to comfortably live until they pass away and hopefully leave a nice chunk to their beneficiaries. Do we charge a fee? Of course, but it’s reasonable for what we provide. I think what you see on Reddit is people who are in the top tier of “investment education” and they really don’t understand that it’s worth it for a 75 year old lady to pay us to make sure she’s safe for the next 20 years. They think it’s as easy as dump it all in VTI - which for most people is usually a good idea until they get close to retirement, that’s when the real work comes in. The US stock market has been great for the last 15ish years so it’s been easy to just pump it all into a VOO and forget about it because most people this site are young and don’t really have to worry about much and didn’t live through the crash back around 2008. I can go on forever about Reddit and the real world but just keep this in mind: If you actually give a shit about your clients and do your best to take care of them. Don’t pay attention to Reddit users and their hate for FAs most don’t have the assets needed for a real FA to manage their finances.

qw1ns

>Tomorrow Berkshire sold every stock and bought 100% VOO BRK.B is cash cow, see its P/E while VOO is hyped baby (compared to BRK.B) see VOO P/E. In short, for the same ROI, investors pay less for BRK.B than VOO which has extra Risk Premium. Buffet clearly tell that he is not making money from stock market but from the company value. If such is the case, why should he divest BRK.B (higher valued) and buy VOO (lower valued)? That it ends!

notreallydeep

>and those shares buying itself are also buying itself Why would VOO buy more BRK.B just because Berkshire buys more VOO?

Afraid-Ad-2282

Only add new etfs/diversification. I will not sell any % of VOO

AbbreviationsFar9339

25% is AVUV, 5% each of AVDV and AVES. rest is VOO

u_slash_spez_Hater

Get a job and buy VOO shares

Afraid-Ad-2282

The strategy fund. The 2 biggest positions are VOO and EM (5% each)

Afraid-Ad-2282

The strategy fund. The 2 biggest positions are VOO and EM (5% each)

69philosopher

Not the right sub but just put it all on ETFs? Like VOO, VTI, and call it a day.