VTI
Vanguard Total Stock Market Index Fund ETF Shares
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23 F advice on my long term portfolio: VTI/QQQM/Costco
Is it ok to never have bonds if you start investing early?
Let's go! For most, the best investment route is to just purchase a S&P500 index fund/ETF and hold on (*while adding to it often and extra when markets are in a down-cycle). Vanguard's VOO and VFINX have low expense ratios % and are great choices! VTI / VTSMX are also good (total market) options.
Let's go! For most, the best investment route is to just purchase a S&P500 index fund/ETF and hold on (*while adding to it often and extra when markets are in a down-cycle). Vanguard's VOO and VFINX have low expense ratios % and are great choices! VTI / VTSMX are also good (total market) options.
Let's go! For most, the best investment route is to just purchase a S&P500 index fund/ETF and hold on (*while adding to it often and extra when markets are in a down-cycle). Vanguard's VOO and VFINX have low expense ratios % and are great choices! VTI / VTSMX are also good (total market) options.
I hit $100,000 in Broad Market Index Funds (mostly VOO and VTI) this Jan
I have about 10k on hand. Thinking 50% VTI or VT,30% VXUS, and rest 20% in stocks. Unsure about my ETF choices though
Target Date Funds (TDF) in Taxable Account for Money Needed in 4-5 Years?
What to do with $300,000 just sitting in my checking account?
Thoughts on 31yo investment portfolio - big pay raise next year and questions
100% stocks is not universally good advice. Stock market indexes are not always the right benchmark for your performance.
Is FZIPX same as AVUV? Looking for Low ER small cap ETF
I'm creating a portfolio for my brother, any thoughts?
Lost eBay Lego bid war, now have 1.3k, what stock to invest for coping
Where to invest 10k leveraged from CC cash advance (5% fee)?
As a non-US resident is it worth getting Ireland-domiciled ETFs?
3rd year of maxing out my roth ira. How do my allocations look
Limited International Fund Options in Employer’s 401K Plan?
Choosing spouses growth stocks for taxable account
Three things that will happen in the next 1-2 months. Willing to ban bet any of these if you are.
Okay Portfolio Going Into 2024? [23 YOLD Looking for long term investments]
Thinking about a higher growth portfolio for the new year.
30 year old. What's got the greatest possible potential for returns? TQQQ?
What is the quality of stock markets in other countries compared to US?
Searching for advice on F1 NRA brokerage accounts (Vanguard Vs. Schwab)
Started 529 account for child, invested in "NH Portfolio 2042 (Fidelity Index)"
With IRAs about to reset for 2014 what are you all planning to buy?
Portfollio allocation after move from edward jones
Do you ever buy stocks outside of the indexes and Mag 7 near all time highs?
Investing brokerage accounts for my kids and nieces - best course of action?
Investing advice for moving around 100k into ETFs
I've got $500K burning a hole in my pocket: should I bet it all on tech stocks?
I've got $500K burning a hole in my pocket: should I bet it all on tech stocks?
Mentions
BRKB or VTI for a taxable account. JEPI non-taxable.
Except that’s all just floof useless shit. The real value is robust research tools. High educated financial, tax, and investing advisors (for free), better liquidity and fills (not that it matters for people with 2 shares of VTI). My point is that Robinhood is for amateurs playing baby games. Even if you only have $1000 invested, play at the big boy table from the start and learn to leverage the additional value.
Buying a bunch of VTI tomorrow 
That ROTH IRA is hell lol. Your retirement should be simple: 90% VTI / 10% VXUS for example. Your brokerage account should have the individual stocks (ONLY if you actually believe in those stocks). Otherwise stick to the same VTI/VXUS combo or VTI/SCHG if you want a tilt on US and growth.
VTI is in Morningstar’s best ETF list.
Huh? Most people would recommend SP500 and total market fund for retirement accounts. Truly the most common advice. VTI is a very popular total market fund. Moneystar’s best interest is NOT great advice but to make money off their customers.
Look at the long term charts. Will it matter in 20-30 years that your entrance price to VTI was 250 or 240? No.
What I’m getting at. VTI has more than 1,000 stocks. Three star from Morningstar. Hmmmm….three star. I think Morningstar knows more than you.
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.
Guaranteed to grow with VTI. That is BS. Tell me about this guarantee. You seem to be very educated?!
Also, VTI and VOO are perfect holdings for an IRA.
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)?
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)?
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)?
Simple advice that will make you wealthy. Save more than you spend and invest in low cost ETFs such as SPY or VTI and hold until you need it. It isn’t timing the market it is time in the market. Just read a random walk down wall street
Your ROTHA IRA essentially is a tax haven, except you can only take it out tax-free at 59½. It is an extremely good deal because you don't need to pay taxes when you sell stocks/ make money off of dividends. If you just left 10k in VTI for example and it maintains a hypothetical 10% annual return for 30 years, a $10,000 investment could grow to roughly $672,747.36 (assuming compounded interest). If you left that in a cash account and wanted to sell at the end of 30 years but had to pay 15% in taxes, you would need to pay 100,912.10 of that total. It is essentially a couple less years of retirement. You can only contribute your max each year to your Roth IRA so every time your rob it you essentially lose retirement. And yeah if you set 10k when your 20 into voo or vti and just let it sit until you retire, it could literally be your retirement fund. You are free to do what you want with your money, but most investors play around with stocks with cash/ margin accounts and just put their retirement accounts into ETFs and set it and forget it.
Roth IRA is more important long term. Max that out first in VTI ETF. Also, most money market funds are beating HYSA. VMFXX is 5.28% for eg
> I would have gladly taken 5% per year instead of having to pay dearly for early mistakes and arrogance. VTI and chill, got it.
If so, the answer to OP question is: VTI or VOO for 5 years and chill.
I keep hearing about VTI and yet I have VOO are they the same or should I have VTI?
Buy VTI, add as much as you can each month. Sell everything else and buy more VTI. Want to buy a new car? No. Never. Buy 3-4 years used and put the rest of the money in VTI. Don’t sell for 40 years. Retire with $5-10M.
A person with no experience or how do pick stocks should 100% not do it in their retirement account. It’s guaranteed to grow with VTI. Be risky in your brokerage account but don’t fuck with retirement.
you might need to take on more risk than VTI to meet your goals. Just something one can think about as they chart out savings and goals.
Honestly don’t know any of these besides QQQ. Not sure why you wouldn’t see VTI.
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.
VTI and forget. No reason to actively trade companies in your Roth. Odds are you will not beat the market.
I thought forgetting is a good thing once you are in VTI “and chill”.
NU, NANC, RYCEY, GOOGL and VTI Hows my ira look
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)
70 percent VTI, 30 percent VXUS. Then forget about it.
Hi everyone, I am getting started with my investment journey, am currently located in Canada and after some research have decided to do DCA on the following portfolio. I would like get opinions, insights or feedback of the community to learn from your experiences and wisdom. Goal: long term investing, 10+ years. Stratergy: Bi - weekly DCA approx $1000. Rebalance if any security changes more than 10%. Portfolio: ETF: VTI, US Total Stock Market, WEIGHT: 15% ETF: SCHG, US Large Cap Growth, WEIGHT: 40% ETF: FLIN, Franklin FTSE India ETF, WEIGHT: 20% ETF: VI, FTSE Developed All Cap ex North America Index (CAD-hedged) WEIGHT: 10% ETF: ZAG, BMO Aggregate CanadianBond Index, WEIGHT: 10% ETF: BTCX, CI Galaxy Bitcoin ETF, Weight: 5% I know there is roughly 50% weighed overlap in SCHG and VTI, but I expect large cap companies to continue to accelerate at faster pace so I have included SCHG additionally. Also please feel free to share share any good US based HEDGED ETF options for FTSE Developed All Cap ex North America Index.
Yes, just consolidate into VTI. Keep buying VTI with all available free cash flow up to the max limit each year. Add some VXUS if you want international diversification. Done.
I would certainly take something like $VGT or even $VTI over oil stocks.
Sure and that would impact OP if they were trading on margins/options. But he’s interested in VTI not sure pausing meme stocks is impacting OPs strategy.
VTI is fine as a placeholder until you research what you want to specialize in if you ever do, just leaving it in VTI permanently is ok.
You have your foundation (VTI) You have your dividend covered (SCHD) and You have your growth covered (QQQM)
Invest in VTI 60% SCHD 20% QQQM 20% . That’s exactly what my Roth is too. Leave it alone for 20-25 years . Keep making it out.
Should I sell my Roth IRA stock? So here’s the dilemma, I have about 14k in my Roth IRA (after contributing for 2023 right at the tax deadline) I have yet to invest the my most recent contribution, so that leaves me with $6600 cash (from my 2023 contribution and last years dividend returns) and about 7400 from my original contribution (2022 $6000) which is split up between $6100 in VTI, and 1$300 in VXUS This leads to my question, since I am thinking to wait to invest my cash for VTI and VXUS to drop again (mainly VTI because it is relatively high compared to its history) should I also sell my current VTI and VXUS and re invest all at once? Lastly, I am still yet to contribute for this year (2024) and I am 20 years old, so I am wondering since of course VTI and VXUS are not going to consistently be up every year for the next 40 years of my life, I think it’s a good idea to sell and buy it all back when it drops again, but since I am a noob, I don’t really know if selling my very first investment defeats the purpose of “compound interest” like does keeping an investment for 40 straight years have a benefit vs if I try to sell and time the market, which I know timing the market is looked down upon, but in this situation, since I’m not taking money out for another 40 years, I feel it is quite obvious to say that the stock will obviously drop multiple times, and I think we can all agree it is on the rise since I lost bought it (about 24 VTI at $249) (about 24 VXUS at $59) I’m sure I missed important info so please feel free to ask for more info, and please answer very detailed! Thank you all!
What im trying to figure out is if I should continue contributing to VTI or a mix of the others I mentioned?
Regardless of the institution I use; should I continue dumping into VTI or should I focus on what I had in the other IRA?
Ok which brokerage and what about the rest of my question? Should I focus on VTI or the rest that I have in there?
If you own VTI + VXUS or just VT, you already hold at least 80% of VNQ + VNQI already, at market cap weight. Adding VNQ + VNQI would be going overweight compared to (free float) market cap weight on REITs.
This depends on what your belief of how strong America is. i truely believe the US/dollar is #1 superpower on the world. And believe if worst case scenario drops like 40%~ like 2008 again, it will eventually recover. Too many countries are dependent on us. Also if VTI does 40% drop, there’s no way China/canada/UK whoever is suppose to be the US rivals stock market will also not be trailing a big loss along with it. I don’t believe theres a world where if VTI is down -40%, china will somehow be like +20% in that same timeframe. What will happen realistically is China/whoever you think the US top rival VTI equivalent is will be lucky be down only like -20%. We will make the right moves to eventually recover.
I am still doing fine with VOO, VT, and VTI. All these drops are good buying opertunities
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.
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.
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.
“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.
Then either VTI or VOO will be a good choice
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.
Thanks for the advice! Those letters don’t mean much to me so I’m going to have to do some research. I also live in the UK so we don’t have stuff like 401ks but my workplace pension is very good 13.25% of 40k a year salary contributed every month (7% by me and 6.25% by work) What is VTI and SCHG and what differentiates it from the S&P 500?
Here’s what I do: Taxable: - ETF’s: 85% VTI and 15% SCHG (pump 100% of my paycheck into these two ETF’s every 2 weeks. Make sure you have a good emergency fund and no debt before doing this). - Stocks: AAPL, MSFT, GOOG, NVDA, AMAT, and COST (bought over 10 years ago, only added in 2020 and haven’t touched since). Retirement (401K and HSA): - 90% VTI and 10% VXUS
VGT is almost all tech. QQQ is mostly tech, but has a significant amount of consumer discretionary. Also, VGT has a lower expense ratio. But VTI has more than enough tech on it's own, in my opinion.
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.
It’s one thing to look at the charts and see it has underperformed, it’s another thing to live through it. At a time that my salary was first growing and I had extra money to invest emerging market stocks were popular. Modern portfolio theory suggested increasing quality on the bond side and shortening duration to 5 year treasuries. Then increase the risk of the equity side to tilt towards value, small value, and emerging markets. Since that time in 2007, $10K invested in SPY turned j to $48K vs $11K in emerging markets. I had a 30 year investment horizon, but after 17 years of underperformance I’m just keeping it simple with VTI. I think the predicted returns by asset class has had emerging market returns higher than US equities every year for my entire investing lifetime. https://corporate.vanguard.com/content/corporatesite/us/en/corp/vemo/vemo-return-forecasts.html
Listen, I'm just being devil's advocate to illustrate the answer to his original question. I can just as easily take the other side. VTI is not right for every investor, paying an advisor should never be "paying to beat the market" if any advisor claims that, they are selling you bullshit. Good financial advisors are well worth their fees, to the right client. If you're a VTI guy in a Roth with your 500/month, great. An advisor isn't right for you. And you're going to be their worst client. Both of you should recognize that early, and not waste time.
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!
Charging for the service you provide is not a conflict of interest. The conflict people talk about is that some financial advisors get commissions from selling their clients on shit products, and then steering a bunch of their clients' cash into those shit products. The other source of disdain is the perception that most advisors' portfolios don't consistently outperform the broad market ETFs. If dumping all your money into VTI gives you the same return as your advisor, then why bother paying for the advisor?
My parents and I have both been giving 1.5% annually to our financial advisor. I never really paid attention. They did it, so I did it. My money went up so better than being in the bank, right? A family member asked how the accounts were doing so I finally dug into the numbers... Only to discover they were consistently underperforming VTI. And charging my parents 20k a year from my parents to do that. Recently I transfered my accounts to interactive brokers and invested in VTI. Then I deleted the app. And now I will forget about it for a few decades.
I don't think target date funds are the best. Just do VTI/VOO/XEQT
>if the market goes down or trades sideways (as some people say it might) For what reason do you think anyone knows what the market will do in the future? VTI and chill
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.
No need to wait 30 days. Just buy VTI. It's too late to worry about it being a good idea.
Not the right sub but just put it all on ETFs? Like VOO, VTI, and call it a day.
>If you're really that freaked out about losses, with such a low amount invested. You probably ~~shouldn't even be investing in stocks.~~ Should learn more about stocks\* Look up VTI's 5 year performance. Its a ton of little squiggles going up and down. No stock ever has a straight line of positive yields. All those down and up squiggles amounted to a return of **68%!.** You're constantly living one of those squiggles and the past month is one of the down ones. It'll go up, and then it'll go down, and then it'll go up again. Over and over and over, and generally, as the last 100 years or so have shown us, is the longer you play the high it goes up. Keep at it. You're in month 2 of likely some 300-400.
> now my plan would be to wait for 30 days If you are thinking about a wash sale, you don't need to wait 30 days. Just buy the VOO and or VTI today or Monday if you want.
VTI is up 5.16% for 2024. QQQ is up 3.78% for 2024. SCHD is up 1.88& for 2024. KO is up 5.61% for 2024. Congratulations on buying them this past month when they dipped a bit.
Should I sell my Roth IRA stock? So here’s the dilemma, I have about 14k in my Roth IRA (after contributing for 2023 right at the tax deadline) I have yet to invest the my most recent contribution, so that leaves me with $6600 cash (from my 2023 contribution and last years dividend returns) and about 7400 from my original contribution (2022 $6000) which is split up between $6100 in VTI, and 1$300 in VXUS This leads to my question, since I am thinking to wait to invest my cash for VTI and VXUS to drop again (mainly VTI because it is relatively high compared to its history) should I also sell my current VTI and VXUS and re invest all at once? Lastly, I am still yet to contribute for this year (2024) and I am 20 years old, so I am wondering since of course VTI and VXUS are not going to consistently be up every year for the next 40 years of my life, I think it’s a good idea to sell and buy it all back when it drops again, but since I am a noob, I don’t really know if selling my very first investment defeats the purpose of “compound interest” like does keeping an investment for 40 straight years have a benefit vs if I try to sell and time the market, which I know timing the market is looked down upon, but in this situation, since I’m not taking money out for another 40 years, I feel it is quite obvious to say that the stock will obviously drop multiple times, and I think we can all agree it is on the rise since I lost bought it (about 24 VTI at $249) (about 24 VXUS at $59) I’m sure I missed important info so please feel free to ask for more info, and please answer very detailed! Thank you all!
Should I sell my Roth IRA stock? Should I sell my Roth IRA stock? So here’s the dilemma, I have about 14k in my Roth IRA (after contributing for 2023 right at the tax deadline) I have yet to invest the my most recent contribution, so that leaves me with $6600 cash (from my 2023 contribution and last years dividend returns) and about 7400 from my original contribution (2022 $6000) which is split up between $6100 in VTI, and 1$300 in VXUS This leads to my question, since I am thinking to wait to invest my cash for VTI and VXUS to drop again (mainly VTI because it is relatively high compared to its history) should I also sell my current VTI and VXUS and re invest all at once? Lastly, I am still yet to contribute for this year (2024) and I am 20 years old, so I am wondering since of course VTI and VXUS are not going to consistently be up every year for the next 40 years of my life, I think it’s a good idea to sell and buy it all back when it drops again, but since I am a noob, I don’t really know if selling my very first investment defeats the purpose of “compound interest” like does keeping an investment for 40 straight years have a benefit vs if I try to sell and time the market, which I know timing the market is looked down upon, but in this situation, since I’m not taking money out for another 40 years, I feel it is quite obvious to say that the stock will obviously drop multiple times, and I think we can all agree it is on the rise since I lost bought it (about 24 VTI at $249) (about 24 VXUS at $59) I’m sure I missed important info so please feel free to ask for more info, and please answer very detailed! Thank you all!
If that’s what you want it’s fine, but it’s not a rule you have to follow. In thirty years of investing I’ve never heard of it. Some investors do all US. Market cap weight is about 60-40. Whatever it is, consider what the reasoning was behind it was. If it appeals to you, go for it. If you wanted to use VT, just do half and half VT & VTI. Or since you need two funds anyway, 80:20 VTI:VXUS. That would be the simplest and most direct way to target whatever US:XS mix you wanted.
Depends on your age of course. Currently I'm 90/10 stocks/bonds. VTI/VXUS are split 80/20.
that's why I'm in on VTI and VXUS, and that's it.
VTI and chill. Head over to /r/bogleheads if you’re tired of being a regard
There are essential equivalents with any broad investing. Buy VTI then. It should perform almost identically. If not, you can sell it after 30 and harvest what is most likely a tiny different anyway.
You'll want to start investing in bonds 5-10 years before retiring. I think the best way to do that is to shift your 401k's allocation as you won't have to cause capital gains by converting taxable assets. Plus a pre-tax 401k should be your baseline income to keep your marginal tax bracket as low as possible so it needs to be your steady income. This might mean your 401k will be heavily in bonds and your taxable entirely VTI and simply keep the two balanced through retirement pulling from one or the other based on how the market is doing. Eventually RMBs begin to play a factor but those are simply mandatory withdrawals for tax purposes. You could reinvest that money according to your asset allocation just in a taxable. account. Maybe at that point start buying BND in your brokerage account or whatever it takes to maintain balance.
Should I sell my Roth IRA stock? So here’s the dilemma, I have about 14k in my Roth IRA (after contributing for 2023 right at the tax deadline) I have yet to invest the my most recent contribution, so that leaves me with $6600 cash (from my 2023 contribution and last years dividend returns) and about 7400 from my original contribution (2022 $6000) which is split up between $6100 in VTI, and 1$300 in VXUS This leads to my question, since I am thinking to wait to invest my cash for VTI and VXUS to drop again (mainly VTI because it is relatively high compared to its history) should I also sell my current VTI and VXUS and re invest all at once? Lastly, I am still yet to contribute for this year (2024) and I am 20 years old, so I am wondering since of course VTI and VXUS are not going to consistently be up every year for the next 40 years of my life, I think it’s a good idea to sell and buy it all back when it drops again, but since I am a noob, I don’t really know if selling my very first investment defeats the purpose of “compound interest” like does keeping an investment for 40 straight years have a benefit vs if I try to sell and time the market, which I know timing the market is looked down upon, but in this situation, since I’m not taking money out for another 40 years, I feel it is quite obvious to say that the stock will obviously drop multiple times, and I think we can all agree it is on the rise since I lost bought it (about 24 VTI at $249) (about 24 VXUS at $59) I’m sure I missed important info so please feel free to ask for more info, and please answer very detailed! Thank you all!
Bogglehead that bitch. VTI, VXUS, and BND. Let it grow.
If ure willing to slop around 12g at 19 u could prolly put that money on the VTI and have a lot more money than ur peers by ur mid 20s
Go the save route.. VTI / VOO + VXUS 80/20 split and chill
Well.. dont mix up trading with investing.. How to get rich with *investing*: decent salary invest monthly in low cost index funds e.g. VTI/VOO + VXUS and play the really longterm game aka 20y+ --> focus is on earning more and more to be able to invest more and more as well Ho to get rich with *trading*: performance Slow but steady performance, with risk ratios way above market benchmarks, will get you access to external funds in no time (sale skills needed a bit ad well, ofc), so you dont need a ton of capital on your own.. with that external capital and over performance your pretty quickly able not only to make a decent living, but to get really, really really rich.. Gl!
>If VTI is the preferred option, would it not be more logical to open an account with Vanguard to circumvent the $75 trading fee? There is no trading fee at Fidelity for buying ETFs (except for a small handful from companies that nobody really uses) VTI vs FSKAX for me is what account is it in...Taxable brokerage VTI. Retirement Account FSKAX. Just because there could be forced caplital gains each year.
"They actually tested a 100% domestic stocks option and it was worse." Define "100% domestic stocks". (hint: if it's not VOO or VTI which my OP asserted, then you're off topic).
Turn off dividend reinvestments. Sell the losers. Buy similar funds that follow a different index. Ie if you sell VTI, you can buy ITOT. You should sell all of the losers. Cap losses carry over.
VT is fine. At 40 you may want to consider something like BNDW as well to get some bond exposure too. That really depends on your risk tolerance. But you're 40, not 20, and at least a little bond exposure is probably appropriate. If you itemize your taxes, you could potentially get a foreign tax credit if you chose VTI and VXUS instead of VT. Iirc lump sum works out best about 2/3 of the time. The remaining 1/3 DCA works out best. But with DCA you get the benefit of a little emotional reassurance that you won't put it in and the market immediately takes a dive.
Vanguard did a study a while back. Lump sum wins 2 out of 3 times. Dollar cost averaging ($20k spread over 5 months) wins a third of the time. You risk losing money in a drop by investing all $100,000 at once, but you also risk losing out on potential gains by waiting. Humans have loss aversion where losing $100 feels worse than making $100 feels good. As a last point, consider that you’re choosing to lump sum invest into cash. You see a dollar as the default holding. Many of us view shares of VT as the default holding and choosing to invest in cash as the bad thing. Next, VT is a great choice, but I’d honestly consider going with a 90/10 VT and BNDW split. I’m not sure about 7%. That’s historically what the S&P 500 has returned after inflation, but VT might do better or worse going forward. I usually try not to think about it. I favor VTI, VEA, and VWO in a 60/30/10 ratio instead of VT to get a slightly lower expense ratio, to optimize for taxes, and to get slightly more holdings. But it’s more important to avoid to tinkering/market timing/performance chasing. So if you’ll be tempted to mess with it, VT is probably better. You could also do VTI, VEA, and VWO for the first $100,000 that you lump sum and use VT going forward when you add new money. Hope this helps!
Historically all at once has been best. Emotionally dca. The choice is yours. VT is fine but I’d pick something like VTI or VOO
It's perfectly sensible to add more META, but not because it went down. Suppose it went down because its earnings went down 25% and Zuck said they were turning instagram into just pictures of him? That would not be good for the future prospects. VOO and VTI are definitely turtle types in the longterm race. If you have to pay a ransom next week, they aren't the best, but if you want to make money in the long run, they are very, very likely winners. As of today, I am betting that META will outperform VOO/VTI going forward, but I own other stocks individually and in ETFs because there no reason to put all my eggs in a single basket. I'm not in a race to make more money by next month; I want to make the most money in the long run with an amount of risk appropriate for me personally.
VTI is the entire US market. Large, mid, and small cap. Growth, blend, and value investment styles. You get the entire kit and caboodle. VOO is the S&P 500, which is a large cap index with growth and blend styles. VOO is objectively more concentrated. Fewer holdings and more uniform types of holdings. If small or mid cap have a bumper cycle, VOO wouldn't capture that, but VTI would. Conversely, if small and mid cap have a sucker cycle, VTI would be exposed to that while VOO wouldn't. The reason they perform similarly in recent time is because they're both US market funds and they both contain the so-called magnificent seven that have been the driving force behind these huge gains for the last 4-6 years. Both of them are likely to give you growth over the next four years. You just need to determine your tolerance for the risk of not making gains by the 3-4 year mark. As for your IRA, I'm actually not familiar with FBGRX so I can't weigh in with my opinion.
I would recommend VTI or VOO over individual stocks, yes. You don't have money to waste and you need what assets you have to grow. As for Meta, I would avoid the sunk cost fallacy. Either leave your Meta holdings alone, or sell them and reallocate if you're up.
What would you recommend between VTI or VOO? I also was thinking that since I already own Meta that I should contribute more, and I'm worried it will take longer for a new position in vti or voo to go up?
I was referring to since Meta and VOO are the same cost but what if Meta goes up more % wise? Also, since I already own Meta, should I keep contributing to Meta since I'd be starting a new position with VTI or VOO?
With 3-4 years, you are likely to come out ahead with index investing. Market drawdowns typically recover within that time period and then make up for it. There are select instances of particular sectors that took very long periods of time to recover, which makes the case for diversification. VT and VTI are the safest options for locking in growth, though their performance reflects that safety. If you're on a specific time table then you would be likely to meet your goals with the broad indexes. I would additionally look at a money market fund like VMRXX to park *cash* in if you want to outperform HYSAs.
> But, I also saw a youtuber that said that 25 to 50% of the companies in the s&p 500 outperfrom the market each year. True, but that means 75% to 50% *underperform* the S&P 500. If you pick on your own, the odds are that you'll pick some winners and some losers and overall, you'll do worse than the market. > Meta and Msft also cost around the same amount as a share of VTI or VOO. Share price doesn't matter. Especially since most brokerages now offer fractional trading.
Ah, the age-old question! Individual stocks can be thrilling like a roller coaster ride, but ETFs like VTI/VOO are like a smooth sail on a calm sea.
Individual stocks or VTI/VOO Etf? I have fbgrx in my IRA. Some individual stocks in my taxable account like Meta, tsla, v, xom. I'm debating whether to focus on investing in individual stocks since some have dipped recently, or to start a new position in something like vti or voo in my taxable? Or would it be better to invest it into something like meta, since meta has dipped recently?I see a lot of redditors recommend etfs because most people underperform the market. But, I also say a youtuber that said that 25 to 50% of the companies in the s&p 500 outperfrom the market each year. Meta and Msft also cost around the same amount as a share of VTI or VOO.