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doingitwrong posted:- Past performance does not predict future results.
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Apr 18, 2020 15:06
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Happiness Commando posted:These two bullets directly contradict each other Yes, but they're both still true. Welcome to investing.
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Apr 18, 2020 15:22
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For anyone that uses Fidelity. If I want to setup automatic investments, can I do the same as I do with Vanguard, and just put in a larger value than will be there every month, and it will auto-invest what ever is available? Say my deposit is $1000, but might vary by a bit monthly, can I put in $1500 as auto-invest, and have it just whatever is available into the fund?
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Apr 18, 2020 15:45
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doingitwrong posted:I’m actually realizing I don’t know who the counterparty is when I buy a mutual fund, ETFs I understand but not mutual funds). Mutual fund trades aren't done on the open market. When you buy or sell shares of a mutual fund, your counterparty is the fund's owner, just like when you deposit or withdraw money from a savings account your counterparty is the bank.
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Apr 18, 2020 17:34
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Kylaer posted:Yes, but they're both still true. Welcome to investing. No. "The S&P did well in the past so it's overdue for a correction" may be true in the broadest, most basic sense, but it's still a gambler's fallacy that you can't count on. Try that market timing game someone posted pages back, but pretend that every time increment is a year instead of a second.
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Apr 18, 2020 17:54
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Gerdalti posted:For anyone that uses Fidelity. If I want to setup automatic investments, can I do the same as I do with Vanguard, and just put in a larger value than will be there every month, and it will auto-invest what ever is available? No. They only support fixed amount automatic investments. If you auto-buy from your core account then you have to have at least that amount for it to buy, there doesn't appear to be a way to "sweep" your core account into a mutual fund, or have a transfer automatically land in a mutual fund. H110Hawk fucked around with this message at 18:42 on Apr 18, 2020 |
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Apr 18, 2020 18:39
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doingitwrong posted:Are we getting confused because some funds are cap weighted and some are equal weighted? So in a theoretical Dow-tracking index fund this could be an issue, but shouldn’t be the case in a capitalization weighted index like the S&P 500 if we are one the same wavelength here? Is there a rogue DJIA index fund out there? Yond Cassius posted:I don't think I'm following here. Thanks for making this in excel! crazypeltast52 fucked around with this message at 19:19 on Apr 18, 2020 |
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Apr 18, 2020 19:17
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Seriously, I wish these investing platforms / companies would get with the times and allow for more options to control the flow and management of your money. I read a lot that Fidelity and Schwab offer a better UX and more options than Vanguard, and I believe it, but it doesn't seem like enough to get me to switch over, either. Oddly enough, I think it's Robinhood that's the closest to delivering on what I'd like, as they at least have all the infrastructure for doing it manually. $0 minimums, $1 fractional shares, the recent addition of a DRIP option, an interest-earning cash account (with a cool metal debit card), but it all has to be done manually, and they don't offer SpecID. M1 seemed to show a lot of promise, their whole automated "pie" thing made a big splash and was super interesting, but their pie thing is actually rather basic, they just recently reduced the amount of automation that their platform actually offers to save on costs on their end, and they don't have SpecID (which would be perfect for a portfolio that regularly and automatically grows and rebalances itself). This crash must have hit them very hard, too. I'd like a platform where I can set up certain parameters on different funds / accounts, like "if Emergency Savings is <$10,000, deposit dividend into Emergency Savings account; otherwise re-invest dividend" or "re-invest 50% of dividend, and deposit 50% into House Down Payment account" or something customizable like that. I want to build a financial Rube Goldberg machine.
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Apr 18, 2020 19:32
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If I'm reading things right, I can buy a Vanguard target date fund in a Vanguard IRA for free, or I can buy one in a Fidelity IRA for $75. Everything else I have is with Fidelity, and it would be nice to have everything in one place. It's free, albeit annoying, to transfer between the two. Am I missing something, or is the optimal strategy here to make a yearly purchase in a Vanguard account and then transfer it over? Because $75 feels right on the line of whether that's worth the hassle.
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Apr 18, 2020 19:38
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raminasi posted:If I'm reading things right, I can buy a Vanguard target date fund in a Vanguard IRA for free, or I can buy one in a Fidelity IRA for $75. Everything else I have is with Fidelity, and it would be nice to have everything in one place. It's free, albeit annoying, to transfer between the two. Am I missing something, or is the optimal strategy here to make a yearly purchase in a Vanguard account and then transfer it over? Because $75 feels right on the line of whether that's worth the hassle. Buy Fidelity funds if you are with Fidelity.
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Apr 18, 2020 19:45
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Hahah Fidelity still pulls that poo poo?
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Apr 18, 2020 19:46
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H110Hawk posted:Buy Fidelity funds if you are with Fidelity. Their target date funds have way higher expense ratios. Should I not be as married to them as I am? I like the idea because I'm pretty lazy and also if I start making active decisions I'm pretty sure I'm going to make bad ones.
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Apr 18, 2020 19:48
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raminasi posted:Their target date funds have way higher expense ratios. Should I not be as married to them as I am? I like the idea because I'm pretty lazy and also if I start making active decisions I'm pretty sure I'm going to make bad ones. ??? Fidelity's target date funds are actually lower than Vanguard's. Fidelity 2050: 0.12% https://fundresearch.fidelity.com/mutual-funds/summary/315793869 Vanguard 2050: 0.15% https://investor.vanguard.com/mutual-funds/profile/VFIFX But they are both so cheap the difference is basically irrelevant. Don't do a silly thing like paying outside mutual fund fees just to hold Vanguard funds in a Fidelity account. Either use a Vanguard account, or buy Fidelity funds that are effectively the same thing. Guinness fucked around with this message at 19:56 on Apr 18, 2020 |
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Apr 18, 2020 19:54
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crazypeltast52 posted:So in a theoretical Dow-tracking index fund this could be an issue, but shouldn’t be the case in a capitalization weighted index like the S&P 500 if we are one the same wavelength here? Does DIA count? That's an ETF, but "the DJIA as one monolithic transaction" is basically its purpose in life. There are a couple S&P500EWI funds and ETFs out there (and S&P even publishes an official tracking number), but relatively speaking they're a niche product and the expense ratios are noticeably higher. RSP and INDEX are probably your best bets (0.20% and 0.25% expense ratios, respectively). For some reason VADCX feels justified charging 1.27% (!!!) and a 1% deferred load if you keep your holdings less than a year.
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Apr 18, 2020 20:15
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Guinness posted:??? Oh, I didn't realize that each of these comes in both an actively-managed and an index version, and I was looking at the wrong one. Thanks!
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Apr 18, 2020 20:18
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Happiness Commando posted:No. "The S&P did well in the past so it's overdue for a correction" may be true in the broadest, most basic sense, but it's still a gambler's fallacy that you can't count on. Try that market timing game someone posted pages back, but pretend that every time increment is a year instead of a second. That's true. That is the gamblers fallacy. That's not what he argues. He doesn't suggest that there is a correction due. Maybe the S&P 500 will continue its incredible run. Maybe it will continue to outperform the US stock market which will continue to grow to well beyond the ~40-50% of the world's equity markets that it represents today (I am having trouble finding recent reliable data with a quick search). If you are going to choose to invest only in the S&P 500 instead of a more diversified set of stocks like a total US index or a total world index, then you should have a reason for thinking that the S&P 500 will outperform those more diversified portfolios. What is your reason for thinking that? He cautions that looking at the performance from 1987-2019 is not a reliable reason for thinking the trend will continue in the future.
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Apr 18, 2020 20:23
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Pryor on Fire posted:Hahah Fidelity still pulls that poo poo? Vanguard charges $20 to buy a fidelity mutual fund, they're both bad and Fidelity's is worse, but it's not crazy. There's no reason to buy across brokerages like this. There is almost always a better path forwards.
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Apr 18, 2020 20:47
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Guinness posted:??? Are the expense ratios lower for Vanguard funds if they're through a 401(k)? My Vanguard target-date funds are administered through Fidelity and are all like 0.10% cheaper than what you're quoting for Fidelity. I'm in the Vanguard 2040 for 0.02% expense ratio, and the 2050 is 0.04%.
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Apr 18, 2020 21:42
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UK: government is now reducing the payout on premium bonds. The safe mans saving option has now become even duller.
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Apr 18, 2020 21:54
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My girlfriend is finally listening to my advice that she needs to start planning for her retirement. She has 20k sitting around in her checking and isn't contributing to anything. She makes $62k/year, so just under the limits for traditional IRA deductability. Should she be going for a Traditional IRA or Roth? Edit: She works for a non-profit, if it matters. Edit 2: Her work offers a 403(b) through Fidelity, but they don't do any kind of matching because they're terrible. KillHour fucked around with this message at 22:17 on Apr 18, 2020 |
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Apr 18, 2020 22:11
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Sundae posted:Are the expense ratios lower for Vanguard funds if they're through a 401(k)? My Vanguard target-date funds are administered through Fidelity and are all like 0.10% cheaper than what you're quoting for Fidelity. I'm in the Vanguard 2040 for 0.02% expense ratio, and the 2050 is 0.04%.
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Apr 19, 2020 14:38
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KillHour posted:My girlfriend is finally listening to my advice that she needs to start planning for her retirement. She has 20k sitting around in her checking and isn't contributing to anything. She makes $62k/year, so just under the limits for traditional IRA deductability. Should she be going for a Traditional IRA or Roth? The thread usually recommends: -Emergency savings -401k match if any -Roth IRA -401k Looks like she has emergency savings, just a question of how much of that 20k she would want to move over. The follow up question is how stable is her job / Line of work? Usually, 6 months expenses is fine, my personal opinion is now is a time where it isn’t a bad idea to be more cautious / have a bit more than usual set aside. That said, Vanguard target date funds require only $1,000 to start, Admiral funds like total stock is $3,000. So at the least, you can take $x,000 out to start, and that gives her a fund to contribute to, be it further from the savings or from monthly budget.
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Apr 19, 2020 14:49
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March 25th, 2020:smackfu posted:I got really down this weekend and was thinking about selling on Monday (March 23rd, 2020) and getting into something safer than stocks since I figured things were only getting worse. Re-reminder for us 
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Apr 19, 2020 17:11
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If you got the money, and want a 15% return, buy a Hermes Birkin handbag. https://www.google.com/amp/s/time.com/4182246/hermes-birkin-bag-investment-gold/%3Famp%3Dtrue
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Apr 20, 2020 17:26
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If I want to sell funds/ETFs in my brokerage account to do my 2019 and 2020 Roth IRA contributions, should I aim to sell anything that's a long-term or short-term capital loss first and foremost, regardless of how long I've held it?
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Apr 20, 2020 20:06
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Sundae posted:Are the expense ratios lower for Vanguard funds if they're through a 401(k)? My Vanguard target-date funds are administered through Fidelity and are all like 0.10% cheaper than what you're quoting for Fidelity. I'm in the Vanguard 2040 for 0.02% expense ratio, and the 2050 is 0.04%. Your 401k likely has the institutional-class of the funds, which have near-zero ERs but multi-million dollar investment minimums (spread out amongst all the plan participants). I linked the regular investor shares versions of each which are the much more accessible classes more likely to be available in one's IRA.
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Apr 20, 2020 20:27
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crazypeltast52 posted:Unless shares are being issued or bought back, how would the fund’s holdings change on a wighted basis by the stock dropping? You're right, I phrased what I meant in a way that was really misleading. The mutual fund doesn't sell shares; it's just, the value of those shares as a percentage of the whole fund drops, so you're no longer holding "as much" of that company as a percentage of your portfolio. But having said that, companies can do things like buy back shares or issue new shares, which I think would oblige the index to adjust for a consistent market weight? Uhhhh. I have to think that one through.
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Apr 20, 2020 21:04
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Hello thread, just hoping for a sanity check.. I have what feels like too much cash to hold in a bank. I am already maxing my 401k and my emergency fund is full. I make too much to take advantage of an IRA (unless I'm reading it wrong...?). I have no debt. I would like to buy a house at some point in 2022. But other than the downpayment savings, should I be buying ETF shares or something with my extra cash? It's just sitting in a savings account right now. I don't have any expenses planned until the 2022 move. Thanks
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Apr 21, 2020 01:47
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A MIRACLE posted:Hello thread, just hoping for a sanity check..
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Apr 21, 2020 01:49
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A MIRACLE posted:I have what feels like too much cash to hold in a bank. I can PM you my PayPal information and we can take care of that for you.
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Apr 21, 2020 02:21
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The backdoor Roth will only help you with $6k though. Anything for down payment purchases should be kept in a high yield savings account until you need it, the rest can go into a taxable brokerage.
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Apr 21, 2020 02:24
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Hello thread, I have more questions about HSAs: I'm considering enrolling in a HDHP plan through Kaiser. The bank that would manage my HSA if I just managed it thru Kaiser offers regular Admiral share vanguard funds, but nothing special. Is there any particular benefit to keeping my HSA more 'in-house' thru Kaiser, or should I look for other HSA providers? Vanguard recommends one on their site that offers Institutional class shares. What should I look for in a HSA provider?
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Apr 21, 2020 02:51
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Hoodwinker posted:The backdoor Roth will only help you with $6k though. Anything for down payment purchases should be kept in a high yield savings account until you need it, the rest can go into a taxable brokerage. There's a mega backdoor, too.
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Apr 21, 2020 05:16
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Is this the right time to move my savings into oil
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Apr 21, 2020 05:52
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zaurg posted:Is this the right time to move my savings into oil Do it and don't post anything until you're ready to report back on completing it.
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Apr 21, 2020 05:58
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I recommend investing in Energon. That would bring you cubes of cash and transform your wealth to an optimal, prime scenario.
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Apr 21, 2020 06:03
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literally this big posted:Hello thread, I have more questions about HSAs:
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Apr 21, 2020 11:58
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TITANKISSER69 posted:I recommend investing in Energon. That would bring you cubes of cash and transform your wealth to an optimal, prime scenario. 
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Apr 21, 2020 13:24
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MJP posted:If I want to sell funds/ETFs in my brokerage account to do my 2019 and 2020 Roth IRA contributions, should I aim to sell anything that's a long-term or short-term capital loss first and foremost, regardless of how long I've held it? Soz for the spam, I just wanna make sure I get this sorted and get my contributions in. Seems like it's a yes to selling short term losses first, then long term losses thereafter based on sleeping on it and gut feeling alone.
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Apr 21, 2020 16:15
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Dik Hz posted:I haven't shopped around in a couple years, but I never found anything as good as Admiral share Vanguard funds for investment options. What exactly are you intending to do with the money in your HSA? edit: Also here is Vanguard's HSA page, and Health Equity, one of the providers Vanguard links to on that page, offers Institutional shares on a lot of Vanguard funds. edit 2: though it seems like Fidelity might be the place to go for an HSA. literally this big fucked around with this message at 17:37 on Apr 21, 2020 |
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Apr 21, 2020 17:02
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