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gonna need ERs
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Jun 16, 2021 21:05
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KYOON GRIFFEY JR posted:gonna need ERs Woops, updated my post with ERs. I tried exporting a table but it looks wonky as hell if I attempt to post all the data on returns as well
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Jun 16, 2021 21:23
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Assuming linear ER's compared to their base rates: Vanguard 500 Index Admiral Fund is the winner there assuming you're ok with a broad market index fund. If you want international there seemed to be one there as well. If you want set it and forget it, the target dates are probably fine if not min/max optimal.
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Jun 16, 2021 21:27
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The international you want is Vanguard's Developed Market one. 0.29% is not too bad for a target date fund so if you'd like to prioritize simplicity above all else, you can do one of those. But I'd say S&P 500 + Developed market is probably your best bet.
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Jun 16, 2021 21:41
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Vanguard 500 Index Admiral Fund (0.04) 100% personally
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Jun 16, 2021 21:42
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drainpipe posted:The international you want is Vanguard's Developed Market one. Schwab has super cheap international in SWISX for 11 bps that gets you most of the big int'l blue chips from Europe and Japan/Australasia across most sectors. If you want international you should open an IRA or a taxable account with them and buy that poo poo. I'm with Mu on this - use your other accounts to balance and enjoy that cheap S&P 500 fund.
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Jun 16, 2021 23:33
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Fake James posted:Vanguard Intermediate-Term Bond Index Admiral Fund (0.07) I've deleted everything you should ignore. The above funds all have very low ERs and you can use a combo of them to build basically any asset allocation you like. Exactly what asset allocation you'd like is a subject of considerable discussion in this thread over the years. Broadly, we all agree that when you are younger (like, under 30 for sure, maybe under 40) it's fine to be 100% or 90% in stocks. Less solidly, many of us feel you should also have some money in bonds. We all agree that some international exposure is good. So, if you wanted to do a classic three-fund portfolio of domestic stock, international stock, and bonds, you can approximate that with these funds: Vanguard 500 Index Admiral Fund (0.04) - your US domestic stock fund, this is the 500 biggest publicly-traded companies in the US. Fidelity Small Cap Index Fund (0.03) - More or less the rest of the US domestic stock market. You can include some of this if you want, but many of us wouldn't bother. Vanguard Developed Markets Index Admiral Fund (0.07) - This is your international stock market fund. It ignores emerging markets so it's not perfect but good enough. Vanguard Intermediate-Term Bond Index Admiral Fund (0.07) - This is your cheap bond fund. Again it's not a total bond market fund, but it'll be good enough if you want some bonds exposure. The exact proportions to buy of these is up to you. You could just mimic the proportions in the target date fund of your choice, or ask further questions here (give your age & the age you intend to retire, at least) if you'd like further advice about how to proportion these.
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Jun 16, 2021 23:53
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Fake James posted:Two questions: It depends on how much being able to buy fractional shares matters to you. Schwab used to charge charge commission fees for every trade for a non-Schwab etf but that's not an issue anymore. I suspect SCHB might be less liquid due to being much smaller (due to being started later and being the less known of those two options), but from a long term investor standpoint, I don't think that should be a big concern. Eric Cantonese fucked around with this message at 02:04 on Jun 17, 2021 |
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Jun 17, 2021 01:47
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Eric Cantonese posted:It depends on how much fractional shares. Schwab used to charge charge commission fees for every trade for a non-Schwab etf but that's not an issue anymore. I suspect SCHB might be less liquid due to being much smaller (due to being started later and being the less known of those two options), but from a long term investor standpoint, I don't think that should be a big concern. It's hard for most funds to match the liquidity of VTI, but SCHB did over $40m in volume today and typically has a solid bid and ask size. SCHX is slightly more popular as a Schwab wide US market index (among the Schwab offerings) and did over $70m in volume today. Of course, that doesn't compare to SPY, IVV, VOO, or VTI. But if you're doing enough volume that SCHB's liquidity is a concern, you're probably already talking to your broker or advisor about this instead of SA.
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Jun 17, 2021 01:56
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Got my 2020 401k match true up. 
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Jun 17, 2021 02:00
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Thanks for the advice everyone. I am going to look into eventually shifting my 401K into the Vanguard 500 & Developed Admiral Funds as well as the Fidelity Small Cap. I'm hesitant to make changes at the moment though because I am looking into moving to a different state later this year, and if I am not allowed to work remote then well I am going to be rolling it into my Roth IRA. If I get the go ahead to keep my job then I will push it into the Vanguard I am not so worried about liquidity of SCHB at the moment, I am only going to be starting with 20 odd shares and adding to it as I go. Keeping a large chunk of my savings at the moment in a HYSE because of the above concerns with moving, once I have stability set in place then I will add more. Originally was gearing up my savings for eventually buying a house but lmao at that nowadays
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Jun 17, 2021 02:40
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I think that the biggest hurdle is just giving a poo poo, and the fact that you’re asking for advice is such a big, and good thing that you’re gonna be just fine baby The bigger thing too is that with the exception of the ER problem you (and the thread) addressed, the performance of diverse portfolios of low-ER index funds will be close enough that the “wrong” choices won’t be tooooo far off from one another unless the funds specialize in SPACs or something. To that end, there’s a lot of great and excellent discussion about which ones are the “best” earlier in the thread, but once you prune a lot of the problem funds, there’s really not a lot of “wrong” options.
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Jun 17, 2021 03:24
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Fake James posted:Thanks for the advice everyone. I am going to look into eventually shifting my 401K into the Vanguard 500 & Developed Admiral Funds as well as the Fidelity Small Cap. I'm hesitant to make changes at the moment though because I am looking into moving to a different state later this year, and if I am not allowed to work remote then well I am going to be rolling it into my Roth IRA. If I get the go ahead to keep my job then I will push it into the Vanguard Why does this matter? If it goes into the Roth IRA you'll likely still want it in the same or similar funds? I'm not quite following what benefits there are to waiting.
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Jun 17, 2021 03:24
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CubicalSucrose posted:Why does this matter? If it goes into the Roth IRA you'll likely still want it in the same or similar funds? I'm not quite following what benefits there are to waiting. To be honest, I don't know what my thought process is. This is the first time I've had a 401K at a job, I just assumed if I roll it over into a Roth IRA it would be like converting it into cash that would be deposited into the Roth and then I allocate it from there. My Roth IRA is all in the Schwab 2050 Target Date Fund SWYMX so I figured I would just roll it into more of that. I guess on a side note - is it fine to reallocate what I have into SWYMX to other mutual funds? Like you only get penalized if you withdraw cash from the account, but you are free to switch between different mutual funds / ETFs / stocks as long as the money remains in the account itself?
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Jun 17, 2021 04:32
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Fake James posted:To be honest, I don't know what my thought process is. This is the first time I've had a 401K at a job, I just assumed if I roll it over into a Roth IRA it would be like converting it into cash that would be deposited into the Roth and then I allocate it from there. So you still work there? It's very unlikely there is a method for you to roll tax advantaged cash out of your company plan while you are an employee. I mean, it's possible......maybe...in some plans. What's that one? Ultra mega back door roth thing? It's just not clear what your real goas are and if those goals are are meaningful for the effort. It seem like you're trying to super optomize when what you should be doing is coasting on low fee funds that you obviously have access to in this plan. Motronic fucked around with this message at 05:13 on Jun 17, 2021 |
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Jun 17, 2021 05:11
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Motronic posted:So you still work there? It's very unlikely there is a method for you to roll tax advantaged cash out of your company plan while you are an employee. I mean, it's possible......maybe...in some plans. What's that one? Ultra mega back door roth thing? Oh no I meant rolling it over only if I end up having to leave the company. If I am able to keep the job after moving then I am going to leave it in the 401K. My real goal is to make sure the 401K fund I am in is not a rip off, which the current 2050 target date one is not horrible but also is not as optimized as say the Vanguard and Fidelity funds. I really don't want to have to spend a ton of time on picking funds, but it looks like Principal lets me pick an allocation % per fund and just set+forget from there, so doing a three-fund option won't be too hard. I'm just going to set it up now and then worry about the possible job switch later.
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Jun 17, 2021 05:20
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Fake James posted:Oh no I meant rolling it over only if I end up having to leave the company. If I am able to keep the job after moving then I am going to leave it in the 401K. Okay, sorry...I was getting all of this disjointed through the day. I really think you're trying too hard to optimize. Scrolling back......yeah.....Leperfish gave you every option (no surprise) that is a good one. There are no bad ones there. It just seems like you've just found out about this kind of thing and are trying to jump in the deep end of min/maxing. Don't. It's totally okay to just make well reasoned average choices. This means you are doing better than the overwhelming amount of the population. You were talking about 2050 funds....so you're in your mid 30s? If you really want to set and forget go with a 2050 fund but "Principal lets me pick an allocation % per fund and just set+forget from there".....ummm....this is a target date fund. Maybe done administratively differnetly....I don't know because I don't use Principal. But I suggest you back off for a few days, process this information, maybe read a bit from the OP and the reddit flow chart and then maybe come back to this with a clear head in a few weeks. NONE of this need to be done right now. Get your bearings, do your research, digest, and then make some decisions.
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Jun 17, 2021 05:40
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Motronic posted:You were talking about 2050 funds....so you're in your mid 30s? If you really want to set and forget go with a 2050 fund but "Principal lets me pick an allocation % per fund and just set+forget from there".....ummm....this is a target date fund. Maybe done administratively differnetly....I don't know because I don't use Principal. It's just a 401k, he's just saying he can pick how much of each deposit goes to each fund. Fake James posted:My real goal is to make sure the 401K fund I am in is not a rip off, which the current 2050 target date one is not horrible but also is not as optimized as say the Vanguard and Fidelity funds. I really don't want to have to spend a ton of time on picking funds, but it looks like Principal lets me pick an allocation % per fund and just set+forget from there, so doing a three-fund option won't be too hard. I'm just going to set it up now and then worry about the possible job switch later. Yep, sounds good. Make sure you change where your current money in the account is invested (to match the fund %s you decide on), as well as the %s for future deposits. Sometimes you can do them both at once and sometimes they're set in two different places. As you said, no reason to wait, you can just redo it or get updated thread advice later if you end up rolling it over. runawayturtles fucked around with this message at 07:23 on Jun 17, 2021 |
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Jun 17, 2021 07:20
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runawayturtles posted:It's just a 401k, he's just saying he can pick how much of each deposit goes to each fund. Agreed. I think most of us understood that pretty well. The underlying holdings and more information about the 2050 0.29% target fund Fake James is currently can be found here as well: https://www.principal.com/InvestmentProfiles/holdings.faces?inv=9267&rtclss=97&retail=false Fake James proposal to switch it up to 3 low fee index funds sounds like a solid plan. Motronic has had a rough few weeks and I'm concerned. He should probably back off for a few days, process this information, and then maybe come back to this with a clear head in a few weeks. (USER WAS PUT ON PROBATION FOR THIS POST) (USER WAS PUT ON PROBATION FOR THIS POST)
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Jun 17, 2021 07:31
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Sorry for another question, this time on the HSA. My old HSA let me invest in VTSAX so it was a no-brainer. Now that I'm off that HSA I'm going to start being charged maintenance fees and the like so I want to move it to my new HSA which also has Vanguard funds, but not VTSAX. So to recreate it would I use a combination of the following? VIIIX 0.02% (Large Blend) VEMPX 0.04% (Mid-Cap Growth) VSMAX 0.05% (Small Blend) At something like 80/15/5 to mimic VTSAX and call it a day on there? (USER WAS ACCIDENTALLY PUT ON PROBATION FOR THIS POST)
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Jun 17, 2021 13:14
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VEMPX is a completion to VIIIX so you only need those two if your goal is approximating VTSAX. 80/20 is perfectly fine although 82/18 is slightly more accurate if you care (using portfolio visualizer or referring to https://www.bogleheads.org/wiki/Approximating_total_stock_market).
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Jun 17, 2021 13:20
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drainpipe posted:VEMPX is a completion to VIIIX so you only need those two if your goal is approximating VTSAX. 80/20 is perfectly fine although 82/18 is slightly more accurate if you care (using portfolio visualizer or referring to https://www.bogleheads.org/wiki/Approximating_total_stock_market). I've never seen portfolio visualizer and that's an amazing site. And that's good to know I can use just the two and leave it, thanks!
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Jun 17, 2021 13:26
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Fake James posted:To be honest, I don't know what my thought process is. This is the first time I've had a 401K at a job, I just assumed if I roll it over into a Roth IRA I also missed this bit. Don't read this until you've done those other things that other folks have said because this is really in-the-weeds here. Are you making traditional 401k contributions or Roth 401k contributions? It sounds like traditional, in which case you wouldn't easily directly be able to roll into a Roth IRA (even with separating) without taking a tax hit (which you might be okay with). You'd (potentially) roll it into a Traditional IRA, but you might not want to do that both because of the pro data rule if you ever need to Backdoor Roth, and also because your fund options are great and you can just let it be even after leaving (assuming they don't charge ex-employees a bunch of extra fees).
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Jun 17, 2021 14:01
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zaurg posted:Agreed. I think most of us understood that pretty well. The underlying holdings and more information about the 2050 0.29% target fund Fake James is currently can be found here as well:  
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Jun 17, 2021 14:06
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CubicalSucrose posted:I also missed this bit. Don't read this until you've done those other things that other folks have said because this is really in-the-weeds here. They are traditional 401k contributions, I had not even known Roth was a choice at the time I started it (we had a really, really lovely HR manager who spent more time day drunk than actually keeping up with important HR stuff). The first year or so I was out of the loop of how it all worked. I also was under the impression I could only keep the 401k account if I am actively employed at the company I have it through, but if it ever comes up where I am let go / have to leave I will ask our new and awesome HR manager if there is a no-fee way to keep it running. If not I am ok with the tax hit and already accounted for it happening. Also just realized that because I can play with the contribution level on the fly, I should have been pushing it higher during the height of the pandemic when I was spending next to nothing. Oops. Thank you everyone again for the assistance with all this, I've been stressing about how I should have been doing this much sooner (34 right now) but also need to remind myself that I wasn't in a position to at the time, and to just look forward. Could be in worse shape - some of my friends don't even having a savings account yet 
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Jun 17, 2021 14:42
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What do you mean, tax hit? If you leave the company you can a) keep your 401(k) at the old company but usually pay a maintenance fee or b) get a check and roll it in to a traditional IRA. B is the most common thing people do. There's no tax for either scenario.
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Jun 17, 2021 14:59
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zaurg posted:Agreed. I think most of us understood that pretty well.  Most of us also understand what forum-bans are. Take a few weeks off and then please don't come back. 6hr placeholder until your 30-d clears the queue.
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Jun 17, 2021 19:50
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Fhqwhgads posted:Sorry for another question, this time on the HSA. My old HSA let me invest in VTSAX so it was a no-brainer. Now that I'm off that HSA I'm going to start being charged maintenance fees and the like so I want to move it to my new HSA which also has Vanguard funds, but not VTSAX. So to recreate it would I use a combination of the following? To be clear, there is nothing wrong with this post at all. I hosed up and probed him while trying to probe Zaurg. Fixing the mistake right now. Sorry! 
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Jun 17, 2021 19:52
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Sundae posted:To be clear, there is nothing wrong with this post at all. I hosed up and probed him while trying to probe Zaurg. Fixing the mistake right now. Sorry! I was honestly super confused about this. I was about to be like "Sundae says we should go all in on 4% ER and 10% management fees"
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Jun 17, 2021 20:05
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spwrozek posted:I was honestly super confused about this. I was about to be like "Sundae says we should go all in on 4% ER and 10% management fees" sundae goes full dave ramsey and starts peddling his own investment vehicles
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Jun 17, 2021 20:50
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KYOON GRIFFEY JR posted:sundae goes full dave ramsey and starts peddling his own investment vehicles Sign me up for an 80/20 chocolate/vanilla whole life policy please.
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Jun 17, 2021 20:57
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Someday we’ll be able to invest in a crypto fund/SPAC named $FYAD with an ER of 4.20%
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Jun 17, 2021 20:58
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KYOON GRIFFEY JR posted:What do you mean, tax hit? If you leave the company you can a) keep your 401(k) at the old company but usually pay a maintenance fee or b) get a check and roll it in to a traditional IRA. B is the most common thing people do. There's no tax for either scenario. At the time of writing I had thought I would roll it over into my existing Roth IRA account, thinking taking the tax penalty on my currently sub $20k 401k would be ok of a hit to take, but yeah I could just throw it in a traditional IRA instead.
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Jun 18, 2021 00:15
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i think i asked this already but didn't get an answer but i have a rollover ira account that i want to transfer over to my current IRAs... 1. can i put this into my roth ira? i'm guessing no since the rollover is tax-deferred... 2. does putting this money count towards the $6000 i can put into my trad ira? i'm reading that it doesn't but wanted to make sure there's no weird, "except if" clauses.
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Jun 18, 2021 17:31
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Strong Sauce posted:i think i asked this already but didn't get an answer but i have a rollover ira account that i want to transfer over to my current IRAs... 1. Yes, you will need to do a Roth conversion (any brokerage should have this option available to you). As a heads up, you will need to pay income tax on all that you convert since you are turning something tax-deferred to tax-free. 2. No, conversion is not contribution. You should be able to still make your 6000 contribution.
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Jun 18, 2021 17:40
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drainpipe posted:1. Yes, you will need to do a Roth conversion (any brokerage should have this option available to you). As a heads up, you will need to pay income tax on all that you convert since you are turning something tax-deferred to tax-free. thanks! since there's a cost regardless i think i'll just put it into my trad ira since i'll prob be at a lower tax bracket when i retire. Strong Sauce fucked around with this message at 17:53 on Jun 18, 2021 |
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Jun 18, 2021 17:50
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I like how Vanguard's new web design for the RETIREMENT accounts is basically...... 1. Remove most information 2. MAKE EVERYTHING BIGGER! 
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Jun 18, 2021 18:35
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Keyser_Soze posted:I like how Vanguard's new web design for the RETIREMENT accounts is basically...... Web Design by Jitterbug Cellphone Designs, LLC
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Jun 18, 2021 18:46
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jokes posted:Web Design by Jitterbug Cellphone Designs, LLC Ha, nice one.
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Jun 18, 2021 19:41
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This thread has been great. Thank you to all who have posted such good advice. I am 32, employed full time at a local council, on about 70K AUD a year. I started saving in Sep 2018 into a 2-fund portfolio of 70/30 VTS/VEU (I'll get a total bond fund once I am a bit older). I now have 140K invested, including 30K of clear profit in that time. I am not saving for property or anything else at the moment, I don't have any specific timeframe to retire but its fun watching number go up.
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Jun 19, 2021 00:32
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