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Just gave 'em a call to see how they're doing in 2022 - Automated message from Tim Buckley (heehee) about how they are receiving an unprecedented amount of calls, thanking me for my patience (15 seconds) - Listened to phone tree until it told me Option 5 for customer service (15 seconds) - Please Hold, all our agents are currently busy (60 seconds) - "Jim" told me my current account balance and I thanked him for his time Not bad! I'll do Schwab later and compare, but I'm still waiting for them to update my cost basis data I sent 4 weeks ago so I can already tell who's going to win the game of customer service. The best reason to stick with Vanguard IMHO is that their competitors are matching them in offering these products, not joining them in trying to lower fees and expenses for investors. Schwab and Fido would happily be charging us ~0.5% to 1.0% again if they weren't forced to by the Vanguard business model
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Jan 3, 2022 21:06
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Wondering what to do with the extra money that we have. Me and my wife are in our mid 30s. We have a goal of our emergency fund being 50K. Probably larger than what it needs to be, but it makes us feel comfortable. 1st of the year we fund both of our Roth IRAs, our kid's 529 College Savings account to max out the state benefits, and than put any extra money above 50K towards our mortgage. Well we paid off our mortgage last year, and now have no debt! After funding the Roths and 529, we have a lot of extra cash above our emergency fund after a year of not paying a mortgage. What should I do with it? AFAIK I am maxing out my tax free accounts. I don't have a 401(k) through my employer to max out (They do a SEP IRA that I get various amounts per year). My employer also doesn't offer an HSA either. My gut tells me that I should just open a taxable trading account and just put it in something like VTSAX that's safe. Is there something I'm missing on what to do? I really just want to keep things simple and avoid having the cash sit in my savings account earning nothing. And the less I have to do when it comes to tax time the better. I will add that I do have self employed income that I can play around with as well from side gig stuff, and not sure what I can do in terms of putting that money into some sort of tax advantage account Astro7x fucked around with this message at 21:20 on Jan 3, 2022 |
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Jan 3, 2022 21:16
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Open an account with Vanguard or whoever, invest there, pay taxes on the dividends every year.
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Jan 3, 2022 21:24
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GoGoGadgetChris posted:The best reason to stick with Vanguard IMHO is that their competitors are matching them in offering these products, not joining them in trying to lower fees and expenses for investors. Schwab and Fido would happily be charging us ~0.5% to 1.0% again if they weren't forced to by the Vanguard business model I never got this take. Vanguard has higher fees on their basic funds than either Fidelity or Schwab and still has investment minimums which can lock newer investors out of funds. They deserve the credit for starting the trend but they're definitely lagging behind at this point. e: Vanguard technically still even has annual fees for accounts, although they're waived as long as you have a 5 figure account. ranbo das fucked around with this message at 21:42 on Jan 3, 2022 |
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Jan 3, 2022 21:39
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drk posted:As someone who recently went through an estate plan with all sort of ridiculous provisions, I'd suggest: Alright I posted an estate planning thread. I thought maybe when I got to my desk on Monday I'd spruce it up a bit but work's a bit crazy so  Thanks for the feedback, I incorporated a bit. I liked this title best, informative and absurd but real.Estate Planning: Mineral rights to the condo are per stirpes
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Jan 3, 2022 21:55
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Looking for a quick “is this reasonable” check on my Vanguard fund spread. Parents set it up years back as a thank you for my college scholarships saving them money and I’ve just let it ride since. Planning on continuing that strategy but if I do end up with money to further invest I wanna know if there’s some rebalancing to do. VIGAX growth index funds 53% VSEQX strategic equity funds 23% VWIGX intl growth fund investor shares 24% From looking at Boglehead/lazy portfolio philosophies I probably want to look towards adding some bonds in right?
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Jan 3, 2022 21:57
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ranbo das posted:I never got this take. Vanguard has higher fees on their basic funds than either Fidelity or Schwab and still has investment minimums which can lock newer investors out of funds. S - 0.03% V - 0.04% F - 0.015%* Yes, they have undercut Vanguard, by $10 to $15 per $100k balance per year. Vanguard didn't start a trend that others followed; they applied pressure and continue to apply pressure to the rest of the market. You can rest assured that if VTSAX goes to 0.07% next year, SWTSX is going to 0.06% No minimums on ETFs, and anybody feeling the sting of 0.04% over 0.03% isn't dealing with the problem in the first place No account fee. They charge you $20 a year for paper statements if you insist on 'em Lest I come across as a fanatic here, I keep accounts at all three firms to max out my SIPC protection. But because Vanguard is the market force driving the other two down, they get to hold onto the big pile *(I don't count the "ZERO" funds as competitors here as their tracking error, while advantageous this year, is concerning)
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Jan 3, 2022 22:00
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So even though keeping most of your money in Vanguard is costing you, you do it out of... respect? Admiration? These are financial institutions we're talking about here
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Jan 3, 2022 22:46
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feelix posted:So even though keeping most of your money in Vanguard is costing you, you do it out of... respect? Admiration? These are financial institutions we're talking about here my 401k is with vangaurd already and my Roth IRA. Can't move the 401k. Roth IRA I could move but seems like the time out of the market is not worth $3. Same with my brokerage. I haven't had an issue with vanguard customer service or the website/app. To paraphrase Randy Moss "What is $5 to me?"
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Jan 3, 2022 22:50
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I completely understand and agree with the idea that it doesn't matter. I do not agree or understand the idea that "Vanguard is technically slightly worse, but the reason the others are technically slightly better is because of Vanguard, so that means Vanguard is actually better".
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Jan 3, 2022 22:54
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spwrozek posted:my 401k is with vangaurd already and my Roth IRA. Can't move the 401k. Roth IRA I could move but seems like the time out of the market is not worth $3. Same with my brokerage. I haven't had an issue with vanguard customer service or the website/app. Just FYI, account transfers between brokers can typically be done “in kind”, meaning assets remain the same and with the same cost basis, thus you have zero time out of the market. Just look out for possible transfer/closure fees. https://www.nerdwallet.com/article/investing/switch-brokers-move-investments
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Jan 3, 2022 23:00
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feelix posted:So even though keeping most of your money in Vanguard is costing you, you do it out of... respect? Admiration? These are financial institutions we're talking about here I trust Vanguard as custodian of my wealth more than I trust Schwab or Fidelity, and they're not going to buy my trust for a couple bucks a month. Vanguard is client-owned and operated at cost, while Fidelity is a family-owned business and Schwab is a publicly traded company owned by shareholders. Vanguard has incentive to extract as little wealth from me as possible while Fido/Schwab have incentive to suck as much as they can. Vanguard serves me, while Fidelity serves the Johnson Family and Schwab serves its shareholders. Not much more to it than that!
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Jan 3, 2022 23:02
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pmchem posted:Just FYI, account transfers between brokers can typically be done “in kind”, meaning assets remain the same and with the same cost basis, thus you have zero time out of the market. Just look out for possible transfer/closure fees. true but still not worth $3.
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Jan 3, 2022 23:03
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ranbo das posted:I never got this take. Vanguard has higher fees on their basic funds than either Fidelity or Schwab and still has investment minimums which can lock newer investors out of funds. Yeah, Vanguard was great when Bogle was trailblazing. But now? I dunno, I’ve found everything about their brokerage sub par compared to other brokers. I still some have assets with them though, and own Vanguard ETFs elsewhere. They’re fine for most purposes and this is really nitpicking / water cooler talk about people’s personal preferences in the thread. Note that Vanguard’s management is very much interested in profit for senior leaders; they’re not some benevolent sherpas. Probably why vanguard keeps giving pop ups for their fee-based digital advisor service lately. https://www.inquirer.com/columnists/john-bogle-vanguard-scraps-plain-talk-no-profit-at-cost-20190207.html From recent SEC filings: quote:No more claim that Vanguard’s way offers a “no profit" contrast to the “profit component” that other companies pack into their management fees. Indeed, company officials acknowledge it is a private, for-profit company that earns profits and pays income taxes. “They are not a non-profit,” said Daniel Wiener, chairman of Adviser Investments, a New York company that also sells Vanguard funds. “How else could the board of directors determine a “dividend” on the profit-sharing plan that pays bonuses larger than salaries to Vanguard’s senior people annually?
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Jan 3, 2022 23:16
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spwrozek posted:true but still not worth $3. I’m unsure what the $3 is? Yeah if there’s a fee and you don’t want to move, I agree, why bother? Save your time and money. I moved an account last year in kind and there was no fee at all.
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Jan 3, 2022 23:18
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In a general sense, don't Schwab and Fidelity pretty much treat their low-fee funds as loss leaders for their other services, whereas Vanguard while their low-cost fees might be slight more than their competitors keep the fees lower across the board?
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Jan 3, 2022 23:22
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pmchem posted:I’m unsure what the $3 is? Yeah if there’s a fee and you don’t want to move, I agree, why bother? Save your time and money. I moved an account last year in kind and there was no fee at all. it is the difference in yearly ER costs (Vanguard to Fidelity) with my small brokerage. Just not worth it when pretty much all my money is at vanguard already.
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Jan 3, 2022 23:27
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Personally, I think it’s still worth suggesting Vanguard to new investors. It’s VERY easy to go to Fidelity and buy their Target 2040 fund with a 0.75% expense ratio (FFFFX) because you missed the word “index” in the name.
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Jan 3, 2022 23:28
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spwrozek posted:it is the difference in yearly ER costs (Vanguard to Fidelity) with my small brokerage. Just not worth it when pretty much all my money is at vanguard already. Hmm, ER of differing mutual funds, and you’re concerned about future purchases with fees for VG mutual funds, I guess? I moved a brokerage account that held, among other things, VEA (vanguard developed international etf) and it just showed up in the new broker’s account. And I can buy more without any transaction fees. It has the same ER regardless of whether it’s sitting in a Vanguard account or some other broker’s account because the ER is associated with the fund, not the broker. So that’s where my perspective was coming from. Absolutely no cost to move account between brokers in kind for my investments.
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Jan 3, 2022 23:34
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Vice President posted:In a general sense, don't Schwab and Fidelity pretty much treat their low-fee funds as loss leaders for their other services, whereas Vanguard while their low-cost fees might be slight more than their competitors keep the fees lower across the board? Exactly. smackfu posted:It’s VERY easy to go to Fidelity and buy their Target 2040 fund with a 0.75% expense ratio (FFFFX) because you missed the word “index” in the name. This is by design. Schwab has a "Select Lists" page for new investors that it assures the reader is only the most extensively-researched, no load funds that offer low costs and convenience.  An awful lot of people wetting their beak there All this to say that the financial world is predatory and full of traps, so best bet is stick to trusted custodians rather than chase whoever cut the most recent basis point from their expense ratios
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Jan 3, 2022 23:47
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PopZeus posted:Looking for a quick “is this reasonable” check on my Vanguard fund spread. Parents set it up years back as a thank you for my college scholarships saving them money and I’ve just let it ride since. Planning on continuing that strategy but if I do end up with money to further invest I wanna know if there’s some rebalancing to do. Nobody answered you yet so I’ll attempt to give you the boring answer. I’m assuming your funds are in a taxable brokerage account. Read the personal finance flowchart for general tips. That fund mix you have performed very well the past decade because it’s heavy on mega cap tech like AAPL, MSFT, etc. Boring advice would say to use total market indexes instead. Bond amount would depend on age and risk tolerance. You seem to have already found the bogleheads lazy 3-fund portfolio wiki and that is still a reasonable thing to invest in. https://www.bogleheads.org/wiki/Lazy_portfolios If you change to that portfolio you may incur a significant taxable event. Beware. That may affect your decision on how to proceed. If you want ETFs instead of mutual funds and no bonds, something like 65% VTI (or VOO for S&P 500) and 35% VEA (or VXUS if you also want emerging markets) gets you broad, worldwide, market weight index exposure to equities. Or you can buy a target date index mutual fund.
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Jan 3, 2022 23:51
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Vice President posted:In a general sense, don't Schwab and Fidelity pretty much treat their low-fee funds as loss leaders for their other services, whereas Vanguard while their low-cost fees might be slight more than their competitors keep the fees lower across the board? As a publicly traded company, Schwab is more than happy to tell you exactly how they’re making money. See this (slide 19 onward) or recent mandatory SEC filings: https://content.schwab.com/web/retail/public/about-schwab/schw_business_update_fall_10212021.pdf On the other hand, if you can find any recent detailed description of how Vanguard senior leadership profit sharing is determined or how much revenue they make from stuff other than their public fund expense ratios, please let me know!
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Jan 4, 2022 00:11
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PopZeus posted:VIGAX growth index funds 53% That VSEQX mid-small blend is a weird tilt too. If you cant sell all of what you have without paying a hefty tax bill, at least turn off any reinvestment into that stuff. pmchem posted:If you want ETFs instead of mutual funds and no bonds, something like 65% VTI (or VOO for S&P 500) and 35% VEA (or VXUS if you also want emerging markets) gets you broad, worldwide, market weight index exposure to equities. This is good advice.
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Jan 4, 2022 00:23
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pmchem posted:Nobody answered you yet so I’ll attempt to give you the boring answer. I’m assuming your funds are in a taxable brokerage account. Read the personal finance flowchart for general tips. Thanks! I’m trying to increase my financial literacy to like, exist at all, so boring non flashy advice is much appreciated.
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Jan 4, 2022 00:26
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PopZeus posted:Thanks! I’m trying to increase my financial literacy to like, exist at all, so boring non flashy advice is much appreciated. when you see a term that you don't know, you can probably get a quick and readable explanation of it here: https://www.investopedia.com/financial-term-dictionary-4769738 naturally, don't blindly trust anything you read on the internet (including my posts)
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Jan 4, 2022 01:01
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I have to say that the theory of diversification is bit hard to take when you realize the percentage of your portfolio in bonds literally lost money in the last 12 months.
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Jan 4, 2022 01:57
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smackfu posted:I have to say that the theory of diversification is bit hard to take when you realize the percentage of your portfolio in bonds literally lost money in the last 12 months. It's only hard when you're new to this and don't have the perspective of personal attention/history in other types of market cycles.
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Jan 4, 2022 02:07
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Unless you're younger than like 45 in which case bonds just suck.
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Jan 4, 2022 02:08
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smackfu posted:I have to say that the theory of diversification is bit hard to take when you realize the percentage of your portfolio in bonds literally lost money in the last 12 months. And it will lose more when interest rates rise. But maybe not as much as stocks whenever the next crash happens? Bonds are a hard sell at the moment but their time will come again, the question is how to know when. The answer is that you largely can't, so many would argue to stay the course. Others of course have been out of bonds for a while and are probably happy with their decision, so... who's right? 
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Jan 4, 2022 02:11
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acidx posted:Unless you're younger than like 45 in which case bonds just suck. I'm not quite sure why, but I suppose your risk tolerance it just higher than mine.
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Jan 4, 2022 02:15
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The current conventional wisdom that bonds lose money and stocks only go up will eventually, suddenly, and without warning, no longer be true Be sure to buy some bonds before that happens
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Jan 4, 2022 02:17
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I think for me it’s just better when it’s mixed in with a target date fund and you don’t see the bad performing part. Purely psychological of course.
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Jan 4, 2022 02:18
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smackfu posted:I think for me it’s just better when it’s mixed in with a target date fund and you don’t see the bad performing part. Purely psychological of course. So the issue with that, especially in a taxable portfolio or when you're at retirement age, is now you can't choose to sell the appropriate asset class for the time and instead are selling "some of everything". I see owning an appropriate mix as flexibility, options and risk mitigation. Planning only for fair weather until retirement and beyond is a great way to get turbofucked when a bit of planning ahead and intestinal fortitude maybe could have cushioned the blow to your savings.
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Jan 4, 2022 02:29
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runawayturtles posted:And it will lose more when interest rates rise. But maybe not as much as stocks whenever the next crash happens? Not necessarily. Everyone has read the news that the Fed is planning to raise rates this year, so that's "priced in" as it were.
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Jan 4, 2022 03:06
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Need some perspective for some new/good problems that have come up in my wife and I's careers. My wife and I are early 30s. No debt other than refied mortgage. We both recently received promotions/pay raises and work in health care. For the last few years we have been maxing 401ks, backdoor rothing $6k a year, putting money into 529s for our kids, and anything left went into a taxable brokerage. With my wife's promotion, and some changes to her company's benefits, she now has access to multiple, new tools. She now can access a 403b, a 457b, and a super roth setting on her 403b that auto converts for her on every contribution (Newport). So far, all she has had before was the 403b; this has a matching contribution, the 457b does not. I know she can contribute to both the 403b & 457b up to a max of $20,500 each. Is there any reason why she wouldn't do the super roth in the 403b however, over the 457b? Is the only benefit there if I think I'll pay less taxes later? If she does do the super roth, I have two questions. Do all $20,500 contributions literally have to be made to do it? Or can it be done once you've set your contributions to equal $20,500 by end of year? Also - I assume the $6000 backdoor rothed amounts count against the amount here too for the total $40,500?
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Jan 4, 2022 03:40
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pmchem posted:As a publicly traded company, Schwab is more than happy to tell you exactly how they’re making money. See this (slide 19 onward) or recent mandatory SEC filings: Other than their website and app always kind of sucking , vanguard hasn’t given me any concerns or indications on being worse than the others. So like, I guess a good concern, but vanguard is both the OG and client owned. All 3 of vanguard , fidelity and Schwab are fine , but if I’m gonna pick one to fanboy on, vanguard just makes the most sense on principle alone.
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Jan 4, 2022 03:45
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I'm just now in a position where i can think about starting to really sock away some cash. 31 and i can max out my 401k, is the advice in the OP still sound? In that you should open a Roth IRA and max that as well? I currently have no debt and no mortgage and am not planning on buying a house anytime soon, what are the normal suggestions for investments after a maxing out a 401k and IRA?
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Jan 4, 2022 05:50
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Mr.Fuzzywig posted:I'm just now in a position where i can think about starting to really sock away some cash. 31 and i can max out my 401k, is the advice in the OP still sound? In that you should open a Roth IRA and max that as well? If you have other tax advantaged accounts you want to contribute to like a HSA, or 529 plan you could contribute to those. Otherwise, open a taxable investment account.
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Jan 4, 2022 06:25
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Retirement before 529 always and forever
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Jan 4, 2022 06:29
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moana posted:Retirement before 529 always and forever Mr.Fuzzywig posted:after a maxing out a 401k and IRA
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Jan 4, 2022 06:40
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