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Snowy posted:Basic dummy question here, I’ve been meaning to put some money in an s&p index fund so when it dropped yesterday I finally took a look at my vanguard 401k and IRA to see if I could move some money into VOO or VFINX but neither account had them as an option. That doesn't make any sense. You can absolutely buy all Vanguard products in a Vanguard IRA. I would assume you can buy all Vanguard products in a Vanguard 401k as well, but I have never had a 401k through Vanguard so I cannot be certain. What options are you seeing?
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Sep 21, 2021 15:00
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So I'm going to dump pff and put it in Qqqm. Though that would make my portfolio heavy into two funds. Should I maybe add a third fund? Like since I want China exposure maybe yang?
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Sep 21, 2021 15:28
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Kylaer posted:That doesn't make any sense. You can absolutely buy all Vanguard products in a Vanguard IRA. I would assume you can buy all Vanguard products in a Vanguard 401k as well, but I have never had a 401k through Vanguard so I cannot be certain. What options are you seeing? This is all I’m seeing, besides the target date funds   E- I’m probably being stupid here, I just don’t know how 
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Sep 21, 2021 15:33
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gay for gacha posted:So I'm going to dump pff and put it in Qqqm. Though that would make my portfolio heavy into two funds. Should I maybe add a third fund? Like since I want China exposure maybe yang? What are you trying to do? PFF looks to be an ETF with a 0.45% ER that is mainly composed of high dividend paying stocks such as utilities. QQQM is an ETF composed of the top 100 NASDAQ companies. Those are very different things, and akin to asking "should I eat chocolate cake or a kale salad?"
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Sep 21, 2021 15:38
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Residency Evil posted:What are you trying to do? PFF looks to be an ETF with a 0.45% ER that is mainly composed of high dividend paying stocks such as utilities. QQQM is an ETF composed of the top 100 NASDAQ companies. Those are very different things, and akin to asking "should I eat chocolate cake or a kale salad?" I don't think I really understand what I'm doing. I was trying to find a balance for my irá so I can just buy the things every month and forget it. I just learned that because Pff is a preferred stock etf it will probably be outperformed by a lot of normal things so I figured it would be best to correct that now and place the money I've had in there into something else.
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Sep 21, 2021 15:42
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Snowy posted:This is all I’m seeing, besides the target date funds VOO is an ETF. Make sure you aren't choosing the "Buy Vanguard Funds" option, that will only show you Mutual Funds. You should be able to find it under "Trade Vanguard ETFs" 
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Sep 21, 2021 15:50
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gay for gacha posted:I don't think I really understand what I'm doing. I was trying to find a balance for my irá so I can just buy the things every month and forget it. I just learned that because Pff is a preferred stock etf it will probably be outperformed by a lot of normal things so I figured it would be best to correct that now and place the money I've had in there into something else. Is your IRA your only retirement account? Do you have a 401k through your employer? Do you have a pension? How old are you? I would start by reading at least this page: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit
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Sep 21, 2021 15:55
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gay for gacha posted:So I'm going to dump pff and put it in Qqqm. Though that would make my portfolio heavy into two funds. Should I maybe add a third fund? Like since I want China exposure maybe yang? You seem to want to increase your diversification which is the right instinct, but you're missing the fact that the number of funds you own is a bad indicator of your portfolio diversification. You can be horrible undiversified owning multiple funds if they all invest in the same small group of companies. On the other hand, you can be very diversified owning just one fund that invests in everything. This thread recommends doing the latter by buying total market funds that own everything. You'll probably want a total US fund (like VTI) that owns every US publicly traded company and some amount of total international (like VXUS) that owns every publicly traded company outside the US. The latter fund will give you exposure to China.
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Sep 21, 2021 16:16
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Residency Evil posted:Is your IRA your only retirement account? Do you have a 401k through your employer? Do you have a pension? How old are you? Im 30 I have an old 401k from a previous employer and they don't charge me fees to keep it in there so it's just sitting there. An irá 401k at current job but they don't match so I don't contribute. My wife has an irá and a 401k at current job that matches so she contributes. For the last several years we've had to pay off a few hundred k in student loan debt and it's really shaped the way we live and now that we are done we have access to my entire salary and half of my wife's for retirement. And now I don't know what to do everytime the paychecks come in. I'll read that wiki thank you
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Sep 21, 2021 16:18
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Snowy posted:This is all I’m seeing, besides the target date funds VINIX = VOO So just keep buying that. I assume these are your 401k options. VINIX does the following for a super nice .035 ER: "Seeks to track the performance of the Standard & Poor’s 500 Index, which measures the investment return of large-capitalization stocks. Follows a passively managed, full-replication approach. Provides a convenient way to match the performance of a substantial portion of the nation’s largest stocks" E: Also why are you in that Amerifunds growth option? seems unnecessary and costly. E2: That Neuberger fund is pretty suspect and costly as well. If these are your 401k options I would slam it all into VINIX and then build out the rest of your mid and small cap in your IRA. Kylaer posted:I would assume you can buy all Vanguard products in a Vanguard 401k as well, but I have never had a 401k through Vanguard so I cannot be certain. What options are you seeing? Most 401k's have very limited options based on how your company administrates them. So that is a bad assumption. spwrozek fucked around with this message at 16:32 on Sep 21, 2021 |
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Sep 21, 2021 16:26
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gay for gacha posted:Im 30 Gotcha. I would definitely start with reading that wiki. In very general terms, 0. You should focus on paying off any high interest debt. 1. You and your wife should be saving approximately 10-20% of your income each month. 2. You should definitely be maxing out your wife's 401k match. 3. It's very likely that you and your wife should be trying to maximize your 401ks, even though yours does not provide a match. 4. If you want to, creating something akin to a https://www.bogleheads.org/wiki/Three-fund_portfolio is your best bet for retirement. If you don't want this to be a hobby, buying something akin to a https://www.bogleheads.org/wiki/Vanguard_target_retirement_funds is probably your best bet (as long as the fees are low).
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Sep 21, 2021 16:38
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On another topic, our current asset allocation is as follows: 60% US (Essentially Total Stock/S&P500) 20% International 10% REIT (because I feel saucy) 10% Bond Does anyone here tilt their asset allocation more towards small cap/value stocks? Part of the attraction to me is the additional flexibility come tax time. It's hard to TLH when the overall market only goes up. 
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Sep 21, 2021 17:09
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It's come up a bunch of times in this thread, and I've been considering it too. Historical data certainly seems to support the tilt. Just not sure if the extra complexity and balancing is worth it to me... especially since I set up everything with the help of this thread to be as hands-off as possible.
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Sep 21, 2021 17:44
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gay for gacha posted:An irá
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Sep 21, 2021 17:57
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runawayturtles posted:It's come up a bunch of times in this thread, and I've been considering it too. Historical data certainly seems to support the tilt. Just not sure if the extra complexity and balancing is worth it to me... especially since I set up everything with the help of this thread to be as hands-off as possible. Yeah, the only reason I'm considering it is because my investing plan is currently super simple and requires...30-60 minutes of management once/year. I figure an additional 15-20 minutes/year may be worth the headache?
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Sep 21, 2021 18:08
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Residency Evil posted:On another topic, our current asset allocation is as follows: I've never been convinced of the case for tilts. That being said, I'd sooner tilt small or value than REIT (at least in a taxable account). REIT dividend distributions are taxed at your normal marginal tax rate, unlike other equity dividends (which are taxed at long term cap gains rates after being held for a year or longer).
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Sep 21, 2021 18:13
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I hopped on the small cap value train in the summer since the argument for it makes sense. However, it's only 15% of my equities, and I'm not rebalancing it (I'll just continue contributing 15% in the future). I figure if the premium actually reappears, it'll become a larger part of my portfolio. Otherwise, I'm not throwing good money after bad.
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Sep 21, 2021 18:14
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drk posted:I've never been convinced of the case for tilts. That being said, I'd sooner tilt small or value than REIT (at least in a taxable account). REIT dividend distributions are taxed at your normal marginal tax rate, unlike other equity dividends (which are taxed at long term cap gains rates after being held for a year or longer). Yup, all of my REITs are in tax advantaged accounts. My taxable account has US/International equities, and the only reason I'm thinking of making things more complicated is that my taxable account only has 3 individual holdings. drainpipe posted:I hopped on the small cap value train in the summer since the argument for it makes sense. However, it's only 15% of my equities, and I'm not rebalancing it (I'll just continue contributing 15% in the future). I figure if the premium actually reappears, it'll become a larger part of my portfolio. Otherwise, I'm not throwing good money after bad. What makes up the other 85%?
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Sep 21, 2021 18:23
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I have a 66-34 US-International split. In each of those, 85% is market cap weighted and 15% is small cap value.
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Sep 21, 2021 18:27
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Motronic posted:You're in the wrong place my friend. Please redirect yourself to the stock picking thread. It's more aligned with what you're talking about than this one.
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Sep 21, 2021 18:42
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Ugh, that's rude.
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Sep 21, 2021 18:56
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The "G" in "Doctor" stands for "Good investor"
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Sep 21, 2021 19:06
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Residency Evil posted:Ugh, that's rude. yeah… people may disagree about tilting to small cap value (I do not tilt to it), but it is certainly a popular approach and topic of discussion in very boring investment communities. for example: a 5,000 post thread on bogleheads: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=282533 or the canadian equivalent, a discussion of ben felix’s factor tilt portfolio: https://www.optimizedportfolio.com/ben-felix-model-portfolio/ please note, if you don’t understand what’s being discussed at those links, it’s probably unwise to blindly jump in
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Sep 21, 2021 19:07
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GoGoGadgetChris posted:The "G" in "Doctor" stands for "Good investor" Unfortunately, some of us have to work for a living. Embarrassing, I know. Also, I'm not sure discussion regarding modestly tilting a portfolio towards a particular low-cost index fund is "stock picking." Some people don't have VTSAX available in their 401ks and might be forced to recreate it manually through a combination of large/medium/small cap funds.
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Sep 21, 2021 19:21
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^ that is what I have to do in my 401k.Residency Evil posted:Ugh, that's rude. I guess it was directed at you but I am not really sure why. A slight tilt with a buy and hold strategy is a fine conversation for this thread.
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Sep 21, 2021 19:39
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I tried to buy the dip and of course it's back in the green. Sorry my fault.
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Sep 21, 2021 20:39
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Not sure if this is the right thread, but it's not really a short-term investing question so v0v My wife is about to start back at work after losing her job at the beginning of the Apocalypse, and we're going to be saving her entire salary for a down payment on a house. Our time horizon is about two and a half to three years, and I'm looking for a safe place to stash the money for that time. My main concerns are: 1) Inflation 2) Tax implications 3) Avoiding losses I know enough about long-term investing to have put all of my IRAs and 401ks into Vanguard index funds, but I don't really know what would be a good investment for this particular use case. Any suggestions?
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Sep 21, 2021 23:11
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fatman1683 posted:Not sure if this is the right thread, but it's not really a short-term investing question so v0v Savings account. (Probably at ally) You could do HMBradley or go down the I bond route. Still probably a savings account though.
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Sep 21, 2021 23:39
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You can put $10,000 each into I-Bonds at Treasury Direct per year. It's currently earning 3.6% but you do have to keep it locked up for at least a year. After that you can take it out any time.
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Sep 21, 2021 23:44
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fatman1683 posted:Not sure if this is the right thread, but it's not really a short-term investing question so v0v spwrozek posted:Savings account. (Probably at ally) Yeah, as much as it pains me to say it, savings account at Ally is where our downpayment money is sitting right now. I-bonds are fine but not very useful as you're limited to 10k/year.
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Sep 21, 2021 23:44
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moana posted:Is this like a european IRA lol Post brexit its had pretty explosive performance
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Sep 21, 2021 23:55
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Residency Evil posted:Yeah, as much as it pains me to say it, savings account at Ally is where our downpayment money is sitting right now. I-bonds are fine but not very useful as you're limited to 10k/year. $20k/year if you're married, and we're only a few months from 2022, so $40k total in a short period of time. At the current rate of 3.5%, that's $300 more a year for each $10k invested compared to a 0.5% savings account. That's not insignificant with a potential $40k investment. Interest adjusts every 6 months, but signs are pointing to it going up for the next 6 month period, not down.
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Sep 22, 2021 00:12
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Three years in a low interest rate environment is a non-issue. Park that money in Discover or Ally or whatever online savings is giving ~0.4% and don't worry about it. That's an Extreme Short Term goal so inflation and returns are irrelevant. (Who the hell knows what housing prices are going to do, of course)
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Sep 22, 2021 00:16
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I had some HMBradley invites, and they have all been claimed.
SamDabbers fucked around with this message at 14:58 on Oct 18, 2021 |
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Sep 22, 2021 00:37
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Sure, savings is fine. But I dont know that 2.5-3 years is "extreme short term". We're talking about a difference of at least $1000 in interest based on current rates. The only risk would be that inflation goes to 0 (or negative) at the same time that savings rates go through the roof. Even then, you can withdraw I bonds at 12 months with a small penalty.
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Sep 22, 2021 00:41
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I think we're all saying the same thing. Max out the ibonds, sure, but in the grand scheme of things, the amount of money you can put in i-bonds and the return is going to be insignificant when compared to $Downpayment, especially in this environment.
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Sep 22, 2021 00:48
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Residency Evil posted:I think we're all saying the same thing. Max out the ibonds, sure, but in the grand scheme of things, the amount of money you can put in i-bonds and the return is going to be insignificant when compared to $Downpayment, especially in this environment. Yeah, I'm not really expecting a huge return, I'd just like a solid hedge against inflation. It sounds like I-bonds to start with, after which our credit union offers a money market account with 0.8% up to 10k, 0.5% 10k-25k, and 0.35% 25k+. Any other opinions?
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Sep 22, 2021 02:28
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fatman1683 posted:Yeah, I'm not really expecting a huge return, I'd just like a solid hedge against inflation. It sounds like I-bonds to start with, after which our credit union offers a money market account with 0.8% up to 10k, 0.5% 10k-25k, and 0.35% 25k+. Any other opinions? What is the actual annual salary (take home) that you're going to be saving for 36 months? The credit union is not a good offer. $20k, $20k, and $20k into I-Bonds in Year 1, 2 and 3, netting ~3.5% The rest into a 0.4% Discover/Ally online savings The only real inflation you're going to be affected by is the growth in home values, which may or may not continue, but there is no good financial instrument available to you that will let you meet Goal #3 of "not losing money"
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Sep 22, 2021 02:35
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Residency Evil posted:On another topic, our current asset allocation is as follows: No TLH opportunities is a good thing. I don't have the stomach to ride out a 10+ year stretch of Small and/or Value underperforming so don't do it myself. I'm on the side of "once it was known the alpha was effectively arbitrages away" and "any excess returns that might be gotten in the future come with increased risk" and "I don't want to have to dive in and try and justify why I think manager A's definition of small and/or value is better than manager B's definition." Does this implicitly mean that I think my risk tolerance is perfectly matched to the broad US equity market's volatility? I guess that is what I'm saying, which seems like a bold statement, but I rode out the 2020 pandemic dip and didn't lose sleep over it. I guess right now I'm actually > 100% equities until my mortgage is gone.
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Sep 22, 2021 02:36
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Why not put the rest in HMBradley for almost the same return as an i-bond, rather than a functionally identical account at Ally that gives a sixth of the return
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Sep 22, 2021 04:20
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