Author Topic: Which vanguard for this guy?  (Read 2259 times)

bigalsmith101

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Which vanguard for this guy?
« on: December 31, 2016, 09:56:08 PM »
A little info. I'm 30, and wifey is 28. We've just started the journey to FI, but have always been frugal with our money, we just spent too much time traveling and not earning/saving. This year marked the elimination of our student loans, and a growing investment portfolio. We're at a 55% after tax savings rate right now, saving about $40k/year, with any increase in income headed straight to investments or a down-payment fund. We've just fully funded our Roth IRA's for 2016, and are prepped to fund next years within the first couple weeks of January. We've currently got $15.5k in mine, and $5.5k in hers. That will jump to $21k and $11k come the new year, and represents our total mini start to retirement. We're targeting 2040 as a FI date, but hope to move it forward with increased future earnings.

For the last year, I've had my meager IRA fund invested in Vanguards VTTHX fund. Aka: Target Retirement 2035. Since inception in 2003, it's returned 6.9%. It's an 80/20 split, stocks/bonds. In the last 12 months or so, it's returned about 5%, and has a 10 year performance of 5.09%.

I'd love to hear of some recommendations for a preferred

I'm looking for recommendations on a better fund to transfer our IRA funds into, and a recommendation as to which fund/s to put our taxable investments into.

Neither of us has access to an employer based 401k.

ANY recommendations on best "next steps" are welcomed!

Happy New Year Mustachians!

bigalsmith101

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Re: Which vanguard for this guy?
« Reply #1 on: January 02, 2017, 11:13:38 PM »
No advice? I'd love to hear what you guys think. It would be great to get off on the best foot possible on our journey, and minimize as many potential mistakes as possible :)

MDM

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Re: Which vanguard for this guy?
« Reply #2 on: January 02, 2017, 11:21:58 PM »
Consider Three-fund portfolio - Bogleheads.

There is no way to know beforehand what will be "best."  You are better served to pick an asset allocation and stick with it, rather than try to outguess "this year's hot thing."

Good luck!

boarder42

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Re: Which vanguard for this guy?
« Reply #3 on: January 03, 2017, 04:34:25 AM »
I avoid bonds in earning years. I'm 100% stocks

bigalsmith101

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Re: Which vanguard for this guy?
« Reply #4 on: January 03, 2017, 07:49:31 AM »
 
I avoid bonds in earning years. I'm 100% stocks
This is what I'm leaning towards as well. I just need to decide which fund I prefer. It'll be more important for 2017 when we're investing in more non tax advantaged accounts


Consider Three-fund portfolio - Bogleheads.

There is no way to know beforehand what will be "best."  You are better served to pick an asset allocation and stick with it, rather than try to outguess "this year's hot thing."

Good luck!

Thanks for the info. I'll take a look at this. Here's to 2017!

Cwadda

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Re: Which vanguard for this guy?
« Reply #5 on: January 03, 2017, 08:09:48 AM »
Quote
This is what I'm leaning towards as well. I just need to decide which fund I prefer. It'll be more important for 2017 when we're investing in more non tax advantaged accounts

Vanguard's S&P 500 fund. VTSMX is for amounts under $10,000. You can upgrade to VTSAX once you hit $10,000.
VTSMX has .16% expense ratio and VTSAX is .05%

Easye418

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Re: Which vanguard for this guy?
« Reply #6 on: January 03, 2017, 10:33:14 AM »
VTSAX

Mother Fussbudget

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Re: Which vanguard for this guy?
« Reply #7 on: January 03, 2017, 10:45:45 AM »
Welcome!

VTSAX returned 12.66% for 2016, and is the fund most people who post here and/or read JHCollin's stock series invest in.
Full VTSAX performance details (Morningstar) HERE.

terran

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Re: Which vanguard for this guy?
« Reply #8 on: January 03, 2017, 10:51:18 AM »
Vanguard's S&P 500 fund. VTSMX is for amounts under $10,000. You can upgrade to VTSAX once you hit $10,000.
VTSMX has .16% expense ratio and VTSAX is .05%

Just to be clear VTSAX/VTSMX is Vanguard's Total US Market fund, not ther S&P 500 fund.

Mother Fussbudget

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Re: Which vanguard for this guy?
« Reply #9 on: January 03, 2017, 11:29:19 AM »
Vanguard's S&P 500 fund. VTSMX is for amounts under $10,000. You can upgrade to VTSAX once you hit $10,000.
VTSMX has .16% expense ratio and VTSAX is .05%

Just to be clear VTSAX/VTSMX is Vanguard's Total US Market fund, not ther S&P 500 fund.
VFINX is the Vanguard S&P 500 fund.  Also a good place to invest. (11.82% return for 2016)

bigalsmith101

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Re: Which vanguard for this guy?
« Reply #10 on: January 03, 2017, 05:45:53 PM »
This is all super great info, and it's reassuring to know that I too had decided to swap the funds into VTSAX as the fund of choice. It's nice to have solid company. It's a pity I hadn't got around to this earlier, as I left about a $1k on the table having not adjusted my funds earlier.

Now to navigate my account to exchange all of the VTTHX to VTSAX, and carry on maximizing every cent I can. Got to get those soldiers churning for me!

Good news is that open further review, it looks like we may be able to hit $50k in savings for 2017 if we can achieve a few minor goals. Good shit!