In the past, our taxable accounts have been with TIAA-Cref. Their fees aren't that high, but they are higher than Vanguard, so we thought we should open Vanguard accounts and see how they do, and then maybe eventually move the TIAA ones over.
I used their assset allocator on their website and this was the recommendations they gave me, for $40k.
36% $14,400.00 VTSMX
24% $9,600.00 VGTSX
28% $11,200.00 VBMFX
12% $4,800.00 VTIBX
At this point, I'm just looking for steady wealth growth, and to get the money out of a cash account where it is doing nothing. No retirement plan or actual "need" for this. I assume it will sit for at least 15 years, if not more.
We have way too much in cash because I'm fairly conservative and nervous about big drops- I'd assume that is why Vanguard gave me such a high bond percentage. I'm okay with that.
It doesn't look like the website gave me admiral shares as a recommendation. But would it be better to substitute VTSAX for VTSMX? Isn't it a 10k minimum? Is there a similar fund to VBMFX for admiral shares? VGTSX? (We could put a bit more than what is up there to reach the minimum.) If you are only putting 10k in, is it worth using admiral shares? Because if it drops, they reclassify you- and this can drop daily. Do they change investor shares to admiral shares if it goes back up?
I've liked investing in Social Choice fund in the past, to keep my money out of guns and tobacco. Does Vanguard have funds people recommend like this?
With such a small amount (assuming we aren't buying admiral shares and don't need the 10k min.) would you recommend buying in slowly over time, $500 a month; or is it better to just buy it all right now so the money doesn't sit doing nothing any longer?
Other opinions?