Author Topic: 10 year plan: Vanguard or Betterment?  (Read 2280 times)

CrewDallahan

  • 5 O'Clock Shadow
  • *
  • Posts: 9
10 year plan: Vanguard or Betterment?
« on: March 29, 2015, 06:37:56 PM »
I’m 26, married, about to become a dad, buying a yurt and embarking on a 10 year experiment that I’m going to call “My Entire Financial Future.” I received an inheritance of $52K from my uncle (GOD BLESS HIM!) which I was encouraged to place in an American Funds Beneficiary IRA. I’m convinced that Vanguard would have been a better option, but I knew nothing at the time and decided to trust the Dave Ramsey crew on this one. We’re going to keep it, BUT now that I’m a slightly more learned, albeit wet-behind-the-ears, Mustachian… I want to set up a second investment account based on MMM’s advice: either a “two lump-sum purchase of Vanguard’s Total Stock Index and Total International Funds” or a Betterment account (http://www.mrmoneymustache.com/2014/11/04/why-i-put-my-last-100000-into-betterment/)
This second account is the one I will invest my monthly savings into as well as a $4K jump-start. I’m content to let American Funds manage my inheritance but I want to take a more mature and calculated approach to this second account which will consist of my hard earned savings. I hope to contribute $1000/mth

Q: Do I…

1. Start a Vanguard account and try to mimic my American Funds portfolio, thereby guaranteeing a higher yield (same or similar investments, less fees)
2. Start a Vanguard account and make a “two lump-sum purchase of Vanguard’s Total Stock Index and Total International Funds”
3. Start a Betterment account
4. Something else

THANKS!
-Drew

sirdoug007

  • Pencil Stache
  • ****
  • Posts: 587
  • Age: 38
  • Location: Houston, TX
Re: 10 year plan: Vanguard or Betterment?
« Reply #1 on: March 29, 2015, 06:53:00 PM »
Why are you keeping the American Funds account?  If roll that over to vanguard immediately to stop the crazy fees you are probably paying.


Sent from my iPhone using Tapatalk

rpr

  • Guest
Re: 10 year plan: Vanguard or Betterment?
« Reply #2 on: March 29, 2015, 06:55:31 PM »
I am sorry to hear about your loss. Also, congratulations on the impending parenthood.

Putting it in the beneficiary IRA was the correct decision. I hope that you chose the stretch option. You will be able able to stretch out this IRA over your lifetime. I  assume that you are aware that you are receiving distributions from the beneficiary IRA since you are a non-spousal beneficiary.

Are you contributing to and/or maxing out your retirement accounts such as 401ks and IRAs? That should be the first priority.

If you are already doing the above, then I would do Option 2 listed by you. 


Sent from my iPad using Tapatalk