Author Topic: About to invest $3k in VFINX  (Read 15218 times)

ichangedmyname

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About to invest $3k in VFINX
« on: September 22, 2013, 04:36:57 PM »
I'm very new to investing and right now my savings are just sitting there not really earning much (0.01%) I was thinking of putting $3k into VFINX. I'm nervous and scared.

Will

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Re: About to invest $3k in VFINX
« Reply #1 on: September 22, 2013, 05:00:48 PM »
Why VFINX?

Tyler

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Re: About to invest $3k in VFINX
« Reply #2 on: September 22, 2013, 05:04:32 PM »
What are you scared of? 




yOyOYoo

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Re: About to invest $3k in VFINX
« Reply #3 on: September 22, 2013, 07:00:53 PM »
What about VTSMX?

arebelspy

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Re: About to invest $3k in VFINX
« Reply #4 on: September 22, 2013, 07:16:54 PM »
You need to delve into why that fund, and why you're scared.  When you can answer both those, you'll either tweak the first, or the second will fall away.

See also:
http://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit
and
http://www.bogleheads.org/wiki/Investment_policy_statement
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imustachemystash

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Re: About to invest $3k in VFINX
« Reply #5 on: September 23, 2013, 07:52:02 PM »
If it's any comfort, we are investing 3,000 in the same fund at the end of this month.  Wish us luck!

ichangedmyname

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Re: About to invest $3k in VFINX
« Reply #6 on: September 23, 2013, 08:14:18 PM »
I've read about picking one with low fees. Also once I reach 10k I can do the one with even lesser fees.
I'm scared because I haven't really invested before and I'm gonna take that leap with half of my current savings.

If it's any comfort, we are investing 3,000 in the same fund at the end of this month.  Wish us luck!

Wish us luck!!! :)

arebelspy

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Re: About to invest $3k in VFINX
« Reply #7 on: September 23, 2013, 08:21:30 PM »
I'm scared because I haven't really invested before and I'm gonna take that leap with half of my current savings.

I still don't understand the scared.

What's your timeframe for this investment?  What do you think are the possibilities and likely outcomes over that timeframe?
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
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imustachemystash

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Re: About to invest $3k in VFINX
« Reply #8 on: September 29, 2013, 04:15:58 PM »
I think Bacon is scared because it's his/her first time and sometimes doing something new can be a little intimidating. 

DocCyane

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Re: About to invest $3k in VFINX
« Reply #9 on: September 29, 2013, 08:13:06 PM »
Go for it.

It is a good investment company, a good fund and a good place to start.

Put it in and completely ignore it. Seriously. For, like... years.

arebelspy

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Re: About to invest $3k in VFINX
« Reply #10 on: September 30, 2013, 06:54:31 AM »
Go for it.

It is a good investment company, a good fund and a good place to start.

Put it in and completely ignore it. Seriously. For, like... years.

One quick clarification: ignore the value for years.  Not the account.  Keep contributing to the account, as much as you can, as often as you can (after doing whatever else is in your IPA, such as tax-advantaged accounts).  But ignore what it's worth on a day-to-day basis.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

eyePod

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Re: About to invest $3k in VFINX
« Reply #11 on: September 30, 2013, 07:01:11 AM »
I'm scared because I haven't really invested before and I'm gonna take that leap with half of my current savings.

I still don't understand the scared.

What's your timeframe for this investment?  What do you think are the possibilities and likely outcomes over that timeframe?

It's pretty easy to understand being scared.  hotforbacon's just starting to invest.  This is half of their portfolio.  For years, they've only heard "the stock market is risky."  It's a pretty normal feeling. 

Don't worry hotforbacon.  You're doing great.  You're taking your retirement options off of a crappy autopilot and you've started on your way to freedom. Good luck as you start your journey down this path!

ichangedmyname

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Re: About to invest $3k in VFINX
« Reply #12 on: September 30, 2013, 08:43:57 AM »
Yeah I haven't really invested in ANYTHING before and I've saved and closed out my application for Vanguard like six times when it's asking me for my bank info LOL It's kinda hard to just hand over half my savings, you know? I haven't had that much money in my entire lifetime let alone to invest it... shivers.


chaboydatdude

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Re: About to invest $3k in VFINX
« Reply #13 on: September 30, 2013, 12:55:07 PM »
hotforbacon,

I'm in the same boat, getting to the point where I am comfortable with my savings and can look at investment opportunities. I agree it can be intimidating trying to sift through all the information and then giving someone else your hard earned money. I would imagine that the first step is the hardest and it gets easier, especially when you start seeing positive results. Best of luck.

Greenbeard

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Re: About to invest $3k in VFINX
« Reply #14 on: September 30, 2013, 03:05:16 PM »
hotforbacon,

I remember moving my investments in to Vanguard years ago.  Best move I ever made.   It can be daunting, but it's the right move if you're ready to commit some of your funds to a long term investment.

For a first investment I would look at Vanguard's Lifestrategy Funds.  They will give you some diversification with a small required investment.  If you want to be aggressive start with the 80/20 stock/bond ratio.

https://personal.vanguard.com/us/funds/vanguard/LifeStrategyList

Later, if you want to go more aggressive, you can invest some money in a stock-only fund like VFINX.  That will start to sway your ratio toward stocks.

Just my opinion of course.

The Financial Lexicon

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Re: About to invest $3k in VFINX
« Reply #15 on: September 30, 2013, 06:45:47 PM »
Congrats, hotforbacon, for taking the plunge into the world of investing!  As a former member of Vanguard's management team, I can tell you that in my experience the company is truly focused on clients and does its best to constantly improve the client experience.  Also, one of the reasons I remain invested with Vanguard (and Fidelity) is because I want the custodians of my assets to be too-big-to-fail.  In my opinion, Vanguard and Fidelity clearly fall into this category.  Of course, one thing Vanguard cannot do is guarantee your investment choices will perform at or above your expectations.  But in terms of picking a company with which to conduct your investing business, I think Vanguard is a great choice.

Regards,
« Last Edit: September 30, 2013, 06:49:59 PM by The Financial Lexicon »

workathomedad

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Re: About to invest $3k in VFINX
« Reply #16 on: September 30, 2013, 07:48:06 PM »
Most likely there will be a large correction to the market in the next 1-10 years (as happens historically). You should make sure you're comfortable with this, so you don't end up simply selling at the bottom out of fear.

ichangedmyname

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Re: About to invest $3k in VFINX
« Reply #17 on: November 03, 2013, 01:58:07 PM »
After much thought, I took the plunge and went with VTSMX after reading about it in the Bogleheads, just putting in the minimum 3k in. I chose wire to fund it from my Ally Bank but apparently I have to print out a form, fax it in or something before the transfer can happen. I must've missed the option to use ACH? It's Sunday and they are closed so I'll call tomorrow if I can just change that.

Excited about this.

Will

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Re: About to invest $3k in VFINX
« Reply #18 on: November 03, 2013, 02:36:05 PM »
I think that you made a very wise choice.  Much more diversification with Total Stock.  Now your new goal can be to add to it and get up to $10k so you qualify for even lower cost Admiral shares!  Congratulations!

ichangedmyname

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Re: About to invest $3k in VFINX
« Reply #19 on: November 03, 2013, 02:39:35 PM »
I think that you made a very wise choice.  Much more diversification with Total Stock.  Now your new goal can be to add to it and get up to $10k so you qualify for even lower cost Admiral shares!  Congratulations!

That is definitely the goal :D Thanks!

imustachemystash

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Re: About to invest $3k in VFINX
« Reply #20 on: November 03, 2013, 03:11:05 PM »
Good job!  I remember when we were both going to do VFINX last month!  I'm glad you finally got around to it.  I'll have to look into VTSMX once we have 10,000 in VFINX.  I peeked to see how much my 3,000 made over the last month and it earned $140!

ichangedmyname

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Re: About to invest $3k in VFINX
« Reply #21 on: November 03, 2013, 03:34:32 PM »
Good job!  I remember when we were both going to do VFINX last month!  I'm glad you finally got around to it.  I'll have to look into VTSMX once we have 10,000 in VFINX.  I peeked to see how much my 3,000 made over the last month and it earned $140!

Great job! How did you transfer the funds? I was hoping I could change my choice but I have to call them tomorrow.

arebelspy

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Re: About to invest $3k in VFINX
« Reply #22 on: November 03, 2013, 04:54:46 PM »
I think that you made a very wise choice.  Much more diversification with Total Stock.  Now your new goal can be to add to it and get up to $10k so you qualify for even lower cost Admiral shares!  Congratulations!

+1 to all 4 sentences!
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

ichangedmyname

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Re: About to invest $3k in VFINX
« Reply #23 on: November 04, 2013, 07:30:41 PM »
I called Vanguard this morning and did an EFT from my savings account instead of wiring the money. Saved the $20 wire transfer fee and printing a form out and faxing it in to give permission. It will take 2 business day to show up.

Yay! Glad I finally did this.