Author Topic: Advise on investment  (Read 2811 times)

BalanceLife

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Advise on investment
« on: October 03, 2016, 03:44:29 PM »
I am first time investing in Index Funds and after some googling narrowed down following funds from Vanguard for initial $30K investment:

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) - $10K
Vanguard 500 Index Fund Admiral Shares (VFIAX) - $10K
Vanguard Growth Index (VIGRX) - $3k
Vanguard Mid-Cap Growth Index (VMGIX) - $3k
Vanguard Explorer (VEXPX) - $3K

I am okay to go with little aggressive. Please share your experiences investing in any of the above funds and any advise/recommendations about the contribution and changes required to allocate to different funds?

matchewed

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Re: Advise on investment
« Reply #1 on: October 03, 2016, 04:36:29 PM »
If you are cool with the fees, conservatively anticipated returns, and risks then your AA is just fine. What do you mean by "experiences" when you talk about the investing?

Some good reading for you if you haven't browsed this sort of thing.

http://jlcollinsnh.com/stock-series/
https://www.bogleheads.org/wiki/Investment_policy_statement

JustGettingStarted1980

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Re: Advise on investment
« Reply #2 on: October 03, 2016, 04:44:40 PM »
Read the Stock Series before you start investing in things many people don't understand

Frankies Girl

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Re: Advise on investment
« Reply #3 on: October 03, 2016, 05:18:33 PM »
+2 on reading the Collins stock series linked in matchewed's post. Or buy Collins' book if you prefer a book format. ;)

My opinion: You're over complicating things. You don't need 5 different funds as you're basically overlapping in several since things like the 500 fund are also in the total market fund and probably much in the growth funds are also held in the others, etc... and splitting up a 30K investment into little chunks like that isn't necessary and not very efficient and you're paying a bit more in fees than just going all in on VTSAX.

Read up on investing at that link, figure out your asset allocation first, and then find a couple (2 or 3) funds that fit. Like a total stock market (VTSAX), a total international (if you really think that's necessary; as most of the total U.S. stock market does business worldwide, it is posited that adding international isn't necessary), and a total bond fund if you think you need a little smoothing for the bumpy ride.

The five funds you've listed are all stock index funds, so you're talking as volatile (risky) as it comes at 100% stock asset class. You mention going "a little aggressive" but this is 100% stocks so there is no "little" about it; and it will be as volatile as it can be without any bonds or other conservative funds. Not that I think a 100% stock portfolio is bad, but I'd have to ask are you prepared to weather the crazy roller coaster ride?

But if that was the case, I'd just go all in on VTSAX and be done with it.

MustacheAndaHalf

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Re: Advise on investment
« Reply #4 on: October 03, 2016, 06:02:03 PM »
BalanceLife - "Growth" doesn't mean what you think.  If you're chasing performance, know that growth and value take turns doing better.  "Chasing performance" is when you pick whatever did well recently, and assume it will do the same.  It won't.  You might be better off investing in everything (like a Total Stock Market fund) than picking specific growth or value funds.

NYCMustachian

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Re: Advise on investment
« Reply #5 on: October 03, 2016, 06:24:05 PM »
+2 on reading the Collins stock series linked in matchewed's post. Or buy Collins' book if you prefer a book format. ;)

My opinion: You're over complicating things. You don't need 5 different funds as you're basically overlapping in several since things like the 500 fund are also in the total market fund and probably much in the growth funds are also held in the others, etc... and splitting up a 30K investment into little chunks like that isn't necessary and not very efficient and you're paying a bit more in fees than just going all in on VTSAX.

Read up on investing at that link, figure out your asset allocation first, and then find a couple (2 or 3) funds that fit. Like a total stock market (VTSAX), a total international (if you really think that's necessary; as most of the total U.S. stock market does business worldwide, it is posited that adding international isn't necessary), and a total bond fund if you think you need a little smoothing for the bumpy ride.

The five funds you've listed are all stock index funds, so you're talking as volatile (risky) as it comes at 100% stock asset class. You mention going "a little aggressive" but this is 100% stocks so there is no "little" about it; and it will be as volatile as it can be without any bonds or other conservative funds. Not that I think a 100% stock portfolio is bad, but I'd have to ask are you prepared to weather the crazy roller coaster ride?

But if that was the case, I'd just go all in on VTSAX and be done with it.

100% agree

Radagast

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Re: Advise on investment
« Reply #6 on: October 04, 2016, 12:09:54 AM »
I am first time investing in Index Funds and after some googling narrowed down following funds from Vanguard for initial $30K investment:

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) - $10K
Vanguard 500 Index Fund Admiral Shares (VFIAX) - $10K
Vanguard Growth Index (VIGRX) - $3k
Vanguard Mid-Cap Growth Index (VMGIX) - $3k
Vanguard Explorer (VEXPX) - $3K

I am okay to go with little aggressive. Please share your experiences investing in any of the above funds and any advise/recommendations about the contribution and changes required to allocate to different funds?
Of that list, the first is the obvious choice. For now.

BalanceLife

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Re: Advise on investment
« Reply #7 on: October 04, 2016, 08:22:03 AM »
Thank you for the links and advise matchewed and Frankies Girl.
I have decided to go with 10K in VTSAX for now.I got lot of reading to do before my next investment!

 

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