Author Topic: Investing Questions  (Read 2349 times)


  • 5 O'Clock Shadow
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Investing Questions
« on: October 03, 2012, 05:55:40 PM »
Question everyone says to go into Vanguard and chose the VTSAX fund.  What I do not understand is why is it so great when the yield dividend is only 1.8% and has not gone much higher.  How can we live off of the dividends in 20 years?

Here is my current situation.  Any Advice please?  I am lost here and could use any help!!!! : )

I started contributing 40% of my salary to my 401K.

Then I have a IRA through Scottrade of stocks that total 30K.

Then we have Two Roth IRA accounts that total 30K through Scottrade of stocks and I am doing the max each year so total for both of us 10K

 I am saving $500.00 a month in a savings account that is giving me 3%.  My balance is 4k.

 I am thinking if I do IRA I could roll over the 33K from my Scottrade IRA to get the VTSAX fund going.  Then I will contribute any extra money to the VTSAK fund each month.  Then keep my Roth IRA’s through Scottrade. 

Any suggestions would help. 

Thanks Andria!!!!


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Re: Investing Questions
« Reply #1 on: October 03, 2012, 06:31:27 PM »
You don't live off dividends, you do a total return strategy, which includes selling some stock, but at's okay, because it goes up faster than you sell it, ideally.
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  • Magnum Stache
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Re: Investing Questions
« Reply #2 on: October 04, 2012, 05:01:27 AM »
Just one note:  You can only do a total of $5K each into IRA's each year.  So by maxing out Roths that space is already full, you can't also contribute to a traditional IRA.


  • 5 O'Clock Shadow
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Re: Investing Questions
« Reply #3 on: October 04, 2012, 06:12:13 PM »
Thank you both and I did not know I could only do $5000 in one or the other.  So thanks again!!!!