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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Mike2 on March 17, 2015, 12:35:30 PM

Title: Good Index Funds
Post by: Mike2 on March 17, 2015, 12:35:30 PM

I am setting up a Vanguard account and am wondering which funds people recommend and why?

Title: Re: Good Index Funds
Post by: Louisville on March 17, 2015, 12:49:27 PM

The first thing you need to do is create an asset allocation and an investment policy statement. Search those terms on this forum.

Title: Re: Good Index Funds
Post by: SuperSecretName on March 17, 2015, 02:28:53 PM

if taxable, the only 3 etfs you really need are the bond, total market, and total international

Title: Re: Good Index Funds
Post by: MDM on March 17, 2015, 02:54:41 PM

Quote from: Louisville on March 17, 2015, 12:49:27 PM

The first thing you need to do is create an asset allocation and an investment policy statement. Search those terms on this forum.

Quote from: therivler1 on March 17, 2015, 02:28:53 PM

if taxable, the only 3 etfs you really need are the bond, total market, and total international

E.g., see http://www.bogleheads.org/forum/viewtopic.php?t=6211 and http://www.bogleheads.org/forum/viewtopic.php?f=10&t=88005.

Title: Re: Good Index Funds
Post by: Indexer on March 17, 2015, 03:09:40 PM

Quote from: therivler1 on March 17, 2015, 02:28:53 PM

if taxable, the only 3 etfs you really need are the bond, total market, and total international

But if it is taxable and tax deferred accounts you don't want the total bond sitting in a taxable account ;).  Why pay ordinary income taxes on those income payments when you could pay capital gains rates on the total international and then possibly get a tax credit for the foreign taxes paid to further lower the tax bill?

If you have taxable + tax deferred accounts it is normally more efficient to park the bonds in the tax deferred, and put your very tax efficient stock and international stock index funds in the taxable.