Author Topic: How much do you actually put into VFINX/VFIAX, FUSEX or other S&P 500 Index fund  (Read 4907 times)

stlbrah

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Just out of curiosity. In a portfolio of about 100k, S&P 500 index makes up about 75% of my portfolio, including retirement and taxable accounts. Most of my new money goes into this fund as well, so the percentage of my port folio in that fund is getting larger.

I have some other funds in retirement, such as some other large cap funds that beat the S&P 500 some years with similar expense ratio like Windsor 2, and I have a great REIT fund (VGSIX), also some small cap funds and bond funds, international stock, etc (less than 10% of portfolio).

I am curious to see who else relies so heavily on index funds that are exclusively for S&P 500.
« Last Edit: January 03, 2015, 04:52:08 PM by stlbrah »

stlbrah

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I would also like to post my background.

27. I am maxing out 401k and Roth IRA. And putting excess income into the S&P 500 fund in a taxable account weekly w/ auto withdraw which I consider FIRE fund or whatever I decide to do w/ it in at least 5-10+ years.

The rest of the money gets saved as dead money for real estate.
« Last Edit: January 03, 2015, 04:46:36 PM by stlbrah »

ysette9

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Personally after maxing out our 401(k)s in target date funds, we put our excess cash in the vanguard total market index. That just started recently because before that we were accumulating cash in savings for an eventual down payment. Keeping it simple....

WYOGO

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At 27 there is no need to beat the market, you simply need the returns of the market. You are doing very well my friend if you are in a position to take full advantage of all deferred savings options. Well done. A solid index fund with the lowest expense ratio possible will most certainly get the job done. Be careful funding the Roth over a tIRA. This is not the best strategy for most early retirees.

WYOGO

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Also to add, I am one relying heavily on the S&P 500 primarily and enjoy an expense ratio of approximately 0.03 for my entire Vanguard held portfolio.

Zoot Allures

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My retirement savings are invested 100% in the Vanguard Total Stock Market index. JL Collins convinced me. I don't plan to touch this money for at least 20 years (I'm 44 now), so I'm OK with the volatility. I have some real estate for diversification.

Mr. Captain Cash

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stlbrah,

Great job maxing out your tax sheltered accounts!

Similar to yourself I invest exclusively using index funds. We probably invest in index funds for similar reasons low cost, and great market returns but where we differ is in our allocations.

You can check out my portfolio here. http://www.mrcaptaincash.com/cash-accumulators/

My target percentages for my investment portfolio are:

22% Canadian Index
22% U.S Index
22% International Index
22% Emerging Markets Index
12% Canadian Real Estate Index

Throughout 2014 the S&P 500 has enjoyed quite the run up when compared to some of the other indexes in my investment portfolio but I believe over the long run some asset classes will always outperform other asset classes over different periods. That is why I have diversified my portfolio and would be my only recommendation that the new capital you are investing into your portfolio go towards some of your small cap funds, bond funds, and international stock to not be so heavily weighted S&P 500 index. 

Like you said yourself

"I have some other funds in retirement, such as some other large cap funds that beat the S&P 500 some years with similar expense ratio like Windsor 2, and I have a great REIT fund (VGSIX), also some small cap funds and bond funds, international stock, etc (less than 10% of portfolio)."

Thanks for sharing!

Mr. Captain Cash






Mr. Captain Cash

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On another thread in the forum this was recently posted and fits nicely with the point I was attempting to make.

http://awealthofcommonsense.com/wp-content/uploads/2015/01/Asset-Quilt1.png

Mr. Captain Cash