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Investing Questions
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Topic: Investing Questions (Read 2692 times)
mustachianit
5 O'Clock Shadow
Posts: 24
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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arebelspy
Administrator
Senior Mustachian
Posts: 28444
Age: -997
Location: Seattle, WA
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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Zaga
Magnum Stache
Posts: 2903
Age: 44
Location: North of Pittsburgh, PA
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.
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mustachianit
5 O'Clock Shadow
Posts: 24
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!!!!
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