Author Topic: Playing the Whole Stock Market with Vanguard  (Read 974 times)

Vic99

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Playing the Whole Stock Market with Vanguard
« on: February 25, 2019, 07:13:36 AM »
Iím 48, my wifeís 44.  I want to retire in ~10 years.  Currently have ~280k in 403b, wife has 300k in 401 k.  We currently max out those contributions.  House is paid off.

In June of 2016, I opened a Roth.
I put 3k in VASGX   Vanguard Life Strategy Growth Fund. 0.14 Expense Ratio and
1k in  VTI   Vanguard Total Stock Market ETF.  0.04 Expense Ratio.

I have not contributed to the Roth since then.  It has grown from 4K to 5,300 to date.

I want to contribute 5-6k to the Vanguard Roth this year and I like the idea of a fund that covers a diverse area of the stock market or something like that.  I also wouldnít mind a fund that invests in green energy, sustainability, or recycling. 

I want to be moderately aggressive to aggressive at this stage.  Could you recommend if I should contribute more to the funds listed above or if there seems to be another that I am overlooking?  Thanks.
« Last Edit: February 25, 2019, 07:25:59 AM by Vic99 »

ender

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MustacheAndaHalf

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Re: Playing the Whole Stock Market with Vanguard
« Reply #2 on: February 25, 2019, 08:20:23 AM »
@Vic99 - As I asked someone else, what convinced you to invest in Vanguard LifeStrategy funds?  I'm curious since recently I see several people using these, and in past years I hadn't even heard anyone using them.

You already know about U.S. Total Stock Market ETF (0.04% annual fee), which is the most diverse investment in U.S. stocks.  There's a couple new Vanguard ETFs that aim at "ESG" (Environmental, Social, Governance) factors, including:
Vanguard ESG U.S. Stock ETF (ESGV) with a 0.12% annual fee.

The ESG fund holds 1/3rd of the oil & gas sector, and I'd assume it invests in environmental energy companies - but you'd need to look for that.  I find it slightly amusing that Warren Buffet falls in the "bad guy" category here: VTI has Berkshire Hathaway as it's #5 holding, while I can't find it in the first 120 holdings of ESGV (and I'm guessing it's not there).

Vic99

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Re: Playing the Whole Stock Market with Vanguard
« Reply #3 on: February 25, 2019, 08:34:27 AM »
Mustacheandahalf, I donít recall specifically why I chose the LifeStrategy fund.  I suspect that it was recommended to me either on this forum or in one of MM blog entries.  I have been putting my money in a fund and not moving it, hoping to maximize growth.

harvestbook

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Re: Playing the Whole Stock Market with Vanguard
« Reply #4 on: February 25, 2019, 03:10:01 PM »
If you want to be more aggressive, you can keep the LifeStrategy Growth fund and just add to the Total Stock Market for a while. This has the effect of reducing your bond portion. But if I was going to that much trouble, I'd just do a 90/10 (which I use) and make my own three-fund portfolio and cut my ER.

My wife has some ESG just to feel good about it, but since the factors are all over the place, you may not weed out the "bad stuff" you think you're weeding out. I like MMM's take that it's better to just invest in the whole market and then use the profits to fund the initiatives you support.