Author Topic: VBINX vs VTSAX  (Read 1887 times)

M5

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VBINX vs VTSAX
« on: February 06, 2018, 12:53:24 PM »
Yes, you can compare the data on Vanguard's website, but wondering some of your personal opinions on which fund you prefer. For some background, we are in our mid-20s and will likely RE at age 45 (make sense to work for 20yrs to get my full military retirement). We just completed paying off a bunch of consumer debt, so we don't currently meet the $10k minimum to buy the VTSAX shares, so we plan on at least buying VBINX shares until we hit the $10k min.. then we'll decide which to go with from there. Maybe diversify and buy both?

ponyespresso

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Re: VBINX vs VTSAX
« Reply #1 on: February 06, 2018, 01:46:49 PM »
VBINX has a lot of bonds whereas VTSAX is all stocks. That's going to depend on your risk tolerance.

Look at VTI (ETF) or VTSMX if you want VTSAX but don't have 10k. VTSMX requires 3K minimum, and VTI can be bought one share at a time.

M5

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Re: VBINX vs VTSAX
« Reply #2 on: February 06, 2018, 02:41:19 PM »
VBINX has a lot of bonds whereas VTSAX is all stocks. That's going to depend on your risk tolerance.

Look at VTI (ETF) or VTSMX if you want VTSAX but don't have 10k. VTSMX requires 3K minimum, and VTI can be bought one share at a time.

Thanks for the input on the VTI series of funds. I'm lazy and like the idea of a fund that automatically adjusts the ratio of stocks to bonds as I get closer to my RE date.

jamesbond007

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Re: VBINX vs VTSAX
« Reply #3 on: February 06, 2018, 04:47:14 PM »

Thanks for the input on the VTI series of funds. I'm lazy and like the idea of a fund that automatically adjusts the ratio of stocks to bonds as I get closer to my RE date.

Sounds like you need Vanguard Target Retirement funds.

Radagast

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Re: VBINX vs VTSAX
« Reply #4 on: February 06, 2018, 10:15:09 PM »
VBINX has a lot of bonds whereas VTSAX is all stocks. That's going to depend on your risk tolerance.

Look at VTI (ETF) or VTSMX if you want VTSAX but don't have 10k. VTSMX requires 3K minimum, and VTI can be bought one share at a time.

Thanks for the input on the VTI series of funds. I'm lazy and like the idea of a fund that automatically adjusts the ratio of stocks to bonds as I get closer to my RE date.
VBINX has a constant allocation, so it doesn't do that. The best choices are LifeStrategy Growth, or a target date fund with the date around your 70-75 birthday (TD funds are $1000 min). They don't do that either, but their stock allocations give greater chances of success.

M5

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Re: VBINX vs VTSAX
« Reply #5 on: February 07, 2018, 09:11:57 AM »

Thanks for the input on the VTI series of funds. I'm lazy and like the idea of a fund that automatically adjusts the ratio of stocks to bonds as I get closer to my RE date.

Sounds like you need Vanguard Target Retirement funds.

Exactly. Doing my research and comparing the different target retirement funds right now.