Author Topic: VFINX fund  (Read 3394 times)

payitoff

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VFINX fund
« on: March 27, 2014, 09:59:38 PM »
how are you investing yours as?

ROTH IRA or general savings? why?

nereo

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Re: VFINX fund
« Reply #1 on: March 28, 2014, 08:08:16 AM »
Both - although technically I am in the slightly lower cost VFIAX "Admiral shares" - but it covers the exact same thing as the VFINX.

I max out my IRA and contribute a small amount weekly to general savings.  Since my US income is so low I've been rolling over my IRA into ROTH IRA.

So i guess, technically, I have three VFIAX accounts; an tIRA, a ROTH-IRA, and a general investing account.

payitoff

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Re: VFINX fund
« Reply #2 on: March 28, 2014, 10:04:59 AM »
so you can have this fund in multiple investments then? great to know
thanks

skyrefuge

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Re: VFINX fund
« Reply #3 on: March 28, 2014, 10:55:49 AM »
so you can have this fund in multiple investments then? great to know

The fund, VFINX, is the "investment".

A Roth IRA, traditional IRA, 401(k), taxable brokerage account, etc. is not an "investment". Those are different types of buckets which you can fill with whatever investments you like.

First you need to decide which investments you want to hold in your portfolio (like VFINX, other stock mutual funds, bond funds, etc), and then you decide which buckets to put them in.

Most people will fill up their tax-favored buckets (IRAs, 401(k)s) in some order before buying investments as "general savings" (which are not tax-sheltered), because that will leave them with more money in the long-run.

payitoff

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Re: VFINX fund
« Reply #4 on: March 28, 2014, 12:03:36 PM »
thanks for the clarification, i didnt have the right word for it, still very new to this investments etc.   

i do have another question:

i saw my employer's 401k have 3 vanguard funds, i have allocated mine into 50% small cap growth index (VSGAX) and 50% growth index fund (VIGSX)  - is this a good plan?

lastly, which is better to start with for ROTH IRA - VFINX or VTSAX (saw this from Jimcollins), both have $3k to start which i can be able to at this point


looking forward for your comments! thanks!

nereo

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Re: VFINX fund
« Reply #5 on: March 30, 2014, 04:30:59 PM »
i do have another question:

i saw my employer's 401k have 3 vanguard funds, i have allocated mine into 50% small cap growth index (VSGAX) and 50% growth index fund (VIGSX)  - is this a good plan?

lastly, which is better to start with for ROTH IRA - VFINX or VTSAX (saw this from Jimcollins), both have $3k to start which i can be able to at this point

looking forward for your comments! thanks!

whoa, sorry... I dropped this thread after commenting on it.
The short answer is that any of your suggested strategies should work fine, and no one can say with certainty what will yield the highest returns in the future.  Chances are they will be very close.
Small cap growth stocks tend to be more volatile, so you have to stomach occasional larger drops compared to larger cap growth or value stocks.

Also, investing you can invest either in VFINX or VTSAX.  One has the 500 largest companies in the US.  the VFINX gives you a slightly higher dividend, but many of the companies aren't likely to see huge growth because they are already so big.   VTSAX gives you all of these, plus all the smaller stocks too.  It's about a diverse as you can get owning western companies (many of whom have significant sales in Asia and Africa, like Apple and Coca-cola and Yum!).

Pick what you like and just start saving money.  You'll do fine with any of them.