I think I'm just gonna join the meme and dump my savings into Vanguard index funds.
I'm aware there are better investments, but I just want something simple, I don't have to worry about, and will make me 5% to 10% a year.
This is a good choice right? Anyone here with Vanguard Index Funds? Which fund did you pick, I think they have more than one?
I have funds in several: the age-adjested-mix, S&P, and up-and-coming. I also have a few individual company stocks, as a hobby.
So which fund is best for me?
I wanna drop in about $5k per year into one.
Just set it and forget it.
I dump savings into 90% stock etfs 10% bond etfs
VTI, VXUS, BND
Vanguard isn't a "meme" it's reality. Efficient-market hypothesis says you can't beat the system m8. Let someone that obsesses on this shit all day erryday do it for you.
I have a friend who has "invested" $5000 in various stocks and he's down 10% for the year. It's fairly silly seeing as he has no interest in half the companies he drops money into.
>he's down 10% for the year
Jesus, that's a 25% deficiency from the broader U.S. markets and a 40% spread than the best performing U.S. market segment (small-cal value). It's amazing to think people do this to themselves when index funds are so much better and less expensive.
People think, "Oh I can just invest in Microsoft and all the other big name normie companies and it'll be okay," but forget to realize you need to be keeping better tabs on your portfolio than just checking on your smartphone.
I just don't understand why people think you can "beat" the market. Like you have some inevitable foresight that the tens of thousands of other constant traders don't have.
If you do not have a bachelors in finance or some equivalent of self-learning, you should not be investing by yourself. Give your money to a mutual fund manager, he will do all that shit for you and he's actually good at it. Don't know modern portfolio theory? Get the fuck out, you're just going to lose cash. Why waste your time, energy, emotional strength, will power, and money on losing? I just don't understand. You might as well buy scratch off lottery tickets at this point.
I have one friend who used to work at GE motors (he has a degree in EE) but he got his masters in finance and ended up making his own futures trading business (he gets the margins off the contracts that he negotiates for both parties). He's certainly not a weak hand, so that's real money for him.
I've been buying the Canadian version of VOO
Feels good man makin B A N K
vtsax
Funny my vanguard in my 401k is up 13%ytd
That's because you're 100% in the S&P 500, which is exclusively large-cap U.S. stocks. That happens to be worst performing U.S. market segment.
You really should be in a broad U.S. index that includes mid-caps and small-caps, like suggests. This was a very good year to be in small-cap value, for example.
Bretty good.
Large-cap stocks are (((safe))) though. Definitely choose Vanguard if you want retirement money.
My current mix anons. Though i recently changed contribution to be 50/50 between the large caps because the small caps are have a lot of holdings in like casinos or hotels
forgot pic
Any rhyme or reason why 50/50? Why not 60/40? Or 40/60?
I dont really know what im doing. Just picked the ones holding the most amazon/normiebook/google/apple
Irving Fisher did that too.
So if I have a Scotttrade account should I just buy these funds? Or is there an advantage to having an actual Vanguard account?
>Large-cap stocks are (((safe))) though.
Total market (VTI/VTSAX) is equally safe, is better diversified, and performs better.
Looks good, assuming the fees on the non-Vanguard funds are palatable. I'm a big fan of small-cap value based on the research.
I don't mean safe as in volatility, just safe as in good dividends. But even that's not true, it's not like Apple pays out dividends anyhow.
You haven't a clue what you're talking about.
>Just set it and forget it.
Look into Lifecycle or Target Date funds. They're a mix of stock and bond index funds that rebalance automatically. You can literally set an autowithdrawal from your bank account and never look at it again.
If you can, put the 5k in an IRA (traditional or roth depending on your circumstances).
>Lifecycle
It's actually a Lifestrategy but the point stands
I just bought into the small and mid-cap ETF's in the minor dip yesterday.
>invest in an index fund because that's the safe thing to do with my money
>it drops about 10%
>ten fucking percent
I just can't do anything right, fuck me.
What the fuck did you invest in, Hillary Clinton Campaign Corporations Index?
Lel. You believe in the EMH
I'm self employed. Have my own LLC.
a local ETF (NZ Top 50). I bought it at it's highest point and it dropped immediately afterward.
I don't even know why they call it a hypothesis. By definition it's true. Given no information asymmetry, you can't beat the market. Given that there is ALWAYS information asymmetry, but the SEC (((believes))) it can effectively stop insider trading.
No commissions when you do it with vanguard. dunno about plebtrade.
aapl pays out a dividend and has been consistently growing it. just fucking end your life retard.
People usually hold these indexes for the long term, if youre not planning on keeping your money in that for at least 5 years you shouldnt even bother
oh yeah, I don't need the money anytime soon. I understand why people tell you not to look at these things regularly though, it was bloody depressing.
Oh they have started paying out dividends. Lel, old news probably.
need to get into this meme
is it worth talking to an advisor to find the best one for me? i don't really trust my own judgement much anymore, kind of drank myself dumb
and are the admiral class ones worth it? i'd only have enough money for the $10k ones