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Started By
Message
Investing Outside Of Retirement
Posted on 5/21/13 at 10:33 pm
Posted on 5/21/13 at 10:33 pm
Use $10k for the initial point of entry. Would it be ill-advised to sink all of it into one mutual fund?
4
Posted on 5/21/13 at 10:41 pm to RickAstley
Divvy it up between Vanguards Extended Market Index Fund snd Growth Index Fund.
Vanguard High Dividend Yield Index Fund isnquite attractive as well. (killing it this year w/ 15.18% Ytd performance.)
Vanguard High Dividend Yield Index Fund isnquite attractive as well. (killing it this year w/ 15.18% Ytd performance.)
Posted on 5/21/13 at 10:55 pm to Skin
Thanks for the response, would you say 50/50 for the two? I've been playing with Vanguard's tool that recommends which fund to buy. So far, Vanguard recommended the $10k to go into the Vanguard LifeStrategy Conservative Growth Fund (VSCGX) based on my parameters.
Posted on 5/22/13 at 12:43 am to RickAstley
Vanguard is a good family of funds. You'd have to have worked real hard these past few years to not make money in the market. If you've got retirement accounts just make sure you're not duplicating their holdings, i.e., if your retirement accounts are primarily in bonds, don't put your money in a conservative target fund. Are you close to retirement?
Posted on 5/22/13 at 6:29 am to Skin
quote:
Vanguard High Dividend Yield Index Fund
Use the ETF not the mutual fund.
Posted on 5/22/13 at 6:32 am to Fat Bastard
quote:
Use the ETF not the mutual fund.
This. Oh and Bitcoins of course.
Posted on 5/22/13 at 6:32 am to RickAstley
Also could be time for you to learn how to trade futures, invest in RE, and tax liens/deeds.
That way all your money is not in the stock/bond market.
That way all your money is not in the stock/bond market.
Posted on 5/22/13 at 6:53 am to Fat Bastard
With the fee so low on ETFs, what's the downside? If I'm going for the long term, why not stick with those?
Posted on 5/22/13 at 7:13 am to jimbeam
The only downside with ETFs is people tend to trade them like stocks, entering &existing too often, trying time the market, and pretty much eliminate any money they save with the lower expense ratios.
If you're going to buy, set it and forget it, then ETFs are a better investment than Index Funds. Keep in mind, It's a lot easier to say you're going to be disciplined than to actually do it when there's a market panic.
If you're going to buy, set it and forget it, then ETFs are a better investment than Index Funds. Keep in mind, It's a lot easier to say you're going to be disciplined than to actually do it when there's a market panic.
Posted on 5/22/13 at 8:03 am to Vols&Shaft83
I personally don't get the mutual fund thing, bc one day when you're retired you're going to have to start selling that fund off slowly to fund your retirement. Why not buy a basket of 10 big companies that have boosted their dividend each of the past 20+ years and thank me when you retire. I literally plan on retiring well before I'm 65 and collecting quarterly checks from the following 10 companies meaning I'll get a check 40 times a year. I will add another few companies these next few years if I can ever get in at a damn good price haha and hopefully get a check 200 days a year by the time retirement comes
Visa
Altria
Philip Morris
Exxon
Chevron
Conoco
Shell
Coke
Pepsi
General Mills
You on the other hand will be liquidating 4%+ of your mutual fund to fund your retirement, while a dividend investor keeps his base and allows it to grow while collecting an ever growing income stream.
FWIW I'm sure whatever mutual fund you buy, the top 10% is comprised of some collection of the stocks I listed if not more, so buy them without the fees bc that .2% isn't much but over a 40 year period its probably $10-20K depending on your portfolio size. Also FWIW I would feel comfortable going 100% of my portfolio with any of the stocks I listed bc they have healthy balance sheets and I don't see a bankruptcy for any in the future, they aren't eastman kodak's
Visa
Altria
Philip Morris
Exxon
Chevron
Conoco
Shell
Coke
Pepsi
General Mills
You on the other hand will be liquidating 4%+ of your mutual fund to fund your retirement, while a dividend investor keeps his base and allows it to grow while collecting an ever growing income stream.
FWIW I'm sure whatever mutual fund you buy, the top 10% is comprised of some collection of the stocks I listed if not more, so buy them without the fees bc that .2% isn't much but over a 40 year period its probably $10-20K depending on your portfolio size. Also FWIW I would feel comfortable going 100% of my portfolio with any of the stocks I listed bc they have healthy balance sheets and I don't see a bankruptcy for any in the future, they aren't eastman kodak's
This post was edited on 5/22/13 at 8:12 am
Posted on 5/22/13 at 8:09 am to Layabout
quote:
Are you close to retirement?
No not at all. I invest 18% of my salary into retirement. I save most of my money as it is, I don't want to lock all of it into retirement accounts though. I wish for improved growth aside from a savings, yet I don't want to throw it away either. The parameters I submitted were more on the conservative side than an aggressive investment.
Posted on 5/22/13 at 9:15 am to RickAstley
I'm shocked that so many in the thread not only didn't recommend to seek out funds/ETFs for qualified dividends, but recommended funds that didn't have them.
I'm putting all of my out of tax advantaged account money in assets that fit the bill, as should anyone considering this.
I'm putting all of my out of tax advantaged account money in assets that fit the bill, as should anyone considering this.
Posted on 5/22/13 at 9:25 am to ThaBigFella
quote:
I personally don't get the mutual fund thing, bc one day when you're retired you're going to have to start selling that fund off slowly to fund your retirement.
No, not really unless it is in a TIRA or 401k. It is also dependent on the level of assets and what the desired withdrawal rate is.
quote:
You on the other hand will be liquidating 4%+ of your mutual fund to fund your retirement, while a dividend investor keeps his base and allows it to grow while collecting an ever growing income stream.
Again, untrue.
Posted on 5/22/13 at 9:28 am to ThaBigFella
What's the minimum time frame to hold a mutual fund? I've held VDAIX for about 5 months I think.
Plan on selling and doing the ETF route.
How often do you purchase more shares? What's the fee to buy and sell?
Plan on selling and doing the ETF route.
How often do you purchase more shares? What's the fee to buy and sell?
Posted on 5/22/13 at 9:29 am to RickAstley
quote:
No not at all. I invest 18% of my salary into retirement. I save most of my money as it is, I don't want to lock all of it into retirement accounts though. I wish for improved growth aside from a savings, yet I don't want to throw it away either. The parameters I submitted were more on the conservative side than an aggressive investment.
Since you are working you want tax efficient investments in taxable to reduce ongoing tax drag. Total market funds, ie equity indexes, can be good in this regard. Holdings that throw off a lot of income will be taxed at your highest tax rate. My portfolio is half tax advantaged/half taxable + investment RE.
This post was edited on 5/22/13 at 9:30 am
Posted on 5/22/13 at 9:30 am to ThaBigFella
quote:
You on the other hand will be liquidating 4%+ of your mutual fund to fund your retirement, while a dividend investor keeps his base and allows it to grow while collecting an ever growing income stream.
You do realize I can choose to have my mutual fund dividends not reinvest and get the check mailed to me?
Posted on 5/22/13 at 9:34 am to wegotdatwood
quote:
What's the minimum time frame to hold a mutual fund? I've held VDAIX for about 5 months I think.
None, however some funds prohibit you from buyimg and selling rapidly. (As in, sell some shares and buy some more)
quote:
What's the fee to buy and sell?
Well that varies....
My non401k assets are all at Vanguard
I can buy and sell any Vanguard mutual fund or ETF for free, and the commission on non-Vanguard ETFs/stocks varies on how many I've done that year, how much money I have in Vanguard assets, etc...
This post was edited on 5/22/13 at 9:40 am
Posted on 5/22/13 at 9:34 am to Volvagia
With etf's, can I reinvest the dividends automatically for free?
Posted on 5/22/13 at 9:37 am to tirebiter
quote:
investment RE
Local RE or RE ETFs, Funds, etc.?
Posted on 5/22/13 at 9:38 am to tirebiter
quote:
Since you are working you want tax efficient investments in taxable to reduce ongoing tax drag. Total market funds, ie equity indexes, can be good in this regard. Holdings that throw off a lot of income will be taxed at your highest tax rate. My portfolio is half tax advantaged/half taxable + investment RE.
If the income is in the form of a qualified dividend, and you had the stock for 60 days in the 120 day period around the ex-dividend date (or something like that, the point is if you buy and hold), then the income is taxed as long term capital gains.
NOT at your highest rate of income.
Which means it can be as little as tax free, or as much as 15% for most people.
Which is why I'm shocked at people advising funds that specifically don't shoot out qualified dividends and thus incur a larger tax burden.
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