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re: Anyone like to help me out with a mutual fund?

Posted on 12/13/12 at 11:01 am to
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 12/13/12 at 11:01 am to
I just bought into the VDAIX one for $5800.

Do I have to put at least $100 in each month? Will USAA just debit it from my roth account?
Posted by gatorsimz
cafe risque
Member since Feb 2009
8135 posts
Posted on 12/13/12 at 11:24 am to
quote:

I just bought into the VDAIX one for $5800.

Do I have to put at least $100 in each month? Will USAA just debit it from my roth account?


No you don't have to contribute monthly. Did you select to reinvest your dividends/capital gains?
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 12/13/12 at 11:48 am to
quote:

Did you select to reinvest your dividends/capital gains?



Yes. Good move?
Posted by gatorsimz
cafe risque
Member since Feb 2009
8135 posts
Posted on 12/13/12 at 12:09 pm to
Yep, good move.
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 12/13/12 at 3:43 pm to
When will it process? Stills says "open"
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/13/12 at 3:55 pm to
Mutual funds get priced out at the end of the day.
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 12/13/12 at 3:59 pm to
I found that out, will it be in an hour or two? Tomorrow morning?
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 12/14/12 at 12:34 am to
FYI - VDAIX has a Vanguard ETF counterpart -VIG. Both are said to track the same portfolio used by Buffett.

Holdings include Wal-Mart, EXXON and Chevron, IBM, 3-M, Coke and Pepsi, Lowe's, Nike.
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 12/14/12 at 12:42 am to
That's the one I put money in. Think it will process tomorrow?
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/14/12 at 7:23 am to
You should now see it.
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 12/14/12 at 3:05 pm to
I do, so, is this something I just let sit for a long time?

I noticed the fund 'started' in 2006. Do these funds ever close or get broken up?
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/14/12 at 3:29 pm to
quote:

do, so, is this something I just let sit for a long time?


Yes

quote:

I noticed the fund 'started' in 2006. Do these funds ever close or get broken up?


Sometimes if the fund gets too big they will close it to new investors. It doesn't happen very often though.
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 12/14/12 at 3:44 pm to
quote:

do, so, is this something I just let sit for a long time?


Yes


Ballpark length? 5 to 10 years? 30 years?

Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 12/14/12 at 11:58 pm to
I bought my Vanguard 500 Index and Health Care funds in July, 1997. Paid $50k for the HC Fund. Today the value is $187k.

And, since we are all getting older, prospects for continued growth are good, so I'm going to keep it. I am, however, looking at some bond funds to lessen exposure to stocks.
Posted by wegotdatwood
Member since Aug 2009
17094 posts
Posted on 12/15/12 at 3:49 am to
Have you added anymore than 50k?
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 12/15/12 at 11:36 am to
No additions from me. The dividend reinvestment has made all the difference.

You can find a chart that shows the price in 7/97 and the price today. I don't believe the value has doubled, so the huge difference is b/c of the reinvestments (as someone earlier in the thread pointed out).

As a comparison, when I bought the S&P 500 Index (VFIAX) at the same time, I paid $20K. It is now at $30k. It went below 20k when the market collapsed in '08.

Needless to say, the health care fund has been lights out and you should consider it when you get your next pile of money.
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