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Started By
Message
Vanguard Funds
Posted on 8/18/13 at 8:31 am
Posted on 8/18/13 at 8:31 am
I'm looking to start throwing 500-1k a month into some funds, this would be in addition to my 401k, Roth, and Savings/emergency fund...
Is there really any art to doing this? I'm not savy and just looking at the return rates over 5/10yrs. I wouldn't touch this money for 10+ yrs easily, so a fluctuation in the market isn't going to kill me, as I can hold out through it.
This is the one I am considering:
VTSMX
SEC yield as of 08/16/2013 1.77% B —
YTD as of 08/16/2013 18.31% —
1 year 21.29% 20.83%
5 year 7.35% 5.83%
10 year 7.95% 6.85%
Since inception (04/27/1992) 8.92% —
Expense ratio 0.17% 1.10%
Is there really any art to doing this? I'm not savy and just looking at the return rates over 5/10yrs. I wouldn't touch this money for 10+ yrs easily, so a fluctuation in the market isn't going to kill me, as I can hold out through it.
This is the one I am considering:
VTSMX
SEC yield as of 08/16/2013 1.77% B —
YTD as of 08/16/2013 18.31% —
1 year 21.29% 20.83%
5 year 7.35% 5.83%
10 year 7.95% 6.85%
Since inception (04/27/1992) 8.92% —
Expense ratio 0.17% 1.10%
This post was edited on 9/15/13 at 10:31 am
5
Posted on 8/18/13 at 9:20 am to Lsut81
quote:
Is there really any art to doing this? I'm not savy and just looking at the return rates over 5/10yrs. I wouldn't touch this money for 10+ yrs easily, so a fluctuation in the market isn't going to kill me, as I can hold out through it.
There isn't much of anything to it. I think for your best benefit, identify up to 3 funds and contribute into all three. Aim for the admiral shares if you are investing through Vanguard to remove extra fees. If you are not anticipating touching the money for 10+ years then that removes any 'market timing' on your part.
I haven't tried it on Vanguard, though you can setup an auto-pay through sites like Fidelity. You could schedule a payment every pay period, 2 weeks, etc... to make this process as simple as possible.
Posted on 8/18/13 at 9:20 am to Lsut81
quote:
VTSMX
Is fine, or go with VFINX. Just set it and forget it.
Posted on 8/18/13 at 9:23 am to Vols&Shaft83
quote:
Is fine, or go with VFINX. Just set it and forget it.
Thats what I want to do...
Just put near 1k a month into it and not have to do anything to it.
Any reason not to split the two?
Posted on 8/18/13 at 9:38 am to Lsut81
quote:
Any reason not to split the two?
Not really. Index funds are cheap and effective, might as well do both
Posted on 8/18/13 at 9:48 am to Vols&Shaft83
quote:
Not really. Index funds are cheap and effective, might as well do both
Cool...
Just want to put this shite on auto-pilot
Posted on 8/18/13 at 9:54 am to Lsut81
I'm currently eyeing VLCAX admiral for a long term high dividend low ER $10k+ holding. That said, all of the funds listed have pretty substantial overlap, so I doubt you will be made or broken either way 
This post was edited on 8/18/13 at 11:21 am
Posted on 8/18/13 at 10:00 am to Joshjrn
quote:
all of the funds listed have pretty substantial overlap, so I doubt you will be made or broken either way
Yeah, noticing that...
May just pick one because each of those require 3k buy-in up front and I don't want to pull from my $$$ going into my Roth to do that.
Posted on 8/18/13 at 10:05 am to Lsut81
Certainly max out your Roth before you do anything else. That said, what does your emergency fund look like? Any fat there you can shift into the market?
Eta: I see no real reason to diversify these already heavily diversified positions. That said, if you can invest enough to qualify for admiral shares, I highly advise that you do so. It will knock off almost .1 from your expenses.
Eta: I see no real reason to diversify these already heavily diversified positions. That said, if you can invest enough to qualify for admiral shares, I highly advise that you do so. It will knock off almost .1 from your expenses.
This post was edited on 8/18/13 at 10:07 am
Posted on 8/18/13 at 10:12 am to Vols&Shaft83
I have this account and my money has tripled since 1998
Posted on 8/18/13 at 10:12 am to Joshjrn
quote:
That said, what does your emergency fund look like?
Have 1yr of "Mandatory" living expenses (Household Obligations, Gas, Food, Auto Insurance, Student Loans) in it.
quote:
qualify for admiral shares
I saw those and the returns look outstanding, whats the difference?
This post was edited on 8/18/13 at 10:14 am
Posted on 8/18/13 at 10:14 am to Joshjrn
quote:
Eta: I see no real reason to diversify these already heavily diversified positions. That said, if you can invest enough to qualify for admiral shares, I highly advise that you do so. It will knock off almost .1 from your expenses.
Yeah that's a good point, of the 2, I'd stick with VFINX. But you're gonna do fine either way.
If you wanna diversify, you can find a global blend fund and avoid overlap.
Posted on 8/18/13 at 10:17 am to Vols&Shaft83
quote:
But you're gonna do fine either way.
If you wanna diversify, you can find a global blend fund and avoid overlap.
Thanks for the help you guys are the shite... Have I ever told you people that
Posted on 8/18/13 at 10:24 am to Lsut81
If you invest enough, Vanguard reduces your expense ratio, basically. Same funds. For example, VLCAX requires a 10k investment to qualify. Drops the ER from .24 to .10 last I checked. Each fund has its own requirement.
If I were you, unless your field is so volatile that a year of unemployment is actually a possibility, I would reduce my emergency fund by 10k and put it in one of these funds with admiral eligibility. After all, these are still very liquid positions. On the off chance you ever do need to dip in, you can sell with little to no penalty. No reason to allow that money to sit lazily in an Ally accout making .85%.
Wait, your emergency fund isn't at a normal bank getting .2%, is it?
If I were you, unless your field is so volatile that a year of unemployment is actually a possibility, I would reduce my emergency fund by 10k and put it in one of these funds with admiral eligibility. After all, these are still very liquid positions. On the off chance you ever do need to dip in, you can sell with little to no penalty. No reason to allow that money to sit lazily in an Ally accout making .85%.
Wait, your emergency fund isn't at a normal bank getting .2%, is it?
This post was edited on 8/18/13 at 11:20 am
Posted on 8/18/13 at 10:29 am to Joshjrn
quote:
Wait, your emergency fund isn't at a normal bank getting .2, is it?
Its in a high yield savings, think its earning .50 or .75
Posted on 8/18/13 at 10:32 am to Lsut81
Alright, it could be worse
Posted on 8/18/13 at 10:34 am to Joshjrn
quote:
Alright, it could be worse
I can easily move it...
Somewhere better to put it?
Posted on 8/18/13 at 10:36 am to Lsut81
Check to confirm what you are getting. If it's less than .85%, Ally can increase your ROR. Easy transfers between accounts, e-check deposit, etc.
Posted on 8/18/13 at 10:36 am to Joshjrn
quote:
Check to confirm what you are getting. If it's less than .85%, Ally can increase your ROR. Easy transfers between accounts, e-check deposit, etc.
K, I know recently that Amex Savings was offering 1%, but I didn't jump on it at the time.
Just saw Amex is at .85 too
Barclays is offering .90 and theres some SmartyPig that offers 1%
Says they are FDIC insured
This post was edited on 8/18/13 at 10:47 am
Posted on 8/18/13 at 10:49 am to Lsut81
I'm only intimately familiar with Ally, but I'm certainly not selling it
For each one, look and make sure they aren't going to charge you account maintenance fees, fees to transfer funds from that account back to your checking account, check the availability of check deposit via smartphone if that's something you're into, etc, etc.
For each one, look and make sure they aren't going to charge you account maintenance fees, fees to transfer funds from that account back to your checking account, check the availability of check deposit via smartphone if that's something you're into, etc, etc.
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