100k of VTSAX today???

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:VTI is same thing--check expenses. Also, know that VTI and VTSAX are very tech heavy with what is referred to as the "Mag 7"--a market euphemism for large, mostly tech companies that have moved up a lot post pandemic. So I would diversify into several etfs (like VTI is one of those). These big companies are Apple, Google, Meta (parent of Facebook), Nvidia, Amazon, and Microsoft. It also holds as a big investment Eli Lilly (also moved a lot on Ozempic type drugs), Broadcom and Berkshire Hathaway (Warrent Buffet's company). If the market goes up, it will do well.

May I suggest some VTI/VTSAX (again decide based on costs of each--they are usually hidden so read and research) but split it with SPY (S and P 500--which also have exposure to these companies), IWM (small caps), and some mid cap stocks, and a tad international funds (no more than 5 percent). Add 1 percent of Bitcoin ETF e.g. IBIT.

This portfolio would be a little more diverse but long term focused as a previous poster said. It is not without risk since the aforementioned companies have moved up a lot. Do it and forget about it and check back periodically.

Such a strange half-informed post. VTSAX is simply an index that tracks the full market. When tech stock are doing well it will have tech stocks. It already has S&P 500, mid cap and small cap stocks in it so it makes little sense to add those. It makes absolutely no sense to add 1% of bitcoin and 5% international will just complicate things but likely have no impact at all.

Also, did you look at the holdings--it is all Mag 7 at this point. S&P is more broad based. BTC and International can add Alpha.

The more you write the less informed you sound. S&P 500 makes up about 80% of VTSAX but by definition VTSAX is more broad based. And bitcoin is not going to add alpha. 🙄

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:VTI is same thing--check expenses. Also, know that VTI and VTSAX are very tech heavy with what is referred to as the "Mag 7"--a market euphemism for large, mostly tech companies that have moved up a lot post pandemic. So I would diversify into several etfs (like VTI is one of those). These big companies are Apple, Google, Meta (parent of Facebook), Nvidia, Amazon, and Microsoft. It also holds as a big investment Eli Lilly (also moved a lot on Ozempic type drugs), Broadcom and Berkshire Hathaway (Warrent Buffet's company). If the market goes up, it will do well.

May I suggest some VTI/VTSAX (again decide based on costs of each--they are usually hidden so read and research) but split it with SPY (S and P 500--which also have exposure to these companies), IWM (small caps), and some mid cap stocks, and a tad international funds (no more than 5 percent). Add 1 percent of Bitcoin ETF e.g. IBIT.

This portfolio would be a little more diverse but long term focused as a previous poster said. It is not without risk since the aforementioned companies have moved up a lot. Do it and forget about it and check back periodically.

Such a strange half-informed post. VTSAX is simply an index that tracks the full market. When tech stock are doing well it will have tech stocks. It already has S&P 500, mid cap and small cap stocks in it so it makes little sense to add those. It makes absolutely no sense to add 1% of bitcoin and 5% international will just complicate things but likely have no impact at all.

Also, did you look at the holdings--it is all Mag 7 at this point. S&P is more broad based. BTC and International can add Alpha.

The more you write the less informed you sound. S&P 500 makes up about 80% of VTSAX but by definition VTSAX is more broad based. And bitcoin is not going to add alpha. 🙄

Don't neet to justify I am up 62 percent this year. Disagree.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our financial advisor said to do a mix of mainly VTI and some VXUS.

Thats a little bittersweet. On one hand, its nice your FA puts you in low fee index funds. On the other hand, he's likely charging you an AUM fee to allocate your money the same way Bogleheads suggests using a three fund portfolio...which you can do yourself...sans AUM fee.

Most real financial planners use low cost funds. Picking investment funds is about 5% of what a financial planner does. Bittersweet that you have no clue what a financial planner does. If you did, you would run and get one yourself.

Actually, I do know what a financial planner does. We had one for nearly 20 years before we ended our service with them. We had a good experience and they did put us in mostly low fee funds but the AUM fees they charge (lets say 1%) really add up over time. Plus, the service we received from our old FP was the same whether or not our fee was 1% of a little or 1% of a lot. This AUM fee structure needs to change. An hourly FP would be an option for us (and maybe OP...later)

Since OP said they were a novice investor and that this is inheritance money, I am guessing they are looking long term for where to put their money. The 1% AUM adds up and over time and it reduces returns. With all the knowledge and tools available (easily) now, OP can open a brokerage account with a big service like Schwab, Fidelity or Vanguard and then invest their inheritance in a low cost index fund all by themselves. With no fee that will reduce returns over time.

So I do know what a FP does and I have no desire to run to one anytime soon. I do have a good tax accountant on speed dial and if I do need to revisit the services of a FP it will certainly be one who charges by the hour and not AUM.

No, you do not know what a real financial planner does.

What services did your advisor do for you?

We were with a well established DMV Financial PLANNER (you also write advisor and there can be a distinction) for 20 years. They provided good services for us. They could pretty much do it all except they would not sell us things (like insurance) and they would refer us to our tax accountant when it came to tax matters. The reason we left was the AUM fees, not the services. The services we received were essentially the same even when the amount of the fee they received went up. Meaning, if we had 2M with them our AUM (1%) for the year was 20k. If we had 5M with them, the fee was 50k. Same service but fee much higher. No difference in service to us. Why?

This is getting off course though. The OP wanted to invest an inheritance. I assumed they were younger and looking to invest. They can do so easily all by themselves without that 1% fee that, over time, will hinder their returns. Will they need a tax accountant? Maybe. Will they need a FP in the future? Don't know. I just suggest they use one that does not charge AUM fees but is hourly instead.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our financial advisor said to do a mix of mainly VTI and some VXUS.

Thats a little bittersweet. On one hand, its nice your FA puts you in low fee index funds. On the other hand, he's likely charging you an AUM fee to allocate your money the same way Bogleheads suggests using a three fund portfolio...which you can do yourself...sans AUM fee.

Most real financial planners use low cost funds. Picking investment funds is about 5% of what a financial planner does. Bittersweet that you have no clue what a financial planner does. If you did, you would run and get one yourself.

Actually, I do know what a financial planner does. We had one for nearly 20 years before we ended our service with them. We had a good experience and they did put us in mostly low fee funds but the AUM fees they charge (lets say 1%) really add up over time. Plus, the service we received from our old FP was the same whether or not our fee was 1% of a little or 1% of a lot. This AUM fee structure needs to change. An hourly FP would be an option for us (and maybe OP...later)

Since OP said they were a novice investor and that this is inheritance money, I am guessing they are looking long term for where to put their money. The 1% AUM adds up and over time and it reduces returns. With all the knowledge and tools available (easily) now, OP can open a brokerage account with a big service like Schwab, Fidelity or Vanguard and then invest their inheritance in a low cost index fund all by themselves. With no fee that will reduce returns over time.

So I do know what a FP does and I have no desire to run to one anytime soon. I do have a good tax accountant on speed dial and if I do need to revisit the services of a FP it will certainly be one who charges by the hour and not AUM.

No, you do not know what a real financial planner does.

What services did your advisor do for you?

We were with a well established DMV Financial PLANNER (you also write advisor and there can be a distinction) for 20 years. They provided good services for us. They could pretty much do it all except they would not sell us things (like insurance) and they would refer us to our tax accountant when it came to tax matters. The reason we left was the AUM fees, not the services. The services we received were essentially the same even when the amount of the fee they received went up. Meaning, if we had 2M with them our AUM (1%) for the year was 20k. If we had 5M with them, the fee was 50k. Same service but fee much higher. No difference in service to us. Why?

This is getting off course though. The OP wanted to invest an inheritance. I assumed they were younger and looking to invest. They can do so easily all by themselves without that 1% fee that, over time, will hinder their returns. Will they need a tax accountant? Maybe. Will they need a FP in the future? Don't know. I just suggest they use one that does not charge AUM fees but is hourly instead.

I know you will never list the services they provided because you did not have a financial planner. Instead of replying with more word crap, just list the services.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our financial advisor said to do a mix of mainly VTI and some VXUS.

Thats a little bittersweet. On one hand, its nice your FA puts you in low fee index funds. On the other hand, he's likely charging you an AUM fee to allocate your money the same way Bogleheads suggests using a three fund portfolio...which you can do yourself...sans AUM fee.

Most real financial planners use low cost funds. Picking investment funds is about 5% of what a financial planner does. Bittersweet that you have no clue what a financial planner does. If you did, you would run and get one yourself.

Actually, I do know what a financial planner does. We had one for nearly 20 years before we ended our service with them. We had a good experience and they did put us in mostly low fee funds but the AUM fees they charge (lets say 1%) really add up over time. Plus, the service we received from our old FP was the same whether or not our fee was 1% of a little or 1% of a lot. This AUM fee structure needs to change. An hourly FP would be an option for us (and maybe OP...later)

Since OP said they were a novice investor and that this is inheritance money, I am guessing they are looking long term for where to put their money. The 1% AUM adds up and over time and it reduces returns. With all the knowledge and tools available (easily) now, OP can open a brokerage account with a big service like Schwab, Fidelity or Vanguard and then invest their inheritance in a low cost index fund all by themselves. With no fee that will reduce returns over time.

So I do know what a FP does and I have no desire to run to one anytime soon. I do have a good tax accountant on speed dial and if I do need to revisit the services of a FP it will certainly be one who charges by the hour and not AUM.

No, you do not know what a real financial planner does.

What services did your advisor do for you?

We were with a well established DMV Financial PLANNER (you also write advisor and there can be a distinction) for 20 years. They provided good services for us. They could pretty much do it all except they would not sell us things (like insurance) and they would refer us to our tax accountant when it came to tax matters. The reason we left was the AUM fees, not the services. The services we received were essentially the same even when the amount of the fee they received went up. Meaning, if we had 2M with them our AUM (1%) for the year was 20k. If we had 5M with them, the fee was 50k. Same service but fee much higher. No difference in service to us. Why?

This is getting off course though. The OP wanted to invest an inheritance. I assumed they were younger and looking to invest. They can do so easily all by themselves without that 1% fee that, over time, will hinder their returns. Will they need a tax accountant? Maybe. Will they need a FP in the future? Don't know. I just suggest they use one that does not charge AUM fees but is hourly instead.

I know you will never list the services they provided because you did not have a financial planner. Instead of replying with more word crap, just list the services.

We were with: https://www.edelmanfinancialengines.com/

Our advisor was a CFP.


Is there an actual point you're trying to make?

[Anonymous]

Op here. I’m paralyzed with fear and haven’t done anything yet. Now I keep hearing about the stock market being at an all time high and don’t put your money in now.

This is hard.

[Anonymous]

Anonymous wrote:Op here. I’m paralyzed with fear and haven’t done anything yet. Now I keep hearing about the stock market being at an all time high and don’t put your money in now.

This is hard.

Don't try and time the market. If your timeframe is 5+ years to access the money, go ahead and do it now.

[Anonymous]

Dollar cost average. Put 1/4 now. I do think volatility till election but once it is clear that Kamala wins, market will go up in Nov and Dec. I sold almost everything and am in cash. But I am a gambler.

[Anonymous]

Anonymous wrote:Op here. I’m paralyzed with fear and haven’t done anything yet. Now I keep hearing about the stock market being at an all time high and don’t put your money in now.

This is hard. [/qu

Investing a lump sum is difficult for sure

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our financial advisor said to do a mix of mainly VTI and some VXUS.

Thats a little bittersweet. On one hand, its nice your FA puts you in low fee index funds. On the other hand, he's likely charging you an AUM fee to allocate your money the same way Bogleheads suggests using a three fund portfolio...which you can do yourself...sans AUM fee.

Most real financial planners use low cost funds. Picking investment funds is about 5% of what a financial planner does. Bittersweet that you have no clue what a financial planner does. If you did, you would run and get one yourself.

Actually, I do know what a financial planner does. We had one for nearly 20 years before we ended our service with them. We had a good experience and they did put us in mostly low fee funds but the AUM fees they charge (lets say 1%) really add up over time. Plus, the service we received from our old FP was the same whether or not our fee was 1% of a little or 1% of a lot. This AUM fee structure needs to change. An hourly FP would be an option for us (and maybe OP...later)

Since OP said they were a novice investor and that this is inheritance money, I am guessing they are looking long term for where to put their money. The 1% AUM adds up and over time and it reduces returns. With all the knowledge and tools available (easily) now, OP can open a brokerage account with a big service like Schwab, Fidelity or Vanguard and then invest their inheritance in a low cost index fund all by themselves. With no fee that will reduce returns over time.

So I do know what a FP does and I have no desire to run to one anytime soon. I do have a good tax accountant on speed dial and if I do need to revisit the services of a FP it will certainly be one who charges by the hour and not AUM.

No, you do not know what a real financial planner does.

What services did your advisor do for you?

We were with a well established DMV Financial PLANNER (you also write advisor and there can be a distinction) for 20 years. They provided good services for us. They could pretty much do it all except they would not sell us things (like insurance) and they would refer us to our tax accountant when it came to tax matters. The reason we left was the AUM fees, not the services. The services we received were essentially the same even when the amount of the fee they received went up. Meaning, if we had 2M with them our AUM (1%) for the year was 20k. If we had 5M with them, the fee was 50k. Same service but fee much higher. No difference in service to us. Why?

This is getting off course though. The OP wanted to invest an inheritance. I assumed they were younger and looking to invest. They can do so easily all by themselves without that 1% fee that, over time, will hinder their returns. Will they need a tax accountant? Maybe. Will they need a FP in the future? Don't know. I just suggest they use one that does not charge AUM fees but is hourly instead.

I know you will never list the services they provided because you did not have a financial planner. Instead of replying with more word crap, just list the services.

We were with: https://www.edelmanfinancialengines.com/

Our advisor was a CFP.


Is there an actual point you're trying to make?

Again,

I know you will never list the services they provided because you did not have a financial planner. Instead of replying with more word crap, just list the services.

The point is you are talking about something you do not know about. If you did, you would list the services they provided. You ain't going to do it.

[Anonymous]

Anonymous wrote:Op here. I’m paralyzed with fear and haven’t done anything yet. Now I keep hearing about the stock market being at an all time high and don’t put your money in now.

This is hard.

Hi OP... I totally understand how you feel. However, not investing the money is also a decision..and statistically one that has less growth. Why not invest a chunk? Put the rest in a CD and see how you feel in 6months.

[Anonymous]

A while ago I read up on whether it's better to spread it out or put a lump sum in all at once. You may as well put a lump sum in all at once. If it's uninvested, you're not making anything. Over time it will go up. It might initially go down, but eventually it will go back up again. You might want to break it up into like 4 chunks and spread it out over time, or wait til there is a downturn, or invest in the lower return months. I think generally September is a good month to invest but if you wait it will probably go up October to January. Read up on what months are usually good months to invest. You could put it all in now, or some now, and some after January.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:VTI is same thing--check expenses. Also, know that VTI and VTSAX are very tech heavy with what is referred to as the "Mag 7"--a market euphemism for large, mostly tech companies that have moved up a lot post pandemic. So I would diversify into several etfs (like VTI is one of those). These big companies are Apple, Google, Meta (parent of Facebook), Nvidia, Amazon, and Microsoft. It also holds as a big investment Eli Lilly (also moved a lot on Ozempic type drugs), Broadcom and Berkshire Hathaway (Warrent Buffet's company). If the market goes up, it will do well.

May I suggest some VTI/VTSAX (again decide based on costs of each--they are usually hidden so read and research) but split it with SPY (S and P 500--which also have exposure to these companies), IWM (small caps), and some mid cap stocks, and a tad international funds (no more than 5 percent). Add 1 percent of Bitcoin ETF e.g. IBIT.

This portfolio would be a little more diverse but long term focused as a previous poster said. It is not without risk since the aforementioned companies have moved up a lot. Do it and forget about it and check back periodically.

Such a strange half-informed post. VTSAX is simply an index that tracks the full market. When tech stock are doing well it will have tech stocks. It already has S&P 500, mid cap and small cap stocks in it so it makes little sense to add those. It makes absolutely no sense to add 1% of bitcoin and 5% international will just complicate things but likely have no impact at all.

Also, did you look at the holdings--it is all Mag 7 at this point. S&P is more broad based. BTC and International can add Alpha.

The more you write the less informed you sound. S&P 500 makes up about 80% of VTSAX but by definition VTSAX is more broad based. And bitcoin is not going to add alpha. 🙄

Don't neet to justify I am up 62 percent this year. Disagree.

Maybe you are and maybe you are full of crap— we have no way of knowing.

What we can know— because it’s plainly true and verifiable— is that SPY does not “diversify” VTI.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our financial advisor said to do a mix of mainly VTI and some VXUS.

Thats a little bittersweet. On one hand, its nice your FA puts you in low fee index funds. On the other hand, he's likely charging you an AUM fee to allocate your money the same way Bogleheads suggests using a three fund portfolio...which you can do yourself...sans AUM fee.

Most real financial planners use low cost funds. Picking investment funds is about 5% of what a financial planner does. Bittersweet that you have no clue what a financial planner does. If you did, you would run and get one yourself.

Actually, I do know what a financial planner does. We had one for nearly 20 years before we ended our service with them. We had a good experience and they did put us in mostly low fee funds but the AUM fees they charge (lets say 1%) really add up over time. Plus, the service we received from our old FP was the same whether or not our fee was 1% of a little or 1% of a lot. This AUM fee structure needs to change. An hourly FP would be an option for us (and maybe OP...later)

Since OP said they were a novice investor and that this is inheritance money, I am guessing they are looking long term for where to put their money. The 1% AUM adds up and over time and it reduces returns. With all the knowledge and tools available (easily) now, OP can open a brokerage account with a big service like Schwab, Fidelity or Vanguard and then invest their inheritance in a low cost index fund all by themselves. With no fee that will reduce returns over time.

So I do know what a FP does and I have no desire to run to one anytime soon. I do have a good tax accountant on speed dial and if I do need to revisit the services of a FP it will certainly be one who charges by the hour and not AUM.

No, you do not know what a real financial planner does.

What services did your advisor do for you?

We were with a well established DMV Financial PLANNER (you also write advisor and there can be a distinction) for 20 years. They provided good services for us. They could pretty much do it all except they would not sell us things (like insurance) and they would refer us to our tax accountant when it came to tax matters. The reason we left was the AUM fees, not the services. The services we received were essentially the same even when the amount of the fee they received went up. Meaning, if we had 2M with them our AUM (1%) for the year was 20k. If we had 5M with them, the fee was 50k. Same service but fee much higher. No difference in service to us. Why?

This is getting off course though. The OP wanted to invest an inheritance. I assumed they were younger and looking to invest. They can do so easily all by themselves without that 1% fee that, over time, will hinder their returns. Will they need a tax accountant? Maybe. Will they need a FP in the future? Don't know. I just suggest they use one that does not charge AUM fees but is hourly instead.

I know you will never list the services they provided because you did not have a financial planner. Instead of replying with more word crap, just list the services.

We were with: https://www.edelmanfinancialengines.com/

Our advisor was a CFP.


Is there an actual point you're trying to make?

So your going to public out a company and not tell us what services they provided for you?

No Class.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our financial advisor said to do a mix of mainly VTI and some VXUS.

Thats a little bittersweet. On one hand, its nice your FA puts you in low fee index funds. On the other hand, he's likely charging you an AUM fee to allocate your money the same way Bogleheads suggests using a three fund portfolio...which you can do yourself...sans AUM fee.

Most real financial planners use low cost funds. Picking investment funds is about 5% of what a financial planner does. Bittersweet that you have no clue what a financial planner does. If you did, you would run and get one yourself.

Actually, I do know what a financial planner does. We had one for nearly 20 years before we ended our service with them. We had a good experience and they did put us in mostly low fee funds but the AUM fees they charge (lets say 1%) really add up over time. Plus, the service we received from our old FP was the same whether or not our fee was 1% of a little or 1% of a lot. This AUM fee structure needs to change. An hourly FP would be an option for us (and maybe OP...later)

Since OP said they were a novice investor and that this is inheritance money, I am guessing they are looking long term for where to put their money. The 1% AUM adds up and over time and it reduces returns. With all the knowledge and tools available (easily) now, OP can open a brokerage account with a big service like Schwab, Fidelity or Vanguard and then invest their inheritance in a low cost index fund all by themselves. With no fee that will reduce returns over time.

So I do know what a FP does and I have no desire to run to one anytime soon. I do have a good tax accountant on speed dial and if I do need to revisit the services of a FP it will certainly be one who charges by the hour and not AUM.

No, you do not know what a real financial planner does.

What services did your advisor do for you?

We were with a well established DMV Financial PLANNER (you also write advisor and there can be a distinction) for 20 years. They provided good services for us. They could pretty much do it all except they would not sell us things (like insurance) and they would refer us to our tax accountant when it came to tax matters. The reason we left was the AUM fees, not the services. The services we received were essentially the same even when the amount of the fee they received went up. Meaning, if we had 2M with them our AUM (1%) for the year was 20k. If we had 5M with them, the fee was 50k. Same service but fee much higher. No difference in service to us. Why?

This is getting off course though. The OP wanted to invest an inheritance. I assumed they were younger and looking to invest. They can do so easily all by themselves without that 1% fee that, over time, will hinder their returns. Will they need a tax accountant? Maybe. Will they need a FP in the future? Don't know. I just suggest they use one that does not charge AUM fees but is hourly instead.

I know you will never list the services they provided because you did not have a financial planner. Instead of replying with more word crap, just list the services.

We were with: https://www.edelmanfinancialengines.com/

Our advisor was a CFP.


Is there an actual point you're trying to make?

So your going to public out a company and not tell us what services they provided for you?

No Class.

The PP told you she was with a CFP and literally posted the website for you to click on.

You can lead a horse...