Anonymous
09/20/2024 09:58
Subject: 100k of VTSAX today???
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?
Anonymous
09/20/2024 09:41
Subject: 100k of VTSAX today???
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.
But what about Beta and Gemma and Delta and Epsilon? Where are you gonna get that from???
VTASX top 7 stocks make up 25.5% of it's holdings.
S&P 500 same 7 stocks make up 29.4%. Not sure how that's "more broad based"
Also, the fees aren't hidden. They are right on the main info page for every fund. 0.04 for VTSAX, 0.03.for VTI.
Anonymous
09/20/2024 09:32
Subject: 100k of VTSAX today???
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.
Anonymous
09/20/2024 09:31
Subject: 100k of VTSAX today???
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.
I don't know I am up 60 percent this year while S and P is up 20 percent. But you do you. This is my advice and I am sticking to it.
Anonymous
09/20/2024 05:20
Subject: 100k of VTSAX today???
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.
I’m in the no FP camp too. Most FPs make investing more complicated than it needs to be. This is to justify their fees. My portfolio, while not the sexiest is mostly VTSAX, a bond fund, an international fund and an S and P 500 fund. I also have a few individual stocks. A couple of the stocks have done amazing over the last ten years- Apple, Berkshire Hathaway
(b shares
unfortunately)and Microsoft, but individual stocks make me nervous.
If you have over 8 figures, maybe you need a FP? Most of us are probably best served in keeping it simple and following Warren Buffet’s advice to his family, which is to put most of their money in the S and P 500.
Anonymous
09/20/2024 02:58
Subject: 100k of VTSAX today???
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.
Anonymous
09/20/2024 02:33
Subject: 100k of VTSAX today???
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.
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.
Anonymous
09/19/2024 12:16
Subject: 100k of VTSAX today???
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.
What services did your advisor provide?
Anonymous
09/19/2024 11:23
Subject: 100k of VTSAX today???
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.
Anonymous
09/19/2024 10:32
Subject: 100k of VTSAX today???
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:For long term, yes. For near term, no. Market is near all time high
This guy is on the mark. Do not buy at new All time high which was hit this week. Just think about it.
The ATH high will be sold. Buy a little bit (10-20K) on red days is best. Example is market is down 1-2 percent on the day. Good day to buy a little.
Don't buy when the market is up 1-2 percent and especially at ATH.
If bought all 100K today, there is very good chance it will be worth 80K in the next 6 months.
+1. It's actually setting up a nasty triple top if it can't break above current levels.
Agree. The Fed needs to land a triple linzy or the economy will divert to restrictive conveyance.
But if they try the triple lindy, will they trigger a secular diversion?
Anonymous
09/19/2024 09:54
Subject: 100k of VTSAX today???
Anonymous wrote:Anonymous wrote:Anonymous wrote:Our financial advisor said to do a mix of mainly VTI and some VXUS.
I hope you don't pay much for that level of creativity from your FA!
VXUS is frustrating though. Roughly 1/3 the return of VTI over the last 5 years. Is there a chance that international stocks will outperform domestic stocks in the future? sure. the thing is, that will be well choreographed and the rotation will take a while to play out - meaning you will have time to react. To each their own, but I'd rather be overweight domestic, make the higher returns, and shift when I start to see the change.
I love that no matter how many times people get told they can't time the market, everyone thinks they can time the market.
Well, but they're not timing the market, they're . . .um . . . doing something that looks like trying to time the market but is really . . .um . . . different somehow.
Anonymous
09/19/2024 07:33
Subject: 100k of VTSAX today???
Don’t try to dollar cost average if you have a lump sum now. That’s silly. OP, sometimes people on DCUM like to make things more complicated because it makes them feel like they are doing more. Not because it’s better.
Your plan is perfect.
Your plan is perfect.
Anonymous
09/19/2024 07:15
Subject: 100k of VTSAX today???
Anonymous wrote:Anonymous wrote:Anonymous wrote:For long term, yes. For near term, no. Market is near all time high
This guy is on the mark. Do not buy at new All time high which was hit this week. Just think about it.
The ATH high will be sold. Buy a little bit (10-20K) on red days is best. Example is market is down 1-2 percent on the day. Good day to buy a little.
Don't buy when the market is up 1-2 percent and especially at ATH.
If bought all 100K today, there is very good chance it will be worth 80K in the next 6 months.
+1. It's actually setting up a nasty triple top if it can't break above current levels.
Agree. The Fed needs to land a triple linzy or the economy will divert to restrictive conveyance.
Anonymous
09/18/2024 19:48
Subject: 100k of VTSAX today???
Anonymous wrote:Voo and DCA.
Yeah, I like VOO better.
Anonymous
09/18/2024 18:26
Subject: 100k of VTSAX today???
Anonymous wrote:Anonymous wrote:For long term, yes. For near term, no. Market is near all time high
This guy is on the mark. Do not buy at new All time high which was hit this week. Just think about it.
The ATH high will be sold. Buy a little bit (10-20K) on red days is best. Example is market is down 1-2 percent on the day. Good day to buy a little.
Don't buy when the market is up 1-2 percent and especially at ATH.
If bought all 100K today, there is very good chance it will be worth 80K in the next 6 months.
+1. It's actually setting up a nasty triple top if it can't break above current levels.