I just started my Roth IRA with vanguard and put my first contribution into VFFVX. I plan on maxing out every year, so can I also invest in VFIAX as well for my Roth IRA? Or would it just be advisable to throw it all into VFFVX as a sort of set and forget?
Roth IRA Beginner
6,230 Views |
56 Replies |
Last: 2 yr ago by El_duderino
Regardless of responses, bravo for setting it up and getting started.
Does Vanguard lock you into their funds? meaning you can only choose Vanguard funds?El_duderino said:
I just started my Roth IRA with vanguard and put my first contribution into VFFVX. I plan on maxing out every year, so can I also invest in VFIAX as well for my Roth IRA? Or would it just be advisable to throw it all into VFFVX as a sort of set and forget?
looks like VOO would be better.
VFFVX vs. VOO ETF comparison tool | PortfoliosLab
The general answer is if you dont want to be an active investor then pick a good index or vanguard fund and leave it alone.
I don't believe so.
Straight from vanguard : For example, at Vanguard, you can choose from our broad range of low-cost mutual funds and ETFs (exchange-traded funds), as well as individual stocks and bonds and funds from other companies.
Edit: thanks for that. Yeah I don't plan on being very active. I can do a 50/50 split between a target and index and call it a day or something of the like.
Edit: thanks for that. Yeah I don't plan on being very active. I can do a 50/50 split between a target and index and call it a day or something of the like.
Thanks! I've procrastinated for years and finally just decided to go for it. Better late than never I guess
If you're not planning on being active, then pick an Index and or ETF. Don't take this decision lightly.El_duderino said:
Straight from vanguard : For example, at Vanguard, you can choose from our broad range of low-cost mutual funds and ETFs (exchange-traded funds), as well as individual stocks and bonds and funds from other companies.
Edit: thanks for that. Yeah I don't plan on being very active. I can do a 50/50 split between a target and index and call it a day or something of the like.
The difference could be thousands of dollars difference.
I would call Vanguard and tell them you're trying to do and let them suggest some funds.
Best Total Stock Market Index Funds Of August 2023 Forbes Advisor
10 Best Growth ETFs Of August 2023 Forbes Advisor
OP, you should probably just go ahead and sell your position and move to cash…
On a serious note, good work! These will be the most valuable dollars to your older self. Keep it up!
On a serious note, good work! These will be the most valuable dollars to your older self. Keep it up!
Dang. You really had me in the first half. I was about to say uh oh until reading the second statement
I echo this and it can't be emphasized enough. Starting early in life and continuing to invest are huge.Carlo4 said:
Regardless of responses, bravo for setting it up and getting started.
One fund and one fund only for all of it
VTI
VTI
You've proven to be a fool. You can sit down
VUG
VOOG
VTI
I dont like target date funds. Heck i dont like funds at all. Prefer ETFs.
VOOG
VTI
I dont like target date funds. Heck i dont like funds at all. Prefer ETFs.
txaggieacct85 said:
You've proven to be a fool. You can sit down
I am, in a Cinemark right now.
I'll second VTI.JSKolache said:
VUG
VOOG
VTI
I dont like target date funds. Heck i dont like funds at all. Prefer ETFs.
TDFs are fine for a lot of people, especially if they are not active and don't want to do much rebalancing on their own over the years.
VOO has a higher gain in the last five years than VTI
ETF's have lower expenses than funds, although in Van guard the difference is negligible. Don't pick one based on prior performance, pick one you understand, that way when the market is declining you'll be able to understand what is going on.
txaggieacct85 said:
Never experienced another Aggie that's as much of a loser as you are. Try getting a life
You….of all people….the "hardest working man in oil".,…calling someone else a loser and telling them to get a life?!? That's rich.
Yeah I'm trying to learn and get a better understanding of it all.
txaggieacct85 said:
VOO has a higher gain in the last five years than VTI
For all intents and purposes they are extremely similar to one another. I wouldn't bat an eye against using either. That return difference is minute and doesn't mean near as much as how much is invested overall.
El_duderino said:
Yeah I'm trying to learn and get a better understanding of it all.
VOO and VTI are both index funds trackers that capture the market performance. VOO measures against just the s&p 500, whereas VTI adds in lower cap companies outside of the top 500.
It is splitting hairs to fight for one over the other, just do half into each and that'd be fine.
More ETF info:
https://www.investopedia.com/terms/e/etf.asp
What about VTI/VXUS. That's essentially what the target fund is at a 60/40 ratio, just no bonds. And covers the s&p, lower caps, and international?
I wouldn't call an average percent higher annually a minute difference
You're being obtuse. Here's a simple article to help give more context.txaggieacct85 said:
I wouldn't call an average percent higher annually a minute difference
https://www.thestreet.com/etffocus/trade-ideas/vti-vs-voo-which-low-cost-us-equity-etf-is-better
I bolded the part that is the most important.Quote:
VTI vs VOO: The Verdict
In my opinion, it's a coin toss. If you like the name-brand recognition of the S&P 500 and want to stick to large-caps, then VOO might be the better option. If you don't mind some mid and small-cap exposure, then VTI could be a good pick. Investors can potentially also use both as tax-loss harvesting pairs.
Either way, the market-cap weighted nature of both indexes means that both ETFs will likely continue to perform similarly moving forward. If mid and small-cap stocks have an explosive year, VTI might beat VOO by a few basis points. Vice-versa, another streak of large-cap dominance will see VOO win slightly.
In short, either ETF will provide an investor with palpable and accurate exposure to the risks and returns of the U.S. equity markets, with low fees, minimal tracking error, and low portfolio turnover. With either, making consistent contributions, reinvesting dividends, and staying course will help ensure success.
Agree. Either is good.
If you are able, put the max in at the first of the year to take advantage of compounding. Makes a big difference.
compounding doesn't apply to ETFs or equities.cf21 said:
If you are able, put the max in at the first of the year to take advantage of compounding. Makes a big difference.
txaggieacct85 said:compounding doesn't apply to ETFs or equities.cf21 said:
If you are able, put the max in at the first of the year to take advantage of compounding. Makes a big difference.
Well, to quote someone…
txaggieacct85 said:
You've proven to be a fool. You can sit down
The comparison of performance of a target date fund to an S&P 500 Index etf is apples and oranges.txaggieacct85 said:
I wouldn't call an average percent higher annually a minute difference
The target date fund is fine for what the OP is asking.
Wowtxaggieacct85 said:compounding doesn't apply to ETFs or equities.cf21 said:
If you are able, put the max in at the first of the year to take advantage of compounding. Makes a big difference.
txaggieacct85 said:compounding doesn't apply to ETFs or equities.cf21 said:
If you are able, put the max in at the first of the year to take advantage of compounding. Makes a big difference.
I would love to hear how the concept of compounding returns doesn't apply to equities or ETFs especially with a DRIP.
txaggieacct85 said:compounding doesn't apply to ETFs or equities.cf21 said:
If you are able, put the max in at the first of the year to take advantage of compounding. Makes a big difference.
You guys are still falling for MFBarnes' crap and interacting with him like he's not the dumb*** that he's always been?!? This is what that moron does: trolls around on different boards acting like an expert in every discussion he enters. It's a mental illness and he can't help himself.
There's a whole lot of stupid that college can't fix. -My Grandfather
Stive said:
You guys are still falling for MFBarnes' s*** and interacting with him like he's not the dumb*** that he's always been?!? This is what that moron does: trolls around on different boards acting like an expert in every discussion he enters. It's a mental illness and he can't help himself.
I just want to read a theory on how compounding doesn't work with equities because I need a good laugh today.
Featured Stories
See All
35:23
11h ago
3.5k
15:01
10h ago
2.4k
A&M remains committed to identity vs. high-scoring Georgia
by Olin Buchanan
Scouting Report: Texas A&M at Georgia
by Tom Schuberth
Keys to the Game: Texas A&M at Georgia
by Luke Evangelist
Sweet Kitten Feet
SIAP: Does this mean no Maroon & White Game in 2026?
in Billy Liucci's TexAgs Premium
62