It doesn't say, there is no ticker. It contains 1386 stocks and has a $360m value.
Retirement investing...
- Thread starter Ws6
- Start date
So in a decade it's doubled. VFIAX has tripled. That would take more than a 3% cash match to be a good deal. That is my reticence.
@Ws6 I give you credit for baring your soul in this thread, whether or not I agree with all your opinions.
I commonly speak to the need for personal finance being taught in schools starting at an early age. It is fair to argue that some, perhaps many, will disregard the information but at least give kids a fighting chance.
I am not sure if your goals are doable, but best of luck. Markets can be fickle; plans need to adapt. I sometimes think we may be lulled into thinking the recent growth years will continue forever... As others have said, get crackin' and stay on the path. I am certainly no one to judge given the mistakes I have made. You are ahead of the game in many ways and are wise to ask these hard questions. It's OK to be wrong; it's far worse to be closed-minded about taking good orderly advice.
Speaking for myself, in the end, I have one person to hold responsible for my life.
I commonly speak to the need for personal finance being taught in schools starting at an early age. It is fair to argue that some, perhaps many, will disregard the information but at least give kids a fighting chance.
I am not sure if your goals are doable, but best of luck. Markets can be fickle; plans need to adapt. I sometimes think we may be lulled into thinking the recent growth years will continue forever... As others have said, get crackin' and stay on the path. I am certainly no one to judge given the mistakes I have made. You are ahead of the game in many ways and are wise to ask these hard questions. It's OK to be wrong; it's far worse to be closed-minded about taking good orderly advice.
Speaking for myself, in the end, I have one person to hold responsible for my life.
I have no problem being honest. If some judge me for my views and experiences and takes on life, that is their own business. I've done the thing. The people thinking I am blaming others for my fortunes are wrong, because I claim them as mine. I'm not concerned about soft hands and weak stomach's opinions of me, but I also know I'm no accountant, and I don't challenge them at their books, and also realize I have a lot I can learm from them.
The rule of 72: To calculate the doubling time of an investment, divide 72 by the % annual increase. The rule works pretty well though it's not exact.
You can also reverse it. If an investment doubles in 10 years, the annual return was about 72/10 = 7.2%.
You have to be realistic. A 7.2% average annual return over a 10 year period is actually very good. The US market has been on a tear for the last decade but no market can keep it up. Earnings simply can't support it and no, this time is not different.
I too have had a few investment do much better than that (eg bought Shell Oil in 2019 and it's doubled without counting the dividends so 72/6 = 12% annual return without counting the dividends, which add about 4%, so about a 16% total annual return over 6 years) but I'll take a 7.2% annual return investment any day. My Shell Oil gain was because of a strong stomach and fortunate timing. I bought it when the markets had gone all to hexx and buying oil stocks seemed like a really bad idea.
https://www.justetf.com/en/etf-profile.html?isin=IE000OJ5TQP4
This will keep rising after this weekends kerfuffle in the Oval office. Bought some last week
This will keep rising after this weekends kerfuffle in the Oval office. Bought some last week
Very nice game plan / retirement planning / strategy.
Keep it up.
I can PM you mine if interested…..
To be successful…. you have to think successful.
That requires research, planning, risk mitigation, hypothetical ‘what if’ scenarios, etc….
If something happens you got a Plan A, B, C
Example:
- Tech boom / AI craze won’t last forever. Investors can NOT rely on the past growth for the next 20
- Recession was postponed due to trillions pumped into economy since Covid, 5 year anniversary soon
- Job cuts, look at the crazy amount of job cuts from many industries. Daily Job Cuts . Com
- Unexpected health issues or family member with health issues
- Natural disasters like hurricanes (FL), fires (CA), flooding (NC) , etc… this can destroy net worth quickly. It takes years to settle with insurance companies / lawsuits / relocation / new housing / rebuilding of life, etc…
I feel very bad for all those in California that lost everything in the fires.
Good to see the OP making changes for his future, he will definitely need to ‘circle the wagons’ and watch every dollar. It takes time to build wealth and he’s getting on the right track.
$1M at 55 is obtainable for him.
You’re missing the big picture, that’s why you have a “hang up”
1. The “popular funds” have performed well, but there is no guarantee that they will continue to do so. So stop comparing funds. Stop trying to pick “winners”. It doesn’t work.
2. Determine your risk tolerance, then define your asset allocation. Pick low cost funds that meet that allocation.
3. You should dollar cost average into a hot, and volatile, market, like we have at the moment. So, there is no rush on getting the money into your selected funds.
4. You are giving up $3,500. Pre-tax. That’s worth considering. Depending on your tax bracket, that is worth at least $5,000 of earned income. How many shifts would you have to work to make that?
5. You can save pre-tax earnings of $7,000 into the company 401(k), collect the match, then roll it over to your IRA and keep all $10,500 of it. Better - you will have the fund you want, and all of the money.
6. Pick something low cost among those offered.
Finally - not all of us have soft hands or weak stomachs - but even with hard hands and a strong stomach, inaction will get you nowhere.
@Ws6 The best investing advice I ever got was, "You should make your money work for you at all times, regardless of market conditions and the economy."
I humbly suggest you review the roadmap outlined in post #248, just above. Good luck!
In AA we say, "Into action!" I can tell you, financial security is a great spot to find yourself in. Because you now have the ability to help others.
I humbly suggest you review the roadmap outlined in post #248, just above. Good luck!
In AA we say, "Into action!" I can tell you, financial security is a great spot to find yourself in. Because you now have the ability to help others.
A million$ is made $10 at a time. You have to watch for small drains on your income.
Even better is to take off the investment portion first and then live on the rest. The common rule of thumb is 10%. If you want to start late and retire young the investment portion will have to be higher, probably much higher.
The market will go through many gyrations in the next 10 or 15 years. No-one has been able to consistently time the markets. So don't even try. Instead, set up an allocation plan you can live with through good times and bad (including an emergency fund), and invest new money in the sector that is falling behind. That way you'll be "buying low."
When you're retired, once again have an allocation plan (same plan? different plan? it's up to you). If something is getting ahead, sell off a bit of it, and put that money in whatever is falling behind. That way you're both "buying low and selling high." Works for me anyway.
Can you clarify roll over? Is this a yearly action, where I can put it all in my 401k, take the match, and transfer it into my Roth, and pay the taxes, and then it sits in my roth tax free?
Also, I am investing in vfjax. Basically cap weighted sp500. I to not know better how to diversity, as that's kindof what Buffet recommended TO diversify. Sure I expect ups and downs, but ultimately for it to be a good move over a decade or two.
Remember Warren Buffett's 2 rules for successful investing:
Rule Number 1 - Don't lose money.
Rule Number 2 - Don't forget Rule Number 1.
You'll note that there is nothing there about making a killing on the latest fad. I try to avoid them myself.
Rule Number 1 - Don't lose money.
Rule Number 2 - Don't forget Rule Number 1.
You'll note that there is nothing there about making a killing on the latest fad. I try to avoid them myself.
Well, I've set my 401K to match at 6%, I set to max out their match in the large cap SP500 fund.
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That's why I'm investing in VFIAX/VOO as Buffet recommends.
Thats a pretty good slogan from WB, but it does not mesh well with some of his other advice. A better one, IMO, is "Be fearful when others are greedy, and greedy when others are fearful". It implies you have to take some risk at some time to do well in the investment markets. Someone could stash dollar bills under their matress, or save up in a checking account, but those "safe" plans will gain you little or nothing. The way to mitigate risk is to be diciplined and invest in the market dips and hold for the long run. No fads, just take prudent risks, and ride out the dips. You will be rewarded over the long run.
We've done very well with BRK.B as well. It's like a conservative mutual fund, until recently managed by 2 of the top investors of the 20th and 21st centuries, with a 0.00% MER. My wife is up by 6X. We should have bought more!
As Charlie Munger has died and Warren Buffett is getting pretty old, how will it do going forward? Warren and Charlie have selected good successors, but who knows.
There is no mathematical advantage to being in a Roth, assuming your taxes stay the same. If you let money in a regular IRA / 401K compound, and then pay the taxes on the withdrawals, vs pay the taxes on the money first then put it in - you end with the same amount, again assuming the tax rate is the same.
There are nuances. Like if you need to withdraw early there are some advantages to a Roth, so that might be why your looking at a Roth. However again, in your case if you retire early with not a lot of nest egg, your taxes may be lower when you retire.
I am looking at it, and agree. I think the advantage to the Roth is if I were for whatever reason to withdraw a large amount at once. That said, I don't think there is a disadvantage to the Roth vs. the ind. brokerage, except for penalty prior to 59.5.
That said, I may want more than $50K a year, in which case a Roth would avoid cap gains taxes.
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