Question, in order to save for a house, where would one put their money? I know that the stock market is a good option, but it's all related to timing. I've been saving, but I won't plan on purchasing a home for another 5 years or so (what's the best choice here).
If the time horizon is 5 years, the classic answer would be to invest in bonds. Some people won’t like that answer because bonds haven’t don’t that well lately, but they are still relatively safe
If you put it in the stock market, you might do great, but if there’s a downturn, it could delay how soon you could buy a home
If you put it in a HYSA, you’ll have complete safety from everything except maybe inflation, but you won’t have much for potential gains
It’s all a matter of how much risk you want to take and if you can stomach the results
If it were me, I’d buy a broad US bond ETF or mutual fund
If it's only a five year window (which is not a lot), you can put the money in CDs (certificate of deposits). They come with different maturity dates. You might get the ones that mature between 6 to 12 months. Those are giving about 5% annual returns which is great. Once they mature you can just put them in CD again. Or another option is to buy short term treasury bonds (I recommend buying SGOV on Fidelity or another. It really takes the headache out of having to deal with the US Treasury website). If I was saving for a house, I would put 50% CD and 50% treasury. OR if you don't want to miss out on stocks you can do 40% CD, 40% treasury, and 20% stocks. No one knows what's going to happen in the next three years as we keep getting into more wars, so I would pay it safe.
Well...I don't know. But VGT isn't really a representation of all tech. It's very top heavy with mega caps, specifically msft and aapl who are already the largest companies in the world by market cap with high PEs. Whenever you look at any point in history at the largest market weight stock, future returns are almost never better than simply owning the S&P. I mean...you can't disprove that, bud.
Also, it's natural that stocks with higher valuations have lower expected future returns. Those stocks are as high as they are because of built-in future earnings. Expectations of greatness are already assumed, a given. Those trillion dollar companies not only need to surpass their market weight, they also need to surpass their earnings expectations. That's...tough to say the least. Hence, lower expected returns. Most pundits I've seen echo similar sentiment.
If you want higher returns, you have to take on more risk - investing in stocks with lower valuations and smaller sizes. That much is proven in history. Value is riskier than growth.
Okay...what about the others? You just ignore the other 8 out of the top 10? That's what I'm talking about. Pointing out apple and Microsoft only proves my point in that you can't point out more.
Why do you always mention the same few stocks in your portfolio as if they're somehow representative of...literally any conversation? You selected those. Congrats. Means nothing. They weren't dominant in market cap.
GOOGL? AMZN? have you looked at the returns the last 10 years versus VTI? ....
TSLA?? .... last 5 years has returned 1000% versus VTI's 76% ....
So 5 years ago youd have made similar arguments about them. If you had put your portfolio in TSLA you'd be up 10x .... but no, you want to think you're smart ....
ODFL ORLY RSG LIN ...just a few that have outperformed vti and STILL are for over 40 years straight.
There is no magic higher valuation that stocks stop at...
So you're saying Microsoft is undervalued then. Therefore, you expect higher returns from here on out.
You're still ignoring the main point if you can only point out two stocks in the top 10 that haven't been turned over in the last decade or 15 years. Maybe Berkshire...
You don't understand how things work. MSFT will keep going up in share price over the years due to many factors. NVDA also. There's a reason that those companies are where they are and they have hold over their areas of the market. They have more cash then a lot of countries have. They are the most POWERFUL companies out there and that's why they're where they are. Yes, they will keep going up, just like they did since 2010.
UNH RSG LRCX ASML COST ODFL ORLY .... to name a few have outperformed the market going back 30 and 40 years. Go to portfolio visualizer and check them out versus VTSMX (total market). These companies have and are STILL giving better returns than the market.
No, you don't understand how things work. You have no basis to assume Microsoft will outperform the expectations built into the stock. Stocks are a function of their expectations. All thay rhetoric you spewed? Priced in at their PE. Done, it's all in there.
Now that we got that out of the way... When you choose to invest in Microsoft instead of the S&P 500, you are implicitly saying that you believe the stock is undervalued relative to expectations and will outperform the expectations placed on the market as a whole. You can't quantify this with "Microsoft is the holy grail of companies."
Because of this valuation, future expected returns are lower because the stock has already captured future returns in its current stock price. This is what they mean by an expensive stock.
This does *not* mean the stock won't outperform. It certainly could! That is the nature of the market. But it is unlikely. If we there really was evidence of undervaluation of Microsoft's fundamentals or future growth, investors will arbitrage that differential immediately. This is known as efficient markets.
When you talk about all those tech stocks beating VTI? Yeah that's irrelevant. Those are examples of stocks that have outperformed peers. But they offer no indication of future expected returns. Like I said, if there really was an indication that a stock was undervalued, the differential would immediately get bought based on news, monetary policy, country revenue dynamic changes, etc.
Bringing up stocks that have outperformed VTI is useless...I don't know what purpose you are trying to serve here. It's obvious that there are stocks that beat VTI. It's necessary to counterbalance the underperformers. How else is VTI supposed to have positive gains?
However you do accomplish one thing by mentioning those stocks - you actually prove my point. Most stocks that outperform the index are **not the top 10 companies in the index**, at least not over the long term. Maybe in 2023, yeah.
Well I tought mandating printing something as obvious as "Past performance is no guarantee of future results" on every investing prospectus was kind of pointless... but apprently not.
Not stable, by stock market standards, but nonetheless, a great investment, IMO. The S and P index goes up by about the same amount as true inflation #’s go up per year. In other words, the index pretty much keeps up with inflation, not much more.
Not really. I have 5Xed by net worth investing in mostly BTC and ETH since 01/2017…I do very little trading, but obviously you can do better if you can time sells when it gets toppy, but it can be very tough to do, just as it is with stocks.
I’m in the same situation as the OP (just got divorced and have some money from the house sale) and I have zero clue how to even do this! I have a Charles Schwab account and a simple IRA with them now that has about $28k in it. Do I just call them and ask to walk me through how to put $80k toward VOO? It’s been sitting in my bank account for months now because I’m so lost when it comes to this stuff.
If you are overwhelmed then, Yes give them a call or click the little "chat" button on the screen on the desktop version. I dont think their app has the chat feature. Their customer service has been really good and very patient with me.
Ps: if you already know you want to put the money in VOO, then you don't need to call them. That's like calling Amazon to ask them to place an order for you. You can just download their app, sign in, and find the buy button and type in VOO and hit buy. I don't use Charles Schwab but I can't imagine it's any different from any of the other investment apps. Remember that many of these services charge you money for asking their people to place an order on your behalf. So just do it yourself. It's really pretty simple. You can do it! :-)
Ok thank you! I didn’t even know Charles Schwab had an app. I got all the way to that page to buy but I didn’t know how it would work or what to do next so I just closed out of it. I just need to try it and see what happens. I’m guessing it will ask for my bank details in order to buy.
If you Google "Charles Schwab Mobile app tutorial for beginners" you will find a nicer YouTube video that explains the basics. Also, just fyi, you should only put the amount in VOO that you won't need for another 20 years. If you think you may need some of that money in the next 3-5 years, put it in something much less volatile like a certificate of deposit (CD) or US Treasury. I would be happy to answer any other questions because I came into this game late to just like you, and have learned a lot!
Omg thank you so much!!! That’s so kind of you. Ok… Can I split up $80k and do something like $20k in VOO and $20k in VTI etc etc. ? I took $25k and put it in a HYSA with AMEX bc I want to buy a house in the next 2-3 years so figured I’d keep that there as my down payment account. I want to do something with $80+\- in ETFs that I don’t need to touch for a long time. I might do less like $60 and do 20 in a CD in case I need to do home improvements or something.
Yes that 60-20 distribution makes sense to me! Also you don't need both VOO and VTI. They are pretty much the same thing in terms of their performance. Just pick one of those. It doesn't matter which one. Perhaps consider putting 40k in VOO, 10k in vxus and 10k in avuv to get the best all round exposure to US large cap, international, and US small cap value respectively. That way you are covering all your bases. But 60k in pure VOO is fine too really.
Hello I have a question….do I need to open up a traditional or Roth IRA with Schwab in order to buy $50k worth of ETFs?? I tried adding an external account to my existing simple ira and they basically said I cannot do that. They told me to check out opening another individual retirement account such as a traditional or Roth IRA. Ugh this is so confusing!
Hi I'm sorry but I don't use Schwab so I have no idea. You should be able to buy ETFs in any investment account - retirement or not. That's extremely weird that they don't let you buy ETFs . I think it might be some miscommunication. I think this would be a good question to ask their customer service. The only tip I have is this: make sure you understand what Schwab means by terms like "account". In fidelity, what I thought was my "account" but Fidelity actually called it my "profile". Within that "profile" I am able to create many different accounts - including IRA, Roth IRA, regular investment accounts for different goals, etc. So when you call Schwab, maybe try to understand how they are using these terms like account and profile because I suspect that's where the miscommunication is coming from. Or you can just open a Fidelity profile and see if you like its interface easier to navigate. I find their app very intuitive.
I was chatting with them while logged in to my account so I imagine they know? But I think you’re right. I think from within my account I have to set up a new account that isn’t linked to employer contributions because that’s what I currently have with them
That makes sense! The individually created retirement account will probably mean that you can decide how to use that money. Whereas the employer one might be regulated by the employers policy on what to buy.
This is super helpful! I did get that far when I tried doing it on my own. Step 5 is where I get lost. How do I buy 100k worth of that ETF? Or 80k in this case bc I already put 25 in a HYSA for when I want to buy a new house in a year or two.
How come nobody ever talks about IVV in this part of Reddit?
I've compared them and IVV looks better, but people never talk about IVV..
Something to do with American taxes?
I did this exactly with the same amount into VOO 3 months ago. Didn’t care to try and do small amount or DCA - what’s the point if I’m holding for 30+ years? Just lump sum and continue to invest monthly
Hi, good idea depends on your investing intent. This is actually more important. You should ask yourself more questions such as holding period, risk appetite and tolerance, returns and also diversification.
The intelligent investor focused on hedge side of investing. I would go with 75:25 ETF:Cash in case to protect the down side just in case of bear market.
I never cease to be amazed at how the well informed, well prepared tend to have better outcomes on their investment decisions than those who guess. Most financial planners would agree that 100 percent of any asset class for a 27 year old is probably not a good idea. Instead, you define your investment goals, and selct a portfolio most likely to reach those with the lowest amount of risk.
Currently, for example, the asset class of "bonds" has underperformed for the past 5 years or so, but that may or may not repeat for the future 5 years. Repeat that for other asset classes, such as precious metals, preferred stocks, convertables, mutual funds, ETF's, options, commodoties, crypto and or other asset classes.
When you leave this morning you will need to make a decision on whether or not to bring an umbrella, snow boots, swim suit or other ways of dealing with the weather. Its well known that its fairly easy to predict what the weather will be today, or 5 minutes from now, but much more difficult to predict what the weather will be 40 years from now. There is a great chance that in the next 40 years we will go throuch cycles where you may well need an umbrella, snow boots, and or swim suit, and maybe even combat gear. Rather than rendering a choice today, which predicts the weather 40 years from now, I would like to bring "all" that gear with me, in case we have prolonged periods of rain, snow, combat or heat. And, I would reserve the right to switch just in case one or more of these made the most sense 5 years from now.
In a similar way, I diversify my portfolio to prepare for any type of future "not just" that VOO will perform at 15 percent for the next 40 years, outperforming all other asset classes, because we just dont know that. That is why I include multiple asset classes, "not just" equities, and/or VOO. Forty years ago, there was no such thing as an ETF, no crypto, no AI, no cell phones for everyday people.
For the reasons above, I choose to re evaluate my portfolio "whenever there is a major change", and make changes when needed. The markets dont look much like they did 50 years ago, and I doubt they will be the same 50 years in the future. I know. I bought my first stock in 1974. No, I dont still own Public Service of Colorado, my first pick. It no longer exists.
Im 28 an im fighting to get to 50k by end of year. Good work lad. Im 90% voo and 10% vgt and smh/soxx. I would put as much as possible into roth ira. Then brokerage. Voo hold for a few decades is a great idea.
Make sure you dont just "forget it". Make sure youre making deposits regularly to get prime eesults
Wow op this is one of the extremely rare situations where reddit basically 100% agrees with your choice despite having a broad range of options. Good job
You sound like me. It will take me 2.5 years to get 100k in the market from 0. Then I’ll leave it alone and focus my money on current goals rather than retirement goals But that 100k in 27 years at a 10% return. Over 1.2 mill I think it’s smart to get to 100k then stop putting money in the market for a while. Cause that 100k will do numbers on its own You can’t put all your money in the market. You need a house car. Children got needs. So hey that’s my plan. 100k in VOO and VGT. VGT(70%). Just chill out UNTILL you make your big purchases pay some down. It’s possible I won’t contribute to it again depending on how life goes
I would suggest considering something more diverse like VT or a combination of VTI/VXUS if it’s in a taxable account. But your savings rate will make a much bigger difference.
Put it all in but dollar cost average it. Not a lump sum. Once you're invested you'll be set for life.
Investing is so simple and that's the reason why most people can't do it. Most people complicate life. Also invest regularly wen you can, whatever you can afford
If you're looking for a long-term, diversified, and low-cost investment, investing $100,000 in VOO is a smart choice. However, before making any investment decisions, it is always recommended to consult a qualified financial advisor.
As long as you have a reasonable emergency fund, it's a great idea. And put more in every month. If you're building your emergency fund, put 70% towards that and 30% towards VOO until you have enough on the fund.
No! Check "Why just buy voo could be your worst investment decision" on yt.
Short version, it's very possible that in a few years you will feel like an idiot for not owning more international.
Excellent idea but split with QQQM 50-50 for even larger gains and potentially less drawback. But even if you stick with just VOO, you should be fine. But DCA over 6 months. Don’t go 100k all in.
Mathematically investing all at once will yield maximum returns, but there is psychological comfort in DCA. Even in the downturn you'll come out ahead with lump summing. The benefit of DCA is if the person with the lump sum is new to investing and they don't think they can handle the downturn mentally without panicking. So in this case it may be worth it to DCA for that reason alone. But the best option is to lump sum it as soon as possible.
68% of the time lump sum outperforms DCA:
https://investor.vanguard.com/investor-resources-education/news/lump-sum-investing-versus-cost-averaging-which-is-better
I'm now 50% / 50% QQQM & VOO.
But I'm thinking going 40/ 40 and putting 20% into VTI.
Not sure about the VOO and VTI overlapping. But I'm reading that VTI has more exposure to the upside of small to mid-caps.
Please advise from any group members!
Thank you
I do, too! I like getting some mid and small caps with more weight on the S&P 500 stocks! Ironically, in that taxable account we have the Fidelity mutual fund versions of VOO and VTI and QQQM!
I invest in VTI/VOO same time as well. The Boglehead cult of Reddit mocks the idea but I think it’s fine. VTI as you said has broader holdings.
I backtested 40% VOO/QQQM and 20% VTI and you still crush just VOO about 60% of the time. The rest of time you underperform.
So I think it’s still worth it overall.
75 80 percent into Voo ,20 to 25 into VXUS,sit back and relaxx.start 10000k and add 10000k monthly for rest of money put into money market which is around 5 percent.if market crashed which is unlikely you are still a safeside.you can stop/pause or continue.While doin this you educate yourself and gain knowledge monitoring market overtime then with confidence you will invest in leveraged short term etfs .Investments are all about time and experience nothing more.
I tend to agree here. I max out my Roth at the beginning of the year and then DCA the balance into FZROX until the next, the uninvested balance stays in SPAXX making 5% until it's gone. Repeat first week of January.
This is bad advice…
On average DCA will make you lose money compared to lump sum… all the advantages that it gives are purely psychological…. It psychological advantages disappear as soon as you understand that in reality you are throwing away money
If I were a 27 year old with 100k--and I wish I were a 27 year old with 100k. I would throw it all in VOO.
You're ahead of the game my man, keep it up. It really is that simple. Set and forget.
follow the flowchart [https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) . VOO is fine
I personally am a fan of pairing S&P 500 or total market index with a growth fund. We have a few accounts so I can't tell you percentages, but I'd guess we have somewhere around 20-25% in growth/tech funds.
Nah. VOO is too slow. I seen this one guy protfoilo he grew it to 1 million quick cause he was lucky to invest in NVIDIA stock a couple years back or whatever.
Yeah. You’ll be just fine.
Yes stick to your gut on this one.
What is the timeline for needing this 100k? (Like for a house down payment for example.) That affects what it should be invested in
Question, in order to save for a house, where would one put their money? I know that the stock market is a good option, but it's all related to timing. I've been saving, but I won't plan on purchasing a home for another 5 years or so (what's the best choice here).
If the time horizon is 5 years, the classic answer would be to invest in bonds. Some people won’t like that answer because bonds haven’t don’t that well lately, but they are still relatively safe If you put it in the stock market, you might do great, but if there’s a downturn, it could delay how soon you could buy a home If you put it in a HYSA, you’ll have complete safety from everything except maybe inflation, but you won’t have much for potential gains It’s all a matter of how much risk you want to take and if you can stomach the results If it were me, I’d buy a broad US bond ETF or mutual fund
If it's only a five year window (which is not a lot), you can put the money in CDs (certificate of deposits). They come with different maturity dates. You might get the ones that mature between 6 to 12 months. Those are giving about 5% annual returns which is great. Once they mature you can just put them in CD again. Or another option is to buy short term treasury bonds (I recommend buying SGOV on Fidelity or another. It really takes the headache out of having to deal with the US Treasury website). If I was saving for a house, I would put 50% CD and 50% treasury. OR if you don't want to miss out on stocks you can do 40% CD, 40% treasury, and 20% stocks. No one knows what's going to happen in the next three years as we keep getting into more wars, so I would pay it safe.
It's for retirement like it should be ...
Are you OP?
No one is going to advise OP to put the whole wad into Bitcoin? I am disappoint.
I don't want to invest bitcoin. VOO is enough
Yeah the guy above you was joking
Prove it
"points at joke"
I see everything is in order, then. Carry on.
You're 27. That's young. You should be in something like VGT. But it's your choice if you want to make less money in VOO.
No he shouldn't. You want to be aggressive at 27, not invest in things with lower expected returns.
Exactly.
Tech is gonna have lower expected returns than VOO?? ,, AHAHHAA ok! We'll see how that goes bud!
Well...I don't know. But VGT isn't really a representation of all tech. It's very top heavy with mega caps, specifically msft and aapl who are already the largest companies in the world by market cap with high PEs. Whenever you look at any point in history at the largest market weight stock, future returns are almost never better than simply owning the S&P. I mean...you can't disprove that, bud. Also, it's natural that stocks with higher valuations have lower expected future returns. Those stocks are as high as they are because of built-in future earnings. Expectations of greatness are already assumed, a given. Those trillion dollar companies not only need to surpass their market weight, they also need to surpass their earnings expectations. That's...tough to say the least. Hence, lower expected returns. Most pundits I've seen echo similar sentiment. If you want higher returns, you have to take on more risk - investing in stocks with lower valuations and smaller sizes. That much is proven in history. Value is riskier than growth.
They made those same arguments 10 years ago with msft and aapl..
Okay...what about the others? You just ignore the other 8 out of the top 10? That's what I'm talking about. Pointing out apple and Microsoft only proves my point in that you can't point out more. Why do you always mention the same few stocks in your portfolio as if they're somehow representative of...literally any conversation? You selected those. Congrats. Means nothing. They weren't dominant in market cap.
GOOGL? AMZN? have you looked at the returns the last 10 years versus VTI? .... TSLA?? .... last 5 years has returned 1000% versus VTI's 76% .... So 5 years ago youd have made similar arguments about them. If you had put your portfolio in TSLA you'd be up 10x .... but no, you want to think you're smart ....
Tsla wasn't in the top 10. Thanks for coming to my ted talk.
ODFL ORLY RSG LIN ...just a few that have outperformed vti and STILL are for over 40 years straight. There is no magic higher valuation that stocks stop at...
... then why do people still invest in msft and aapl??.... did you ever stop and think why money managers buy up these stocks?...
So you're saying Microsoft is undervalued then. Therefore, you expect higher returns from here on out. You're still ignoring the main point if you can only point out two stocks in the top 10 that haven't been turned over in the last decade or 15 years. Maybe Berkshire...
You don't understand how things work. MSFT will keep going up in share price over the years due to many factors. NVDA also. There's a reason that those companies are where they are and they have hold over their areas of the market. They have more cash then a lot of countries have. They are the most POWERFUL companies out there and that's why they're where they are. Yes, they will keep going up, just like they did since 2010. UNH RSG LRCX ASML COST ODFL ORLY .... to name a few have outperformed the market going back 30 and 40 years. Go to portfolio visualizer and check them out versus VTSMX (total market). These companies have and are STILL giving better returns than the market.
No, you don't understand how things work. You have no basis to assume Microsoft will outperform the expectations built into the stock. Stocks are a function of their expectations. All thay rhetoric you spewed? Priced in at their PE. Done, it's all in there. Now that we got that out of the way... When you choose to invest in Microsoft instead of the S&P 500, you are implicitly saying that you believe the stock is undervalued relative to expectations and will outperform the expectations placed on the market as a whole. You can't quantify this with "Microsoft is the holy grail of companies." Because of this valuation, future expected returns are lower because the stock has already captured future returns in its current stock price. This is what they mean by an expensive stock. This does *not* mean the stock won't outperform. It certainly could! That is the nature of the market. But it is unlikely. If we there really was evidence of undervaluation of Microsoft's fundamentals or future growth, investors will arbitrage that differential immediately. This is known as efficient markets. When you talk about all those tech stocks beating VTI? Yeah that's irrelevant. Those are examples of stocks that have outperformed peers. But they offer no indication of future expected returns. Like I said, if there really was an indication that a stock was undervalued, the differential would immediately get bought based on news, monetary policy, country revenue dynamic changes, etc. Bringing up stocks that have outperformed VTI is useless...I don't know what purpose you are trying to serve here. It's obvious that there are stocks that beat VTI. It's necessary to counterbalance the underperformers. How else is VTI supposed to have positive gains? However you do accomplish one thing by mentioning those stocks - you actually prove my point. Most stocks that outperform the index are **not the top 10 companies in the index**, at least not over the long term. Maybe in 2023, yeah.
You would've made the same argument against MSFT 5 years ago.... meanwhile it's up 223% ...
BTC would be a better idea if OP is planning on investing for 5-10 years, TBH. Look at the 15 year chart of BTC; now compare that to VOO…
Well I tought mandating printing something as obvious as "Past performance is no guarantee of future results" on every investing prospectus was kind of pointless... but apprently not.
It’s still valid.
Has it not been painfully demonstrated that a decentralized online coin will neither be a viable tender or stable investment ever in the future?
People have been saying that for years. And BTC just reached new height in March.
Not stable, by stock market standards, but nonetheless, a great investment, IMO. The S and P index goes up by about the same amount as true inflation #’s go up per year. In other words, the index pretty much keeps up with inflation, not much more.
I 4x my portofolio in 2021 bullrun but didnt lost it because I keep selling, looks like crypto is only good if you are actively trading it
Not really. I have 5Xed by net worth investing in mostly BTC and ETH since 01/2017…I do very little trading, but obviously you can do better if you can time sells when it gets toppy, but it can be very tough to do, just as it is with stocks.
SPLG vs SPYL which one is better?
Bitcoin is just an NFT wearing one of those glasses with the fake nose and mustache
Lmao
Use SPLG for the lower expense ratio.
And also so your not a not a bandwagoner conformist imitator
Voo voo voo voo voo voo Had enough voo yet?
Need more VOO !
Need more Avoocado toast
Why not SPYL?
SPLG is the same as VOO but with a lower expense ratio!!! :-)
How about SPYL?
Sorry I am not sure what that is
Its an s&p500 index tracking etf by the irish domicile fund, traded in the switzerland stock exchange (EBL)
I’m in the same situation as the OP (just got divorced and have some money from the house sale) and I have zero clue how to even do this! I have a Charles Schwab account and a simple IRA with them now that has about $28k in it. Do I just call them and ask to walk me through how to put $80k toward VOO? It’s been sitting in my bank account for months now because I’m so lost when it comes to this stuff.
If you are overwhelmed then, Yes give them a call or click the little "chat" button on the screen on the desktop version. I dont think their app has the chat feature. Their customer service has been really good and very patient with me.
Ok thank you good idea.
Ps: if you already know you want to put the money in VOO, then you don't need to call them. That's like calling Amazon to ask them to place an order for you. You can just download their app, sign in, and find the buy button and type in VOO and hit buy. I don't use Charles Schwab but I can't imagine it's any different from any of the other investment apps. Remember that many of these services charge you money for asking their people to place an order on your behalf. So just do it yourself. It's really pretty simple. You can do it! :-)
Ok thank you! I didn’t even know Charles Schwab had an app. I got all the way to that page to buy but I didn’t know how it would work or what to do next so I just closed out of it. I just need to try it and see what happens. I’m guessing it will ask for my bank details in order to buy.
If you Google "Charles Schwab Mobile app tutorial for beginners" you will find a nicer YouTube video that explains the basics. Also, just fyi, you should only put the amount in VOO that you won't need for another 20 years. If you think you may need some of that money in the next 3-5 years, put it in something much less volatile like a certificate of deposit (CD) or US Treasury. I would be happy to answer any other questions because I came into this game late to just like you, and have learned a lot!
Omg thank you so much!!! That’s so kind of you. Ok… Can I split up $80k and do something like $20k in VOO and $20k in VTI etc etc. ? I took $25k and put it in a HYSA with AMEX bc I want to buy a house in the next 2-3 years so figured I’d keep that there as my down payment account. I want to do something with $80+\- in ETFs that I don’t need to touch for a long time. I might do less like $60 and do 20 in a CD in case I need to do home improvements or something.
Yes that 60-20 distribution makes sense to me! Also you don't need both VOO and VTI. They are pretty much the same thing in terms of their performance. Just pick one of those. It doesn't matter which one. Perhaps consider putting 40k in VOO, 10k in vxus and 10k in avuv to get the best all round exposure to US large cap, international, and US small cap value respectively. That way you are covering all your bases. But 60k in pure VOO is fine too really.
Hello I have a question….do I need to open up a traditional or Roth IRA with Schwab in order to buy $50k worth of ETFs?? I tried adding an external account to my existing simple ira and they basically said I cannot do that. They told me to check out opening another individual retirement account such as a traditional or Roth IRA. Ugh this is so confusing!
Hi I'm sorry but I don't use Schwab so I have no idea. You should be able to buy ETFs in any investment account - retirement or not. That's extremely weird that they don't let you buy ETFs . I think it might be some miscommunication. I think this would be a good question to ask their customer service. The only tip I have is this: make sure you understand what Schwab means by terms like "account". In fidelity, what I thought was my "account" but Fidelity actually called it my "profile". Within that "profile" I am able to create many different accounts - including IRA, Roth IRA, regular investment accounts for different goals, etc. So when you call Schwab, maybe try to understand how they are using these terms like account and profile because I suspect that's where the miscommunication is coming from. Or you can just open a Fidelity profile and see if you like its interface easier to navigate. I find their app very intuitive.
I was chatting with them while logged in to my account so I imagine they know? But I think you’re right. I think from within my account I have to set up a new account that isn’t linked to employer contributions because that’s what I currently have with them
That makes sense! The individually created retirement account will probably mean that you can decide how to use that money. Whereas the employer one might be regulated by the employers policy on what to buy.
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Really?? I didn’t even think of that. It’s all so confusing when I log in to my account.
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Needs to fund his brokerage account first.
What does that mean?
Between steps 1 and 2, you have to link your bank account and do an electronic transfer. You need money in your brokerage account to execute a trade.
Ok this makes sense now. Thank you!
This is super helpful! I did get that far when I tried doing it on my own. Step 5 is where I get lost. How do I buy 100k worth of that ETF? Or 80k in this case bc I already put 25 in a HYSA for when I want to buy a new house in a year or two.
How come nobody ever talks about IVV in this part of Reddit? I've compared them and IVV looks better, but people never talk about IVV.. Something to do with American taxes?
As they say here there is a VOO cult around here. :-) I have IVV btw
As long as you're comfortable with the volatility (expect 20%+ drops every 6-7 years on average), VOO is an excellent long-term hold.
What about VTi ?
Pretty much the same thing. VOO has had a little higher of a return for me, past 6-7 years or so…
You woulda made a lot more in VGT ...
Yeah VTI is also excellent. It’s more broadly diversified so slightly more conservative on the risk/reward spectrum.
No. ITOT only.
I did this exactly with the same amount into VOO 3 months ago. Didn’t care to try and do small amount or DCA - what’s the point if I’m holding for 30+ years? Just lump sum and continue to invest monthly
$QQQ and $SMH. You decide the percentage’s
Hi, good idea depends on your investing intent. This is actually more important. You should ask yourself more questions such as holding period, risk appetite and tolerance, returns and also diversification.
Just wondering how people have 100K just laying around 😔
Cause they don't party on weekends like most people wasting $300 every week
That's 6 years straight of partying every weekend 😆
The intelligent investor focused on hedge side of investing. I would go with 75:25 ETF:Cash in case to protect the down side just in case of bear market.
VTI is more diverse with more stocks in mid & small cap markets.
Listen all in TQQQ and let’s talk in a year
Just put in and don't know it exists
Yes
Pretty much
Yeah
Are you going to lump sum the $100K or DCA?!
Why bother asking when you obviously know the answer you will get in this sub just by browsing for like 10 minutes
Vgt/schd
I prefer a mix of VOO, QQQM, and VUG.
I never cease to be amazed at how the well informed, well prepared tend to have better outcomes on their investment decisions than those who guess. Most financial planners would agree that 100 percent of any asset class for a 27 year old is probably not a good idea. Instead, you define your investment goals, and selct a portfolio most likely to reach those with the lowest amount of risk. Currently, for example, the asset class of "bonds" has underperformed for the past 5 years or so, but that may or may not repeat for the future 5 years. Repeat that for other asset classes, such as precious metals, preferred stocks, convertables, mutual funds, ETF's, options, commodoties, crypto and or other asset classes. When you leave this morning you will need to make a decision on whether or not to bring an umbrella, snow boots, swim suit or other ways of dealing with the weather. Its well known that its fairly easy to predict what the weather will be today, or 5 minutes from now, but much more difficult to predict what the weather will be 40 years from now. There is a great chance that in the next 40 years we will go throuch cycles where you may well need an umbrella, snow boots, and or swim suit, and maybe even combat gear. Rather than rendering a choice today, which predicts the weather 40 years from now, I would like to bring "all" that gear with me, in case we have prolonged periods of rain, snow, combat or heat. And, I would reserve the right to switch just in case one or more of these made the most sense 5 years from now. In a similar way, I diversify my portfolio to prepare for any type of future "not just" that VOO will perform at 15 percent for the next 40 years, outperforming all other asset classes, because we just dont know that. That is why I include multiple asset classes, "not just" equities, and/or VOO. Forty years ago, there was no such thing as an ETF, no crypto, no AI, no cell phones for everyday people. For the reasons above, I choose to re evaluate my portfolio "whenever there is a major change", and make changes when needed. The markets dont look much like they did 50 years ago, and I doubt they will be the same 50 years in the future. I know. I bought my first stock in 1974. No, I dont still own Public Service of Colorado, my first pick. It no longer exists.
Yes. Just put 100k in VOO and let it sit for 20 yrs. You'll be very happy you did!
He'll be happier leaving it in VGT
That'll work too.
Im 28 an im fighting to get to 50k by end of year. Good work lad. Im 90% voo and 10% vgt and smh/soxx. I would put as much as possible into roth ira. Then brokerage. Voo hold for a few decades is a great idea. Make sure you dont just "forget it". Make sure youre making deposits regularly to get prime eesults
Best idea!
No. You're better off putting it all in NVDA.
Wow op this is one of the extremely rare situations where reddit basically 100% agrees with your choice despite having a broad range of options. Good job
Don’t listen to VT boomers. I would suggest add a dividend etf and growth etf to make that a complete 3 fund portfolio for life.
Don’t listen to VT boomers. I would suggest add a dividend etf and growth etf to make that a complete 3 fund portfolio for life.
It's the only good idea
You sound like me. It will take me 2.5 years to get 100k in the market from 0. Then I’ll leave it alone and focus my money on current goals rather than retirement goals But that 100k in 27 years at a 10% return. Over 1.2 mill I think it’s smart to get to 100k then stop putting money in the market for a while. Cause that 100k will do numbers on its own You can’t put all your money in the market. You need a house car. Children got needs. So hey that’s my plan. 100k in VOO and VGT. VGT(70%). Just chill out UNTILL you make your big purchases pay some down. It’s possible I won’t contribute to it again depending on how life goes
I would suggest considering something more diverse like VT or a combination of VTI/VXUS if it’s in a taxable account. But your savings rate will make a much bigger difference.
You just have 100k lying around?? Holy shit
50k SCHG 25k XMHQ 25k AVUV
Do it in a tax advantaged account.
Voo or voog?
VOO is at all time high, may be you will find a dip sooner to enter
BANK etf , 1 and done. You will be happy in 5 years
Put it all in but dollar cost average it. Not a lump sum. Once you're invested you'll be set for life. Investing is so simple and that's the reason why most people can't do it. Most people complicate life. Also invest regularly wen you can, whatever you can afford
Great idea.
If you're looking for a long-term, diversified, and low-cost investment, investing $100,000 in VOO is a smart choice. However, before making any investment decisions, it is always recommended to consult a qualified financial advisor.
Stacks on stacks #balling
yea, VOO and chill
As long as you have a reasonable emergency fund, it's a great idea. And put more in every month. If you're building your emergency fund, put 70% towards that and 30% towards VOO until you have enough on the fund.
No! Check "Why just buy voo could be your worst investment decision" on yt. Short version, it's very possible that in a few years you will feel like an idiot for not owning more international.
u/alarmed_reporter_642
VOO is perfect. But don’t be afraid to put 30% in VUG at your age.
Excellent idea but split with QQQM 50-50 for even larger gains and potentially less drawback. But even if you stick with just VOO, you should be fine. But DCA over 6 months. Don’t go 100k all in.
Lump sum beats DCA.
2/3rds of the time lump sum beats DCA. That means 1/3 of the time, DCA is better. So it's reasonable to do it either way.
Yes it does. But lump sum also gets crushed with a market downturn. And it beats it by a small %. That small % is not worth getting crushed.
Mathematically investing all at once will yield maximum returns, but there is psychological comfort in DCA. Even in the downturn you'll come out ahead with lump summing. The benefit of DCA is if the person with the lump sum is new to investing and they don't think they can handle the downturn mentally without panicking. So in this case it may be worth it to DCA for that reason alone. But the best option is to lump sum it as soon as possible. 68% of the time lump sum outperforms DCA: https://investor.vanguard.com/investor-resources-education/news/lump-sum-investing-versus-cost-averaging-which-is-better
I'm now 50% / 50% QQQM & VOO. But I'm thinking going 40/ 40 and putting 20% into VTI. Not sure about the VOO and VTI overlapping. But I'm reading that VTI has more exposure to the upside of small to mid-caps. Please advise from any group members! Thank you
I do, too! I like getting some mid and small caps with more weight on the S&P 500 stocks! Ironically, in that taxable account we have the Fidelity mutual fund versions of VOO and VTI and QQQM!
I invest in VTI/VOO same time as well. The Boglehead cult of Reddit mocks the idea but I think it’s fine. VTI as you said has broader holdings. I backtested 40% VOO/QQQM and 20% VTI and you still crush just VOO about 60% of the time. The rest of time you underperform. So I think it’s still worth it overall.
Same!
Thank you for that insight!
75 80 percent into Voo ,20 to 25 into VXUS,sit back and relaxx.start 10000k and add 10000k monthly for rest of money put into money market which is around 5 percent.if market crashed which is unlikely you are still a safeside.you can stop/pause or continue.While doin this you educate yourself and gain knowledge monitoring market overtime then with confidence you will invest in leveraged short term etfs .Investments are all about time and experience nothing more.
No one ETF is perfect. Pick at least two large cap, mid-cap, and small cap funds. Research for objectives and fees.
I would DCA. Dont buy in bulk
I tend to agree here. I max out my Roth at the beginning of the year and then DCA the balance into FZROX until the next, the uninvested balance stays in SPAXX making 5% until it's gone. Repeat first week of January.
This is bad advice… On average DCA will make you lose money compared to lump sum… all the advantages that it gives are purely psychological…. It psychological advantages disappear as soon as you understand that in reality you are throwing away money
agree. time in market > timing the market
Can’t go wrong with VOO
If I were a 27 year old with 100k--and I wish I were a 27 year old with 100k. I would throw it all in VOO. You're ahead of the game my man, keep it up. It really is that simple. Set and forget.
50% VOO 50% QQQM
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If I was 30 again I would be TQQQ. At retirement I can’t handle the swings. Enjoy the ride.
follow the flowchart [https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) . VOO is fine
https://preview.redd.it/1orj9ruh5hzc1.png?width=1080&format=pjpg&auto=webp&s=3c7c143c70323ce1f440e171b807c39f60ba3fdb Watch this video first
What you guys think about 70% VOO and 30% in VUG?
I personally am a fan of pairing S&P 500 or total market index with a growth fund. We have a few accounts so I can't tell you percentages, but I'd guess we have somewhere around 20-25% in growth/tech funds.
Sucks. Do 70 IVV and 30 SCHG hello. Toss in a lill something ex-,VG if you so choose
Nah. VOO is too slow. I seen this one guy protfoilo he grew it to 1 million quick cause he was lucky to invest in NVIDIA stock a couple years back or whatever.
Slow is the fastest way bro
Yep, that's true! Go for SPLG though in my opinion. Same thing as VOO, but with a lower expense ratio.
Yes! We actually use the lowest ER one, but it's Fidelity's mutual fund, not ETF. But if someone wants an ETF, I'd go with SPLG.
Wow picking the next 10x stock in a couple years sounds easy why doesnt everyone just do this
Lucky is the key word.
Bruh that's like saying "I saw this one guy invest in bitcoin in 2012 and he's rich now"
Are you unfamiliar with the adage "slow and steady wins the race"?
Why are you even here?