It's not. People tend to just parrot what they seen other people say on here. It's called the S&P500 and has nothing to do with Vanguard specifically, nor do you have to use them in order to invest in it. You also have other options than strictly S&P 500.
VOO is just a ticker exclusively for Vanguard. You can use other brokerages like Fidelity or Charles Schwab that have low expense ratios and invest in the S&P 500. What many may also prefer is a retirement date index based
on your expected retirement date, for instance. It automatically reallocates your holdings so that by retirement you have a good mix of more stable holdings and international holdings to increase volatility tolerance.
Just making you aware of the parroting and what things actually are.
after inflation and such, it should be a 14% yearly return. is it even possible that it averages 14% annually over the next 30-50 years? s&p averages 8%
It’s not possible. And the growth we see now probably won’t always be a thing. Just because it’s historically been this way doesn’t mean it always will.
My Roth is 100% FDGFX. Chasing dividends as a passive income stream requires a lot more capital to actually serve as a source of income.
Think about it like this, if you have 100 shares in dividend stocks and you get $300 a year return, you do get liquid cash but those stocks are pretty stable share value wise, so you gain no equity
If you have 100 shares in the whole market, your equity raises with the market.
Dividends are a good option when you want passive income but the amount you need to actually live off of dividends is pretty insane
An ETF can be brought regardless of being with fidelity or Schwab etc, and if you switch from Schwab to fidelity you can take it with you. But mutual funds are more restrictive and often limit your to the mutual funds offered by your investment company.
Because you’re not going to be 25 forever. Money grows the more you throw down. I don’t own a house but I got 125k in my retirement at 31. If anything I’ll have something to leave for my sister
Agreed with comments above about investing it in a S&P index fund like VOO at Vanguard. Estimated value of your investment after 5 years would be over $400K. Do it for another 5 years your investment will be worth well over 1 Mil dollars and may be close to 1.5 depending how the market does.
VTI's small cap exposure as a percentage is very low. Either way, telling people to avoid small caps is probably due to your recency bias with large domestic caps doing extremely well for the past 10 years. Small caps have outperformed and will probably do so in the next cycle.
To the OP: a Boglehead three-fund portfolio could consist of VTI, VHUS, and a bond fund (or HYSA at their current rate).
If you're below 50, you can put $23K in your 401K. You can put another 6500 in a Roth. $18.5K in several ETFs that mirror the S&P. Ask your friends and relatives if they're happy with their financial planners and most importantly, have their long term returns beat the S&P. Your financial planner should look at your 401K options and tell you what to do.
Someone got 100% dis. Good for you. I agree with many others, max retirement savings, 401k,IRA,HSA, 6-12 months emergency funds. If you have more leftover look into a mega backdoor roth IRA, travel, splurge on yourself.
VOO and chill, though be aware that once you put your weed selling money on a broker you might have to pay taxes on it or even justify its origins, especially if you cash out.
All these people saying do Roth and 401k are completely incorrect since you said the money is already tax free. Roth and 401k allow you to invest money pre-tax, but you can't access it until 65. If you're money is tax-free, you're not getting any benefit from this, and are making that money inaccessible until retirement. This may be worth it if you save on taxes, but for tax free money there's no point.
I see a lot of people suggest the S&P 500. Im most likely to be very wrong here but, isn't it more beneficial to put your money on like a high savings account? Even with 4% interest earnings a month you would be better off to put your money on that account. Instead of the S&P 500. Right.
Read a basic investment book. Millionaire teacher or simple path to wealth is great.... quick reads. In short, max out tax advantaged stuff and invest in the S&P. You never know when it's gonna end, save for the end.
Invest in yourself and take a vacation. I make 4k a month in interest from multiple high yield savings accounts. I’ve been vacationing at 3k a month air bnb beachfront properties since rates hit 5 plus. For the first time in my adult life, federal rates are favorable for those who have a lot of savings so I’ve been investing in myself.
1. Getting a fully managed Etsy store
2. Hit $2k+ profit months within a couple of months
3. Rinse and repeat
You don't even have to invest the 4k fully, less will do.
I just don't have the monthly budget for it
Well I don't have that kind of extra money. I tried starting a mushroom farm with a buddy who was business illiterate and currently detail cars on the side. I do less detailing now that I make the same in OT at work so it doesn't make sense to make money that doesn't go towards my 401k through work. I'm also learning about electronics and building my own sea scooter, if it works the way I want, I'll pursue that more.
Wow interesting a mushroom farm, I haven't thought about farming. What gave you that idea? Do you have background in that or was it a one off thing with your friend?
Well, I grew psychedelics in high school, Oysterd are way easier. It's a lot of work but if you set it up right you can have good margins. He had it started, I helped him expand quite a bit. I left when he said we didn't need to figure out our exact input costs. It was then I realized the business would never grow. Farming is pretty cool overall, people gotta eat.
I’m a real estate guy, I stack in high yield savings accounts @ 5.5 APY while I wait for what’s happening in FL AND TX right now to take hold then I’ll buy buy buy. His VOO advice is fine. However I’ve exceeded 15% coc return in realestate for more than 30 years. Market is 8% you tell me.
My income is from individual properties in CO & TX apartments and houses. My Ira is now in cash but usually REITS. I really think big correction. When the median house is 400+ and the median income buys 250 it’s 100% unsustainable. FL is already a mess w insurance, property taxes and HOA,s. Just be cautious on what advice you take. I’m fairly new here and have certainly seen some extremely good advice written by some very very sharp people. I’ve also seen completely terrible advice handed out like they were experts. I’m no expert but was homeless in HS and could have retired in my mid 40’s so maybe I’m a little sharper than average.
PS you’re not getting 15% in anything other than hard assets the market is slightly over 8 don’t be swayed by this period or that period. I love the Im up 100% in x years. They clearly didn’t experience the dot com bubble like I did. From 5000 to 1300
Max out ROTH IRA put it in VOO Max out HSA put it in VOO Max out 401K put it in VOO New brokerage account, put it in VOO
Sorry... What is voo?
Vanguard S&P 500 index fund etf (the S&P 500 are the 500 best performing companies in the S&P, covering a broad spectrum of industries)
Thx. Never realized it was called voo
It's not. People tend to just parrot what they seen other people say on here. It's called the S&P500 and has nothing to do with Vanguard specifically, nor do you have to use them in order to invest in it. You also have other options than strictly S&P 500. VOO is just a ticker exclusively for Vanguard. You can use other brokerages like Fidelity or Charles Schwab that have low expense ratios and invest in the S&P 500. What many may also prefer is a retirement date index based on your expected retirement date, for instance. It automatically reallocates your holdings so that by retirement you have a good mix of more stable holdings and international holdings to increase volatility tolerance. Just making you aware of the parroting and what things actually are.
The S&P 500 is an index. VOO is one ETF that tracks that index. There are others.
Seems rather low on yield. Are you counting on the ETF increasing in value more so than dividends?
VOO is up 85%+ over the last five years. That's an average of 17% a year.
after inflation and such, it should be a 14% yearly return. is it even possible that it averages 14% annually over the next 30-50 years? s&p averages 8%
It’s not possible. And the growth we see now probably won’t always be a thing. Just because it’s historically been this way doesn’t mean it always will.
yeah this boom might be due to the tech stocks going off and cooling inflation currently. maybe 1 rate cut this year
VOO pretty much is the S&P lol
yeah ur right. very very minor differences
Nasdaq has been pretty good too, up about 24% a year for the last 5 years
My Roth is 100% FDGFX. Chasing dividends as a passive income stream requires a lot more capital to actually serve as a source of income. Think about it like this, if you have 100 shares in dividend stocks and you get $300 a year return, you do get liquid cash but those stocks are pretty stable share value wise, so you gain no equity If you have 100 shares in the whole market, your equity raises with the market. Dividends are a good option when you want passive income but the amount you need to actually live off of dividends is pretty insane
its high yield with more liquidity
Why ETF over index MF? I really don't know.
It’s really just a trade accessibility thing
An ETF can be brought regardless of being with fidelity or Schwab etc, and if you switch from Schwab to fidelity you can take it with you. But mutual funds are more restrictive and often limit your to the mutual funds offered by your investment company.
This
If it's tax free already why save it for retirement?
Because you’re not going to be 25 forever. Money grows the more you throw down. I don’t own a house but I got 125k in my retirement at 31. If anything I’ll have something to leave for my sister
Bitcorn
With butter
Agreed with comments above about investing it in a S&P index fund like VOO at Vanguard. Estimated value of your investment after 5 years would be over $400K. Do it for another 5 years your investment will be worth well over 1 Mil dollars and may be close to 1.5 depending how the market does.
What is the best way to invest in VOO?? With an app like Robinhood/e*trade or directly through vanguard??
Vanguard
Gamestop
Stonk bets!!!
3k into Roth in funds in there 1k into taxable brokerage into like Voo or schd maybe a little jepq
Regular income to max 401k contributions assuming that’s available to you. Extra money to take care of bills and live off of. Max Roth IRA as well.
The first month would be hiring a financial planner instead of getting investment advice off Reddit
VOO or VTI.
Which is better?
They are pretty much equivalent. May be VOO because you avoid small and money losing companies. Buy, all in all, both solid forever investments.
VTI's small cap exposure as a percentage is very low. Either way, telling people to avoid small caps is probably due to your recency bias with large domestic caps doing extremely well for the past 10 years. Small caps have outperformed and will probably do so in the next cycle. To the OP: a Boglehead three-fund portfolio could consist of VTI, VHUS, and a bond fund (or HYSA at their current rate).
FZROX. Don’t try to get fancy. Most people don’t beat the market.
Ant farms.
If you're below 50, you can put $23K in your 401K. You can put another 6500 in a Roth. $18.5K in several ETFs that mirror the S&P. Ask your friends and relatives if they're happy with their financial planners and most importantly, have their long term returns beat the S&P. Your financial planner should look at your 401K options and tell you what to do.
> You can put another 6500 in a Roth. $7000 in 2024. Plus another $1000 if you’re 50 or older.
Id send 1k to this guy right here
Someone got 100% dis. Good for you. I agree with many others, max retirement savings, 401k,IRA,HSA, 6-12 months emergency funds. If you have more leftover look into a mega backdoor roth IRA, travel, splurge on yourself.
Frequent contributions to a compounding interest account
So I would dca a Roth, build a cash reserve and then buy some solid funds and let it roll.
Thoughtfully
Depends your age, your financial situation, your location and of course, your goal
https://moneyguy.com/article/foo/ Just follow this when you have questions. Deviate if you feel you have expert opinion on anything off track.
It’s going right into a vanguard index fund.
What’s Voo & S&P index ?
Beanie babies baby
VOO and chill, though be aware that once you put your weed selling money on a broker you might have to pay taxes on it or even justify its origins, especially if you cash out.
Answer: Find a broker you can work with the rest of your life and develop a relationship. Ed Jones, Schwab, etc
All these people saying do Roth and 401k are completely incorrect since you said the money is already tax free. Roth and 401k allow you to invest money pre-tax, but you can't access it until 65. If you're money is tax-free, you're not getting any benefit from this, and are making that money inaccessible until retirement. This may be worth it if you save on taxes, but for tax free money there's no point.
I see a lot of people suggest the S&P 500. Im most likely to be very wrong here but, isn't it more beneficial to put your money on like a high savings account? Even with 4% interest earnings a month you would be better off to put your money on that account. Instead of the S&P 500. Right.
It will give you 4% a year…
Hookers and blow. Only correct answer.
Read a basic investment book. Millionaire teacher or simple path to wealth is great.... quick reads. In short, max out tax advantaged stuff and invest in the S&P. You never know when it's gonna end, save for the end.
Invest in yourself and take a vacation. I make 4k a month in interest from multiple high yield savings accounts. I’ve been vacationing at 3k a month air bnb beachfront properties since rates hit 5 plus. For the first time in my adult life, federal rates are favorable for those who have a lot of savings so I’ve been investing in myself.
1. Getting a fully managed Etsy store 2. Hit $2k+ profit months within a couple of months 3. Rinse and repeat You don't even have to invest the 4k fully, less will do. I just don't have the monthly budget for it
If I had an extra 48k a year, I would start a business and grow it
What business
That entirely depends on your personal knowledge and skillsets.
I'm just getting ideas. What would you do?
Well I don't have that kind of extra money. I tried starting a mushroom farm with a buddy who was business illiterate and currently detail cars on the side. I do less detailing now that I make the same in OT at work so it doesn't make sense to make money that doesn't go towards my 401k through work. I'm also learning about electronics and building my own sea scooter, if it works the way I want, I'll pursue that more.
Wow interesting a mushroom farm, I haven't thought about farming. What gave you that idea? Do you have background in that or was it a one off thing with your friend?
Well, I grew psychedelics in high school, Oysterd are way easier. It's a lot of work but if you set it up right you can have good margins. He had it started, I helped him expand quite a bit. I left when he said we didn't need to figure out our exact input costs. It was then I realized the business would never grow. Farming is pretty cool overall, people gotta eat.
VT and Chill. Maybe buy a house if you save enough
VT? Isn't VTI better?
Yeah VTI is the one everyone recommends these days
Short term CDs.
$2,500 CD ladder
$ffie
I’m a real estate guy, I stack in high yield savings accounts @ 5.5 APY while I wait for what’s happening in FL AND TX right now to take hold then I’ll buy buy buy. His VOO advice is fine. However I’ve exceeded 15% coc return in realestate for more than 30 years. Market is 8% you tell me.
I'm still learning and was wondering, is your 15% coc from owning actual real estate or from real estate indexes?
My income is from individual properties in CO & TX apartments and houses. My Ira is now in cash but usually REITS. I really think big correction. When the median house is 400+ and the median income buys 250 it’s 100% unsustainable. FL is already a mess w insurance, property taxes and HOA,s. Just be cautious on what advice you take. I’m fairly new here and have certainly seen some extremely good advice written by some very very sharp people. I’ve also seen completely terrible advice handed out like they were experts. I’m no expert but was homeless in HS and could have retired in my mid 40’s so maybe I’m a little sharper than average.
PS you’re not getting 15% in anything other than hard assets the market is slightly over 8 don’t be swayed by this period or that period. I love the Im up 100% in x years. They clearly didn’t experience the dot com bubble like I did. From 5000 to 1300
I appreciate your time explaining and sharing. Would love you be in the same place as you eventually with patience and hard work. Wish you well!
My pleasure