Which Vanguard index funds to pick?
I have about $50-60k cash that I want to invest and need to create a three fund Vanguard portfolio. I plan on keeping my money in Vanguard for about 5 years. I willing to keep the risk factor as 7/10. So far on the basis of my research I found that the following index funds are popular and can profitable in long run: VFIAX VTSAX VTIAX VIGAX VGSTX VBTLK Please correct me if I am wrong and please share your input as well. I can really use some help in picking the right funds from the experienced folks who have been investing for long time. Update: I have invested about 20k in technology stocks via robinhood. Still holding my RSU and ESPP apple stocks as well. Maxing out 401k and contributing max to ESPP as well.
Vfiax - this is s&p 500 right? If so that's good
Why on earth would you enter the market right now? Wait to invest until the recession hits then hold for the next economic boom and sell off and buy real estate. Jesus 🤦♂️
If you’re thinking longer term, don’t try to time the market, just keep throwing money in it and eventually it’ll all even out. Yeah you can try to time it and get lucky, but you could also miss the boat by sitting out
Average dollar for a period which equals 1/3 * "investment term". Yes lower rewards, but also not trying to time the market and lose out big time.
Can you please elaborate? I am not sure if I am following what you are trying to say.
Average dollar investing is investing/buying a fixed amount of stock/etf/something on a regular cadence. For example you could buy the etf you want every month thus dampening the risk of market volatility or short term trends. However the results it yields are lower when compared to the "market" timing approach when you get to time it adequately. And the 1/3 is basically the period over which you want to dollar invest. Of course you can dollar average invest all the way through your investment term, but the last batch will not yield any significant results. But if you're not sure of whether you will stop investing then you can carry on forever. However, I assume you want to increase the value of your cash sooner rather than later (i.e. not invest the 50k over 5 years) hence why I suggested you do it for a shorter period of your investment term.
Just read the post, thanks for sharing!!
Vwahx. Tax advantage bond fund. Good thing for the environment we are in now.
None
VTSAX and chill
Updated the post. Would you still recommend VTSAX?
Yep. VTSAX and forget.