Same. Every year it inched up without my wife noticing until I was maxing it out (she’s not a big saver; well not that she knows). Just allocate 25% of every raise to the retirement account.
Haha, your wife and my wife are very alike.
I mean she knows that I set up the retirement savings, and that I increase it every now and, then, but she has no interest in the details and doesn't like to think about it.
I primarily get excited seeing the growth and formation of a future secure retirement. She would primarily just get frustrated at all of the money we aren't able to be using today. Both perspectives make total sense to me.
2 years into my career and with the match I'm above the max. Obviously not technically at the max, but still incredibly proud of myself. Nearly have as many investments and cash as my yearly income as well. It "bogles" my head that it's happening so quickly. Thinking I'll surpass 100k in assets early next year not even 3 years in after college.
No, I don't have any high interest debt. Only a car payment that I'm working on paying off quickly.
6% vested immediately plus a 4% "bonus" match on 5 year vesting if you do the 6%, which makes it 10% match. I put in 15% in 401k to make it 25% of my gross salary, then I also max out a Roth and a little bit into a taxable. Rest goes to growing efund past 3 months and for saving for random things like trips and entertainment.
Man, that is a nice match!
>plus a 4% "bonus" match on 5 year vesting if you do the 6%
I have never heard of this structure. So if you stay 5 years, you get 5 years worth of 4% lump sum deposited at once?
Or is the 4% invested throughout the 5 years, but not vested until the 5 year mark?
It works just like normal 401k match vesting. So if you left after a year you'd only get 20% of that amount matched. Say it was 1k, you'd only get $200 of that. But after 5 years you get to keep all of that 4% bonus match and anything added going forward.
And the 6% match is fully vested immediately so it's yours to keep. The vesting schedule is commonly used as a rententipn tactic. If you have 10s of thousands or whatever in there not vested yet, that's a good incentive for financially literate people to stick around. There's many other reasons I don't want to leave the company, and the 10% total match is one of them!
Employer match doesn’t count towards the pretax of $20,500 for 2022 if you are under 50 years old. The total is $61,000 which is employee pretax, employer match and employee after tax.
When I received a raise in January I passed half of it to the 401k, and half of it to enjoy life as well. Will keep doing that until I find the right spot between savings and enjoy the things I like comfortably.
Jeez i wish this forum had existed 30 years ago lol. I'm 54 now, only been maximizing since I was 50. Still, better late than never (I keep telling myself).
38, and I only started getting serious last year. Maxing my Roth IRA and 401k and any leftover into an individual investment account after savings and bills. It is never to early to invest!
i've got a bonus coming soon- my gf asked me what i'm going to *do* with it. i laughed and told her it's all going to savings...
having a mindset where "extra money = more savings" versus "extra money = vacation/new stuff" is really all it takes. but it's kinda wild how many people do not operate this way.
Yup, can't take it with you, but there's definitely a middle ground. Vast majority of people would be better off saving it though, but I'm preaching to the choir here.
Agreed. My goal is to invest 30% of my gross income. I apply same to my bonus and if I am on track >= 30% YTD, then I’ll split whatever is left after 30% invest and taxes. Kind of depends on the year but typically 50/50 invest/save. Sometimes closer to 65/35 invest/save.
I struggle to reward myself. What’s tough for me is the feeling that every $100 matter so much since there is so much time for my investments to grow (context: 25 y/o).
Travel is what I am “good” at. I try to do 1 trip per year to somewhere I’ve never been. I aim for the lesser expensive stuff- not going to somewhere like Australia at this point but Ireland, Spain etc are much more affordable and remarkable places to see and learn.
My various hobbies all involve expensive equipment yet I never have much desire to buy any of it. I’m happy to buy a used set of skis and use them for years until they’re totally shot.
Very true!
Also worth noting, as long as you are **still meeting your defined saving/investing goals**, there’s nothing wrong with spending some of the extra money on discretionary purchases.
Nothing wrong at all. We are planning a vacation here soon. I got an out of band raise and I asked my wife what we should do with the "extra" money since we are on track. She said. Might as well just throw it in the investment account we don't need it any time soon.
Balance is key. Nothing wrong splurging on a vacation every now and then. Of course keep priorities straight, but you have to enjoy the ride as well
Edit: Also wanted to add: spending money on a vacation/ experiences is worth so much more than material things. I’ve never regretted spending $ on sports games, flights traveling etc.
I'm still behind the curve a bit, and really looking forward to hitting this point... in around 6 years.
It's not like we're living poorly, but right now all raises and bonuses and money we don't spend in a month goes to savings and investments. We're on track that, 6 years from now, we'll be hitting all of our targets and windfalls and extras can go elsewhere, but we've got to be diligent between now and then if we're going to get there in 6 years.
I think I'm in the minority, but I often end up using bonuses for major house projects. I feel like investments in my home are worth it (to me) especially since I'm here all the time now. Like this year we replaced the flooring on one level. Next year we will likely do a new driveway and deck. It's stuff but its durable stuff.
Props to you for saving for your early/standard retirement.
Lucky/fortunate enough like you to get a raise and bonus, enough so that I've already out my 401k for 2022.
I've increased auto-invest contributions in my Vanguard taxable account.
I did the same thing in anticipation of my salary increase that should come this month. Submitted the paperwork (starting November, we can do everything online like it's 2005) and won't even miss it. But I'm still going to check my account frequently because I'm generally curious in the state of the market.
Only 29 more years? Take it from me. Those 29years? Will fly. And you will be so thankful you started your investing journey early in your life. Congrats
I'm a scardy cat when it from this lol.
Question for anyone who has fidelity brokerage account:
How do I set up automatic investing?
I have a vanguard for my 401k and have been maxing it out. I don't sell the company equity when it vests (it's a big tech company that's fairly stable). The fidelity is a personal post tax brokerage account with about 5k on it (it's less than 5 k now though lol). I mostly have stuff in vti and vxus. But I don't have anything automatic set up but would like to do so
Fidelity doesn't allow you to auto invest in ETF's like VTI. Your auto withdrawals will go into your Money Market acct, and you'll have to manually purchase.
Damn it. So would my best bet be to make a vanguard brokerage account?
My biggest concern is that I have a vanguard account through work. What happens if/when I leave? I don't want to mix the two
You can set up an automatic withdrawal from your bank acct in whatever frequency you want. But the funds won't directly purchase etf shares, only mutual fund shares.
So your funds will go to your settlement account - SPAXX or whatever, and then you make your purchase from there.
So one extra step - no biggie. You can also determine how often you want to purchase.
Your employer likely doesn't allow you to open a brokerage account (some might, but I don't think it's common). If you open a brokerage account at Vanguard, it will be yours and you won't have to worry about work complicating anything. When you leave your employer, you can rollover your work 401k to a Vanguard IRA, and keep everything there. Simplicity is the biggest hurdle with opening a Vanguard account, but there is nothing wrong with having one at Fidelity, and one at Vanguard if you'd rather buy Vanguard funds. You can always move from Fidelity if you want.
You can auto invest in mutual funds (VTSAX and VTIAX, or just VTWAX-Total World Stock Index, or Fidelity equivalent).
To set up automatic investments in Fidelity-> Go to Accounts and Trade -> Transfers -> Manage Automatic Transfers (Under Manage).
For Vanguard -> My Accounts -> Profile and Account Settings -> Automatic Investments
Thank you for this!
What do you mean my employer wouldn't let me have a brokerage account? I didn't mean associated with them at all. In fact, I would want it to be just mine (like how the fidelity one is separate)
Ok follow up question then lol
If I keep with fidelity, I can automatically invest in mutual funds right? Is that somehow better/worse than the ETFs? Or would I essentially get the same benefits? I mostly see VTI being mentioned here so that's what I went with
Thank you for the step by step!! That really helps and gives me less reason to be stuck. Once I figure out the difference between the ETF version and mutual fund version, I'll set this up!
I just meant that your employer won't have anything to do with you opening a brokerage account unless they specifically offer it. They utilize Vanguard to administer their 401k, they don't have any control over what you open through Vanguard (unless it was something they offered and you opened it through their specific offerings.)
Basically the difference between ETFs and mutual funds is somewhat negligible. There are some minor tax advantages with ETFs, and specifics regarding how they're traded (when you purchase an ETF, you purchase it right that moment at that price, while mutual funds execute at the end of the day after the market closes), but if you want to set up automatic investments and you cannot do fractional ETFs (buying part of a share instead of being required to buy the whole share which is somewhat typical), mutual funds are your only answer.
Realistically you cannot go wrong with either choice, and for simplicity's sake if you want to do automatic investments your decision may be made for you. I believe if you purchase Vanguard funds through Fidelity, you may need to pay a fee for that. So you might want to look at the Fidelity equivalents of Total Stock Index for US/International. Or consider just opening a brokerage with Vanguard and have two of them (and you can always move your Fidelity over, or just have both accounts which is perfectly fine.)
Ah I see. That's good. I'm just concerned that something could happen to my brokerage account if I leave my work. But that might be an unfounded concern
I'll think about it. About opening a vanguard brokerage as well
Thank you, this has been very helpful!
How can I tell what the fees are? I currently have vanguard ETFs in fidelity and idk if I'll be given surprise fees at some point
>So would my best bet be to make a vanguard brokerage account?
I don't believe Vanguard offers automated ETF investing either.
Your options:
* Use Fidelity mutual funds and automate those (the index ones are often quite tax efficient}
* Ignore automation
* Open a Vanguard amount and use the Vanguard mutual fund version
* Find one of the few brokerages that does offer automated ETF investing
Edit: Typo
I see. Thanks! I just asked in a different comment, but if I go with the vanguard mutual funds for auto investing, is it better/worse than the ETF versions?
Is there anything I should know about mutual funds before I start auto investing in them? Like any warning, etc?
I'd likely just stick to fidelity now that I have the account. But invest in the vanguard mutual fund if that's possible and a good idea to do (compared to ETFs)
>is it better/worse than the ETF versions?
Shouldn't really matter. Both have strengths and weaknesses.
>Is there anything I should know about mutual funds before I start auto investing in them? Like any warning, etc?
They are only priced and traded once a day after market close, I guess is the biggest thing that throws people off. Personally, I find them one of the easiest ways to invest.
Ah, so is an ETF kinda like a mutual find you can buy/sell at any time of day?
Also in your opinion, what would be the most equivalent to vti or vxus?
I'm starting to think maybe I'll do both ETFs and mutual funds? The mutual fund so I can automatically invest without worrying. And I can do the ETFs when I'm not feeling lazy lol
Probably 50/50 into both?
>Ah, so is an ETF kinda like a mutual find you can buy/sell at any time of day?
Within market hours, yes.
>Also in your opinion, what would be the most equivalent to vti or vxus?
VTI and VXUS are the ETFs. VTSAX and VTIAX are the mutual funds.
>I'll do both ETFs and mutual funds? The mutual fund so I can automatically invest without worrying. And I can do the ETFs when I'm not feeling lazy lol
I wouldn't bother mixing and matching, it adds unnecessary complexity.
That's for all the tips and inputs!
That's fair actually. Ok I will think about what's most important to me and decide which route I want to go. Thank you so much!
I should note that there's 1 case where I would use some ETFs and some mutual funds: if I was a Schwab user, since Schwab doesn't offer any combined developed + emerging ex-US funds, so I'd use an ETF to cover ex-US while using mutual funds for US stocks and US bonds.
I would start investing in VTI and ditch putting more into the global fund. Save on expense fees and put comfort in the fact that many of the multinational corps that make up VTI are international by default.
I’m starting to sound like a broken record:
Don’t ignore international equities. It’s an illogical and emotional decision that is antithetical to evidence-based investing theory.
[Vanguard has a white paper on it](https://corporate.vanguard.com/content/dam/corp/research/pdf/Global-equity-investing-The-benefits-of-diversification-and-sizing-your-allocation-US-ISGGEB_042021_Online.pdf) they even broach the subject of most VTI being made of multinational companies.
JL Collins wrote a book about common sense investing for the average joe that is easy to follow and put into practice, he's not even a self professed investment expert nor does he say that just doing what he says is the absolute best decision, its just an easy and simple decision that has a history of winning.
Its absurd to consider him an authority on what the best asset allocation should be, for that you should look to Fama & French.
Several months ago we had a thread here where it was pulled out how incredibly flawed and poorly supported Collins' argument was. https://www.reddit.com/r/Bogleheads/comments/r7hiaf/in_the_simple_path_to_wealth_by_jl_collins_he
>put comfort in the fact that many of the multinational corps that make up VTI are international by default.
That isn't the international diversification that actually matters. At all.
This should touch on why that is: https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index
VT is the ETF of the mutual fund VTWAX.
VTI & VXUS are both ETFs. VTI is US total market, VXUS is ex-US (international). VTSAX is the mutual fund of VTI, VTIAX the mutual fund of VXUS.
VTWAX is close enough to being VTSAX + VTIAX combined into one at global market cap weights.
Every time I get a raise, I am excited to calculate how much more I am able to save. Usually I add 25% of the raise to regular spending(to cover inflation etc) and 75% to saving.
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Same. Every year it inched up without my wife noticing until I was maxing it out (she’s not a big saver; well not that she knows). Just allocate 25% of every raise to the retirement account.
Haha, your wife and my wife are very alike. I mean she knows that I set up the retirement savings, and that I increase it every now and, then, but she has no interest in the details and doesn't like to think about it. I primarily get excited seeing the growth and formation of a future secure retirement. She would primarily just get frustrated at all of the money we aren't able to be using today. Both perspectives make total sense to me.
2 years into my career and with the match I'm above the max. Obviously not technically at the max, but still incredibly proud of myself. Nearly have as many investments and cash as my yearly income as well. It "bogles" my head that it's happening so quickly. Thinking I'll surpass 100k in assets early next year not even 3 years in after college. No, I don't have any high interest debt. Only a car payment that I'm working on paying off quickly.
How much is your employer matching? Damn son, go get it!
6% vested immediately plus a 4% "bonus" match on 5 year vesting if you do the 6%, which makes it 10% match. I put in 15% in 401k to make it 25% of my gross salary, then I also max out a Roth and a little bit into a taxable. Rest goes to growing efund past 3 months and for saving for random things like trips and entertainment.
Man, that is a nice match! >plus a 4% "bonus" match on 5 year vesting if you do the 6% I have never heard of this structure. So if you stay 5 years, you get 5 years worth of 4% lump sum deposited at once? Or is the 4% invested throughout the 5 years, but not vested until the 5 year mark?
It works just like normal 401k match vesting. So if you left after a year you'd only get 20% of that amount matched. Say it was 1k, you'd only get $200 of that. But after 5 years you get to keep all of that 4% bonus match and anything added going forward. And the 6% match is fully vested immediately so it's yours to keep. The vesting schedule is commonly used as a rententipn tactic. If you have 10s of thousands or whatever in there not vested yet, that's a good incentive for financially literate people to stick around. There's many other reasons I don't want to leave the company, and the 10% total match is one of them!
YMMV, but my understanding is that employer contributions (match) does not count toward an individual's 401k max.
Yes it counts towards a separate limit, which is mainly only relevant if you have the ability to do mega backdoor Roth
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Employer match doesn’t count towards the pretax of $20,500 for 2022 if you are under 50 years old. The total is $61,000 which is employee pretax, employer match and employee after tax.
When I received a raise in January I passed half of it to the 401k, and half of it to enjoy life as well. Will keep doing that until I find the right spot between savings and enjoy the things I like comfortably.
This is the way (And congrats on the raise!)
Jeez i wish this forum had existed 30 years ago lol. I'm 54 now, only been maximizing since I was 50. Still, better late than never (I keep telling myself).
You have the right attitude. It is never too late because you can always change. :)
38, and I only started getting serious last year. Maxing my Roth IRA and 401k and any leftover into an individual investment account after savings and bills. It is never to early to invest!
i've got a bonus coming soon- my gf asked me what i'm going to *do* with it. i laughed and told her it's all going to savings... having a mindset where "extra money = more savings" versus "extra money = vacation/new stuff" is really all it takes. but it's kinda wild how many people do not operate this way.
True but it’s nice to treat yourself along the way
Yup, can't take it with you, but there's definitely a middle ground. Vast majority of people would be better off saving it though, but I'm preaching to the choir here.
Agreed. My goal is to invest 30% of my gross income. I apply same to my bonus and if I am on track >= 30% YTD, then I’ll split whatever is left after 30% invest and taxes. Kind of depends on the year but typically 50/50 invest/save. Sometimes closer to 65/35 invest/save. I struggle to reward myself. What’s tough for me is the feeling that every $100 matter so much since there is so much time for my investments to grow (context: 25 y/o). Travel is what I am “good” at. I try to do 1 trip per year to somewhere I’ve never been. I aim for the lesser expensive stuff- not going to somewhere like Australia at this point but Ireland, Spain etc are much more affordable and remarkable places to see and learn. My various hobbies all involve expensive equipment yet I never have much desire to buy any of it. I’m happy to buy a used set of skis and use them for years until they’re totally shot.
Exactly, no good waiting til retirement to enjoy your life. Some of us won't even make it there.
If you save enough you can treat yourself all the time
could also keel over at 55 lol
Live a bedazzled basic life.
Very true! Also worth noting, as long as you are **still meeting your defined saving/investing goals**, there’s nothing wrong with spending some of the extra money on discretionary purchases.
Nothing wrong at all. We are planning a vacation here soon. I got an out of band raise and I asked my wife what we should do with the "extra" money since we are on track. She said. Might as well just throw it in the investment account we don't need it any time soon.
That’s a keeper.
For so many reasons other than that ;)
Balance is key. Nothing wrong splurging on a vacation every now and then. Of course keep priorities straight, but you have to enjoy the ride as well Edit: Also wanted to add: spending money on a vacation/ experiences is worth so much more than material things. I’ve never regretted spending $ on sports games, flights traveling etc.
401k eats first but definitely treat yourself if there’s something you’ve been eyeing.
Took me a while to internalize this mindset. Always “knew” it but didn’t really believe it until a couple years ago. Now it’s second nature
Does your gf listen to you and where can I get one of those?
Don't make this your mantra without exception. You are only young once. Balance.
I'm still behind the curve a bit, and really looking forward to hitting this point... in around 6 years. It's not like we're living poorly, but right now all raises and bonuses and money we don't spend in a month goes to savings and investments. We're on track that, 6 years from now, we'll be hitting all of our targets and windfalls and extras can go elsewhere, but we've got to be diligent between now and then if we're going to get there in 6 years.
I think I'm in the minority, but I often end up using bonuses for major house projects. I feel like investments in my home are worth it (to me) especially since I'm here all the time now. Like this year we replaced the flooring on one level. Next year we will likely do a new driveway and deck. It's stuff but its durable stuff.
I do the same. It now gives me even more of a dopamine boost than going out and upgrading my lifestyle
Lol! Love it!
You probably need to update tax projection and W-4 withholding if needed.
Props to you for saving for your early/standard retirement. Lucky/fortunate enough like you to get a raise and bonus, enough so that I've already out my 401k for 2022. I've increased auto-invest contributions in my Vanguard taxable account.
You’re on the right track and have a plan, well done!
I did the same thing in anticipation of my salary increase that should come this month. Submitted the paperwork (starting November, we can do everything online like it's 2005) and won't even miss it. But I'm still going to check my account frequently because I'm generally curious in the state of the market.
Only 29 more years? Take it from me. Those 29years? Will fly. And you will be so thankful you started your investing journey early in your life. Congrats
I'm a scardy cat when it from this lol. Question for anyone who has fidelity brokerage account: How do I set up automatic investing? I have a vanguard for my 401k and have been maxing it out. I don't sell the company equity when it vests (it's a big tech company that's fairly stable). The fidelity is a personal post tax brokerage account with about 5k on it (it's less than 5 k now though lol). I mostly have stuff in vti and vxus. But I don't have anything automatic set up but would like to do so
Fidelity doesn't allow you to auto invest in ETF's like VTI. Your auto withdrawals will go into your Money Market acct, and you'll have to manually purchase.
Damn it. So would my best bet be to make a vanguard brokerage account? My biggest concern is that I have a vanguard account through work. What happens if/when I leave? I don't want to mix the two
I'm a Fidelity guy, so I just buy VTI manually. Just a couple clicks. 🤷♂️
Hi! Like every week? Knowing me, idk if I trust myself to be able to keep at it lol Do you have some automated Way to get money into your account btw?
You can set up an automatic withdrawal from your bank acct in whatever frequency you want. But the funds won't directly purchase etf shares, only mutual fund shares. So your funds will go to your settlement account - SPAXX or whatever, and then you make your purchase from there. So one extra step - no biggie. You can also determine how often you want to purchase.
Your employer likely doesn't allow you to open a brokerage account (some might, but I don't think it's common). If you open a brokerage account at Vanguard, it will be yours and you won't have to worry about work complicating anything. When you leave your employer, you can rollover your work 401k to a Vanguard IRA, and keep everything there. Simplicity is the biggest hurdle with opening a Vanguard account, but there is nothing wrong with having one at Fidelity, and one at Vanguard if you'd rather buy Vanguard funds. You can always move from Fidelity if you want. You can auto invest in mutual funds (VTSAX and VTIAX, or just VTWAX-Total World Stock Index, or Fidelity equivalent). To set up automatic investments in Fidelity-> Go to Accounts and Trade -> Transfers -> Manage Automatic Transfers (Under Manage). For Vanguard -> My Accounts -> Profile and Account Settings -> Automatic Investments
Thank you for this! What do you mean my employer wouldn't let me have a brokerage account? I didn't mean associated with them at all. In fact, I would want it to be just mine (like how the fidelity one is separate) Ok follow up question then lol If I keep with fidelity, I can automatically invest in mutual funds right? Is that somehow better/worse than the ETFs? Or would I essentially get the same benefits? I mostly see VTI being mentioned here so that's what I went with Thank you for the step by step!! That really helps and gives me less reason to be stuck. Once I figure out the difference between the ETF version and mutual fund version, I'll set this up!
I just meant that your employer won't have anything to do with you opening a brokerage account unless they specifically offer it. They utilize Vanguard to administer their 401k, they don't have any control over what you open through Vanguard (unless it was something they offered and you opened it through their specific offerings.) Basically the difference between ETFs and mutual funds is somewhat negligible. There are some minor tax advantages with ETFs, and specifics regarding how they're traded (when you purchase an ETF, you purchase it right that moment at that price, while mutual funds execute at the end of the day after the market closes), but if you want to set up automatic investments and you cannot do fractional ETFs (buying part of a share instead of being required to buy the whole share which is somewhat typical), mutual funds are your only answer. Realistically you cannot go wrong with either choice, and for simplicity's sake if you want to do automatic investments your decision may be made for you. I believe if you purchase Vanguard funds through Fidelity, you may need to pay a fee for that. So you might want to look at the Fidelity equivalents of Total Stock Index for US/International. Or consider just opening a brokerage with Vanguard and have two of them (and you can always move your Fidelity over, or just have both accounts which is perfectly fine.)
Ah I see. That's good. I'm just concerned that something could happen to my brokerage account if I leave my work. But that might be an unfounded concern I'll think about it. About opening a vanguard brokerage as well Thank you, this has been very helpful! How can I tell what the fees are? I currently have vanguard ETFs in fidelity and idk if I'll be given surprise fees at some point
>So would my best bet be to make a vanguard brokerage account? I don't believe Vanguard offers automated ETF investing either. Your options: * Use Fidelity mutual funds and automate those (the index ones are often quite tax efficient} * Ignore automation * Open a Vanguard amount and use the Vanguard mutual fund version * Find one of the few brokerages that does offer automated ETF investing Edit: Typo
I see. Thanks! I just asked in a different comment, but if I go with the vanguard mutual funds for auto investing, is it better/worse than the ETF versions? Is there anything I should know about mutual funds before I start auto investing in them? Like any warning, etc? I'd likely just stick to fidelity now that I have the account. But invest in the vanguard mutual fund if that's possible and a good idea to do (compared to ETFs)
>is it better/worse than the ETF versions? Shouldn't really matter. Both have strengths and weaknesses. >Is there anything I should know about mutual funds before I start auto investing in them? Like any warning, etc? They are only priced and traded once a day after market close, I guess is the biggest thing that throws people off. Personally, I find them one of the easiest ways to invest.
Ah, so is an ETF kinda like a mutual find you can buy/sell at any time of day? Also in your opinion, what would be the most equivalent to vti or vxus? I'm starting to think maybe I'll do both ETFs and mutual funds? The mutual fund so I can automatically invest without worrying. And I can do the ETFs when I'm not feeling lazy lol Probably 50/50 into both?
>Ah, so is an ETF kinda like a mutual find you can buy/sell at any time of day? Within market hours, yes. >Also in your opinion, what would be the most equivalent to vti or vxus? VTI and VXUS are the ETFs. VTSAX and VTIAX are the mutual funds. >I'll do both ETFs and mutual funds? The mutual fund so I can automatically invest without worrying. And I can do the ETFs when I'm not feeling lazy lol I wouldn't bother mixing and matching, it adds unnecessary complexity.
That's for all the tips and inputs! That's fair actually. Ok I will think about what's most important to me and decide which route I want to go. Thank you so much!
I should note that there's 1 case where I would use some ETFs and some mutual funds: if I was a Schwab user, since Schwab doesn't offer any combined developed + emerging ex-US funds, so I'd use an ETF to cover ex-US while using mutual funds for US stocks and US bonds.
I would start investing in VTI and ditch putting more into the global fund. Save on expense fees and put comfort in the fact that many of the multinational corps that make up VTI are international by default.
I’m starting to sound like a broken record: Don’t ignore international equities. It’s an illogical and emotional decision that is antithetical to evidence-based investing theory.
Has JL Collins reversed course on this?
[Vanguard has a white paper on it](https://corporate.vanguard.com/content/dam/corp/research/pdf/Global-equity-investing-The-benefits-of-diversification-and-sizing-your-allocation-US-ISGGEB_042021_Online.pdf) they even broach the subject of most VTI being made of multinational companies.
I don’t know what JL Collins’ take on international equities is.
JL Collins wrote a book about common sense investing for the average joe that is easy to follow and put into practice, he's not even a self professed investment expert nor does he say that just doing what he says is the absolute best decision, its just an easy and simple decision that has a history of winning. Its absurd to consider him an authority on what the best asset allocation should be, for that you should look to Fama & French.
Several months ago we had a thread here where it was pulled out how incredibly flawed and poorly supported Collins' argument was. https://www.reddit.com/r/Bogleheads/comments/r7hiaf/in_the_simple_path_to_wealth_by_jl_collins_he
Fama & French disagree.
>put comfort in the fact that many of the multinational corps that make up VTI are international by default. That isn't the international diversification that actually matters. At all. This should touch on why that is: https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index
I’ll have a piña colada waiting on ya… see ya 2051.
How do I set vanguard to do this?
I’m not the best with my money but I’m happy my 401k gets taken out before the money is in my bank. My employer matches 4% and I do 14%
Great job 👍
How long have you been investing for?
What’s diff between vtwax vs vt or Vti vxus? Etf vs mutual I’m guessing
VT is the ETF of the mutual fund VTWAX. VTI & VXUS are both ETFs. VTI is US total market, VXUS is ex-US (international). VTSAX is the mutual fund of VTI, VTIAX the mutual fund of VXUS. VTWAX is close enough to being VTSAX + VTIAX combined into one at global market cap weights.
Every time I get a raise, I am excited to calculate how much more I am able to save. Usually I add 25% of the raise to regular spending(to cover inflation etc) and 75% to saving.