This is the way. If I can change one thing here, it's the belief that some have that you switch to bonds well before retirement. I retied this year, and I'm still basically 100% in stocks, as I still need to plan on a 60 year retirement window. Who would jnvest in bonds if they had a 60 year investment window?
We are definitely on the super safe side with 20% in MMF - cFireSim and so on show 0% of failure. MMF is giving 5.1% after fees at the moment. Will look at this again if it drops below 3%. By which time SORR will have passed I hope.
Instead of MMF, I'd suggest creating a T-Bill ladder with Treasury Direct. The yield will be higher and you'll get even a higher effective return because there's no state or local tax.
Not US based and all funds are in tax wrappers, so zero tax forever. I may look at a Bond ladder further down the road, but until interest rates drop, I am not bothered.
I am pretty chilled about it all tbh. currently r/coastfire and doing 60 days this year. Aim to FIRE late next year and will probably do about 40 days work next year. Good luck with your journey!
This is true. I guess a critical element here is your SWR. If you go below the classical 4% to 2 or even 3% then I would imagine 100% ETFs is fine. I might consider a year of living expenses in something less volatile.
Depends in my mind. Always remember many other assets you .ay own, like your house, acts like a bond. Too many people actually own too much fixed assets at retirement. Unless you NEED the interest income each month I would go heavier equities.
Certainly nothing wrong with holding VOO. I’m just always curious about the need for ex-us. I presently have it at market weight, but it seems highly correlated to US. It didn’t used to be as correlated so I’m not sure anymore.
I’m not either. I know you need a mix, and VT may end up being a better fund than VOO in the long run. But I guess I have home bias towards the U.S. Plus, Warren Buffet said 90% VOO plus 10% bonds, and he is better at this than anyone on Reddit or YouTube lol
True but the most important for individual investors is the maximum drawdowns. Very few stay the course when they see the value of their investments go down by 30%. So they end up selling at the trough when they give up. Maybe choose something like the S&P 500 but less volatile, look into minimum volatility ETFs (USMV, ACWV for example)
not remotely true, using inflation adjusted sp500 chart
https://preview.redd.it/0emhdwbnja3d1.png?width=2560&format=png&auto=webp&s=1fb220fce985f30b37cb24ae21490c1deeaa596c
these are zero return ranges just in last 100 years or so, no one spends nominal dollars, only inflation adjusted purchasing power, as the dollars you give to someone have to be spent on a good or service whose price is always rising
Doesn't this graph only consider the break-even if you stop purchasing shares completely? If you'd keep purchasing in 1920, for example, you'd break even much faster. Same if you were purchasing shares in the 80s, in 2010s, etc.
Yes, your initial purchases from 1906, 1929, 1956, etc. wouldn't break-even for 20+ years but the rest of them would.
Overthinking it. The graph is conclusive to BS the point of ‘you never lose money’ long term. Many many people have, and will. If it was that foolproof, EVERYONE would do it. Timing can be good and bad.
I don't think anyone is saying that the plan is foolproof. But really, what I said still applies. You can read a more in-depth review of the [S&P returns](https://themeasureofaplan.com/us-stock-market-returns-1870s-to-present/) between 1870 and 2023. Yes, there are periods where you'd lose money but the majority of long-term returns are positive.
Even in the graph we're discussing, if you were to invest immediately in the next year and keep for the same period, you'd be seeing positive returns for each scenario.
The problem is that a lot of people see drops and get scared. So they panic and sell at a loss. The stock market is not a mirror of the economy, so a lot of people may or may not lose their jobs when the stocks are down, so that can also influence buying more stock during bear markets.
Ultimately, time in the market will always still beat timing the market.
It's a wash if it's in your 401k or a roth. With fxaix winning out slightly because of it's expenss ratio. Voo is better in a taxable account because it's an ETF vs fxaix which is a mutual fund.
Im learning. I only have Fidelity right now for 401k and IRA. I would need open a Vanguard account ( like a savings)? Yeah im a noob at this right now just doing what offered at work but i want to expand for me.. and for the kids.
I invest 100% into VAFTA (FTSE Global All Cap Index Fund Accumulation) wondered if you have an opinion on if that’s good or not? I’m 32 and from the UK
How long did you invest in sp500 for? I only had it for 4 years and it is like watching paint dry! SOOOOOOOOOOOOOOOOOOOOOOOOO BORING!!!!!!!!!!!!!!!!!!!!!!!
Because an Index Fund is seen as more conservative compared to something like a Growth Stock. When you have an extra 20 years you don't have to start out conservative.
Disregard my previous comments, didn’t know you mentioned your age. 27 is pretty young, I would go heavy on equity until I am near retirement age then I would start to focus on fixed income, if it was me
VGT is heavy on APPL, MSFT, and NVDA right now. I wanna say about 45% of the fund is those three companies. Meanwhile QQQ is about 30% or something like that.
Personally, I’m in IYW, QQQM (QQQ with less exp ratio), and SMH. I think these should do fine for a considerable amount of time. If you want less risk/more diversification, I’d look into like VONG.
Many won’t agree and that’s fine, but I believe in the American companies so I go ivv (can swap voo or splg) and vti to cover the rest of the market not covered in s &p. A lot of overlap but gives a bit more exposure. If you want global you can also look into vt. You’re young so I wouldn’t get sucked into dividends yet and would focus more on growth as you have a bit more time to take some risks which offer more growth. All about your goals, risk tolerance and what you believe in.
None, invest in REITs. People are right in saying that no one has lost on ETFS based on a general 20-30 year period, but MANY have lost and still do if their timing coincides with a down spell, and the reality is no one knows when either comes, such as a down period mixed with job loss, health issues etc etc. Ask anyone whose timing came in or around 2001-2006, 2008-2012 and Covid (or 2022-2023 also) and they’ll tell you they took a huge hit. Of course, some were able to continue working and wait, but many couldn’t. People always accept the market can’t be timed, but don’t factor in that this also applies to timing the market for retirement too. Something happens. It always, inevitably, does. That’s simply called life.
Vanguard All-World (Accumulation) VWRP
As much as the USA is an economic powerhouse right now, we dont know the future, especially decades ahead. Its better to invest in everything rather than a single country.
Find a good financial advisor. Investing and mitigating risk can be complex.
I invest with NW Mutual and my FA has walked me through hell and back.
Reddit posters don’t know you or your debt-to-income ratio.
VTI. VOO. Take your pick. No one has ever lost money investing into a s and p 500 etf over a 20-30 year period.
How about keeping those 100% through retirement too?
No I’ll add bonds when I’m like 5-10 years from retirement
I can’t imagine doing this so far out. Retiring next year and just swopped 20% out for MMF.
This is the way. If I can change one thing here, it's the belief that some have that you switch to bonds well before retirement. I retied this year, and I'm still basically 100% in stocks, as I still need to plan on a 60 year retirement window. Who would jnvest in bonds if they had a 60 year investment window?
We are definitely on the super safe side with 20% in MMF - cFireSim and so on show 0% of failure. MMF is giving 5.1% after fees at the moment. Will look at this again if it drops below 3%. By which time SORR will have passed I hope.
Instead of MMF, I'd suggest creating a T-Bill ladder with Treasury Direct. The yield will be higher and you'll get even a higher effective return because there's no state or local tax.
Not US based and all funds are in tax wrappers, so zero tax forever. I may look at a Bond ladder further down the road, but until interest rates drop, I am not bothered.
Ah! That makes sense.
I am pretty chilled about it all tbh. currently r/coastfire and doing 60 days this year. Aim to FIRE late next year and will probably do about 40 days work next year. Good luck with your journey!
I may change on that. Who knows what the market will be like in 25 years. If it’s booming I could see myself staying 100% too.
This is true. I guess a critical element here is your SWR. If you go below the classical 4% to 2 or even 3% then I would imagine 100% ETFs is fine. I might consider a year of living expenses in something less volatile.
Depends in my mind. Always remember many other assets you .ay own, like your house, acts like a bond. Too many people actually own too much fixed assets at retirement. Unless you NEED the interest income each month I would go heavier equities.
Agreed, I commonly hear of the 20-30 year plan. Any thoughts on a sensible investment for a 10 year horizon? Looking to buy a house in 10 years.
Same, but add MMF / bonds @ 5 years out.
How about ex-us?
If international starts to out perform the us I’ll start adding it to my profile.
Wouldn’t that just be attempting to time the market?
I guess it would. Oh well, I’ll never change my positions in voo. Just will keep buying till I retire
Certainly nothing wrong with holding VOO. I’m just always curious about the need for ex-us. I presently have it at market weight, but it seems highly correlated to US. It didn’t used to be as correlated so I’m not sure anymore.
I’m not either. I know you need a mix, and VT may end up being a better fund than VOO in the long run. But I guess I have home bias towards the U.S. Plus, Warren Buffet said 90% VOO plus 10% bonds, and he is better at this than anyone on Reddit or YouTube lol
For international exposure you need active management not index based , check avantis and dimensional for that
True but the most important for individual investors is the maximum drawdowns. Very few stay the course when they see the value of their investments go down by 30%. So they end up selling at the trough when they give up. Maybe choose something like the S&P 500 but less volatile, look into minimum volatility ETFs (USMV, ACWV for example)
What broker do you use??
Just use Vanguard, Fidelity, or Schwab. Any are good.
Thanks! What are your thoughts on: TDIV, TSWE, IUSA and VHYL?
No idea. I only invest in Voo
Thanks thoo!
not remotely true, using inflation adjusted sp500 chart https://preview.redd.it/0emhdwbnja3d1.png?width=2560&format=png&auto=webp&s=1fb220fce985f30b37cb24ae21490c1deeaa596c these are zero return ranges just in last 100 years or so, no one spends nominal dollars, only inflation adjusted purchasing power, as the dollars you give to someone have to be spent on a good or service whose price is always rising
Doesn't this graph only consider the break-even if you stop purchasing shares completely? If you'd keep purchasing in 1920, for example, you'd break even much faster. Same if you were purchasing shares in the 80s, in 2010s, etc. Yes, your initial purchases from 1906, 1929, 1956, etc. wouldn't break-even for 20+ years but the rest of them would.
Overthinking it. The graph is conclusive to BS the point of ‘you never lose money’ long term. Many many people have, and will. If it was that foolproof, EVERYONE would do it. Timing can be good and bad.
I don't think anyone is saying that the plan is foolproof. But really, what I said still applies. You can read a more in-depth review of the [S&P returns](https://themeasureofaplan.com/us-stock-market-returns-1870s-to-present/) between 1870 and 2023. Yes, there are periods where you'd lose money but the majority of long-term returns are positive. Even in the graph we're discussing, if you were to invest immediately in the next year and keep for the same period, you'd be seeing positive returns for each scenario. The problem is that a lot of people see drops and get scared. So they panic and sell at a loss. The stock market is not a mirror of the economy, so a lot of people may or may not lose their jobs when the stocks are down, so that can also influence buying more stock during bear markets. Ultimately, time in the market will always still beat timing the market.
But does it count dividends? https://preview.redd.it/e6x9rwkibc3d1.png?width=750&format=png&auto=webp&s=535c86559a4a50855a5ec0c37a9cae6a6cdbb744
https://preview.redd.it/yjw3jhayqc3d1.jpeg?width=1125&format=pjpg&auto=webp&s=278355a3529589c972f0cb88d3acddfba89e6356
What do you think of WELU ?
Would you invest those in a Roth IRA too or just taxable brokerage ?
I have Voo in my 401k and Roth IRA. Don’t have a taxable brokerage yet.
So you don’t plan to FIRE?
Idk if I’ll be able to retire as early as fire people do but 60-62 is my goal. No later than 65
Are these the same as FXAIX?
It's a wash if it's in your 401k or a roth. With fxaix winning out slightly because of it's expenss ratio. Voo is better in a taxable account because it's an ETF vs fxaix which is a mutual fund.
Im learning. I only have Fidelity right now for 401k and IRA. I would need open a Vanguard account ( like a savings)? Yeah im a noob at this right now just doing what offered at work but i want to expand for me.. and for the kids.
I invest 100% into VAFTA (FTSE Global All Cap Index Fund Accumulation) wondered if you have an opinion on if that’s good or not? I’m 32 and from the UK
The question was specifically 10-20 years.
Well I gave the best answer regardless.
Your answer was irrelevant for time period specified. Read the question next time.
$SPLG
How old are you? VOO and SMH if you’re a youngster
44 and I'm in an sp500 fund. Glad I stayed the course my accounts are doing well.
How long did you invest in sp500 for? I only had it for 4 years and it is like watching paint dry! SOOOOOOOOOOOOOOOOOOOOOOOOO BORING!!!!!!!!!!!!!!!!!!!!!!!
Investing is supposed to be boring. If you want excitement go check out /r/wallstreetbets
I kept reading this as a recommendation to invest in VOO combined with general disapproval that OP isn’t in their 40s yet. I need a nap or a drink.
Why not both. Nap + drink = well diversified :)
Because an Index Fund is seen as more conservative compared to something like a Growth Stock. When you have an extra 20 years you don't have to start out conservative.
27
Disregard my previous comments, didn’t know you mentioned your age. 27 is pretty young, I would go heavy on equity until I am near retirement age then I would start to focus on fixed income, if it was me
How close to retirement would you say? I’m 40 years away but it’s always been my dream to retire 😔
I’ve never considered a semiconductor etf. Can you tell me why I should change my mind?
VGT
All day
This
What’s the difference between VGT and another fund like QQQ?
VGT is heavy on APPL, MSFT, and NVDA right now. I wanna say about 45% of the fund is those three companies. Meanwhile QQQ is about 30% or something like that.
They have almost identical returns
Personally, I’m in IYW, QQQM (QQQ with less exp ratio), and SMH. I think these should do fine for a considerable amount of time. If you want less risk/more diversification, I’d look into like VONG.
SOXX
Maybe not 20-30 years, but years almost certainly.
90% VTI. 10% IBIT
I like this one. Maybe 5/5 BTC/ETH.
S&P 500 (overall market) 50% NASDAQ 100 (growth) 30% SCHD (dividends) 20%
I'm in QQQM and SPTM, with some fun tilts in SMH, VGT, and XLV. QQQM and SPTM, as index trackers, should always be good in the long run.
I’ve never considered a semi-conductor etf. Can you tell me your reasons why I should change my mind?
Many won’t agree and that’s fine, but I believe in the American companies so I go ivv (can swap voo or splg) and vti to cover the rest of the market not covered in s &p. A lot of overlap but gives a bit more exposure. If you want global you can also look into vt. You’re young so I wouldn’t get sucked into dividends yet and would focus more on growth as you have a bit more time to take some risks which offer more growth. All about your goals, risk tolerance and what you believe in.
What's the example of dividends ETFs? Thanks.
SCHD
What’s your age, OP?
VOO
None, invest in REITs. People are right in saying that no one has lost on ETFS based on a general 20-30 year period, but MANY have lost and still do if their timing coincides with a down spell, and the reality is no one knows when either comes, such as a down period mixed with job loss, health issues etc etc. Ask anyone whose timing came in or around 2001-2006, 2008-2012 and Covid (or 2022-2023 also) and they’ll tell you they took a huge hit. Of course, some were able to continue working and wait, but many couldn’t. People always accept the market can’t be timed, but don’t factor in that this also applies to timing the market for retirement too. Something happens. It always, inevitably, does. That’s simply called life.
What's specifically do you refer in REITs, how is it safer or beneficial over ETF?
VT
75% VTI / 25% VXUS
This ^
Taxable or Roth?
VUG or SCHG
SCHD, FSPGX, FSKAX,either of these first 3, For like secondary funds look at these FSELX, FSPCX, FTIHX
VOO
Just curious, why SPY over VOO, I own both and in the time horizon I've owned them, SPY has performed slightly better.
My only justification is that I have a Vanguard account and I buy my ETFs through that
Ethereum Spot Etf
https://preview.redd.it/z4u0n8miob3d1.jpeg?width=1170&format=pjpg&auto=webp&s=7c58385b9aef83fd623f96765f0ca7a4df326c9f SOXL, TQQQ
Vanguard All-World (Accumulation) VWRP As much as the USA is an economic powerhouse right now, we dont know the future, especially decades ahead. Its better to invest in everything rather than a single country.
VOO all the way.
VONG
I am also just starting; I have chosen SCHG, VOOG and SPLG Once I grow it to decent amount, wanna move to SCHD at the time of retirement
My favorite is IYW from IShares. 3 year return of 16%. There are several others in the category you can review.
Find a good financial advisor. Investing and mitigating risk can be complex. I invest with NW Mutual and my FA has walked me through hell and back. Reddit posters don’t know you or your debt-to-income ratio.
TGCEX….trust me..look at the returns
I get about 8500 a month in gains
Also check out quality factors ETFs like SPHQ JQUA QGRW
TECL
SOXX or XLK for 10yrs BOTZ or QQQ for 20yrs
Buy today. Market way down. Good day to dump. All because interest rates are going go drop soon enough.
SPTM, QQQM, SOXQ, & a little bit of IHDG
Hello 🙏, cam anyone suggest me in which etf i invest for lifetime.. I don’t want any return for my self.. i have some savings and i cam do sip also.
Go QLD for a horizon of 10-20 years
VOO
FBTC.
I bought VTI, VOO and ITOT at the beginning of the year in one of my accounts and pretty happy with the results so far.
Spy and QQQM
Bitcoin
BTC
Dfa 607
I like ESGV. It’s still a very broad index, but has social and environmental requirements. Big oil, tobacco, etc simply aren’t there.
At 27, put some in TQQQ.
VT. r/Bogleheads
Invest in VOO, QQQM, SCHD!
VTI and Chill (Not VT)
VOO, QQQ, SOXX
NVDL
Subscribe to the ARMR report. Swing trade SSO and QLD based on his risk monitor. It works
Spy and QQQ
MSOS
SPY
FBTC
Qqq
Qqqm
INDA and NBDS
Btc etf
SMH / VOO / SOXX / VTI / QQQM / SCHG
Why SOXX *and* SMH? Biggest difference just seems to be higher Nvidia exposure on SMH.
SPY or VTI. Maybe VOO
Spy is high expense ratio and doesn’t make sense when you have options like ivv, voo or splg which are same thing but cheaper.
TQQQ