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Want to invest 25K long term. Suggest a mutual fund or ETF please

uvasag 412 131 September 16, 2015 at 12:49 PM
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I have $25K to invest and it's going to be a long term investment. I'm leaning towards VTI - Vanguard Total Stock Market ETF . Do you guys have any other suggestions ? TIA

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#2
Quote from uvasag View Post :
I have $25K to invest and it's going to be a long term investment. I'm leaning towards VTI - Vanguard Total Stock Market ETF . Do you guys have any other suggestions ? TIA
Solid plan. Mutual funds while gives good returns can be expensive with fees and capital gains burden annually.
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#3
I was going to go with VTI as well, until I read up on VDIGX. It's a mutual fund that focuses on high dividend yield stocks. I went with the latter. But VTI is a solid pick. What is your time horizon?
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#4
Will you be investing this money inside of a retirement account and, if so, which one?

Why only one fund? Why not diversify your money more, especially overseas where 75% of capitalism is?
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#5
I would be in cash In case the stock market crashes

you have to wait to see what happens in china and aso the first rate rise


most stocks are over valued
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#6
Quote from Brian1 View Post :
Will you be investing this money inside of a retirement account and, if so, which one?

Why only one fund? Why not diversify your money more, especially overseas where 75% of capitalism is?
Maybe I am missing something but I was thinking of buying $25K worth of VTI. I thought mutual funds were a combination of funds. Can you suggest something when you say diversify my money more ? Thanks.
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#7
Quote from uvasag View Post :
Maybe I am missing something but I was thinking of buying $25K worth of VTI. I thought mutual funds were a combination of funds. Can you suggest something when you say diversify my money more ? Thanks.
VTI is well diversified, but it leaves out international stock markets, emerging markets, and bonds - all of which can help make up a well diversified portfolio as a whole.

If VTI is a part of your portfolio, that could be OK, but I wouldn't make it your entire portfolio as you would be leaving out international and emerging market exposure as well as bond fund exposure.

Remember, the United States makes up a fraction of the world's capitalism. Also, the United States is starting from a higher base than much/most of the rest of the world with regards to capitalism. So, much of the growth in capitalism is very likely to come from outside of the United States in the years to come. I would make sure my portfolio was exposed to this growth.

What type of account will you be investing this through?
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Last edited by Brian1 September 16, 2015 at 10:06 PM
#8
Quote from Brian1 View Post :
VTI is well diversified, but it leaves out international stock markets, emerging markets, and bonds - all of which can help make up a well diversified portfolio as a whole.

If VTI is a part of your portfolio, that could be OK, but I wouldn't make it your entire portfolio as you would be leaving out international and emerging market exposure as well as bond fund exposure.

Remember, the United States makes up a fraction of the world's capitalism. Also, the United States is starting from a higher base than much/most of the rest of the world with regards to capitalism. So, much of the growth in capitalism is very likely to come from outside of the United States in the years to come. I would make sure my portfolio was exposed to this growth.

What type of account will you be investing this through?
You bring up valid points but I have to say, international markets have been really stinky the last several years, the best place to have been was in the US. I threw in the towel years ago on BRICs and just stuck to good U.S.multi nationals that do business internationally.

Personally, I'd buy vti, qqq, xlv and xbi and let it run for several years. But I'm young, risky and bond-averse Smilie
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#9
Quote from Brian1 View Post :
VTI is well diversified, but it leaves out international stock markets, emerging markets, and bonds - all of which can help make up a well diversified portfolio as a whole.

If VTI is a part of your portfolio, that could be OK, but I wouldn't make it your entire portfolio as you would be leaving out international and emerging market exposure as well as bond fund exposure.

Remember, the United States makes up a fraction of the world's capitalism. Also, the United States is starting from a higher base than much/most of the rest of the world with regards to capitalism. So, much of the growth in capitalism is very likely to come from outside of the United States in the years to come. I would make sure my portfolio was exposed to this growth.

What type of account will you be investing this through?
The investment is my personal account. I have a Rollover IRA account with Vanguard and have all of my money invested in VTTHX Vanguard Target Retirement 2035 Fund Investor Shares . I also have another small lump of money in my own personal investment account at VTSAX Vanguard Total Stock Market Index Fund Admiral Shares.

Can you suggest a fund which uses the international market ? Thanks so far.
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#10
Quote from MCeatalot View Post :
I was going to go with VTI as well, until I read up on VDIGX. It's a mutual fund that focuses on high dividend yield stocks. I went with the latter. But VTI is a solid pick. What is your time horizon?
I have the 25K sitting in my checking account right now. I would like to invest as soon as I can. I'll look into VDIGX, thanks for the suggestion
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#11
Quote from uvasag View Post :
The investment is my personal account. I have a Rollover IRA account with Vanguard and have all of my money invested in VTTHX Vanguard Target Retirement 2035 Fund Investor Shares . I also have another small lump of money in my own personal investment account at VTSAX Vanguard Total Stock Market Index Fund Admiral Shares.

Can you suggest a fund which uses the international market ? Thanks so far.
How many years until you plan on withdrawing this money?

Are you not eligible for a Roth IRA? Are you maxing out your traditional IRA every year?

International stock market index fund: VGTSX*
Emerging markets stock market index fund: VEIEX*
Short-term bond index fund: VBISX* or total bond market index fund: VBMFX*
* Or their admiral shares or ETF counterparts.
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#12
Quote from Brian1 View Post :
How many years until you plan on withdrawing this money?

Are you not eligible for a Roth IRA? Are you maxing out your traditional IRA every year?

International stock market index fund: VGTSX*
Emerging markets stock market index fund: VEIEX*
Short-term bond index fund: VBISX* or total bond market index fund: VBMFX*
* Or their admiral shares or ETF counterparts.
I plan on keeping it for 20 years.
I'm maxing out my 401K every year.
Thanks for the suggestions on the international funds. Will look at it. Thanks.
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#13
Have you considered controlling your own destiny by managing your own money? I don't have any of my non-retirement investments in mutual funds. Market returns are random and no one consistently beats the market in the long run when paying fees to the asset gatherers. With the technology available today and the relatively narrow bid/ask spreads, self-directed individual investors can go toe-to-toe with the big boys.

BTW - I wouldn't touch a target dated fund in my retirement account in a million years.
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#14
Quote from rrc06 View Post :
You bring up valid points but I have to say, international markets have been really stinky the last several years, the best place to have been was in the US.
I think the same, however, could be said for any sector versus another at a particular given time. I believe the key is to have a well diversified and properly allocated portfolio that is dollar cost averaged into, always keeping a long-term forward-looking, rather than rear-looking, view. Capitalism, as a whole, grows over time. With a well-diversified, long-term approach, even the most painful of recessions will be recovered from - as long as one stays the course and doesn't let emotion take over.

More specifically, I think the state of international markets as of late depends on one's perspective. For many, pull backs and dips represent great opportunities to buy these funds on sale. So, for the one who is well-diversified, is properly allocated, has a long-term approach, and who is dollar cost averaging, these pull back and dips are no big deal as their horizon is far off into the distance. Or, for those in retirement, their allocation takes care of too much exposure to volatile markets.
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#15
You could always put it in a target fund based on your retirement age.
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