↑ Total International Stock ETF (VXUS), Vanguard Institutional Investors. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. In reality, there's nothing WRONG with doing TRF. Press J to jump to the feed. You would want as much money in the account with tax-free withdrawals (Roth IRA) and as little money in the account that will tax withdrawals as ordinary income (401(k)). How to Buy Vanguard's Total Stock Market Index Fund (VTSAX). Yeah that's a lot of loans. The first reason is that I plan to build an account that I can pass down to my kids. Employer has recently switched to TIAA from MetLife and cannot provide any other details. 3-Month 5.88% 5.24%. The main difference is that one is through fidelity and the other is through vanguard. Just wanting to get peoples opinions on either or both and thoughts. Ideally, you should do something more like FZROX + FZILX which is total US + international. I know that I am limited as to how much I can contribute each year. As a result, your goal should be to put asset classes with high expected returns, such as stocks, into the Roth IRA. Roth IRA rules dictate that as long as you've owned your account for 5 years* and you're age 59½ or older, you can withdraw your money when you want to and you won't owe any federal taxes. Roth IRA rules dictate that as long as you've owned your account for 5 years* and you're age 59½ or older, you can withdraw your money when you want to and you won't owe any federal taxes. You don't need $10,000 for each purchase - the minimum purchase amount for additional investments once you hold VTSAX … They are a great way to save for retirement without a worry in the world. Get out of USAA for your Roth IRA. I remember … Taxes on the interest payments are deferred in a Roth IRA account, making it an ideal place to hold such investments. Roth IRA Stocks Mutual Funds ETFs 401(k) Investing/Trading ... (VTSAX) mutual fund invests in the U.S. equity market with more than 3,600 stock holdings in this one fund. I’m sorry. After listening to your show you both seem to like converting more into the tax-free.” Yeah. This includes physicians, dentists, attorneys, physician assistants, nurse practitioners, pharmacists, physical therapists, occupational therapists, and others with high incomes. I saw your post on Reddit and have read some of your site and love the advice you have given. Yes you should be in total market and not just S&P500, cause that is not diversified. I don’t know the names of those index funds offhand but I think they’re google-able. Great review. For those closer to retirement, a healthy allocation to stocks may still be appropriate. If you want straight ticket stock market index funds (like VTSAX) and you want to go with Fido, that would be their Fidelity Total Market Index fund (FSTVX for premium class, 10K minimum, just like VTSAX admiral level). 2. Dividend Stocks . When I look in a web bogleheads, most people are investing in Vanguard Wellesley Income Fund (VWINX) and Vanguard Wellington fund (VWELX). Will plan and do accordingly. After reading the book the Simple Path to Wealth I said in this post I would put $50,000.00 in the Vanguard VTSAX fund and add to it monthly. Newbie here again. Monday through Friday 8 a.m. to 8 p.m., Eastern time Join our community, read the PF Wiki, and get on top of your finances! What fund I have to select though? You can consider having a side account. Get details on IRA withdrawals. The first reason is that I plan to build an account that I can pass down to my kids. I decided to do it for 3 reasons. If you really wanted to get your 50/50 asset allocation right on an after-tax basis, then you’d put $90K into stocks and $10K into bonds in your Roth IRA, and then $100K into bonds in your traditional IRA. As an investment, VTI and VTSAX are completely identical. VTSAX | A complete Vanguard Total Stock Market Index Fund;Admiral mutual fund overview by MarketWatch. Just looking for insight on what people think. I'm new to the financing game, and I'm wondering what would be the better option of the following: $6000 into Target Retirement Fund 2055 ($1000 minimum, I'm turning 34 next week). On the other hand, a family with $0 of after-tax investments and $200k of 401k/IRA/Roth IRA/etc. I have been debating switching over to a total market index. If you choose to invest in VTSAX, this means you certainly won’t be alone in carrying about its performance. I decided to do it for 3 reasons. Withdrawals from traditional IRAs are usually subject to taxes and a 10% early withdrawal penalty if you take money out before age 59.5. It's important that your stock exposure matches your comfort with risk, investment horizon, … I don’t know how much more. I'm trying to budget for my 2020 Vanguard Roth IRA. So, Roth IRA is a type of account, and VTSAX is an index fund, which you can invest in within your Roth IRA. 19 COMMENTS. Logged dionnenicole. Vanguard Roth IRA: VTSAX/VTIAX vs Target Retirement Date Fund. More specifically to your investments, I believe currently there’s a minimum portfolio size of 10k to invest in the vanguard admiral shares (VTSAX and VTIAX), and a lower cutoff of 3k for similar indexes with just not quite as sweet of expense ratio, so that’s worth a look into. Here’s your takeaway: Choose VXUS or VTIAX; it does not matter. View mutual fund news, mutual fund market and mutual fund interest rates. Roth IRA. 30 years old, just started my Roth IRA earlier this year. It seems most people like the VTSAX however, Fidelity now has the zero fee funds. A Profile of the Vanguard Total Stock Market Index Fund. Your earnings on those contributions, however, are subject to tax, but not a penalty. My gut says yeah, use all the tax stuff you can. Right now I selected the “Target retirement 20xx” fund but I don’t know if that’s the best option. It is also a US total market fund, with a few hundred more holdings than FZROX, and with a lower expense ratio than VTSAX. Either put the money in lump sum, or set up an automatic transfer/deposit and don't look at it. Or put another way, VTSAX is a collection of many stocks (more on that later) that track the American stock market as a whole. It's rarely worth buying the mutual fund versions anywhere that isn't Vanguard. Indeed, a year ago, I wrote a post about how I was going to do exactly that – then, of course, I procrastinated and did nothing for the next 12 months. Vanguard should be able to help you with the paperwork and it should be a fairly painless process. VXUS and VTIAX have the same expense ratio: 0.04%. has $0 available to spend on junior’s education (just considering the assets part of the equation, not income). If you're smart enough to wonder about whether or not you should use a TRF or do the investments yourself, and you're smart enough to know what "VTSAX" and "VTIAX" mean, you're smart enough to do the investments yourself. That changed less than a year ago. After reading the book the Simple Path to Wealth I said in this post I would put $50,000.00 in the Vanguard VTSAX fund and add to it monthly. You could also add FSKAX in your comparison. If you really wanted to get your 50/50 asset allocation right on an after-tax basis, then you’d put $90K into stocks and $10K into bonds in your Roth IRA, and then $100K into bonds in your traditional IRA. Once you’ve been convinced that index funds are the most efficient way to invest, the only decision you need to make is which index fund to invest in. That is why I was debating switching to an index. If you want to learn as little as possible about finance until the very end of residency, TRF is absolutely fine and is a good set-and-forget strategy. My Millionaire Journey: I Put $50,000.00 in the Vanguard VTSAX Fund. No age limit. My hope is for a 70/30 VTSAX-VTIAX/VBLTX setup as soon as financially feasible. No RMDs. To a university (using the FAFSA tool), a family with $200k of after-tax investments has $200k available to spend on junior. For the last part, I meant switching my IRA to Vanguard. Yes, agreed. Are you talking about opening up an after-tax brokerage account and investing in VTSAX there? By owning this one index fund, you hold a piece of ownership in all 3,600+ publicly traded stocks in the U.S. FZROX is new, under a year old, so in the long run it may outperform VTSAX, depending on how the stocks inside the funds do. Good advice, but I prefer having a Roth-IRA and Roth 401(k) or Roth 403(b) (depending on employment type) to traditional. I'm okay with doing simple tasks like putting money in and visiting the account on a weekly basis. Once a month is fine, hell even once a year to look at your investments and rebalance is fine. BUT, I'm okay with doing simple tasks like putting money in and visiting the account on a weekly basis. Maxed out for 2018 and working on this year now. The huge benefits of a Roth IRA Roth IRAs are great vehicles for saving. Cookies help us deliver our Services. VTSAX: 3,560: $813.5 B: 0.04%: Schwab: SWTSX: 3,075: $10.0 B: 0.03%: Fidelity: FSKAX: 3,454: $46.5 B: 0.015% : Fidelity: FZROX: 2,530: $3.8 B: 0%: On the surface, the new Fidelity® ZERO Total Market Index Fund looks like it just won the war as best US total market index fund. 5-Year 13.95% 12.06%. They hold the exact same collection of stocks (every individual publicly traded stock in the U.S.), they have the exact same dividend yield, and they earn the exact same annual returns. Others (such as the White Coat Investor in this post) argue forcefully that you should hold bonds in taxable, because you want to maximize the tax benefits of your retirement investment accounts by maximizing the return of the assets in those accounts. Please contact the moderators of this subreddit if you have any questions or concerns. Do you recommend buying VTSAX in a Roth IRA? Roth IRA money is not subject to Required Minimum Distributions (RMDs), ... have $10,000 in qualified dividends from index funds like VTSAX, $10,000 in taxable income from crowdfunded real estate, and want to spend $120,000 slow traveling around the world that year. FNILX is fidelity's zero large cap index. Setting up my Roth IRA and maxing it out. VTSAX is marginally better. So just sit on the extra money the first year...pay down your loans, build up your emergency fund...whatever you want. The equity characteristics of VTSAX and VFIAX are as follows: 1-Month 12.20% 11.08%. 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About VTSAX investment portfolio, including Asset allocation, Stock style, exposure...