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brianhos

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Any suggestions for beginner investors?

Finally have all other finances in order and some extra cash, looking to put half in a 5ish year plan and the rest in long term holds.

Open to suggestions on the best thing to invest in for 5 year, would it be ETF's?

Vanguard, buy VTSAX or it's ETF version VTI. No fees, and the expense ratio is tiny.
 
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DSMCy

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Vanguard, buy VTSAX or it's ETF version VTI. No fees, and the expense ratio is tiny.
Vanguard increased expenses on their Admiral funds to get people to move to ETFs. It's only a basis point but still no reason not to go the ETF route.
 

DSMCy

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Planning for house upgrade in 5ish years, wife will be back at work by then, stays home with the younglings now. May or may not move to Des Moines area at some point, but housing there is 150-200% more.
Honestly, I still like the portfolio I outlined above for your 5 year plan.

If you want to reduce risk (but also potential return) you could allocate more to bonds (BND).
 

brianhos

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Vanguard increased expenses on their Admiral funds to get people to move to ETFs. It's only a basis point but still no reason not to go the ETF route.

When do you see that fee? I have it auto set to buy VTSAX every week.
 

DSMCy

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When do you see that fee? I have it auto set to buy VTSAX every week.

Expense Ratio is in the table on the right hand side.

VTSAX = 0.04%
VTI = 0.03%

I do the same thing monthly, but I buy VTI. I just have a reminder set to log in and place an order.
I wish there was a way to somehow have a standing order. I'm going to buy no matter what the share price is.
 

cycloneG

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DSMCy

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Vanguard lets you setup automatic recurring buys.
For stocks purchases? Are you sure about that, I think automatic investing only applies to mutual funds.

Edit: ETFs (or other stocks) don't have an option for automatic investments. Which makes sense since you don't know what the share price will be.

If you want to repeat specific transactions automatically …
ETFs
An ETF wouldn't be a suitable investment.
You can't make automatic investments or withdrawals into or out of ETFs.
 
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cycloneG

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For stocks purchases? Are you sure about that, I think automatic investing only applies to mutual funds.

Edit: ETFs (or other stocks) don't have an option for automatic investments. Which makes sense since you don't know what the share price will be.

Totally missed the ETF part of the discussion some how.
 
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SoapyCy

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My taxable account is 60% VTI and 40% VXUS. Easy automatic purchases every month when I deposit cash.

My Roth is mostly VT total market, 6% BND, and the rest some "fun "stocks. I'm absolutely pared down my 30 ETF portfolio from last year into an easy-to-understand allocation. Not as fun but way simpler, with the same returns. I save cash throughout the year and then deposit the $6000 on the first trading day of the year and start to save in cash for the following year.
 

ricochet

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Vanguard increased expenses on their Admiral funds to get people to move to ETFs. It's only a basis point but still no reason not to go the ETF route.
Actually they didn't raise the mutual fund expense ratio, they lowered the ETF. At least that is true for VTSAX/VTI, and I'm pretty sure any other Vanguard fund. Not sure about other companies. Your point still stands though that they are funneling people to ETFs and that is probably the better choice, especially if you are just starting out and don't have enough money for Admiral shares.
 

brianhos

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VTSAX is $1 away from the Feb high. During a depression, in the middle of a pandemic. At this point I should just get totally out of any investment that is not that. Even the bond funds that have returned 7% already this year. Seems to be no risk in going all in.
 

ArgentCy

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When do you see that fee? I have it auto set to buy VTSAX every week.

Never, one basis point is so tiny you'll never even notice. But those fees are taken out before you see the returns. They are hard to see even at 1%.
 

ArgentCy

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Any suggestions for beginner investors?

Finally have all other finances in order and some extra cash, looking to put half in a 5ish year plan and the rest in long term holds.

Open to suggestions on the best thing to invest in for 5 year, would it be ETF's?

This is a tough market even for pros let alone beginners. I'd say focus on your risks and try not to risk too much money or too little. Spread it around between assets classes not just stocks. I'm going to be heavy precious metals and own no bonds. Bonds are probably going to be the worst investment for 10-20 years.
 
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iowastatefan1929

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the greatest bearish divergence ever observed is now set in place
blue - imp volatility
lower - rsi
red lines - current divergence
purple lines - early 2020 divergence
light blue lines - 2018 divergence

never has a more bearish divergence been present since the founding of the vix or its predecessor the vox (which is available on most platforms back to 87)

tops in 29 and 08 and 18 and 87 were around labor day
00 crash in march, came back to double top in july/october the one exception to the labor day rule

i dont know if a crash is coming or what would cause it, i do know that the greatest bearish divergence ever observed on the s&p is now present on the daily, weekly and monthly charts


2020-08-23-TOS_CHARTS.png
 
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iowastatefan1929

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wtf, volatility(blue) moving vertically with price on the nasdaq on the 4hr, this is so rare to see, we will see if it holds, it usually means a drop is coming

2020-08-24-TOS_CHARTS.png
 

iowastatefan1929

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WAY WAY WAY too much money on the sidelines for there to be a huge drop

i think that is fair, + small businesses getting destroyed by covid lockdowns etc., revenue being scooped up by the larger caps, s&p dip down to 3000 though could bring in plenty of dip buyers and then the rug gets pulled, potentially multiple times, thats how 2008 was.

not sure i buy that bullish inflation argument considering wages will need to rise proportionally.
 

bos

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Money on the sidelines? Why would anyone have money on the sidelines at this point? Seems too late to buy already.
There are still some deals, but yeah, watching some of my wishlist blowing up while I sat there with cash. Sad face