oldnews
Dryer sheet wannabe
Hi, new to the site. Rolled over 300k to my Schwab IRA. No debt. Thinking about index funds?...anyone.
I just made a replying post in the other thread, but will copy it here.
Schwab is one of 4 brokerages that I have accounts with.
Schwab has several ETF funds with very low expense ratios, such as 0.04% or 0.07%. You can buy domestic total market, or large cap, small cap, international, or emerging market ETFs, etc... As to selecting the right composition for yourself, you may need to do some reading.
PS. As you have an account with them, trading of their ETFs is commission-free.
oldnews said:something wrong with DIS?
I think a lot of people here would say buying that much of a single stock is quite risky. "Putting all your eggs in one basket."
SIS
Decided on Disney...(DIS)...bought 5500 shares for 280,000. Pays a dividend, incredibly good revenue stream, just bought LucasArts.
Not at all, but a little less diversification than an index fund no? You mentioned an index fund in your first post...something wrong with DIS?
Hi, new to the site. Rolled over 300k to my Schwab IRA. No debt. Thinking about index funds?...anyone.
I would invest in CDs, laddered, for 10 years. If you are in your 70s or 80s, I would buy SPIAs. My view only, I know others will disagree.
something wrong with DIS?
pb4uski said:Why not plunk the whole amount into Disney?
While I own equity and bond index funds, if I were to own a balanced fund I would look at Vanguard Star (which I have owned in the past), Vanguard Wellington and Vanguard Wellesley.
Decided on Disney...(DIS)...bought 5500 shares for 280,000. Pays a dividend, incredibly good revenue stream, just bought LucasArts.
Interesting. I like balanced funds. Of those three, I prefer the one not mentioned: the Balanced Index Fund. With Admiral Shares (VBIAX), its expense ratio of 10 basis points is about 1/3 the cost of the others.
Tim
Yeah, but the others have performed better over the last 10+ years. Was it skill or luck?
Luck. Over the last 10 years a long-term bond index fund, without any stocks at all, did better than all of them.
The bond side of the Balanced Index is mostly intermediate-term government debt. Wellington and Wellesley hold long-term corporate debt, so they benefited far more from falling interest rates. It's hard to expect the bond side of their portfolio to outperform so dramatically going forward.
Tim