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Vanguard Question
Old 11-09-2014, 04:19 PM   #1
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Vanguard Question

Hello all,
I want to open a Vanguard account and start transitioning some cash to the account. I am looking for thoughts on which Vanguard options/funds make the most sense to begin with. Or, if there is a Vanguard thread here that might be helpful.
We are looking at about $40,000 initially and we are not concerned with risk.
Thanks in advance!
--Nomad
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Old 11-09-2014, 04:34 PM   #2
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You need to determine whether growth or income is your goal. Vanguard's growth index fund FIGRX (or its ETF VUG) would be a good choice and would be tax efficient. There are several income oriented funds: Dividend Appreciation, Dividend Yield, or even the S&P 500 index fund has a decent dividend.

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Old 11-09-2014, 04:50 PM   #3
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As a broad based one I like the VTI etf has a low fee of .05% (nearly free). I have compared this to a bunch of other ETF's and even Berkshire shares, and find it useful and valuable (it pays a dividend too).
I own it as a core building block of investments, as it gives me great exposure to many stocks.
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Old 11-09-2014, 04:51 PM   #4
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Also be sure to check in at the Bogleheads forum. I've heard that some of them have reasoned opinions on Vanguard funds.


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Old 11-09-2014, 04:55 PM   #5
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I think income makes the most sense for us since we're leaning towards FIRE at the end of the year or early 2015. Growth is good too!
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Old 11-09-2014, 05:45 PM   #6
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As a broad based one I like the VTI etf has a low fee of .05% (nearly free). I have compared this to a bunch of other ETF's and even Berkshire shares, and find it useful and valuable (it pays a dividend too).
I own it as a core building block of investments, as it gives me great exposure to many stocks.
Thank you Sunset. Appreciate your wisdom!
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Old 11-09-2014, 05:55 PM   #7
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Also be sure to check in at the Bogleheads forum. I've heard that some of them have reasoned opinions on Vanguard funds.


Bogleheads Investing Advice and Info
Not to mention a few hard headed and strong opinions.



heh heh heh - like pssst Wellesley, Target Retirement Series, Etc. Be sure to consider what you may consider in context with your total investment picture.
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Old 11-09-2014, 06:01 PM   #8
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You could put it all in Wellington and just forget about it.....IMHO.....but they do have many to choose from.
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Old 11-09-2014, 06:38 PM   #9
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VTI is my core equity holding. The price is right as Sunset pointed out.
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Old 11-09-2014, 06:53 PM   #10
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Thanks to everyone for your replies, humor and suggestions! I plan to get started tomorrow and will move slowly. --Nomad
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Old 11-09-2014, 07:43 PM   #11
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Thanks to everyone for your replies, humor and suggestions! I plan to get started tomorrow and will move slowly. --Nomad
Open an account right now online and move your cash into a Vanguard money market settlement fund.

The market is expensive right now so I would wait for another correction and buy when the market is on sale.

VOO ETF is best place to start and all you really need if risk truly is not a worry.
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Old 11-09-2014, 08:04 PM   #12
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Looks like some hard-headed opinions show up here as well.
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Old 11-09-2014, 09:07 PM   #13
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Personally I am not a fan of Dividend Yield because I don't see those firms as having high growth potential.

One thing about investing is that everyone has an opinion and each are right at some time in the economic cycle.
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Old 11-10-2014, 08:09 AM   #14
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Open an account right now online and move your cash into a Vanguard money market settlement fund.

The market is expensive right now so I would wait for another correction and buy when the market is on sale.

VOO ETF is best place to start and all you really need if risk truly is not a worry.

Or buy into the money market fund as suggested by purplesky, but instead setup up an automatic monthly investment of say 5-10% of the initial balance to be invested into the fund of your choice. You will essentially be dollar cost averaging (DCA). I did this about 2 years ago when I thought the market was high then. It tends to spread out your risk.

-gauss
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Vanguard Question
Old 11-10-2014, 08:09 PM   #15
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Vanguard Question

What's your time horizon? Your AA? How old are you? What are your goals for the money? If you've a 30 year horizon, it's not as important to spread out your purchases over a couple of years.

If you have a long time horizon and want only stocks, VG has several good options. They - and most bogle heads (me) - work with The Total Stock fund as a core fund. Low ER, diversified, they have an ETF version of the fund, but I have no use for ETFs. At one time, they may have ben cheaper, but I do t think that is the case now. Depending on your wants, they also have the dividend fund mentioned above, and funds which follow the S&P500... a flavor for every palette.

If you're looking for a blended fund, there are the Wellington and Wellesly funds. One is 65% stock and the other 65% bonds. I tend to get the two confused lol. I prefer keeping my stock and bond funds separate, in case I want to modify the AA. My stock fund of choice is VTSAX - total stock. VTSAX requires a minimum $50k investment, if I recall, but there is an identical fund with a lower minimum and slightly higher ER. Don't ask me the ticker, offhand.

There is a newer International Total Stock fund - it's done OK but is a lot more volatile. I don't think there's enough performance data for me to recommend it yet, but I'm not bothered by volatility. To date, though, it has not returned anything near to what VTSAX has done, but it has helped with overall portfolio volatility. In the long run though, I'm not sure it's going be a great asset to my portfolio. But I was curious.

But call Vanguard and they'll discuss the options with you.


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Old 11-11-2014, 05:52 AM   #16
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A key decision for you is whether you prefer index funds or managed funds.

One option would be Vanguard's managed funds (Wellington, Wellesley, etc) that are generally balanced funds with low fees compared to other managed mutual funds. Since you seem to favor income, Wellesley would be a great choice.

The other end is to just pick a mix of index funds (for example, x% Total Stock, y% Total International Stock and z% Total Bond) and those funds have very low fees.

But as others have pointed out, the first step is to get the money there in a money market fund and then deploy over a time horizon that you are comfortable with. Given we are sitting at market highs, you may want to consider value averaging or dollar cost averaging into your target % for equities.
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Old 11-11-2014, 06:57 AM   #17
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Originally Posted by Sunset View Post
As a broad based one I like the VTI etf has a low fee of .05% (nearly free). I have compared this to a bunch of other ETF's and even Berkshire shares, and find it useful and valuable (it pays a dividend too).
I own it as a core building block of investments, as it gives me great exposure to many stocks.

+1
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Old 11-11-2014, 05:06 PM   #18
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I am sincerely grateful for the input, and responses to the original question. I have been traveling, and my youngest adult daughter had a medical procedure, so I am late responding.

These posts are very helpful, and though there are some differing opinions, it helps point me in directions for answers. We will open an account and roll from there. I will circle back and let you know where we landed.

Thanks again everyone!

--Nomad
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Old 11-11-2014, 06:04 PM   #19
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For equities portion of AA I would go with something like VTI 60% and VXUS 40%.
That covers all US and non US equities in 2 ETFs and really you don't need more ETFs than that.

To spicy it up I would add some VIG.
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Old 11-11-2014, 06:06 PM   #20
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Personally I am not a fan of Dividend Yield because I don't see those firms as having high growth potential.

One thing about investing is that everyone has an opinion and each are right at some time in the economic cycle.
I will disagree.....growing dividend yield is sign of good health of the company and is something you want to have.
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