S&P 500 Index

[NW-Bound]

Here are the 3 largest ETFs that track the S&P 500.

SPY - $259B, 0.09% expense ratio, State Street Global Advisors
IVV - $148B, 0.04% expense ratio, Black Rock
VOO - $94B, 0.04% expense ratio, Vanguard

Interesting to see that SPY, the largest and oldest of them, has the highest ER.

 

[RockDoctor]

The wild card that scares me is inflation.

Inflation scares me, too. I remember the late 70s and early 80s. That's why I've got the annual inflation numbers, as measured by the CPI, built in the program. That way I can look at returns above inflation. It's not perfect by any means, but the CPI is the best inflation indicator I could find with a long enough track record.

 

[SpartacusSchmartacus]

Here are the 3 largest ETFs that track the S&P 500.

SPY - $259B, 0.09% expense ratio, State Street Global Advisors
IVV - $148B, 0.04% expense ratio, Black Rock
VOO - $94B, 0.04% expense ratio, Vanguard

Interesting to see that SPY, the largest and oldest of them, has the highest ER.

yup and don't leave out VTI - for those who want total market coverage, or close to it. Another advantage of ETF's is the ability to buy only 1 share if desired ... some MF companies require a minimum to get started, something that might hinder getting invested at all for some.

 

[SpartacusSchmartacus]

Inflation scares me, too. I remember the late 70s and early 80s. That's why I've got the annual inflation numbers, as measured by the CPI, built in the program. That way I can look at returns above inflation. It's not perfect by any means, but the CPI is the best inflation indicator I could find with a long enough track record.

Inflation shouldn't scare someone whom is retired ... your holdings should reflect a better rate of return to offset costs. Those borrowing should fear it more.

 

[Totoro]

Inflation shouldn't scare someone whom is retired ... your holdings should reflect a better rate of return to offset costs. Those borrowing should fear it more.

I disagree. Inflation risk and longevity are usually the biggest financial risks. Borrowers frequently borrow at fixed rates. Investors are on the other side of that coin .. ask most mortgage owners, they usually cheer on inflation.

Likewise: stocks tend to drop when inflation goes up, as multiples drop and earnings typically lag inflation.

And last but not least: taxes. I pay say 33% capital gains tax. Assuming 3% real interest, at zero inflation I pay 1% in taxes. Net yield: 2%. At 12% inflation though I pay 15% / 3 = 5% taxes. Result: -2% real yield.

Bye bye financial plan ..

 

[OldShooter]

... Inflation risk and longevity are usually the biggest financial risks. ...

+1

Even a temporary return to 70s and 80s inflation would be devastating to most. A regression to the 50 year CPI mean of 4.1% of would be painful.

It always makes me nervous when 2 and 3% predictions get tossed around here. IMO those are pretty much best case.

 

[Independent]

Here are the 3 largest ETFs that track the S&P 500.

SPY - $259B, 0.09% expense ratio, State Street Global Advisors
IVV - $148B, 0.04% expense ratio, Black Rock
VOO - $94B, 0.04% expense ratio, Vanguard

Interesting to see that SPY, the largest and oldest of them, has the highest ER.

Yep, and Vanguard's biggest mutual fund, tracking the S&P 500
VFIAX - $434V, 0.04% expense ratio.

I don't see where the mutual fund is more expensive.

 

[Independent]

Inflation shouldn't scare someone whom is retired ... your holdings should reflect a better rate of return to offset costs. Those borrowing should fear it more.

Do you remember the 1970's ?

If not, check FireCalc and see how people retiring in 1971 did.

 

[audreyh1]

Do you remember the 1970's ?

If not, check FireCalc and see how people retiring in 1971 did.

or 1966.

 

[ER Eddie]

An S&P index fund is maybe the most popular stock purchase. Warren Buffet recommends it.

Good to hear. I just bought a bunch of Fidelity's 500 index fund. If Warren Buffet recommends it, I guess I'm ok.