Join Early Retirement Today
Reply
 
Thread Tools Display Modes
S&P 500 Question
Old 02-11-2024, 06:15 PM   #1
Recycles dryer sheets
 
Join Date: Sep 2020
Location: Tampa, FL
Posts: 155
S&P 500 Question

Simple question: Is the S&P 500 one of the best long term (10 years or more) mutual funds you can buy? Yes, I know no one has a crystal ball, but I am sure some of you have educated opinions and they are welcome and appreciated.
FloridaJim57 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-11-2024, 06:30 PM   #2
Full time employment: Posting here.
 
Join Date: May 2006
Posts: 841
This is like saying the US dollar is the best currency in the world. It is until it isn't.
dmpi is offline   Reply With Quote
Old 02-11-2024, 07:05 PM   #3
Full time employment: Posting here.
 
Join Date: Aug 2013
Location: New Jersey
Posts: 865
I would dollar cost average in a SP500 fund, considering we just had an all time high
Al18 is offline   Reply With Quote
Old 02-11-2024, 07:08 PM   #4
Full time employment: Posting here.
erkevin's Avatar
 
Join Date: Oct 2014
Location: Tucson
Posts: 791
If you are interested in an S&P500 fund, consider going with an ETF or index fund as opposed to a mutual fund- much lower fees. Take a look at SPY or VOO
__________________
Retired June, 2016. Never looked back.
erkevin is offline   Reply With Quote
Old 02-11-2024, 08:00 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 37,739
Many S&P 500 index funds are super low cost, so no concerns compared to ETFs. Fidelity, Vanguard offer extremely low cost versions. Also the Vanguard index funds are just as tax efficient as their equivalent ETFs. The Fidelity index funds only slightly less tax efficient.

The S&P500 is an index commonly used as a benchmark by mutual funds. It is a collection of mostly the largest public companies and is a large growth index. Historically it has been quite difficult to beat over very long periods of time such as decades. It also can be quite volatile.

The S&P 500 is not in itself a mutual fund, but several fund companies have created index funds that track the index very closely.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 02-11-2024, 08:00 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jul 2011
Location: Reading, MA
Posts: 1,642
QQQ is also a good index ETF...
TheWizard is offline   Reply With Quote
Old 02-11-2024, 08:43 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,064
You can do a lot worse than the S&P 500. IMO, you can do a little bit better with a total USA stock market index fund. But,we are splitting hairs. Just keep the fund fees as low as possible. And be long term, of course.
__________________
Comparison is the thief of joy

The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 02-11-2024, 08:51 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 10,268
Quote:
Originally Posted by Chuckanut View Post
You can do a lot worse than the S&P 500. IMO, you can do a little bit better with a total USA stock market index fund. But,we are splitting hairs. Just keep the fund fees as low as possible. And be long term, of course.
+1

Read "Winning the Losers' Game" by Charles Ellis, latest edition.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 02-12-2024, 12:29 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 17,146
Quote:
Originally Posted by TheWizard View Post
QQQ is also a good index ETF...

Too tech heavy for general holding...



I own some to boost my tech but it is not that much of portfolio...
Texas Proud is offline   Reply With Quote
Old 02-12-2024, 07:42 AM   #10
Recycles dryer sheets
 
Join Date: Jun 2018
Posts: 438
Quote:
Originally Posted by FloridaJim57 View Post
Simple question: Is the S&P 500 one of the best long term (10 years or more) mutual funds you can buy? Yes, I know no one has a crystal ball, but I am sure some of you have educated opinions and they are welcome and appreciated.
What is your definition of "best"?
WhenIsItTime is offline   Reply With Quote
Old 02-12-2024, 08:18 AM   #11
Thinks s/he gets paid by the post
 
Join Date: Aug 2013
Location: North
Posts: 4,010
Quote:
Originally Posted by TheWizard View Post
QQQ is also a good index ETF...
My ole man has made a mint on QQQ.
__________________
Time > $$$ ~ 100% equities ~ FIRE @2031
kgtest is offline   Reply With Quote
Old 02-12-2024, 08:25 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 2,979
Quote:
Originally Posted by FloridaJim57 View Post
Simple question: Is the S&P 500 one of the best long term (10 years or more) mutual funds you can buy? Yes, I know no one has a crystal ball, but I am sure some of you have educated opinions and they are welcome and appreciated.
Simple answer: Yes. It is one of the best, IMO. The Dow is another. These are what are followed in TV and Radio news reports daily. If you follow these daily reports, then having them as your investments is not a bad thing.

That said, an individual's financial situation and goals should be considered in any investment choices. On a personal note, I am heavily invested in IVV, an SP500 ETF. YMMV.
CRLLS is offline   Reply With Quote
Old 02-12-2024, 08:34 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 6,062
Quote:
Originally Posted by FloridaJim57 View Post
Simple question: Is the S&P 500 one of the best long term (10 years or more) mutual funds you can buy? Yes, I know no one has a crystal ball, but I am sure some of you have educated opinions and they are welcome and appreciated.
Past performance is not indicative of future results, but you could use a tool like Portfolio Visualizer to compare the long term growth of the S&P 500 to other funds over the years to get an idea of how it compares.

For me, I started dollar cost averaging into the the Vanguard S&P 500 index fund in 1997, as my primary fund, and it was one of the best simple financial decisions I made.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
jollystomper is offline   Reply With Quote
Old 02-12-2024, 08:47 AM   #14
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 10,562
I think it's one of the best because it's continually propped up by 401k influxes. Fresh new cash coming in every pay day is like an upward breeze. Sure, as storms come through, there will be lift and sink associated with the weather, but there aren't many places with the benefit of that gentle updraft.
sengsational is offline   Reply With Quote
Old 02-12-2024, 03:44 PM   #15
Recycles dryer sheets
 
Join Date: Jun 2023
Posts: 259
Regarding my experience with SPY-like investments.....

This is from my Google Sheets for VFIAX (Vanguard 500 Admiral Shares, functional equivalent of SPY-like funds) with .04% expense ratio. Not sure how well it will render, sorry in advance if you can't see it. In my case I had $1.2M DCA (dollar cost average contributions) $100K/month for 12 months beginning May 2022. The yellow line is $1.2M cash starting value (like the basis) and the red line is the value on a given day.

Notice Sept/Oct 2022 was not good for the market and the $1.2M went under water for a time being, same for Dec/Jan 2022/2023 and another little dip in Mar 2023. It also took a big dump in Sept 2023 so this is not for the faint of heart if you're watching your net worth whipsawing up and down like this.

As of late last week the $1.2M is at about $1.57M, a little over 30% gain in 21 months. I'm willing to take the risk associated with equities but this should be a lesson to anyone who is risk averse and cannot stand this type of fluctuation. In the long run this is probably going to be all good for me (I say probably because nobody can predict the future).

This graph self-populates using Google's GOOGLEFINANCE() function built into sheets. For propeller-heads interested the function looks something like this:

=INDEX((GOOGLEFINANCE("vfiax","price",A634)),2,2)

Where A634 is the Date entry I have in column A row 634 of the cell. Each cell in column A is just a date that increments every row. By the way, I'm not an Excel power user or anything like that. I'm all self-taught on Google Sheets only. I don't like using Microsoft Office at all.
Attached Images
File Type: png Value at Close vs. Date.png (53.7 KB, 27 views)
Route246 is offline   Reply With Quote
Old 02-12-2024, 07:01 PM   #16
Full time employment: Posting here.
 
Join Date: May 2013
Posts: 894
Quote:
Originally Posted by Route246 View Post
Regarding my experience with SPY-like investments.....

This is from my Google Sheets for VFIAX (Vanguard 500 Admiral Shares, functional equivalent of SPY-like funds) with .04% expense ratio. Not sure how well it will render, sorry in advance if you can't see it. In my case I had $1.2M DCA (dollar cost average contributions) $100K/month for 12 months beginning May 2022. The yellow line is $1.2M cash starting value (like the basis) and the red line is the value on a given day.

Notice Sept/Oct 2022 was not good for the market and the $1.2M went under water for a time being, same for Dec/Jan 2022/2023 and another little dip in Mar 2023. It also took a big dump in Sept 2023 so this is not for the faint of heart if you're watching your net worth whipsawing up and down like this.

As of late last week the $1.2M is at about $1.57M, a little over 30% gain in 21 months. I'm willing to take the risk associated with equities but this should be a lesson to anyone who is risk averse and cannot stand this type of fluctuation. In the long run this is probably going to be all good for me (I say probably because nobody can predict the future).

This graph self-populates using Google's GOOGLEFINANCE() function built into sheets. For propeller-heads interested the function looks something like this:

=INDEX((GOOGLEFINANCE("vfiax","price",A634)),2,2)

Where A634 is the Date entry I have in column A row 634 of the cell. Each cell in column A is just a date that increments every row. By the way, I'm not an Excel power user or anything like that. I'm all self-taught on Google Sheets only. I don't like using Microsoft Office at all.
Can you provide a copy of the Google sheet.
G-Man is online now   Reply With Quote
Old 02-12-2024, 09:11 PM   #17
Thinks s/he gets paid by the post
 
Join Date: Oct 2017
Posts: 1,105
Quote:
Originally Posted by FloridaJim57 View Post
Simple question: Is the S&P 500 one of the best long term (10 years or more) mutual funds you can buy? Yes, I know no one has a crystal ball, but I am sure some of you have educated opinions and they are welcome and appreciated.
Simple answer to your question.

Yes.
Stormy Kromer is offline   Reply With Quote
Old 02-12-2024, 09:50 PM   #18
Moderator
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 9,001
Quote:
Originally Posted by Stormy Kromer View Post
Simple answer to your question.

Yes.
To add to the simple answer:

Per Warren Buffett:

Quote:
"Consistently buy an S&P 500 low-cost index fund," Buffett said in 2017. "Keep buying it through thick and thin and especially through thin."
https://finance.yahoo.com/news/warre...71038252.html#
__________________
Every day when I open my eyes now it feels like a Saturday - David Gray
Jerry1 is online now   Reply With Quote
Old 02-13-2024, 12:04 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,609
Quote:
Originally Posted by audreyh1 View Post
Many S&P 500 index funds are super low cost, so no concerns compared to ETFs. Fidelity, Vanguard offer extremely low cost versions. Also the Vanguard index funds are just as tax efficient as their equivalent ETFs. The Fidelity index funds only slightly less tax efficient.

The S&P500 is an index commonly used as a benchmark by mutual funds. It is a collection of mostly the largest public companies and is a large growth index. Historically it has been quite difficult to beat over very long periods of time such as decades. It also can be quite volatile.

The S&P 500 is not in itself a mutual fund, but several fund companies have created index funds that track the index very closely.

Well said. Mine is currently at Vanguard. Costs are almost inconsequential and I can see "performance" of the index just about any time of the day on TV.
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is online now   Reply With Quote
Old 02-13-2024, 12:39 AM   #20
Recycles dryer sheets
 
Join Date: Jun 2023
Posts: 259
Let me copy it to a burner account and I’ll share it.
Route246 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
S&P 500 Fund Question DenverCraig FIRE and Money 14 12-27-2019 04:58 PM
Gloom & Doom Pundits vs. the S&P 500 2010-2016 REWahoo FIRE and Money 46 08-19-2016 05:51 PM
Noticed more people holding signs "need work or food" rayinpenn Other topics 3 05-03-2015 03:51 PM
Quicken & S&P 500 Index Fund help needed SumDay FIRE and Money 4 01-09-2015 07:48 AM
S&P 500 Asset Class question Cut-Throat FIRE and Money 1 12-30-2003 08:54 AM

» Quick Links

 
All times are GMT -6. The time now is 07:19 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.