ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
In your experience is it worth buying a minimum now of $50k to get Admiral Shares (Specifically) the VIPSX fund. Or would it be best to DCA in?
SWR
SWR
My experience? I would buy I-bonds right now instead.
I have owned the vanguard fund in the past, but would not buy now. Instead I would stick with short-term bond fund of your choice. I have been known to be wrong before.
In your experience is it worth buying a minimum now of $50k to get Admiral Shares (Specifically) the VIPSX fund. Or would it be best to DCA in?
SWR
When I looked at it the returns were pretty reasonable over the last few years.
EVERYTHING had great returns over the past 3 years. EVERYTHING.
Tell me what you saw when you looked at the returns for the NEXT few years please.
So be careful with your comparisons.
So what you are saying it is a c@#p shoot with everything.
I wouldn't be quite that harsh. I think the message is "Past performance is not an indicator of future returns", especially short term (the past three years virtually everything performed well).
The fact the fund had reasonable returns over the past few years might tempt an investor into performance chasing. Returns over the long run (psst - Wellesley) is a better indicator - at least to my way of thinking.
swr, i read your original question to be more about whether to chase admiral shares or not (minimum 50k investment). I don't think the advantage is big enough to worry about admiral. (full disclosure: I have the vanguard tips fund (like it) and it is admiral.)
t.r.
I wouldn't be quite that harsh. I think the message is "Past performance is not an indicator of future returns", especially short term (the past three years virtually everything performed well).
The fact the fund had reasonable returns over the past few years might tempt an investor into performance chasing. Returns over the long run (psst - Wellesley) is a better indicator - at least to my way of thinking.
$50K seems high for a Vanguard Admiral fund. I am not familiar with all their funds, but several of the ones I have (VWAIX and VFAIX) I opened as admiral funds with much lower amounts than 50K. I have only been using Vanguard for 3 months so I have alot to learn on how best to utilize them and fine tune things. The funds I am in now were recommended by an independent CFA, I know this does answer the OP's question, I was just surprised to see such a high minimum for an admiral fund. I thought they were in the 10-25K range.