Investing 102

[Vegas69]

Originally Posted by captainofiron

to Greg and the other gurus:

What do you all think about low cost Index funds, like VTI and VTSMX?

Instead of opening a worthless bank account for my son, I put some of his birthday money into VOO in early 2017. It's up 20.2%.

[captainofiron]

Originally Posted by Vegas69

Instead of opening a worthless bank account for my son, I put some of his birthday money into VOO in early 2017. It's up 20.2%.

So I'll put you in the "YESSS!" column haha

[GregWeld]

It all "depends" ---- and I know that's a big non answer.

Depends on goals - age - what other investments you have.... and it really gets down to -- What you're comfortable with. If you're an investor that buys and forgets.... then index funds work to cover that.

But make sure you actually know what you're buying ---- and remember -- a rising tide floats all boats -- so your index fund will look like a hero in an up market -- but don't expect it to magically save your ass when the market drops -- so will your fund.

I prefer (personally) knowing what I own -- and this is even more important when the market sucks....

[JKnight]

I agree with the above, it depends on your goals. I’ve been buying ETFs online, commission free, which is an important distinction if you’re buying small amounts at a time. Like Todd said, instead of putting a couple hundred per week/month/whatever into a savings account, I can buy ETFs a couple shares at a time in my brokerage and there’s no commission to eat into the principal.

[captainofiron]

Originally Posted by GregWeld

It all "depends" ---- and I know that's a big non answer.

Depends on goals - age - what other investments you have.... and it really gets down to -- What you're comfortable with. If you're an investor that buys and forgets.... then index funds work to cover that.

But make sure you actually know what you're buying ---- and remember -- a rising tide floats all boats -- so your index fund will look like a hero in an up market -- but don't expect it to magically save your ass when the market drops -- so will your fund.

I prefer (personally) knowing what I own -- and this is even more important when the market sucks....

Thanks!

so I'm 35, the majority of my IRA is in specific names that I did a ton of research on and I am comfortable with. For the most part I am a buy and hold/forget investor

I recently rolled over a big chunk and it had been sitting for a month or 2 and I didnt want it to just sit, but I dont have enough time to do extensive research, so I figured the index fund would fit my needs at this time

from what I read it seems like alot of people like these index funds, but it kind of goes against everything I've read here

Yea I am not expecting it to be this magic fund that will never go down, just dont want dead money in an interest only position

[toy71camaro]

Originally Posted by captainofiron

Thanks!

so I'm 35, the majority of my IRA is in specific names that I did a ton of research on and I am comfortable with. For the most part I am a buy and hold/forget investor

I recently rolled over a big chunk and it had been sitting for a month or 2 and I didnt want it to just sit, but I dont have enough time to do extensive research, so I figured the index fund would fit my needs at this time

from what I read it seems like alot of people like these index funds, but it kind of goes against everything I've read here

Yea I am not expecting it to be this magic fund that will never go down, just dont want dead money in an interest only position

Sounds like we're in darn near the same boat. Almost same age, and similar situation. All my investments are researched single stocks, except for the large chunk i just rolled into my IRA, and i havent had the time to research anything yet.

[Vegas69]

I personally like the index fund route after Roth IRA or IRA to Roth Conversion. You beat 96% of the mutual funds out there and it's very low maintenance. Even Buffett states that's what the majority should do. I'd like to pretend I'm going to spend the time watching and researching companies, but it's not reality long term. I think you need to be passionate about it like Greg. There are other things I'd rather be doing with my time.

I'm certainly not saying I'm done buying stocks, I'm just not betting the farm on it either.

[captainofiron]

AAAAAND just as I bought into VTI Fidelity emails me about FZROX and FZILX

LOL