/biz/ - Business & Finance

>>11833768
i thought about buying a junk bond fund but idk. convince me

vanguard is based af, but i just bought $50k of $DIV anyways

Slow and boring accumulation of wealth is not sexy.

>>11833768
I have 80% of my money in Vanguard

>>11833768

Because I'm poor as fuck.

>>11833768
Need to make $1 million first from crypto before I go all in with an index fund.

>>11833768
I'm DCA'ing into a couple funds. It's nice to have something to put my money into that I don't have to worry about going to 0. Also zoomer's will never understand the power of reinvesting your dividends and compound interest.

>>11833884
unless you mean zero savings passive investing doesn't have a minimum

>>11833768
because on this board we are trying to get rich, not make 3% old grandma returns that barely surpass inflation

>>11833974
>not make 3% old grandma returns that barely surpass inflation
you're confusing passive investing with fixed income.

How do I Vanguard?

Honest question

>>11833974
This. Fucking granny gains get out I rather lose 90% and have a thrill than make a measly 5% all year

>>11834082
https://www.bogleheads.org/wiki/Getting_started

>>11834107
you'd get more for your money by going to a casino. they're actually designed for entertainment.

My company matches up to 3% so I'm investing 6%. That's not shit though - I should have 12k by retirement according to the website

>>11834117
thanks but I meant, is it possible to buy Vanguard ETF's through the bank? How does that even work.

Crypto is way easier to understand than this for some reason

>>11834166
depends on the bank, big ones should have the option. or through an online brokerage. it's not more complicated than crypto.

>>11834082

Get 3k and buy vanguard total us market

Never buy bonds and never buy international stocks

>>11834307
>Never buy bonds and never buy international stocks
?

>>11834307
3K into Vanguard Total US. Gotcha.

Any particular reason why 3k? So you just let that 3k site and it yields comfortable 3% returns every year?

>>11834363
that guy is talking out of his ass. go for the three fund. target date or even robo advisor if you don't want to think about it.
no minimum, just be mindful of fees. large banks should have some kind of auto contribution scheme that can by pass transaction costs.

>>11833803
You want to buy a junk bond fund...when interest rates are rising?

Why no bonds?
I currently have the vanguard lifestrategy 60-40 stocks-bonds

>>11834602
Because that's a pretty conservative allocation. If you're young, you have decades to smooth out the volatility of stocks, which means you want more of them in your portfolio for those sweet equity gainz.

And maybe not *no* bonds. 20% or so is about right for your average /biz/raeli.

>>11834652
I've always heard a good rule of thumb is your age - 110 as a percentage of stocks with the rest in bonds.

Personally I run 90/10 and most of the bonds are higher yield corporate (not junk though).

>>11834307
You're a BAD boglehead dude. Always have some sort of mix of asset classes, not all in on one

>>11834545
This. I would recommend TDF for the year you plan on retiring, that way it's automatic. For taxable, buy 70/30 US/International.

>>11833768
because you cant sell calls against vanguard etfs

>>11834771
You can if they're covered.

>>11833768
Yeck, I started with this Vanguard shit because of MMM and it's up by only a percent YTD. It's a load of crap.

I knew there'd be next to zero passive income, but I thought at least I'd get some equity gain. But not even that. I'm giving it until the spring and if it doesn't shape up, I'm withdrawing it and putting it into rental properties.

Can't afford to have another dead year.

>>11833959
Vanguard is 5K minimum IIRC

>>11833974
10% average over 10 years

>>11834858
10% a year is nice, but most of this board need a lump sum before they can consider it.

hence crypto moonshots

>>11834139
Oh I'm plenty entertained

>>11834851
Vanguard isn't the only index ETF shop around anymore.

>>11834851
Depends on the fund. STAR's like $1k minimum, almost all the others start at $3k last I checked. $10k's only for Admiral shares (i.e. autistically squeezing every last penny out of your portfolio).

>>11834849
kek, rental properties before the real estate market blows. you pay $450k for a rental property that falls to $385k in the next housing crash and it takes 15 extra years to make up that equity + cash flow

You also discount your dividends you probably receive from your Vanguard funds. Wise up and read up

>>11834849
see >>11834073
that 10% is averaged over 20 years. you're essentially getting paid for patience.
as for rental properties, the risk is distributed more over location than time, and you actually have to do work.

>>11834895
450k? Fuck that, I pay less than 100k for a property that rents for a thousand.

I don't think I'm discounting the dividends either. I just looked and I received a whopping 1.9% return if I annualized it.

>>11834722

>You're a BAD boglehead dude. Always have some sort of mix of asset classes, not all in on one

when you're young it doesn't really matter. a typical 20 something is not investing more than 50k. most of your net worth gains at this point come from income, not market movements

>>11834893
$10k was reduced to $3k this week for Admiral shares, they responded to Fidelity zero

>>11834980
Very true, compound income is more important

>>11834972
So if you get a return of 3% plus 2% dividends, 5% isn't so bad. The last 10 years have averaged well above that, but I realize the markets are cooling off. Unfortunately for bigger gains, you'd have to start with options or pick a stock that would explode ala Apple or Visa

>>11834849

boglehead/MMM strategy in a nutshell:

>get high end wagecuck job (100k+)
>live frugally and invest at least 50% of your income in tax advantaged index funds
>do this for 20-30 years
>retire

it's not a get rich quick scheme like crypto but it's more likely to succeed than anything else you see get shilled on /biz/

>>11835024
>So if you get a return of 3% plus 2% dividends, 5% isn't so bad.
Well, I just looked and even with the dividends reinvesting, I've actually lost money on VTSAX since Jan. Again, not saying that I expect every day to be a gain. But, I'm just not convinced it beats the monthly cash income I get from my rentals

I even looked at high-dividend strategies like The Dogs of the Dow, and the cashflow on that strategy is still only about 4%.

How is something >etfs diversified or a hedge if literally everyone owns it?

>>11835043
that's what retirement saving looks like regardless of strategy. boglehead just focuses on index investing rather than trying to beat the market with some fancy trading techniques.

>>11834980
investing while young is more about building the habit and learning to not freak out and sell when you see your first market crash.

>>11835098
again, the index is a long term thing. and you can't have all your money in rentals. what are you doing with your tax advantaged accounts?

>>11835130
what do you mean?

>demographics are starting to roll over and debt is at absurd levels
>buy and hold cucks think things are going to magically keep going up 7% per year forever

>>11835234
so then what, you think the answer is in cash?

>>11835098
either strategy is ok for a 20 year horizon, short term no it's not suitable

>>11833768

>>11835234
if the markets can survive two world wars where the economy basically ground to a halt, it can survive another debt crisis.

>>11835396
That's why you gotta get all your money in the market during the bear so you can moon during the bull

>>11833861
Losing all your money in crypto is way better

>>11834082
literally just make an account, all my holdings are in VFIAX

>>11835024
>$10k was reduced to $3k this week for Admiral shares, they responded to Fidelity zero

Didn't realize that. Just converted to admiral. Thank you anon

>>11834166
You are better off opening an account through vanguard then transferring money to that account and investing through it. Banks usually tack on additional fees.

>>11834825
what are the spreads lol

>>11834602
might as well buy cds or money markets instead of bonds at the moment

>>11834602
Bonds are a way of reducing risk. And work especially well when you rebalance in a downturn as they are basicly liquid cash that can be used to buy the cheap discounted stock.

>>11833897
This.

100% in VGLT for now. Use crypto gains and VGLT money to buy back dividend bluechips post-crash.

How does this sound ?

And what specific stocks you want to buy back post-crash ?

alpha = 6, beta = 0.66 (pic related)

>>11835671
Income for a 1M portfolio. Zero expense ratio.

>>11834849
>Basing a long-term investment off a SINGLE YEAR

>>11834972
What kind of shithole do you live in that has 100K property?

>get 4% dividends
>counts as ordinary income so get taxed up the ass for it every quarter forever, up to 40%

vs.


>get 4% gains on an index fund
>hold for a year and pay 15% max
>if you don't sell in a year pay no tax for that year

I'd be so mad if I fell for the dividend meme

>>11835976
Man you Amerikeks get fucked hard, thank god UK dividend tax is like 7.5%

>>11835726
What is this portfolio consisting of?

>>11833768
No job yet, just finished my degree.
Once I get a job it has always been my plan to open a portfolio for safe, long term growth investments with passive income.

So soon, probably some time within the next 3 months I can start building my portfolio and growing my equity.

Fuck high risk crypto bullshit.

>>11836041
7.5%, after the £12k personal allowance and £2k dividend allowance, so you can take £14k dividends tax free as a neet

>>11835396
>chart from 12 years ago
>market cycles 8-25 years
is the bear market over already anon?

>>11834307
>Dude don't diversify, it's not like that's the number one rule of building a stable portfolio or anything
If you aren't diversifying then why even bother with index funds at all, just go all in on some high risk-high reward stocks if you're just going to ignore the most basic rule of safe investment.

>>11835555
Make an account where..?

On a somewhat related note, what should I pick for my 401k? I see a lot of Vanguard on here. I'm allowed to pick multiple if there's two I should go 50/50 on.

>>11836345
If you’re young I would say 500 and Small cap Vanguard funds

>>11836177
vanguard

TD Ameritrade > Vanguard
Prove me wrong

>>11836086
>>11835671

>>11835043
This is good. Only issue is sustainability (demand / supply / health / motivation etc.) of 100K income.

>>11836345
depends on age, income, risk tolerance, etc. but hard to go wrong with the lifestrat mod growth or the target date the lines up with your retirement plans.
https://personal.vanguard.com/us/funds/snapshot?funds_disable_redirect=true&FundIntExt=INT&FundId=0914

you should be able to switch between with with minimal fuss once you're more comfortable with investing

Any thoughts on VEMT? (Emerging markets bonds). High yield seems good but is it worth the risk?

>>11836148
that's only something you can tell with a good amount of hindsight.
if you had dumped all your money into the market in 2000, the worst time to invest in the last 20 years, you'd still have about ~6 return annualized. not great but nothing to pull your hair out over. of course it's a lot better in a normal situation where your contributing regularly.

>>11836445
I would prefer VWOB or PCY

>>11836445
see >>11834334
rule of thumb is to invest in each sector proportionate to their market cap. there's some research saying you can get better results with a bit of fiddling but it isn't worth the time for most people.

>>11836479
should add that weighting is also subject to taxes, so you're probably going to favor your home country a fair bit.

>>11836499
tazes schmaxes

Because we don't have the million + dollars to get more than a Mc burger worth of passive income per month?

>>11837226
It always starts as a slow journey anon. The whole point of this style of investment is to put away as much as you can into your portfolio every year over the course of 20 years and eventually end up with enough equity to generate a passive income stream sufficient to support you indefinitely after retirement, thus allowing you to retire early.
This is not the NEET lambo land of crypto, where you throw your money into some worthless coin and hope it goes x10000 over the next 2 years.
This is the deliberate and steady investment strategy of someone who wants to INVEST, rather than gamble.

>>11837345
> 20 years
In 20 years, if we don't have robots unbinding humanity from resource restrictions then we have all failed.

>>11834107
>The rush of losing money is so great!

I have the Vanguard 2065 fund is it good?

>>11833768
>tfw 3 fund lazyfolio
It's so comfy watching my money grow so reliably every year bros.

Can non Americans also use this?

>>11837459
Yes, for example https://www.bogleheads.org/wiki/Investing_in_Australia.. Scroll to the bottom to see a list of other countries they've got pages for.

>>11837459
Most first world countries can

I'm really glad I got into reading up about Vanguard from Audiobooks and youtube videos. I bought some vsp.to a few weeks ago and now I'm beginning to read more about Index Stock investing.

I'm really tired to following up with Crypto after finding stable income. I knew /biz/ is nothing but shills and hyped coins. But seeing this thread gives me a lot of hope for my future.

Eurobros, has anyone used etfmatic here?

>>11833974
don't worry, we didn't make 3% this year, we're down YTD lmao

>>11834334
cherry picked

now include 2008-2018 and watch US returns crush everything

>>11836345
just go target retirement fund, pick a year and put money into it

it's the most brain-dead way to invest, you really can't go wrong with it either

>>11833768
i have but it will still be a few months before i start earning enough to make this worth it compared to the low capital speculation i'm doing right now.
I'm going to open a separate account for long term investments and set aside 5-10k for the gambling addiction.
If that goes bust, it'll hopefully cure me. On the other hand, it should be enough to make it without requiring lmao 1000 straight green trades including brokerage.

>>11834073
that does not factor in inflation and taxation

>>11838396
>boo! cherrypicked 38 years!
>now include 10 years of FAANG stock bullrun to 100+ P/E that's melting down right as we're writing this

>>11838462
Oh, international is doing WORSE than that

>>11833924
>Also zoomer's will never understand the power of reinvesting your dividends and
>dividends
How's GE treating ya? Dividends only help the already rich. You are never gonna get rich off of it.

>>11838490
This company might be old shit but i'm 99.9% sure they aren't going anywhere

>investing in the S&P500

have fun with those consumer staples, energy, healthcare stocks in a brown america gramps.

>>11838706
thanks

>>11836445
Just go stocks. Look at historic return. Bonds are for retards minus the big boys that leverage its price swings.

>>11838514
Good growth, but huge debt with little future products. All carmaker PEs are low for a reason- people are waiting to see who wins the electric race.

Here's the advice of 100 years anons: Buy low PE, low PB stocks. Most reliable predictor of future returns. Invest when the market is down in companies that are oversold. Sell when they are overbought.

Most titans borrow and use this method. Or they take undervalued companies private and make them efficient, and scale them up. See venrock for a shitty reverse example.

>>11835940
You buy foreclosed that some granny had to give up because of medical bills. Throw on some paint and some ghetto plep-tier fridge and stove and $145k + 40k in work is worth $270k. I could sell or I could rent it and borrow against the 270k value to buy a better house. Not theory, I did it.

>>11839317
>buy shares that grandma sold for $2
>underlying value is $3
>profit