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/biz/ - Business & Finance

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1637955 No.1637955 [Reply] [Original]

Are Vanguard index funds a meme? Are index funds in general a meme?

>> No.1637963

>>1637955
no.
because u had to even ask that question i would say ETF's are suitable for someone like u

>> No.1637964

>>1637955
What does meme even mean at this point?

>> No.1638626

>>1637955
>Are Vanguard index funds a meme? Are index funds in general a meme?

You're buying the market for a 0.1% fee

Mathematically less than 50% of people can "beat the market" over the long term, so Vanguard is good if you're content with an average return

>> No.1638676

>>1637955
If you dont want to spend incredible amounts of time doing active investing. Then they are very good.

>> No.1638709

>>1637955

Index funds are great for slow, steady wealth preservation and generation

If you want to get rich you've gotta swing for the fences though

>> No.1638742
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1638742

>>1638626
>Vanguard is good if you're content with an average return
This is 100% false.

The average investor underperforms the market index by a substantial factor. There are many reasons for this: fees, commissions, poor asset selection, poor timing, taxes, etc.

An index fund is not only better than picking your own investments, its well above average.

>> No.1638746

>>1638709
>If you want to get rich you've gotta swing for the fences though
Is your job and employment prospects so shitty that you have to play the lottery to get rich?

Most people get rich by making a good living, spending moderately, saving the excess, and investing wisely. They don't "swing for the fences." #yolo is a funny meme when you're 16, but not a financial plan for your adulthood.

>> No.1638853

>>1638626
Getting an average market return is bretty good though

>> No.1638873

Index funds are much more preferable than mutual funds.

>> No.1638875
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1638875

1.7 years since graduation, kind like what I have going so far. loans paid in full come Feb then I'll be dumping everything else into this/my 401k. Save money, slow and steady.

>> No.1638882

>>1638746
thats the thing, its all about the amount of risk you can/are willing to take
someone at <20 can afford to throw 1k at a couple stocks of their choice becuase if they get back a substantial gain its amazing for someone that age.
whereas if someone >30 tried with an equiv. amount, they have a lot more to lose.

its all about what you are willing to lose

>> No.1638898
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1638898

>>1638882
There's two major problems with your approach to financial growth:

1. While adjusting your risk to your goals and tolerances is fine, it's always stupid to put your money into something with a bad risk/reward payoff. Whether its the lottery, penny stocks, or cryptocurrencies, you always have to consider the risk adjusted return.

2. Your penchant for high-risk investments has a massive opportunity cost. Even if your capital is small early, it could grow to massive balances given enough time in a sound, reasonable investment like an index. You'll never make up money you lose now, and you'll always be chasing to catch up.