Index funds

otc · Feb 17, 2011

the vanguard S&P fund is good stuff. I have been clearing out my position in my roth though...transferring that exposure over to my 401k which can get into a much lower fee fund class than VFINX.

For a small, building investor like conne...ETFs are not really the way to go as the in and out trading fees far outweigh the tiny difference in management fee. A lot of brokerages give you several free mutual fund trades every month (enough to add your monthly few hundred bucks and do a bit of rebalancing) and I can't imagine vanguard charges a fee on contributions...I think they even encourage you to set up direct deposits no matter how small.

uNiCoRnPriNcEsSx · Feb 17, 2011

Originally Posted by Connemara

I just initiated a balance transfer to a 0% APR card, so no I'm not paying 20%. The card can be paid off in around 6 months. It doesn't make sense to pull money out of a long-term investment to fix a problem that can be solved in a short time.

from what i understand, you have to pay a small percentage of the balance to get it transferred over. i hope your balance isn't too high.

also, why not look at life cycle funds? vanguard is pretty well known for those.

SkinnyGoomba · Feb 17, 2011

I'd probably just keep the wells fargo, buffett is hot on that company and they'll probably start ramping up the dividend again at some point in the next year or two. If BAC is talking about doing that, i'm sure wells isnt far behind.

With your card now at 0% i'd just pay it off and move toward not using credit when not needed.

Piobaire · Feb 17, 2011

Originally Posted by Hannerhan

Sure, but the 20% is GUARANTEED money in the case that was being discussed. And you don't get that in the markets...ever.

Agreed on the guaranteed. Just was pointing out it is possible to score big on an index fund (or index ETF). As I said, I agreed with his sentiment and would pay off CC debt prior to investing.

runner-guy · Feb 17, 2011

My entire 401(k) is comprised of index funds except for 10% that I have in the Fidelity Select Gold fund. You really can't go wrong with Vanguard index funds or ETFs. Super low cost. I recently changed 20% of my taxable portfolio to the Vanguard Total Stock Market Index Fund (VTSMX), which is a great fund. The other 80% is in a Vanguard limited-term municipal bond fund.

Connemara · Feb 17, 2011

Originally Posted by SkinnyGoomba

I'd probably just keep the wells fargo, buffett is hot on that company and they'll probably start ramping up the dividend again at some point in the next year or two. If BAC is talking about doing that, i'm sure wells isnt far behind. With your card now at 0% i'd just pay it off and move toward not using credit when not needed.
I just gave WFC a good look-over at Morningstar and you seem to be right...maybe I'll hang on to it for a few years and just save up for an index fund.

Connemara · Feb 17, 2011

Beckwith · Feb 17, 2011

You will never beat the index with the index funds. Try a group of select high quality yield stocks.

otc · Feb 17, 2011

Originally Posted by Beckwith

You will never beat the index with the index funds. Try a group of select high quality yield stocks.
Yes, but most people will never beat the index funds by picking stocks.

runner-guy · Feb 17, 2011

Originally Posted by Beckwith

You will never beat the index with the index funds. Try a group of select high quality yield stocks.

Yeah? Well about 90% of active fund managers don't beat the index either.

ppllzz · Feb 17, 2011

i would buy rick jackets if i had 4k lying around... when did people become so reasonable on styleforum???

Piobaire · Feb 17, 2011

Originally Posted by Beckwith

You will never beat the index with the index funds. Try a group of select high quality yield stocks.

As the saying goes, if it were that easy, we'd all be rich.

I think you just need to implement this tactic: buy low, sell high.

Lowndes · Feb 17, 2011

A good book on this subject that I really enjoyed is the Four Pillars of Investing. Might be worth a read if you are interested in index funds.

Connemara · Feb 17, 2011

Originally Posted by Lowndes

A good book on this subject that I really enjoyed is the Four Pillars of Investing. Might be worth a read if you are interested in index funds.
Thanks for the tip. I'll take a look at it over the weekend.

Night Owl · Feb 18, 2011

i kept 100% in s&p500 when this noob first learned about it way back

a few years ago i was happy with my s&p500 balance and started contributing everyting into international and sector funds on a wild hare up ******. china and canada index funds came through big time. japan sucked but didnt have much in there anyway! when you put some more dough together dont forget to consider other funds

Index funds

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