Yes, as a Canadian I also use ETFs. If there were similarly priced mutual funds I would use those instead, but it is what it is. It's almost the same, just missing out on buying partial shares so I always have cash sitting around after a buy.
The cash sitting around after a buy is one of the reasons I'm interested in mutual funds. The money is doing absolutely nothing so it feel like a waste. I know it isn't a ton and wouldn't really make a lot elsewhere but I'd feel better about having that money doing something rather than just sitting around until I can do something with it.Yes, as a Canadian I also use ETFs. If there were similarly priced mutual funds I would use those instead, but it is what it is. It's almost the same, just missing out on buying partial shares so I always have cash sitting around after a buy.
I did a buy order for an ETF today that perfectly used up every cent in my account. Feels good 😁Yes, as a Canadian I also use ETFs. If there were similarly priced mutual funds I would use those instead, but it is what it is. It's almost the same, just missing out on buying partial shares so I always have cash sitting around after a buy.
Diversification is important. Winners rotate. Check the image at the end of the OT.I did a buy order for an ETF today that perfectly used up every cent in my account. Feels good 😁
What is everyone's thoughts/opinions on VOO vs VTI? Cursory research says the difference is that VTI includes small cap stocks while VOO is large cap only. How important is it to have exposure to small caps?
I did a buy order for an ETF today that perfectly used up every cent in my account. Feels good 😁
What is everyone's thoughts/opinions on VOO vs VTI? Cursory research says the difference is that VTI includes small cap stocks while VOO is large cap only. How important is it to have exposure to small caps?
In a similar vein of market timing, I have an urge to try and shift money around so I can buy up more than I normally would on Friday. But I'm trying to just stay the course with my regular contributionsI know I'm not supposed to time the market, but I am sad that I seem to have a habit of buying more ETFs right before these plunges (bought last monday).
What does the -1.5% reference? The entire market?a) -1.5% really isn't a big deal
b) why y'all are checking your retirement accounts anyway if you're not retiring for another 20/30+ years! This is a drop in the bucket :)
a) -1.5% really isn't a big deal
b) why y'all are checking your retirement accounts anyway if you're not retiring for another 20/30+ years! This is a drop in the bucket :)
Not unless you really want to. Fidelity is solid.Should I rollover my 401k handles by fidelity to a vanguard one?
Seconded. Not worth it as things stand now.
Depends on what Funds you are invested in. If you go for the standard funds commonly recommended around here Fidelity is currently actually cheaper than Vanguard.Cool, should I be worry about any extra fees I may be paying without knowing? Fidelity website is very cryptic.
I have nothing in savings accounts and 1-1.5 months expenses on my regular checking account.What do you guys think is an acceptable amount to keep in a savings account? I have a taxable account generating roughly 8% and it seems silly to keep an excess in savings where I am only earning ~2%. I currently have 10k remaining (recently moved out quite a bit to my taxable account) in savings, but I think this still might be too much? I am thinking of transferring another 5k to my taxable account, but was wondering what you guys recommend. How much do you all prefer to have available immediately?
What do you guys think is an acceptable amount to keep in a savings account? I have a taxable account generating roughly 8% and it seems silly to keep an excess in savings where I am only earning ~2%. I currently have 10k remaining (recently moved out quite a bit to my taxable account) in savings, but I think this still might be too much? I am thinking of transferring another 5k to my taxable account, but was wondering what you guys recommend. How much do you all prefer to have available immediately?
I have nothing in savings accounts and 1-1.5 months expenses on my regular checking account.
If you can keep 6 months of expenses in a savings account, that's generally the recommended option.
What do you guys think is an acceptable amount to keep in a savings account? I have a taxable account generating roughly 8% and it seems silly to keep an excess in savings where I am only earning ~2%. I currently have 10k remaining (recently moved out quite a bit to my taxable account) in savings, but I think this still might be too much? I am thinking of transferring another 5k to my taxable account, but was wondering what you guys recommend. How much do you all prefer to have available immediately?
If push comes to shove have credit cards for short term expenses, say an urgent car repair. Depending on the size I might consider selling some taxable investments to cover the cost, but it's not something I would (have to) do at short notice.I was considering that as well, but was thinking it might be just a bit too aggressive for me. What would you do in the event you eventually needed more than that 1-1.5 month of expenses? Withdraw from a taxable account?
Yeah, that's why I remember leaving 10k in there to begin with. I'm not a big fan of keeping this substantial amount in savings earning 2%, but I guess it's better to be safe than sorry. Just difficult to come to terms with that 10k earning 2% when it could be earning substantially more.
I was considering that as well, but was thinking it might be just a bit too aggressive for me. What would you do in the event you eventually needed more than that 1-1.5 month of expenses? Withdraw from a taxable account?
Yeah, that's why I remember leaving 10k in there to begin with. I'm not a big fan of keeping this substantial amount in savings earning 2%, but I guess it's better to be safe than sorry. Just difficult to come to terms with that 10k earning 2% when it could be earning substantially more.
If push comes to shove have credit cards for short term expenses, say an urgent car repair. Depending on the size I might consider selling some taxable investments to cover the cost, but it's not something I would (have to) do at short notice.
I guess it depends on personal factors such as if you have kids, a house, etc.
Like if the market took a dump and you had something major come up could you still handle it?
I learned something interesting today. I remember at some point in this thread or at the old place some people saying that when you invest internationally you're taking a currency risk. As it turns out that's not the case. Vanguard, Schwab, Fidelity et al hedge currency risks in their international funds, the cost of which is rolled into the fund's expense. They don't do hedging in the conventional sense of trying to guess what's going to happen in the future, but rather just so that currencies going up and down against one another don't affect the fund's return.
The best course of action is just to consistently make your regular contributions. I split up a monthly contribution to weekly contributions through vtsax and vtiax on vanguard since I can buy fractional shares of these funds (the mutual fund equivalent of VTI and vxus).I was feeling kind of bad that I didn't do a buy with prices as what they are since a payday is usually a day I also buy. But I had been planning for a while to apply what is essentially an "extra" paycheck since its the 3rd one of this month to my student loans. Made a big payment against them which will save some interest. I think it was pretty worthwhile.
Also, I'm a lot less disturbed at my portfolio than I thought I would be for when I experience the first dive. Just going to keep going along with the same contribution plan I've had since the start of the year.
I learned something interesting today. I remember at some point in this thread or at the old place some people saying that when you invest internationally you're taking a currency risk. As it turns out that's not the case. Vanguard, Schwab, Fidelity et al hedge currency risks in their international funds, the cost of which is rolled into the fund's expense. They don't do hedging in the conventional sense of trying to guess what's going to happen in the future, but rather just so that currencies going up and down against one another don't affect the fund's return.
The difference is negligible as long as you are investing in the correct funds (don't buy Vanguard funds on Fidelity, etc to avoid commission fees). The difference in fees is smaller than the variance in the funds' returns.Did this thread come to a consensus re: Fidelity vs Vanguard fees?
it sure doesn't feel fun to look at your Personal Capital net worth keep going down slightly even after changing your contributions in a way that will max it out at the end of the year, haha...
what's the typically time period for recessions? I'm still on the path of maxing out my retirement accounts for the next 2-3 years before drastically reducing and saving piling up cash for multiple down payments.
Hey all, I'm here because of the millennial financial thread and while doing okay I know I can do better and just looking for for some advice on where to go next.
I currently have around $47k in my 401k. My job matches 33% but only up to a 6% contribution, so I do 6%. This basically get me 8% weekly into my account. I also currently have a $10k loan to pay back to this account as I had home related stuff that required me to get access to some cash without penalty.
Outside of that I own a home that has about $168k remaining on it with an estimated worth of around $240-$250k.
Outside of those I have $2-$3k in some marijuana stocks, around $6k in savings, $2k in my checking and I owe about $20k on a vehicle.
In my home I would say we maybe have an extra $300-$400 per month excess.
What would be my best course of action to get myself to a better place? My goal obviously is to get myself in a position to retire as early as possible.
I am 35.
Thanks in advance and I hope to become a regular in this thread.
Just to be clear, though, a recession refers to negative GDP growth, not to what the stock market is doing.
No, if you need it that soon you're better off just keeping it in a HISA or GIC.Okay, so I'm new to this. I have more than 70k in the bank... I'm planning to use this as a down payment for a condo/house later this year. Is it good idea to start investing now even though I'll need this fund relatively soon?
No, if you need it that soon you're better off just keeping it in a HISA or GIC.
Okay, so I'm new to this. I have more than 70k in the bank... I'm planning to use this as a down payment for a condo/house later this year. Is it good idea to start investing now even though I'll need this fund relatively soon?
Hey all, I'm here because of the millennial financial thread and while doing okay I know I can do better and just looking for for some advice on where to go next.
I currently have around $47k in my 401k. My job matches 33% but only up to a 6% contribution, so I do 6%. This basically get me 8% weekly into my account. I also currently have a $10k loan to pay back to this account as I had home related stuff that required me to get access to some cash without penalty.
Outside of that I own a home that has about $168k remaining on it with an estimated worth of around $240-$250k.
Outside of those I have $2-$3k in some marijuana stocks, around $6k in savings, $2k in my checking and I owe about $20k on a vehicle.
In my home I would say we maybe have an extra $300-$400 per month excess.
What would be my best course of action to get myself to a better place? My goal obviously is to get myself in a position to retire as early as possible.
I am 35.
Thanks in advance and I hope to become a regular in this thread.
HISA is a High Interest Savings Account, which you may already have with your bank.
HISA is a High Interest Savings Account, which you may already have with your bank.
A GIC is a Guaranteed Investment Certificate, which essentially guarantees you a return on your investment but you have to leave it in for a set term. I'm not sure what the equivalent is called in the USA. Edit: It looks like in the USA it is called a CD (Certificate of Deposit).
Not at phone! I'm going to a concert tonight and won't be on again probably until tomorrow but anyone that wants to answer the above will likely want a combination of the below info.
Please answer:
What are the expenses on your 401k plan like?
What do you mean by expenses on my 401k? How much it is costing me per week to pay back?
What is the % on your 401k loan? I assume they stopped withholding on your 401k until you pay your loan back?
It is 8.25% but that is technically being paid back to myself. From my understanding I'm not being penalized in any way with the loan.
What is the % on your car loan? New car / old car, how old is it? How long do you intend to drive it?
Car loan is around 4.25%. It is a 2016 Jeep Patriot with 33k miles on it. I intend to hold onto it long term, easily 10+ years. It doesn't do much long distance driving so I'll be lucky if it gets 8k miles per year put onto it.
"In my home" $300-400 excess. Is this you and your spouse/partner? How much are you contributing to this free cash flow? Are you paying extra on the house/401k loan/car? This is only ~$4,200 a year so it's hard to help with out knowing what you factor into that 'excess' number.
This is combined. We didn't spend so wisely lately and working on scaling back to increase that number so we can pay the car off faster before moving towards the mortgage. Combined we make around $110-$120k total pretax.
My check is the one that gets ravaged by benefits and 401k related stuff.
An IRA is an investment vehicle that you can put $6,000/year away in. There are traditional and Roth, but we're a little ways away from that as which is most advantageous for you.
The expenses of your 401K are what it costs you to have it. Your funds should have expense ratios listed which is the fee you are paying to hold those funds. Also check for any other fees.