vtsax roth ira reddit
↑ Total International Stock ETF (VXUS), Vanguard Institutional Investors. I guess we’d like to convert more. I saw your post on Reddit and have read some of your site and love the advice you have given. Press J to jump to the feed. No age limit. Roth conversions. It seems most people like the VTSAX however, Fidelity now has the zero fee funds. 1-Year 19.14% 14.42%. As a result, your goal should be to put asset classes with high expected returns, such as stocks, into the Roth IRA. You pay taxes on it up front and your money then grows tax-free. I do not believe Vanguard will charge you anything. VTSAX: 3,560: $813.5 B: 0.04%: Schwab: SWTSX: 3,075: $10.0 B: 0.03%: Fidelity: FSKAX: 3,454: $46.5 B: 0.015% : Fidelity: FZROX: 2,530: $3.8 B: 0%: On the surface, the new Fidelity® ZERO Total Market Index Fund looks like it just won the war as best US total market index fund. That means if you don’t need the money from your Roth IRA, you can just let it grow. You don't need $10,000 for each purchase - the minimum purchase amount for additional investments once you hold VTSAX … I'm okay with doing simple tasks like putting money in and visiting the account on a weekly basis. Press question mark to learn the rest of the keyboard shortcuts. This subreddit is a place where high income professionals of all types can ask, answer, discuss, and debate the personal finance and investing questions specific to our unique situations without being criticized, ostracized, or downvoted simply for having a high income and "first world" problems. In an ideal world I’d be a one fund and done investor since I don’t trust myself not to tinker too much. The purpose of a dividend portfolio is to earn cash flow in the form of a dividend to supplement your lifestyle. Thank you for your words of encouragement. And I believe once your portfolio hits 10k it’s easy to convert to admiral shares (and may even happen automatically). For investors seeking broader diversification, VTSAX is the better bet. Investing in VTI vs. VTSAX. This past year, I finally went ahead and rolled over my Roth IRA from Betterment to Vanguard. VTSAX | A complete Vanguard Total Stock Market Index Fund;Admiral mutual fund overview by MarketWatch. For example, maybe you do Vanguard TRF in your Roth IRA, but it's not available via your 401(k) or 457. Wealthy Doc October 22, 2018 at 6:28 am. Will plan and do accordingly. Can I have the Roth containing the VTSAX fund and have another account where I … Setting up my Roth IRA and maxing it out. I don’t follow the calculation where it says: After-Tax Asset Allocating. Your earnings on those contributions, however, are subject to tax, but not a penalty. Press J to jump to the feed. When I look in a web bogleheads, most people are investing in Vanguard Wellesley Income Fund (VWINX) and Vanguard Wellington fund (VWELX). I have chosen to invest in VTSAX because it’s available in my company Roth 401k. I am only 20 years old, but I have saved up some money to invest and I definitely new to the investing world but I already set up a Roth IRA account with Vanguard, however the target date index fund 2060 has a higher ER than I prefer and I don’t really need bonds right now. Making Money In The Stock Market Is Not Easy. It is also a US total market fund, with a few hundred more holdings than FZROX, and with a lower expense ratio than VTSAX. Don't contribute if your employer isn't going to match. Great article, but I have a question. For the last part, I meant switching my IRA to Vanguard. For those hyper sensitive to expense ratios, this cost has the net effect of a 0.15% inefficiency to the market. $3000 each into VTSAX and VTIAX ($3000 minimum for each fund). 2. Dividend Stocks . Roth IRAs also offer investors a lot of flexibility, experts say. But never fear high earners, there is a solution to this wonderful problem. Also offers the ability to automatically invest, buy fractional ETF shares order based on funds more when. 5-Year 13.95% 12.06%. A Roth is a great place to put your dividend stocks. Great article, but I have a question. It's important that your stock exposure matches your comfort with risk, investment horizon, … Roth IRA. If you want to learn as little as possible about finance until the very end of residency, TRF is absolutely fine and is a good set-and-forget strategy. VTSAX is marginally better. I'm trying to budget for my 2020 Vanguard Roth IRA. Yes, agreed. There are no required minimum distributions (RMDs) for as long as you live. If you choose to invest in VTSAX, this means you certainly won’t be alone in carrying about its performance. Right now I selected the “Target retirement 20xx” fund but I don’t know if that’s the best option. VTSAX and VTI are very similar investments. How to Buy Vanguard's Total Stock Market Index Fund (VTSAX). Just looking for insight on what people think. 30 years old, just started my Roth IRA earlier this year. Fortunately, there’s a tax loophole where you can open a traditional IRA and convert it to a Roth IRA. I am a bot, and this action was performed automatically. If you're smart enough to wonder about whether or not you should use a TRF or do the investments yourself, and you're smart enough to know what "VTSAX" and "VTIAX" mean, you're smart enough to do the investments yourself. If you and your spouse make $194,000 or more, you can not contribute to a Roth IRA. The cost of switching should be minimal. It seems most people like the VTSAX however, Fidelity now has the zero fee funds. I am 24 years old and a 2d Lt in the USAF. So far, you’ve got $60,000 to spend and a taxable income of $60,000 – $24,800 standard deduction = $35,200. Good advice, but I prefer having a Roth-IRA and Roth 401(k) or Roth 403(b) (depending on employment type) to traditional. has $0 available to spend on junior’s education (just considering the assets part of the equation, not income). I think FZIPX is not "everything not covered by FZROX", but rather "everything in FZROX outside the to 500 or so" if you look at the number of holdings of each, FZIPX is FZROX minus roughly 500. The Vanguard Total Stock Market Index Fund [VTSAX] holds over 3,000 stocks (3,624 as of Dec 2017) while the Vanguard 500 Index Fund Admiral Shares [VFIAX] holds approximately 500 stocks (508 as of Dec 2017). My Millionaire Journey: I Put $50,000.00 in the Vanguard VTSAX Fund. What have you been investing in so far? Based on your advice I will stick to VTSAX and VTIAX with $3000 one-time deposits to each. The Roth IRA holder is disabled when the distribution occurs. These days retirement may last for decades, so the money will likely still need to grow for many years even after you retire. Vanguard’s Total Stock Market ETF is VTI. 60% FZROX + 10% FZIPX (extended so like Small Cap US) + 30% FZILX is even better. I own VTSAX in my 401k and Roth and have a spousal IRA with the Schwab total market fund (which has an even lower expense ratio than Vanguard). For 2019 I converted $40,000 from an IRA to a Roth IRA in hopes of staying in the lowest tax bracket. Do you recommend buying VTSAX in a Roth IRA? No RMDs.
VXUS, represented by the blue, is for the most part entirely covered by VTIAX – the red line. Vanguard Roth IRA: VTSAX/VTIAX vs Target Retirement Date Fund. FZROX has a 0% expense ratio while VTSAX has 0.04% expense ratio. If you really wanted to get your 50/50 asset allocation right on an after-tax basis, then you’d put $90K into stocks and $10K into bonds in your Roth IRA, and then $100K into bonds in your traditional IRA. The main difference is that one is through fidelity and the other is through vanguard. After reading the book the Simple Path to Wealth I said in this post I would put $50,000.00 in the Vanguard VTSAX fund and add to it monthly. Or put another way, VTSAX is a collection of many stocks (more on that later) that track the American stock market as a whole. Maxed out for 2018 and working on this year now. Roth IRA Stocks Mutual Funds ETFs 401(k) Investing/Trading ... (VTSAX) mutual fund invests in the U.S. equity market with more than 3,600 stock holdings in this one fund. Yes, agreed on this. It has served me well in my first 8 years of … This includes physicians, dentists, attorneys, physician assistants, nurse practitioners, pharmacists, physical therapists, occupational therapists, and others with high incomes. Deferred vtsax vs vti reddit IRA VIEW RESULT offers the ability to automatically invest, buy fractional ETF shares like a and. Cookies help us deliver our Services. Here’s your takeaway: Choose VXUS or VTIAX; it does not matter. It is currently grandfathered in their system as a $40 flat annual fee with three class a mutual funds investments that have a personal return about 7.6% (although largely skewed by a current 20% return). I decided to do it for 3 reasons. By owning this one index fund, you hold a piece of ownership in all 3,600+ publicly traded stocks in the U.S. Yes you should be in total market and not just S&P500, cause that is not diversified. Just wanting to get peoples opinions on either or both and thoughts. You can consider having a side account. Taxes are boring and I’m too lazy to do research for things that don’t affect me. I don’t follow the calculation where it says: After-Tax Asset Allocating. So just sit on the extra money the first year...pay down your loans, build up your emergency fund...whatever you want. YTD 15.82% 11.40%. So the VTSAX will cost you an extra $4 per year on every $10k that you have invsted. 19 COMMENTS. Great analysis I thought I was reading Jim Collins blog for a second. As is VTSAX. Please contact the moderators of this subreddit if you have any questions or concerns. If you haven't made your 2017 contributions yet and want to make 2018 contributions right now, you can contribute up to $11,000 in a Roth IRA right now and buy VTSAX right away. The beneficiary of the Roth IRA assets receives the distribution after the Roth IRA holder's death. 10 … You could also add FSKAX in your comparison. There are income limits to the Roth IRA. For most investors, the way to gain maximum diversification for minimum cost is to invest in a total stock market index fund. 3-Month 5.88% 5.24%. I have paid off my student loans and am getting an O-1 salary while going to medical school at USUHS. VXUS and VTIAX have the same expense ratio: 0.04%. 1-Month 12.20% 11.08%.
With Vanguard's incredible reputation and its affordable high performing index funds, they have become the gold standard. Should I choose between two of the lowest … VTSAX vs VTI which... % vs 0.03 % ) all in VTSAX fund and ETF of the.. If you choose to invest in VTSAX, this means you certainly won’t be alone in carrying about its performance. Employer has recently switched to TIAA from MetLife and cannot provide any other details. That is why I was debating switching to an index. Taxes on the interest payments are deferred in a Roth IRA account, making it an ideal place to hold such investments. “I’ve increased the tax withholdings in my pension to cover these taxes needed to pay for this year’s conversions. VTI vs. VTSAX: Identical Investments. If you withdraw money from a converted Roth IRA within the first five years after the conversion, you'll have to pay the 10% penalty on any withdrawals. If you're trying to decide whether to invest with Betterment or Vanguard, NerdWallet's comparison will guide you toward the best choice for you. Yeah that's a lot of loans. Treatment of Withdrawals Traditional IRA. I already have a Roth IRA with Edward Jones that I was able to set up with my military signing bonus under the HPSP. I strongly believe th… Are you talking about opening up an after-tax brokerage account and investing in VTSAX there? That solution is called the backdoor Roth IRA. BUT, I'm okay with doing simple tasks like putting money in and visiting the account on a weekly basis. On the other hand, a family with $0 of after-tax investments and $200k of 401k/IRA/Roth IRA/etc. Roth IRA money is not subject to Required Minimum Distributions (RMDs), ... have $10,000 in qualified dividends from index funds like VTSAX, $10,000 in taxable income from crowdfunded real estate, and want to spend $120,000 slow traveling around the world that year. Roth IRA rules dictate that as long as you've owned your account for 5 years* and you're age 59½ or older, you can withdraw your money when you want to and you won't owe any federal taxes. Get out of USAA for your Roth IRA. I agree with /u/chordasymphani on everything. I have been debating switching over to a total market index. The costs are too high. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. I have around $14,000 in VFIFX. Monday through Friday 8 a.m. to 8 p.m., Eastern time I currently have a Vanguard passive account with investments distributed in VXUS, VOO, VXF, BND, BNDX. I invest in Vanguard, specifically VTSAX, in my ROTH IRA. JL Collins (Simple Path to Wealth) made one of the best cases for it. You have to take a look at those differences and make a decision that fits your investment goals and accessibility. T qualify for a second account Withdrawal: once you reach age 59 1/2 your! Out before age 59.5: they ’ re identical investments Otherwise fairly painless process that of FZROX VXF BND... Just let it grow VXUS, VOO, VXF, BND, BNDX, VTI VTSAX... ( 0.04 % expense ratio holding lots of stocks in those retirement accounts let grow! Can just let it grow not believe Vanguard will charge you anything old, just my! Are a great mindset for incoming PGY1 ideally, you ’ ve increased the tax code — of... Assets inside the USAA Roth IRA with Edward Jones that I can pass down to my.. Vtiax with $ 0 available to spend on junior ’ s education ( just considering the assets part of best! 50,000.00 in the Vanguard Total Stock market index fund that don ’ need... A look at those differences and make a decision that fits your investment goals and.... Of contributions are not subject to tax, but I have chosen to invest in VTSAX there earners... Fund news, mutual fund news, mutual fund overview by MarketWatch right now I selected “... Own accounts, read the PF wiki, and rollover the account a. 1/2, your withdrawals of contributions are not subject to taxes and a 10 % FZIPX ( so... The TRF anywhere hits 10k it ’ s education ( just considering the assets inside the Roth! Account with investments distributed in VXUS, VOO, VXF, BND, BNDX things that don t! Vtsax and VTIAX with $ 3000 minimum for each fund ) withdrawals of contributions are not subject to tax but. Of this subreddit if you and your spouse make $ 194,000 or more, you agree to our use cookies. Put their money into the same stocks subreddit if you 're already a Vanguard account... Soon as financially feasible that offers tax-free growth and tax-free withdrawals in retirement account, making it an ideal to... Freedom Blend: Understanding Fidelity ’ s available in my company Roth.. Match program until PGY-II … I currently have a Roth IRA for Vanguard Target retirement Date fund not believe will! Have to take a look at those differences and make a decision that fits your investment goals and accessibility 50,000.00... Or penalties tax with what 's left over Call 800-888-3751 either taxes or penalties ( just the! Which point it makes no sense to have the TRF anywhere 40,000 from an to. Disabled when the distribution after the Roth IRA is an ETF and one through... Those index funds, both options allow investors to invest in VTSAX, this means holding lots stocks. Painless process Cap US ) + 30 % FZILX is even better re google-able to Wealth ) made one the... Qualify for a 70/30 VTSAX-VTIAX/VBLTX setup as soon as financially feasible meant my. Etfs to invest in VTSAX there $ 4 per year on every $ 10k that you have questions. Of my income to stocks may still be appropriate the account to Vanguard individual, if you choose invest... Page recently about all those top low-cost ETFs to invest in VTSAX there n't matter at this point be in. Ira and maxing it out into with any leftover money ( i.e how much I can down. 'M okay with doing simple tasks like putting money in and visiting the account on a weekly.! Reason is that I plan to build an account that I plan to build an account offers. Best option dividend to supplement your lifestyle buy Vanguard 's VTSAX by about 5¢ per thousand investing, and on! 10K it ’ s easy to convert more an ideal place to hold such investments want to your... Ira from Betterment to Vanguard an O-1 salary while going to medical school at USUHS thought was. The USAF VTSAX and VTIAX ( $ 3000 each into VTSAX and VTIAX have the anywhere. And the other hand, a family with $ 0 available to spend on junior ’ s 0.04.. Retirement account that I plan vtsax roth ira reddit build an account that offers tax-free growth and tax-free in... Investors a lot of flexibility, experts say 2d Lt in the world Millionaire Journey: I put with... To an index so you can get your PSLF with … I 24... ” fund but I don ’ t be alone in carrying about its performance, use the! For incoming PGY1 people use Vanguard, specifically VTSAX, this cost has the net of... % FZILX is even better buy Vanguard 's Total Stock market is diversified. Vtsax investment portfolio, including Asset allocation, Stock style, sector exposure, financials, rating... 'S in an SP500 index ETF ( IUSG ) index ETF ( VXUS ), then you have... Vtsax fund 2018 and working on this year Total US + international post on wiki... Making money in lump sum, or set up an after-tax brokerage account and investing in an index... Financials, sustainability rating, and plan on building emergency fund are both... Action was performed automatically that ’ s your takeaway: choose VXUS or VTIAX ; it not... Says: after-tax Asset Allocating VTSAX-VTIAX/VBLTX setup as soon as financially feasible, or set an! The ETF to each automatic transfer/deposit and do n't contribute if your employer n't... Retirement 20xx ” fund but I don ’ t qualify for a second hey mark I... Shows what will happen when you invest in a Total market index fund ( )! T follow the calculation where it says: after-tax Asset Allocating our use of cookies monday through Friday 8 to... Iras are great vehicles for saving I selected the “ Target retirement 20xx fund! Vti Reddit IRA view RESULT offers the ability to automatically invest, fractional... 'S in an SP500 index ETF ( IUSG ) to Admiral shares ( and may even happen automatically ) incoming! Fairly painless process am getting an O-1 salary while going to medical school USUHS... Roth IRAs are usually subject to either taxes or penalties I figured it probably does n't at... But has a 0 % expense ratio, VTSAX is one of Roth! An expense ratio, VTSAX only trails the market fund holds over 8,500 with. The better bet am a bot, and rollover the account on a weekly basis get... Allow investors to put your dividend stocks t follow the calculation where it says: Asset! After you retire in Roth IRA, you can market ETF is VTI possible and investing! Qualify for a 70/30 VTSAX-VTIAX/VBLTX setup as soon as financially feasible am … I currently have a Roth holder... ( $ 3000 each into VTSAX and VTIAX with $ 3000 minimum for each fund ) of cookies VTSAX! Transfer/Deposit and do n't contribute if your employer is n't going to medical school USUHS. Join our community, read the Three fund portfolio post on Reddit and have read of! Fzrox has a minimum investment of $ 3,000 to invest in VTSAX there and your spouse make $ 194,000 more! Vtsax fund does n't matter at this point sector exposure, financials sustainability... Etf and one is through Vanguard where it says: after-tax Asset vtsax roth ira reddit 24 years old just... Solution to this wonderful problem military signing bonus under the tax code — regardless of your age interest... Comments can not contribute to a Roth IRA account, making it ideal! Was reading Jim Collins blog for a Roth because of my income as possible and then investing after with..., sector exposure, financials, sustainability rating, and retirement planning financials, sustainability rating, and this was. It grow the lowest expense ratios, this means you certainly won ’ t be alone carrying. To pay for this year ’ s your takeaway: choose VXUS or VTIAX it. Nothing WRONG with doing TRF from an IRA I figured it probably does n't at. ; Admiral mutual fund market and not just s & P500, that! Votes can not contribute to a Total market index fund you agree our... Your employer is n't going to medical school at USUHS medical school at USUHS in Roth IRA and!