Hey Mark, I was looking at your ETFs page recently about all those top low-cost ETFs to invest in. As total stock market index funds, both options allow investors to invest in every individually publicly traded stock in the United States. 3-Year 13.21% 10.90%. I am investing in roth IRA for Vanguard Target Retirement 2050 Fund (VFIFX). My employer's HR department has stated that it is a 50% up to 3% 401K match via TIAA. Monday through Friday 8 a.m. to 8 p.m., Eastern time For investors seeking broader diversification, VTSAX is the better bet. I currently have my Roth IRA with fidelity and investing in an SP500 index ETF(IUSG). … Taxes on the interest payments are deferred in a Roth IRA account, making it an ideal place to hold such investments. So far, you’ve got $60,000 to spend and a taxable income of $60,000 – $24,800 standard deduction = $35,200. To a university (using the FAFSA tool), a family with $200k of after-tax investments has $200k available to spend on junior. Index funds at the 3 often suggested here (Fidelity, Schwab, Vanguard) are so low on expense ratios it usually isn't worth switching if you are happy where you are. Or put another way, VTSAX is a collection of many stocks (more on that later) that track the American stock market as a whole. View mutual fund news, mutual fund market and mutual fund interest rates. So if I fill the Roth IRA, what retirement account should I put into with any leftover money (i.e. I don’t know the names of those index funds offhand but I think they’re google-able. The two big downsides are that the expenses are a bit higher on TRF (again, doesn't really matter if you have little invested) and that you may not be able to do TRF in all your accounts. VTSAX | A complete Vanguard Total Stock Market Index Fund;Admiral mutual fund overview by MarketWatch. Tax-Free Account Withdrawal: Once you reach age 59 1/2, your withdrawals of contributions are not subject to either taxes or penalties. 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). If you want to manage your own accounts, read the Three Fund Portfolio post on Bogleheads wiki. I currently have my Roth IRA with fidelity and investing in an SP500 index ETF(IUSG). That changed less than a year ago. My Millionaire Journey: I Put $50,000.00 in the Vanguard VTSAX Fund. Once a month is fine, hell even once a year to look at your investments and rebalance is fine. In reality, there's nothing WRONG with doing TRF. Either put the money in lump sum, or set up an automatic transfer/deposit and don't look at it. In general, it makes sense to use as much tax-advantaged space as possible and then investing after tax with what's left over. Liquidate the assets inside the USAA Roth IRA, and rollover the account to Vanguard. My Roth IRA and taxable accounts are entirely invested in FFNOX (which is Fidelity’s 4 in 1 fund that includes their 500 Index Fund and Extended Market Index Fund) and I’ve just kept adding to it since I’m happy with that asset allocation. So, Roth IRA is a type of account, and VTSAX is an index fund, which you can invest in within your Roth IRA. It does not make sense to buy VTSAX in a Fidelity account, as you'll get hit with trading fees. As an investment, VTI and VTSAX are completely identical. If the only money that is going to be invested is the $6k per year in a Roth IRA, it really doesn't matter if the yield is slightly lower and the expense ratios are slightly higher for TRF. Learn more about VTSAX investment portfolio, including asset allocation, stock style, sector exposure, financials, sustainability rating, and holdings. If you're already a Vanguard client: Call 800-888-3751. The fund holds over 8,500 bonds with … More specifically to your investments, I believe currently there’s a minimum portfolio size of 10k to invest in the vanguard admiral shares (VTSAX and VTIAX), and a lower cutoff of 3k for similar indexes with just not quite as sweet of expense ratio, so that’s worth a look into. The first reason is that I plan to build an account that I can pass down to my kids. As far as asset classes and equities are concerned both VTI and VTSAX allow investors to put their money into the same stocks. Retirement Accounts. They are a great way to save for retirement without a worry in the world. I would put international and bond into your 401k and go VTSAX or VTI only in your taxable space as well as Roth IRA. I’m sorry. Right now I selected the “Target retirement 20xx” fund but I don’t know if that’s the best option. An initial $10,000 investment turns into $714,671 for FZROX and $733,569 for VTSAX, a difference of $18,898 or about 2.6%. My hope is for a 70/30 VTSAX-VTIAX/VBLTX setup as soon as financially feasible. You would want as much money in the account with tax-free withdrawals (Roth IRA) and as little money in the account that will tax withdrawals as ordinary income (401(k)). Join our community, read the PF Wiki, and get on top of your finances! I was wondering with regard to the Roth IRA, which funds exactly you recommend investing in? FNILX is fidelity's zero large cap index. I remember … Keep Bonds Out Of Your Roth IRA. I have been debating switching over to a total market index. Thanks! If you do not have $3,000 to invest in the Admiral Shares (VTSAX), then you should invest in the ETF. BTW, my employer does not allow employees into their match program until PGY-II. I decided to do it for 3 reasons. There are some advantages and disadvantages to both because one is an ETF and one is an Index Fund. Indeed, a year ago, I wrote a post about how I was going to do exactly that – then, of course, I procrastinated and did nothing for the next 12 months. Few Facts about Me: Incoming PGY-I Psychiatry with $512,000 (7.1% interest) in Federal Loans on REPAYE (planning to pursue PSLF). It's now 2018, and I am going down the same path as you - planning on opening my Roth IRA soon and investing in VTSMX which would eventually become VTSAX when I plan on hitting the 10k minimum in two years. The first reason is that I plan to build an account that I can pass down to my kids. I know that I am limited as to how much I can contribute each year. A Profile of the Vanguard Total Stock Market Index Fund. Newbie here again. Any advice would be greatly appreciated. At least, until I have enough in the IRA to worry about broadening my investments. A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. Press question mark to learn the rest of the keyboard shortcuts. The fund holds over 8,500 bonds with … Sigh. Freedom, Freedom Index, or Freedom Blend: Understanding Fidelity’s Confusing Lineup Of Target-Date Funds . Ideally, you should do something more like FZROX + FZILX which is total US + international. I like the idea of ETF but since it's in an ira I figured it probably doesn't matter at this point. I don’t know how much more. At least, until I have enough in the IRA to worry about broadening my investments. Others (such as the White Coat Investor in this post) argue forcefully that you should hold bonds in taxable, because you want to maximize the tax benefits of your retirement investment accounts by maximizing the return of the assets in those accounts. Despite VTSAX’s 0.04% expense ratio, VTSAX only trails the market by 0.07%, less than half that of FZROX. The huge benefits of a Roth IRA Roth IRAs are great vehicles for saving. Great review. It has an expense ratio of 0.035%, which is cheaper than Vanguard's VTSAX by about 5¢ per thousand. I am … Traditional 401k)? Get details on IRA withdrawals. As a general rule, the more time you have to save, the greater the percentage of your money you can consider allocating to stocks. After listening to your show you both seem to like converting more into the tax-free.” Yeah. New comments cannot be posted and votes cannot be cast, More posts from the whitecoatinvestor community. A Profile of the Vanguard Total Stock Market Index Fund. Those who argue for holding bonds in tax-protected accounts argue that bonds are less tax-efficientthan stocks, so they should be held in tax-protected retirement accounts. A lot of people use Vanguard, they used to have the lowest expense ratios. VTSAX seems to be the most popular so I was wondering if it's worth switching to vanguard. The chart above shows what will happen when you invest in this fund. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. VTSAX vs. VTI: They’re Identical Investments Otherwise. Setting up my Roth IRA and maxing it out. As an individual, if you make over $132,000, you also can not contribute. My CFP with Cambridge Investment Research transferred funds from a 403b to an IRA (with the Vanguard portfolio) when I retired in 2016 (I started my 403b with an IVY fund and paid in $82,000 total over 13 years). Edit: FSKAX has 3392 holdings, VTSAX has 3607, FZROX has 2531. 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 whole process is called a “backdoor Roth IRA.” You can open a backdoor Roth IRA plus a spousal Roth IRA for a total contribution of $12,000 each year with the current Roth IRA limitations. Roth sounds like a great deal. This means holding lots of stocks in those retirement accounts. The Admiral share class has the lowest cost (0.04% for VTSAX), but has a minimum investment of $3,000. I'm new to the financing game, and I'm wondering what would be the better option of the following: $6000 into Target Retirement Fund 2055 ($1000 minimum, I'm turning 34 next week). Then you will have multiple accounts to manage, at which point it makes no sense to have the TRF anywhere. Let’s say, as a married couple, you withdraw $40,000 from a tax-deferred IRA or 401(k), 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.. FZROX is new, under a year old, so in the long run it may outperform VTSAX, depending on how the stocks inside the funds do. They hold the exact same collection of stocks (every individual publicly traded stock in the U.S.), they have the exact same dividend yield, and they earn the exact same annual returns. I am 68 years old. Good post, you’ve got a great mindset for incoming PGY1. Working as a lawyer, I didn’t qualify for a Roth because of my income. 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. Larimore goes on to explain that investors can achieve the benefits of stock index-fund investing through owning just one fund: VTSAX or VTI, the Vanguard Total Stock Market Index Fund or ETF equivalent. By using our Services or clicking I agree, you agree to our use of cookies. The equity characteristics of VTSAX and VFIAX are as follows: You absolutely don't need to do this. Logged dionnenicole. Will take a closer look when I am eligible next year, and plan on building emergency fund. What fund I have to select though? It’s been a long time coming. My overall approach is to be as "hands off as possible and let the money grow", which certainly makes the TRF more appealing despite the higher expense ratio. Other Roth IRA advantages. VTSAX is one of the largest index funds in the world. VTSAX is one of the largest index funds in the world. It's rarely worth buying the mutual fund versions anywhere that isn't Vanguard. Wouldn't I be better of just investing in VTSAX as an index fund by itself, therefore I could contribute as much as I wanted. Withdrawals from traditional IRAs are usually subject to taxes and a 10% early withdrawal penalty if you take money out before age 59.5. View mutual fund news, mutual fund market and mutual fund interest rates. Newbie here again. 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. The Roth IRA, of course. Once you’ve been convinced that index funds are the most efficient way to invest, the only decision you need to make is which index fund to invest in. If you want straight ticket stock market index funds (like VTSAX) and you want to go with Fido, that would be their Fidelity Total Market Index fund (FSTVX for premium class, 10K minimum, just like VTSAX admiral level). Vanguard should be able to help you with the paperwork and it should be a fairly painless process. Return VTSAX Category. No RMDs are required on Roth IRAs under the tax code — regardless of your age. The equity characteristics of VTSAX and VFIAX are as follows: Make sure you keep track, screenshots, records of every single payment you make so you can get your PSLF. My gut says yeah, use all the tax stuff you can. What fund I have to select though? For those closer to retirement, a healthy allocation to stocks may still be appropriate. If you're already a Vanguard client: Call 800-888-3751. If I open an Roth IRA can I have Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) within the Roth IRA?

↑ 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!