Vanguard Total Stock Market Index

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carguy1993
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Vanguard Total Stock Market Index

Postby carguy1993 » Sat Jul 15, 2017 7:29 pm

I was looking at funds and technically since it is diverse in stocks would it be a reasonably safe fund to invest agressively for the next 30+ years?

MotoTrojan
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Re: Vanguard Total Stock Market Index

Postby MotoTrojan » Sat Jul 15, 2017 7:40 pm

carguy1993 wrote:I was looking at funds and technically since it is diverse in stocks would it be a reasonably safe fund to invest agressively for the next 30+ years?


Define an aggressive investment? For a 30+ year time horizon, Vanguard Total Stock Market is an excellent choice. Low cost, diversified, and good expected return. I would recommend you also invest in Vanguard Total International, at 20-30% of your equity investment.

"Safe" is relative. This is less risky than Bitcoin, penny-stocks, small-caps etc.. But you WILL see many 20% drops over 30 years, and perhaps a couple of 40-50% drops (or worse). You SHOULD expect to make a profit though, and more than likely will see your money increase 4-8x fold (historically 30 years would be 8x, doubles every 10 years).

Also consider bonds as you get older/closer to wanting to spend.

Research the three-fund portfolio; if you are asking this, you have much to learn/read. After reading some previous posts, I would recommend you stick with your Target Retirement 2055, and prepare your mindset to look at a 30-50% drop as a GREAT opportunity to buy stocks for cheap.

carguy1993
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Joined: Fri May 26, 2017 11:24 am

Re: Vanguard Total Stock Market Index

Postby carguy1993 » Sat Jul 15, 2017 7:53 pm

Thank you.

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Taylor Larimore
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Re: Vanguard Total Stock Market Index

Postby Taylor Larimore » Sat Jul 15, 2017 8:11 pm

carguy1993 wrote:I was looking at funds and technically since it is diverse in stocks would it be a reasonably safe fund to invest aggressively for the next 30+ years?

carguy1993:

Vanguard Total Stock Market Index Fund is a wonderful fund with many advantages. As investors have caught-on, it has become the largest stock mutual fund in the world.
Jack Bogle: "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk." -- "In my view, owning the market and holding it forever is the ultimate strategy for winners."


I selected Vanguard Total Stock Market Index Fund for The Three-Fund Portfolio.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

Miriam2
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Re: Vanguard Total Stock Market Index

Postby Miriam2 » Fri Jul 21, 2017 1:44 pm

carguy1993 wrote:I was looking at funds and technically since it is diverse in stocks would it be a reasonably safe fund to invest agressively for the next 30+ years?

Hi Carguy1993!

Is your question being answered?

The discussion has become very detailed and gone off into more advanced financial stuff that many of us don't understand :shock: or don't even use or care about, as a practical matter.

We know your question was important to you. If you would like, you might add a few details so we can answer your question more directly tailored to your situation :happy

Miriam2

jbolden1517
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Re: Vanguard Total Stock Market Index Fund?

Postby jbolden1517 » Fri Jul 21, 2017 7:56 pm

BolderBoy wrote:I have a 3 Fund Portfolio as recommended by Taylor Larimore.
Tell me explicitly with what you would replace it.


Well first I'd say that there is isn't a general portfolio that works for everyone. You have a particular job, you live in a particular part of the country, your family members have various risk profiles. A good portfolio for you would be diversifying those risks away. So I hate the question of a generic portfolio. But if I had to answer what a simple default portfolio would be for a mainstream type portfolio for someone who doesn't want to build a custom portfolio. Schwab Intelligent Portfolio would be the best choice I can think of now.

If you think a robo advisor is cheating and really want 3 funds that look kind of like Taylors: Oakmark Global, Blackrock Global allocation, Vanguard High-Yield Corporate Fund. I'm decreasing the stock risk a lot from Taylor's choice with both Oakmark and Blackrock while I'm taking on more risk on the High yield bonds. I'm at a higher expense ratio (a definite negative) but I'm staying away from anything too scary. This would be a much smoother ride with better returns.

But remember, I'm not the one whose saying you should have a generic 3 fund portfolio at all. So don't confuse "if I have to pick, I like this" with a full throated endorsement.
Last edited by jbolden1517 on Fri Jul 21, 2017 8:32 pm, edited 1 time in total.

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LadyGeek
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Re: Vanguard Total Stock Market Index

Postby LadyGeek » Fri Jul 21, 2017 10:57 pm

This thread has run its course and is locked (derailed in several directions). The OP had his/her question answered on the first page.

Update: See below.
To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

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LadyGeek
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Re: Vanguard Total Stock Market Index

Postby LadyGeek » Fri Jul 21, 2017 11:11 pm

I removed quite a number of posts which derailed the thread. While opposing points of view are welcome, the OP's request for assistance was lost in the noise.

carguy1993 - You've asked some earlier questions requesting help for your portfolio, such as I am selling my wellington buying Total stock market and Total bond. Is this the best bond fund for a taxable account?.

It's best to keep all the information in one spot. Why don't you post your portfolio in this thread using the Asking Portfolio Questions format? It will make you think about the big picture while giving us the information we need to point you in the right direction.

If you have any questions, ask them here.
To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.


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