Holding VTSAX / S&P 500 fund exclusively

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WanderingDoc
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Holding VTSAX / S&P 500 fund exclusively

Post by WanderingDoc » Thu Aug 17, 2017 1:27 am

Has anyone held a total stock market or s&p 500 index fund exclusively in their taxable account for 10+ years.. 15+ years? If so, was it just lump sum investing or did you continue to contribute to it during the ups and downs.. Is investing $50K lump sum every 2-3 years or $2000 per month a better option? Would love your thoughts on this.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

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randomizer
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by randomizer » Thu Aug 17, 2017 1:39 am

Call it dollar cost averaging if you want but it's better to invest regularly, as soon as you can. Time in the market beats timing the market.

I'm a three fund kind of person, but being 100% S&P 500 would have worked out fine if you had the stomach for it.
87.5:12.5, EM tilt — HODL the course!

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LiveSimple
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by LiveSimple » Thu Aug 17, 2017 3:14 am

Just invest when you have the money, that may be weekly, monthly, or ad hoc.
The quantity of the $$$ invested counts, not the frequency of the investment.

Why keep $50,000 out of the market, when you could have invested in the market ?

McGilicutty
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by McGilicutty » Thu Aug 17, 2017 4:06 am

I'm about 90% SPY/VOO/VTI and 10% individual stocks. I bought my first allotment of SPY in 2012 and have bought index ETFs regularly since then.

I'm mostly retired now (do some software consulting on the side), but when I did work regularly, I bought index ETF allotments every couple of months or so. My broker is Interactive Brokers and I think they charge about $1 or $2 per trade.

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David Jay
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by David Jay » Thu Aug 17, 2017 9:05 am

White Coat Investor has a post entitled "150 Portfolios that are better than yours".

Check out portfolios #1, #2 and #3 here: https://www.whitecoatinvestor.com/150-p ... han-yours/
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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ruralavalon
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by ruralavalon » Thu Aug 17, 2017 11:36 am

WanderingDoc wrote:
Thu Aug 17, 2017 1:27 am
Has anyone held a total stock market or s&p 500 index fund exclusively in their taxable account for 10+ years.. 15+ years? If so, was it just lump sum investing or did you continue to contribute to it during the ups and downs.. Is investing $50K lump sum every 2-3 years or $2000 per month a better option? Would love your thoughts on this.
I always contributed whenever we had extra money to invest.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

WanderingDoc
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by WanderingDoc » Thu Aug 17, 2017 12:23 pm

LiveSimple wrote:
Thu Aug 17, 2017 3:14 am
Just invest when you have the money, that may be weekly, monthly, or ad hoc.
The quantity of the $$$ invested counts, not the frequency of the investment.

Why keep $50,000 out of the market, when you could have invested in the market ?
Holding cash is never a bad thing, IMO. Also, keeping $50K or $100K out of the market let's you invest that into a large apartment syndication earning a 10-12% annualized return with a 2-2.5X equity multiple on exit (~20% IRR), without worrying if you happen to be in upturn or downturn in the stock market. Of course, you need to be accredited to get the best opportunities.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

WanderingDoc
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by WanderingDoc » Thu Aug 17, 2017 12:24 pm

McGilicutty wrote:
Thu Aug 17, 2017 4:06 am
I'm about 90% SPY/VOO/VTI and 10% individual stocks. I bought my first allotment of SPY in 2012 and have bought index ETFs regularly since then.

I'm mostly retired now (do some software consulting on the side), but when I did work regularly, I bought index ETF allotments every couple of months or so. My broker is Interactive Brokers and I think they charge about $1 or $2 per trade.
I've never heard of SPY, VOO, or VTI. Looks like I have some learning to do :)
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

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ruralavalon
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by ruralavalon » Thu Aug 17, 2017 12:58 pm

WanderingDoc wrote:
Thu Aug 17, 2017 12:24 pm
McGilicutty wrote:
Thu Aug 17, 2017 4:06 am
I'm about 90% SPY/VOO/VTI and 10% individual stocks. I bought my first allotment of SPY in 2012 and have bought index ETFs regularly since then.

I'm mostly retired now (do some software consulting on the side), but when I did work regularly, I bought index ETF allotments every couple of months or so. My broker is Interactive Brokers and I think they charge about $1 or $2 per trade.
I've never heard of SPY, VOO, or VTI. Looks like I have some learning to do :)
That's ticker speak, and ought to be banned.

SPY = SPDR S&P 500 ETF
VOO = Vanguard S&P 500 ETF
VTI = Vanguard Total Stock Market ETF
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

WanderingDoc
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by WanderingDoc » Thu Aug 17, 2017 4:09 pm

randomizer and LiveSimple - thank you for your input.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

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LiveSimple
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by LiveSimple » Fri Aug 18, 2017 12:13 pm

WanderingDoc wrote:
Thu Aug 17, 2017 12:23 pm
Holding cash is never a bad thing, IMO. Also, keeping $50K or $100K out of the market let's you invest that into a large apartment syndication earning a 10-12% annualized return with a 2-2.5X equity multiple on exit (~20% IRR), without worrying if you happen to be in upturn or downturn in the stock market. Of course, you need to be accredited to get the best opportunities.
From your username, and your thoughts on apartments, I decode that you may be a physician.

If you are physician and you get chumps of $$$, than regular monthly earners, you have earned the privilege to do what you have outlined.

Still enjoy in selling your investments as well for enjoyment like vacation, or another investments like apartments.

I have developed for myself or ourselves, invest when we can; sell as needed, do not look much into market is up or down or need to pay capital gain taxes. This makes us, keep investing and spending simple. We do manage or control our spending.

I see lot of friends only invest, invest and invest and never enjoy life as they may never want to sell their investments.

YMMW

WanderingDoc
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Re: Holding VTSAX / S&P 500 fund exclusively

Post by WanderingDoc » Fri Aug 18, 2017 1:11 pm

LiveSimple wrote:
Fri Aug 18, 2017 12:13 pm
WanderingDoc wrote:
Thu Aug 17, 2017 12:23 pm
Holding cash is never a bad thing, IMO. Also, keeping $50K or $100K out of the market let's you invest that into a large apartment syndication earning a 10-12% annualized return with a 2-2.5X equity multiple on exit (~20% IRR), without worrying if you happen to be in upturn or downturn in the stock market. Of course, you need to be accredited to get the best opportunities.
From your username, and your thoughts on apartments, I decode that you may be a physician.

If you are physician and you get chumps of $$$, than regular monthly earners, you have earned the privilege to do what you have outlined.

Still enjoy in selling your investments as well for enjoyment like vacation, or another investments like apartments.

I have developed for myself or ourselves, invest when we can; sell as needed, do not look much into market is up or down or need to pay capital gain taxes. This makes us, keep investing and spending simple. We do manage or control our spending.

I see lot of friends only invest, invest and invest and never enjoy life as they may never want to sell their investments.

YMMW
Not sure what you mean by "regular monthly earners". Everyone with a W-2 is a regular monthly earner :wink:

I agree with you 100%. I believe the most valuable time to take trips, vacation, meet new people, take risks in business, etc. is age 20 - 40. Why? On average, those are the years when someone is the most vibrant, mobile, healthy, and able to bear risk.

I revile in a sense of naivety. In my 20s, I have no problem going up to strangers in a foreign country, end up having a home cooked dinner by a random local grandma in their strange home, go to a dance or pool party with complete strangers, or jump into the ocean at 3 am, even if its cold. People that want to save save save until they are in their 60s, well guess what? You will be less healthy, less mobile, more risk averse, and more jaded by life and people. This is all but guaranteed.

The older you get, the less you trust people and willing to take risks. I think this is a shame. There is something to be said about seeing life with the zest, curiosity, and naivety of a 5 year old. Harder to do the older you get.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

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