Advice: Vanguard funds

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sharll
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Advice: Vanguard funds

Post by sharll »

Full disclosure: I have no idea what I'm doing. I have 16k in my Traditional account, all in bonds now because I panicked in Spring 2020. My Roth has 22k and is sitting with VBIAX, VBTLX, VGSLX, VWELX. I am in my late 50's and won't touch this until I'm in my middle 60's probably. I started with 44k in the beginning so I definitely need some serious guidance/what should I do right now? I don't understand investing, clearly, and need some kind of investing book or website that will walk me through the steps. I have a pension to live on but I want to be smart with these funds... it's not play money. Thanks for all information.
retiredjg
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Re: Advice: Vanguard funds

Post by retiredjg »

Sharll, welcome to the forum. :happy

A good place to start is here. https://www.bogleheads.org/wiki/Getting_started Be sure to watch the videos.

There is also a book list that you'll find in there somewhere. There are a couple of Boglehead's books that are good for beginners.

I also recommend JL Collins. Here is a good video to get a taste. https://www.youtube.com/watch?v=T71ibcZAX3I

What is a "Traditional account"? Is this a 401k or 403b? Or a taxable account (an ordinary account that does not have any tax-advantage)?
Topic Author
sharll
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Re: Advice: Vanguard funds

Post by sharll »

Thank you for the information... I will read these immediately. These accounts are IRA rollovers from previous employers.
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arcticpineapplecorp.
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Re: Advice: Vanguard funds

Post by arcticpineapplecorp. »

good links given so far.

maybe watch this now...

https://www.youtube.com/watch?v=OOGU94eL07E

...and then later the next time the stock market has fallen (to avoid selling low as it sounds you have done).

see my signature below. it will help avoid repeating the same mistake.

also this was a good post yesterday from Taylor Larimore. It's a link to a post showing what happened to cash panickers vs. what could have happened if clients had just stayed the course:

viewtopic.php?p=5493857
"Both the decline and the recovery were unimaginable on February 19th, the latest example of why attempting to time your way into and out of the stock market is a fool's errand."

"Six month, 52% gains are rare occurrences, which is one reason why I'm an advocate of having an appropriate allocation to U.S. Treasury securities and high-quality corporate bonds in your portfolio."

"Through May 2020, more than 80% of these cash panickers would have been better off if they had simply "stayed the course".

"The long-term, goal focused investor's best strategy continues to be to stay the course and, if possible, invest a little bit more every month to take advantage of lower prices."

"What happens on Wall Street in any given day, week, month, or year is of little significance to a family’s long-term financial plan and wealth accumulation program."

"This is the latest example of why a passive, buy and hold strategy is so much easier on the mind and so hard to beat."

"During the first six months of 2020, in an analysis of 4,400 mutual funds, Morningstar research found that just 48% of
domestic stock funds outperformed their index fund competitors."

"Perhaps the lesson we can learn from all this is that the financial media is a source of sound, which is not the same thing as saying that it is a source of sound advice."

source: http://www.oncoursefp.com/files/Vectors ... 0final.pdf
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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sharll
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Re: Advice: Vanguard funds

Post by sharll »

Ha, ha. That is perfect! And, so helpful for right now. Although, it does feel like the world is ending some days. ;)
retiredjg
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Re: Advice: Vanguard funds

Post by retiredjg »

arcticpineapplecorp. wrote: Mon Sep 14, 2020 11:19 am maybe watch this now...

https://www.youtube.com/watch?v=OOGU94eL07E
Just a caution....when I clicked on this, the first thing that came up was an ad for a get rich quick scheme of some kind! That is not the message articpineapplecorp is suggesting people should look at. :happy
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arcticpineapplecorp.
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Re: Advice: Vanguard funds

Post by arcticpineapplecorp. »

retiredjg wrote: Mon Sep 14, 2020 12:40 pm
arcticpineapplecorp. wrote: Mon Sep 14, 2020 11:19 am maybe watch this now...

https://www.youtube.com/watch?v=OOGU94eL07E
Just a caution....when I clicked on this, the first thing that came up was an ad for a get rich quick scheme of some kind! That is not the message articpineapplecorp is suggesting people should look at. :happy
no, it's a youtube video of jl collins leading a guided meditation (and education) about not panic selling.

don't see an ad, but I use uBlock Origin with firefox.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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abuss368
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Re: Advice: Vanguard funds

Post by abuss368 »

sharll wrote: Mon Sep 14, 2020 10:12 am Full disclosure: I have no idea what I'm doing. I have 16k in my Traditional account, all in bonds now because I panicked in Spring 2020. My Roth has 22k and is sitting with VBIAX, VBTLX, VGSLX, VWELX. I am in my late 50's and won't touch this until I'm in my middle 60's probably. I started with 44k in the beginning so I definitely need some serious guidance/what should I do right now? I don't understand investing, clearly, and need some kind of investing book or website that will walk me through the steps. I have a pension to live on but I want to be smart with these funds... it's not play money. Thanks for all information.
Welcome to the best forum online!

You may consider editing your post to type out the fund names. Most Bogleheads do not know the tickers!
John C. Bogle: “Simplicity is the master key to financial success."
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abuss368
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Re: Advice: Vanguard funds

Post by abuss368 »

arcticpineapplecorp. wrote: Mon Sep 14, 2020 1:26 pm
retiredjg wrote: Mon Sep 14, 2020 12:40 pm
arcticpineapplecorp. wrote: Mon Sep 14, 2020 11:19 am maybe watch this now...

https://www.youtube.com/watch?v=OOGU94eL07E
Just a caution....when I clicked on this, the first thing that came up was an ad for a get rich quick scheme of some kind! That is not the message articpineapplecorp is suggesting people should look at. :happy
no, it's a youtube video of jl collins leading a guided meditation (and education) about not panic selling.

don't see an ad, but I use uBlock Origin with firefox.
JL Collings recommends owning Total Stock and Total Bond only if I recall correct?
John C. Bogle: “Simplicity is the master key to financial success."
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arcticpineapplecorp.
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Re: Advice: Vanguard funds

Post by arcticpineapplecorp. »

abuss368 wrote: Mon Sep 14, 2020 1:34 pm
arcticpineapplecorp. wrote: Mon Sep 14, 2020 1:26 pm
retiredjg wrote: Mon Sep 14, 2020 12:40 pm
arcticpineapplecorp. wrote: Mon Sep 14, 2020 11:19 am maybe watch this now...

https://www.youtube.com/watch?v=OOGU94eL07E
Just a caution....when I clicked on this, the first thing that came up was an ad for a get rich quick scheme of some kind! That is not the message articpineapplecorp is suggesting people should look at. :happy
no, it's a youtube video of jl collins leading a guided meditation (and education) about not panic selling.

don't see an ad, but I use uBlock Origin with firefox.
JL Collings recommends owning Total Stock and Total Bond only if I recall correct?
I believe that's correct. I'm not advocating that specifically, but rather that video on youtube can be helpful to avoid panic selling if they follow jl collin's advice on that score.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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abuss368
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Re: Advice: Vanguard funds

Post by abuss368 »

arcticpineapplecorp. wrote: Mon Sep 14, 2020 1:39 pm
abuss368 wrote: Mon Sep 14, 2020 1:34 pm
arcticpineapplecorp. wrote: Mon Sep 14, 2020 1:26 pm
retiredjg wrote: Mon Sep 14, 2020 12:40 pm
arcticpineapplecorp. wrote: Mon Sep 14, 2020 11:19 am maybe watch this now...

https://www.youtube.com/watch?v=OOGU94eL07E
Just a caution....when I clicked on this, the first thing that came up was an ad for a get rich quick scheme of some kind! That is not the message articpineapplecorp is suggesting people should look at. :happy
no, it's a youtube video of jl collins leading a guided meditation (and education) about not panic selling.

don't see an ad, but I use uBlock Origin with firefox.
JL Collings recommends owning Total Stock and Total Bond only if I recall correct?
I believe that's correct. I'm not advocating that specifically, but rather that video on youtube can be helpful to avoid panic selling if they follow jl collin's advice on that score.
That makes sense.
John C. Bogle: “Simplicity is the master key to financial success."
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ruralavalon
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Re: Advice: Vanguard funds

Post by ruralavalon »

Welcome to the forum :) .

sharll wrote: Mon Sep 14, 2020 10:12 am Full disclosure: I have no idea what I'm doing. I have 16k in my Traditional account, all in bonds now because I panicked in Spring 2020. My Roth has 22k and is sitting with VBIAX, VBTLX, VGSLX, VWELX. I am in my late 50's and won't touch this until I'm in my middle 60's probably. I started with 44k in the beginning so I definitely need some serious guidance/what should I do right now? I don't understand investing, clearly, and need some kind of investing book or website that will walk me through the steps. I have a pension to live on but I want to be smart with these funds... it's not play money. Thanks for all information.
What to do "right now"? Contribute as much as practical every year to any tax-advantaged accounts you are eligible to use. Is there a plan at work like a 401k, 403b, 457b, SEP IRA, SIMPLE IRA, TSP?

For more specific ideas you need to post your financial information in this format: "Asking Portfolio Questions".

For a quick look at investing basics try Dr. Bernstein's free, short, online pdf book "If You Can". For additional information read one or two books on on investing. Wiki article "Books: recommendations and reviews" .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Rudedog
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Re: Advice: Vanguard funds

Post by Rudedog »

JL Collins, The Simple Path to Wealth, and Bill Schueltis, The Coffeehouse Investor are good books.
TheDDC
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Re: Advice: Vanguard funds

Post by TheDDC »

You lost $28k??? What the heck happened? Did you liquidate the money from your account too? :oops:

Don’t sell during lows... that is the time to keep buying frequently and methodically. Something else happened to knock that balance down. Focus on getting back the $16k that you lost. Hustle it in the pool hall or line up bank bonuses. I invest my IRAs and 403(b) in two things: FSKAX and VTSAX.

Good luck.

-TheDDC
Rules to wealth building: 90-100% VTSAX piled high and deep, 0-10% VIGAX tilt, 0% given away to banks, minimize amount given to medical-industrial complex
Topic Author
sharll
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Re: Advice: Vanguard funds

Post by sharll »

Thanks for all the reading material and for the posting advice. I've been educating myself! As far as the loss in my funds, that happened last March/April when everything went down and then I panicked and put half of it in bonds. Looking forward now, not back.
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Eagle33
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Re: Advice: Vanguard funds

Post by Eagle33 »

sharll wrote: Wed Sep 16, 2020 10:20 am Thanks for all the reading material and for the posting advice. I've been educating myself! As far as the loss in my funds, that happened last March/April when everything went down and then I panicked and put half of it in bonds. Looking forward now, not back.
The financial light bulb went on when I realized I should be focusing on asset allocation (AA) %'s and not the actual balance dollar amount. When stocks % is -5% off target %, then I sold enough bonds to buy stock fund to move stock & bond asset %'s back to AA target %. When stocks % is +5% off target %, then sold enough stocks to buy bond fund to move stock & bond asset %'s back to AA target %.
Rocket science is not “rocket science” to a rocket scientist, just as personal finance is not “rocket science” to a Boglehead.
sycamore
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Re: Advice: Vanguard funds

Post by sycamore »

sharll wrote: Wed Sep 16, 2020 10:20 am Thanks for all the reading material and for the posting advice. I've been educating myself! As far as the loss in my funds, that happened last March/April when everything went down and then I panicked and put half of it in bonds. Looking forward now, not back.
^^ Congrats for that!

Getting over mistakes can be hard, and sometimes not getting over a mistake is an even worse mistake then the first :)
rkhusky
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Re: Advice: Vanguard funds

Post by rkhusky »

I suggest you look at target date funds. For example, Vanguard’s Target Retirement 2030 might be appropriate (or 2025). Just let Vanguard handle everything for you.
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abuss368
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Re: Advice: Vanguard funds

Post by abuss368 »

Rudedog wrote: Mon Sep 14, 2020 8:33 pm JL Collins, The Simple Path to Wealth, and Bill Schueltis, The Coffeehouse Investor are good books.
Agree. I would also add any of the three Bogleheads Guides as well as anything from Jack Bogle.
John C. Bogle: “Simplicity is the master key to financial success."
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abuss368
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Re: Advice: Vanguard funds

Post by abuss368 »

rkhusky wrote: Thu Sep 17, 2020 10:11 am I suggest you look at target date funds. For example, Vanguard’s Target Retirement 2030 might be appropriate (or 2025). Just let Vanguard handle everything for you.
Target and Lifestrategy funds are an excellent choice. I have used these funds in employer and college 529 plans. They work.
John C. Bogle: “Simplicity is the master key to financial success."
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Wiggums
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Re: Advice: Vanguard funds

Post by Wiggums »

Looking forward, not back is a good idea. It sounds like you learned from this experience.

An all in one or balance fund might be perfect for you.

It’s best not to logon or watch the markets.

Good luck to you
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