100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

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Gauntlet
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by Gauntlet » Fri Jan 12, 2018 1:02 pm

Since we are currently in a bull market that has lasted for 9 years, I suppose we will have more and more threads and posts of people that are 100% stocks. I think it is a bad idea. As an aside, I work with several people that have never lived through a bear market market and are bragging about their 401k accounts. No rocket science statement here but at some point the market will go down. It could go down by a lot and stay there. I lived through 2000-2002 and 2007-2009. I for one would not have made it without having some safe bonds to lean on and to draw from to buy stocks on the cheap.

MotoTrojan
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by MotoTrojan » Fri Jan 12, 2018 2:17 pm

pretykev wrote:
Fri Jan 12, 2018 9:17 am
MotoTrojan wrote:
Fri Jan 12, 2018 8:58 am
pretykev wrote:
Thu Jan 11, 2018 10:48 pm

I'm looking at $4600 a month in retirement pay that's roughly about Annually $55200.. I now have 68k in VTSAX and 27k in my Roth Vanguard2040 fund. I went through a divorce that put a 70k dent in my investments about 7 yrs ago. Your are welcome.
You do realize that the Vanguard Target 2040 fund contains Total International, Total US Bond, and Total Int Bond too, right? Pension aside, you are not 100% VTSAX.
I was referencing my brokerage taxed account is 100 VTSAX.
Understood, but that really means nothing in the big picture. Two people each with $1M in VTSAX taxable, one with no other assets, and one with $10M in Total Bond tax-deferred, have very different portfolio risk values.

The only way to look at your portfolio is a single bucket.

ByThePond
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by ByThePond » Fri Jan 12, 2018 2:28 pm

I was comfortable at 100% VTSAX for many years, even through 2008, until I got to a year out from retirement, at age 62. Now 60/40 at age 63.
Figured I'd "won the game" and could back off a bit.

Osp62
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by Osp62 » Fri Jan 12, 2018 3:54 pm

I recall something from Bogleheads 2016 conference that may be relevant for OP. During the conference, we had a Vanguard visit and were able to hear from some of Vanguard’s senior executives.

I was definitely surprised and remember that in response to a question on their personal asset allocation, one of the executives (I think the head of strategy who was mid career maybe 15 years from retirement age) stated that he was 100% Vanguard US Total stock fund. I think others had some Mix of Funds but nothing memorable. This definitely was, for me, the most memorable asset allocation for a senior executive at VG.

This is another one reason I keep in mind as a positive for US Total stock fund. Wondering if other Bogleheads who were in the room remember this the same way I do. Please chime in.

frugalnotenough
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by frugalnotenough » Fri Jan 12, 2018 4:05 pm

HikerNC wrote:
Thu Jan 11, 2018 9:37 pm
If your portfolio is 100% stocks and you're over 50 years old, I suggest you watch this PBS Frontline special from 2013:

https://www.youtube.com/watch?v=A3htnbwFgoM
Thank you so much for sharing the link. Although I read a few books recommended on this site, it is still very helpful.

Tamalak
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by Tamalak » Fri Jan 12, 2018 4:09 pm

100% VTSAX(domestic)/VTIAX(international) according to world cap. More than 90% of my net worth is in that and has been since Sept. 2015.. so I have yet to be tested :twisted:

I am shocked and grateful at the incredible bull market of the last year plus.

I intend to remain 100% stocks rain or shine.

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FrugalProfessor
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by FrugalProfessor » Fri Jan 12, 2018 4:37 pm

Watched the youtube video. Interesting, but mostly unrelated to the topic. The video highlights the debilitating effects of compounded fees. 100% VTSAX has almost no fees. Bogle has changed countless lives (but unfortunately not enough as the video highlights). Thank you Bogle!

I'm 70% VTSAX (and fidelity equivalent) + 30% international. Mid 30s. Over time I'll add bonds to the mix.

So what's the solution to this mass financial illiteracy? I blog. I frequently talk to people about it in real life, breaching the social norm of not talking about money. I point people to Bogleheads. I show them the math of compounded fees eroding their life savings. But most people don't care. They just scrunch their noses and say "ewwww....math....yuck....". This type of response is hard for my quantitative brain to sympathize with.
I blog. My effective (not to be confused with statutory) MTR is 45% (fed + state, excluding payroll). I save $30k/year in taxes by maxing out deferrals. Taxes are the lowest hanging source of alpha.

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tc101
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by tc101 » Fri Jan 12, 2018 4:49 pm

I'm 36. I will have a guarantee retirement for serving 20yrs in the military in 2 yrs.
Then wait 2 years. Seriously. My Cousin was told he was not longer needed in the Army shortly before he hit the 20 year mark.
. | The most important thing you should know about me is that I am not an expert.

SimplicityNow
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by SimplicityNow » Fri Jan 12, 2018 5:24 pm

MotoTrojan wrote:
Fri Jan 12, 2018 8:58 am
pretykev wrote:
Thu Jan 11, 2018 10:48 pm

I'm looking at $4600 a month in retirement pay that's roughly about Annually $55200.. I now have 68k in VTSAX and 27k in my Roth Vanguard2040 fund. I went through a divorce that put a 70k dent in my investments about 7 yrs ago. Your are welcome.
You do realize that the Vanguard Target 2040 fund contains Total International, Total US Bond, and Total Int Bond too, right? Pension aside, you are not 100% VTSAX.
Correct. Quick in my head calculation shows about 10% international and less then 5% bond so closer to 95/5.

mariezzz
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by mariezzz » Fri Jan 12, 2018 5:58 pm

pretykev wrote:
Thu Jan 11, 2018 8:47 pm
Lets be honest, how many of you are 100% VTSAX in your portfolio?
I know I am :sharebeer

I'm 36. I will have a guaranteed retirement for serving 20yrs in the military in 2 yrs.
Sorry, I'm a loser. Only 99% VTSAX. But no military pension for me. So actually, I win.
Last edited by mariezzz on Fri Jan 12, 2018 6:04 pm, edited 1 time in total.

WhiteMaxima
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by WhiteMaxima » Fri Jan 12, 2018 6:00 pm

get VT ( Total World Stock ETF). If you are 20 or even 30 year old, hold 100% VT is not bad.

Johm221122
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by Johm221122 » Fri Jan 12, 2018 8:31 pm

WanderingDoc wrote:
Thu Jan 11, 2018 10:28 pm
Johm221122 wrote:
Thu Jan 11, 2018 9:12 pm
I don't believe in 1oo% of any asset class,diversification is too easy and over my investment time line U.S. large capital stocks may under perform
I don't do "Don't put all of your eggs in one basket".

I put all my eggs in one basket, and watch that basket like a hawk. Worked out well so far.

Hence why real estate is a more lucrative asset class in my book.
Wish you the best with that,it is good investment for some,horror story for others

WanderingDoc
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by WanderingDoc » Fri Jan 12, 2018 9:23 pm

Johm221122 wrote:
Fri Jan 12, 2018 8:31 pm
WanderingDoc wrote:
Thu Jan 11, 2018 10:28 pm
Johm221122 wrote:
Thu Jan 11, 2018 9:12 pm
I don't believe in 1oo% of any asset class,diversification is too easy and over my investment time line U.S. large capital stocks may under perform
I don't do "Don't put all of your eggs in one basket".

I put all my eggs in one basket, and watch that basket like a hawk. Worked out well so far.

Hence why real estate is a more lucrative asset class in my book.
Wish you the best with that,it is good investment for some,horror story for others
Thank you! Its been a phenomenal investment for those in my circles. My own parents, limited in English, and ultra-conservative, have had phenomenal success investing in single family homes from the early 90s until now. Close to 8 figures in equity on a modest income, virtually by accident and with no business knowledge, and poor English.

After I casually brought up the topic of investing in mutual funds to my parents.. My father (around age 60) who has a pension and a 401k, tried to pull out some money from his 401k, was told he had to pay great penalties and taxes. He basically told me that his 401k was all but a scam (in our native language), coming from a very conservative worker who stayed with the same company for nearly 30 years.

Granted I have always been a bit contrarian, but after my conservative father couldn't even pull out a small amount of money at age 60, a lightblub just went off in my head. 401k and IRA is a good strategy for those who are okay with a "life deferral plan". Put all your savings into something, which doesn't pay you any income until you are 62.5, just hope you are healthy and alive when that time comes. :annoyed
Rent where you live, buy where others pay your mortgage for you. | I'm not looking to get rich quick, I'm not looking to get rich slow (indexing}, I'm looking to get rich.. for sure {real estate}.

Johm221122
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by Johm221122 » Sat Jan 13, 2018 6:05 am

WanderingDoc wrote:
Fri Jan 12, 2018 9:23 pm
Johm221122 wrote:
Fri Jan 12, 2018 8:31 pm
WanderingDoc wrote:
Thu Jan 11, 2018 10:28 pm
Johm221122 wrote:
Thu Jan 11, 2018 9:12 pm
I don't believe in 1oo% of any asset class,diversification is too easy and over my investment time line U.S. large capital stocks may under perform
I don't do "Don't put all of your eggs in one basket".

I put all my eggs in one basket, and watch that basket like a hawk. Worked out well so far.

Hence why real estate is a more lucrative asset class in my book.
Wish you the best with that,it is good investment for some,horror story for others
Thank you! Its been a phenomenal investment for those in my circles. My own parents, limited in English, and ultra-conservative, have had phenomenal success investing in single family homes from the early 90s until now. Close to 8 figures in equity on a modest income, virtually by accident and with no business knowledge, and poor English.

After I casually brought up the topic of investing in mutual funds to my parents.. My father (around age 60) who has a pension and a 401k, tried to pull out some money from his 401k, was told he had to pay great penalties and taxes. He basically told me that his 401k was all but a scam (in our native language), coming from a very conservative worker who stayed with the same company for nearly 30 years.

Granted I have always been a bit contrarian, but after my conservative father couldn't even pull out a small amount of money at age 60, a lightblub just went off in my head. 401k and IRA is a good strategy for those who are okay with a "life deferral plan". Put all your savings into something, which doesn't pay you any income until you are 62.5, just hope you are healthy and alive when that time comes. :annoyed
I almost there,at 14x earnings.My health no guarantee,but I eat reasonable and exercise

. He basically told me that his 401k was all but a scam (in our native language), coming from a very conservative worker who stayed with the same company for nearly 30 years.
I now have two roll over IRA's,I am positive vanguard would give me cash if I asked
until you are 62.5,
That's not accurate,many ways around that(plus that is when i want it anyway)
Last edited by Johm221122 on Sat Jan 13, 2018 7:32 am, edited 2 times in total.

Chip
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by Chip » Sat Jan 13, 2018 6:25 am

pretykev wrote:
Thu Jan 11, 2018 10:48 pm
I'm looking at $4600 a month in retirement pay that's roughly about Annually $55200.. I now have 68k in VTSAX and 27k in my Roth Vanguard2040 fund. I went through a divorce that put a 70k dent in my investments about 7 yrs ago. Your are welcome.
I guess my question is why are you putting money in a taxable account when you have access to the TSP?

marstaton4
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by marstaton4 » Sat Jan 13, 2018 6:32 am

Before 2017 I was 67% VTSAX ( or equivalent) and 33% VXUS (Vanguard Total International) over the last year I've cut back to 67% US / 23% International / 10% bonds by way of new contributions. I'm mid 30s

pretykev
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by pretykev » Sat Jan 13, 2018 9:25 am

Chip wrote:
Sat Jan 13, 2018 6:25 am
pretykev wrote:
Thu Jan 11, 2018 10:48 pm
I'm looking at $4600 a month in retirement pay that's roughly about Annually $55200.. I now have 68k in VTSAX and 27k in my Roth Vanguard2040 fund. I went through a divorce that put a 70k dent in my investments about 7 yrs ago. Your are welcome.
I guess my question is why are you putting money in a taxable account when you have access to the TSP?
I will use the money in my taxable account as a down payment for my home in a few years. I contribute to the tsp as well but It's an headache trying to withdraw from it before 59 1/2.
Kevin | | ~It is better to dig a well before you get thirsty.~

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MichaelRpdx
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Re: 100% VTSAX??

Post by MichaelRpdx » Sat Jan 13, 2018 12:57 pm

PFInterest wrote:
Thu Jan 11, 2018 8:56 pm
bikechuck wrote:
Thu Jan 11, 2018 8:54 pm
What in heaven's name is VTSAX?
Google
No, Google is GOOG :D
Be Appropriate && Follow Your Curiosity

WanderingDoc
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by WanderingDoc » Sun Jan 14, 2018 1:10 am

pretykev wrote:
Sat Jan 13, 2018 9:25 am
Chip wrote:
Sat Jan 13, 2018 6:25 am
pretykev wrote:
Thu Jan 11, 2018 10:48 pm
I'm looking at $4600 a month in retirement pay that's roughly about Annually $55200.. I now have 68k in VTSAX and 27k in my Roth Vanguard2040 fund. I went through a divorce that put a 70k dent in my investments about 7 yrs ago. Your are welcome.
I guess my question is why are you putting money in a taxable account when you have access to the TSP?
I will use the money in my taxable account as a down payment for my home in a few years. I contribute to the tsp as well but It's an headache trying to withdraw from it before 59 1/2.
SEPP not possible with TSP? If you tell me no then I think I will stop contributing completely.
Rent where you live, buy where others pay your mortgage for you. | I'm not looking to get rich quick, I'm not looking to get rich slow (indexing}, I'm looking to get rich.. for sure {real estate}.

pretykev
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Location: Lorton VA

Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by pretykev » Sun Jan 14, 2018 10:08 am

WanderingDoc wrote:
Sun Jan 14, 2018 1:10 am
pretykev wrote:
Sat Jan 13, 2018 9:25 am
Chip wrote:
Sat Jan 13, 2018 6:25 am
pretykev wrote:
Thu Jan 11, 2018 10:48 pm
I'm looking at $4600 a month in retirement pay that's roughly about Annually $55200.. I now have 68k in VTSAX and 27k in my Roth Vanguard2040 fund. I went through a divorce that put a 70k dent in my investments about 7 yrs ago. Your are welcome.
I guess my question is why are you putting money in a taxable account when you have access to the TSP?
I will use the money in my taxable account as a down payment for my home in a few years. I contribute to the tsp as well but It's an headache trying to withdraw from it before 59 1/2.
SEPP not possible with TSP? If you tell me no then I think I will stop contributing completely.
Yes SEEP is possible but read below:

You can start receiving SEPP distributions immediately as a penalty free TSP withdrawal. The only catch is that you must stick to this plan for five years, or until you reach the age of 59.5, whichever comes last.
Kevin | | ~It is better to dig a well before you get thirsty.~

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cfs
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Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Post by cfs » Sun Jan 14, 2018 10:25 am

Zero percent, my equity funds are on the aggressive side with the exception of the slow moving internationals. Your money, your portfolio, your decision. Good luck and thanks for reading / cfs.
~ Member of the Active Retired Force since 2014 ~

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