Non-Retirement: VUG vs. VASGX vs. ?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
chomsky81
Posts: 26
Joined: Thu Nov 29, 2018 4:43 pm
Location: Northeast

Non-Retirement: VUG vs. VASGX vs. ?

Post by chomsky81 » Wed Dec 05, 2018 10:09 am

Morning!
:beer

In my non-retirement account I am seeling my VOO shares to roll into my VUG (will be about $12,000). I also have about $11,000 in my VASGX account. Does it make sense to own both VUG and VASGX? Are there better funds/allocations to consider?

I was considering a total bond/total international fund in my non-retirement account to give some balance/safety (80% in VUG/VASGX or another then 20% in both total bond/total international)

I'd like to grow money for non-specific time frames and purposes (i.e. a car, a home, continually invest if/when needed, etc.)

Thoughts/strategies?
"Governments that issue their own currency are never in fear of default but only constrained by inflation"

Silk McCue
Posts: 1450
Joined: Thu Feb 25, 2016 7:11 pm

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by Silk McCue » Wed Dec 05, 2018 11:02 am

In the future please consider using Fund names in addition to their symbols. Most folks don't have these memorized and many, including me, won't take time to do even a quick Google search in order to provide feedback.

Cheers

chomsky81
Posts: 26
Joined: Thu Nov 29, 2018 4:43 pm
Location: Northeast

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by chomsky81 » Wed Dec 05, 2018 11:43 am

Thanks for feedback!

VOO - Vanguard S&P 500 ETF (i am selling this to go into VUG) https://investor.vanguard.com/etf/profile/VOO
VUG - Vanguard Growth ETF (Will have $12,000 in this account) https://investor.vanguard.com/etf/profile/VUG
VASGX - Vanguard LifeStrategy Growth Fund Investor Shares (Have $11,000 in this account) https://investor.vanguard.com/mutual-fu ... file/VASGX

To reiterate:

I was considering a total bond/total international fund in my non-retirement account to give some balance/safety (80% in VUG/VASGX or another then 20% in both total bond/total international)

I'd like to grow money for non-specific time frames and purposes (i.e. a car, a home, continually invest if/when needed, etc.)
"Governments that issue their own currency are never in fear of default but only constrained by inflation"

zuma
Posts: 396
Joined: Thu Dec 29, 2016 12:15 pm

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by zuma » Wed Dec 05, 2018 1:53 pm

I would recommend keeping all your information in one thread. This question seems very similar to your previous one.

chomsky81
Posts: 26
Joined: Thu Nov 29, 2018 4:43 pm
Location: Northeast

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by chomsky81 » Wed Dec 05, 2018 2:11 pm

Thanks for the suggestions. The thread you referenced is seeking help for cash allocation for down payments. This thread is regarding where to keep non-retirement investment cash.
"Governments that issue their own currency are never in fear of default but only constrained by inflation"

zuma
Posts: 396
Joined: Thu Dec 29, 2016 12:15 pm

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by zuma » Wed Dec 05, 2018 2:31 pm

Assuming a non-specific timeframe, I would invest the money according to my overall asset allocation plan. Then I'd withdraw money from my taxable account if and when I need it, and then rebalance accordingly (probably in my tax-advantaged accounts).

However, it sounds like you want to consider this portion of your portfolio as a separate bucket. In that case, 80% stocks seems reasonable and you could just put everything into the LifeStrategy Growth fund which is 80/20.

chomsky81
Posts: 26
Joined: Thu Nov 29, 2018 4:43 pm
Location: Northeast

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by chomsky81 » Wed Dec 05, 2018 2:58 pm

Thanks! :sharebeer much appreciated.
"Governments that issue their own currency are never in fear of default but only constrained by inflation"

chomsky81
Posts: 26
Joined: Thu Nov 29, 2018 4:43 pm
Location: Northeast

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by chomsky81 » Thu Dec 06, 2018 11:05 am

I noticed that in non-retirement investment accounts many people are picking municipal funds that aren't taxed in their state but the returns are around 1-1.2% which is almost half of other short-term accounts/funds. I live in NY - what would be a fund or advantage of getting a tax-free account but with half the returns?
"Governments that issue their own currency are never in fear of default but only constrained by inflation"

zuma
Posts: 396
Joined: Thu Dec 29, 2016 12:15 pm

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by zuma » Thu Dec 06, 2018 3:38 pm

chomsky81 wrote:
Thu Dec 06, 2018 11:05 am
I noticed that in non-retirement investment accounts many people are picking municipal funds that aren't taxed in their state but the returns are around 1-1.2% which is almost half of other short-term accounts/funds. I live in NY - what would be a fund or advantage of getting a tax-free account but with half the returns?
It depends on your tax bracket.

Vanguard has a tool you can use: https://personal.vanguard.com/us/secfun ... alentyield

For example, looking at the New York Muni Money Market in a 25% tax bracket (for both federal and state) the tool says:
You'd have to earn a yield of 2.81% from a taxable investment of equal maturity and characteristics to match the 1.58% tax-exempt yield of Vanguard's New York Muni Money Mkt.

chomsky81
Posts: 26
Joined: Thu Nov 29, 2018 4:43 pm
Location: Northeast

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by chomsky81 » Fri Dec 07, 2018 9:22 am

Federal tax was 28% I believe, but now under the new plan federal taxes are 24% (single, head of household, no dependents, etc.)
State tax is up to 6.65% for me.

Any good links for understanding the pros/cons of short/mid/long-term bonds?
"Governments that issue their own currency are never in fear of default but only constrained by inflation"

zuma
Posts: 396
Joined: Thu Dec 29, 2016 12:15 pm

Re: Non-Retirement: VUG vs. VASGX vs. ?

Post by zuma » Fri Dec 07, 2018 10:33 am

chomsky81 wrote:
Fri Dec 07, 2018 9:22 am
Any good links for understanding the pros/cons of short/mid/long-term bonds?
The wiki is a good place to start: https://www.bogleheads.org/wiki/Bond_basics

I use a Total Bond Market fund to keep things simple and diversified. It includes short, intermediate, and long-term bonds with an average duration of 6 years.

Post Reply