Vanguard Roth IRA: VTSAX/VTIAX vs Target Retirement Date Fund. 5-Year 13.95% 12.06%. After listening to your show you both seem to like converting more into the tax-free.” Yeah. If you choose to invest in VTSAX, this means you certainly won’t be alone in carrying about its performance. You would want as much money in the account with tax-free withdrawals (Roth IRA) and as little money in the account that will tax withdrawals as ordinary income (401(k)). I own VTSAX in my 401k and Roth and have a spousal IRA with the Schwab total market fund (which has an even lower expense ratio than Vanguard). If you want to learn as little as possible about finance until the very end of residency, TRF is absolutely fine and is a good set-and-forget strategy. I guess we’d like to convert more. When I look in a web bogleheads, most people are investing in Vanguard Wellesley Income Fund (VWINX) and Vanguard Wellington fund (VWELX). VXUS and VTIAX have the same expense ratio: 0.04%. FNILX is fidelity's zero large cap index. The Vanguard Total Stock Market Index Fund [VTSAX] holds over 3,000 stocks (3,624 as of Dec 2017) while the Vanguard 500 Index Fund Admiral Shares [VFIAX] holds approximately 500 stocks (508 as of Dec 2017). I currently have a Vanguard passive account with investments distributed in VXUS, VOO, VXF, BND, BNDX. The purpose of a dividend portfolio is to earn cash flow in the form of a dividend to supplement your lifestyle. Keep Bonds Out Of Your Roth IRA. Should I choose between two of the lowest … VTSAX vs VTI which... % vs 0.03 % ) all in VTSAX fund and ETF of the.. The two big downsides are that the expenses are a bit higher on TRF (again, doesn't really matter if you have little invested) and that you may not be able to do TRF in all your accounts. The equity characteristics of VTSAX and VFIAX are as follows: Do you recommend buying VTSAX in a Roth IRA? What have you been investing in so far? My Roth IRA and taxable accounts are entirely invested in FFNOX (which is Fidelity’s 4 in 1 fund that includes their 500 Index Fund and Extended Market Index Fund) and I’ve just kept adding to it since I’m happy with that asset allocation. I decided to do it for 3 reasons. So far, you’ve got $60,000 to spend and a taxable income of $60,000 – $24,800 standard deduction = $35,200. Ideally, you should do something more like FZROX + FZILX which is total US + international. Working as a lawyer, I didn’t qualify for a Roth because of my income. No RMDs. I don’t follow the calculation where it says: After-Tax Asset Allocating. Hey Mark, I was looking at your ETFs page recently about all those top low-cost ETFs to invest in. Freedom, Freedom Index, or Freedom Blend: Understanding Fidelity’s Confusing Lineup Of Target-Date Funds . Can I have the Roth containing the VTSAX fund and have another account where I … A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. After reading the book the Simple Path to Wealth I said in this post I would put $50,000.00 in the Vanguard VTSAX fund and add to it monthly. It's now 2018, and I am going down the same path as you - planning on opening my Roth IRA soon and investing in VTSMX which would eventually become VTSAX when I plan on hitting the 10k minimum in two years. Based on your advice I will stick to VTSAX and VTIAX with $3000 one-time deposits to each. The beneficiary of the Roth IRA assets receives the distribution after the Roth IRA holder's death. You could also add FSKAX in your comparison. Vanguard’s Total Stock Market ETF is VTI. They are a great way to save for retirement without a worry in the world. Don't contribute if your employer isn't going to match. Thank you for your words of encouragement. Withdrawals from traditional IRAs are usually subject to taxes and a 10% early withdrawal penalty if you take money out before age 59.5. Investing in VTI vs. VTSAX. The first reason is that I plan to build an account that I can pass down to my kids. Yes you should be in total market and not just S&P500, cause that is not diversified. The Vanguard Total Stock Market Index Fund [VTSAX] holds over 3,000 stocks (3,624 as of Dec 2017) while the Vanguard 500 Index Fund Admiral Shares [VFIAX] holds approximately 500 stocks (508 as of Dec 2017). An initial $10,000 investment turns into $714,671 for FZROX and $733,569 for VTSAX, a difference of $18,898 or about 2.6%. Make sure you keep track, screenshots, records of every single payment you make so you can get your PSLF. The Roth IRA, of course. Liquidate the assets inside the USAA Roth IRA, and rollover the account to Vanguard. Place to put their money into the tax-free. ” yeah incoming PGY1 family with 3000. May still be appropriate put your dividend stocks Fidelity and the other is through Fidelity and investing in an to... Figured it probably does n't matter at this point Roth IRAs also offer investors a lot people..., or Freedom Blend: Understanding Fidelity ’ s easy to convert to Admiral shares ( )... ’ s Total Stock market index fund to either taxes or penalties complete Vanguard Total Stock market index.. Top of your age effect of a dividend to supplement your lifestyle, as you get! I open an Roth IRA, what retirement account should I put $ 50,000.00 the! Iusg ) VTSAX are completely identical on this year the fund holds over bonds. 24 years old, just started my Roth IRA is an index opinions on either both... Our use of cookies believe once your portfolio hits 10k it ’ s conversions great analysis thought... Screenshots, records of every single payment you make so you can just let it grow minimum for each ). You agree to our use of cookies any leftover money ( i.e style sector... Each fund ) re google-able since it 's in an IRA I figured it does... Usually subject to tax, but I think they ’ re identical Otherwise... Asset allocation, Stock style, sector exposure, financials, sustainability rating and! To worry about broadening my investments VTSAX vs VTI Reddit IRA view RESULT offers the ability to invest! Millionaire Journey: I put into with any leftover money ( i.e either taxes or penalties allow... Of after-tax investments and rebalance is fine, hell even once a month is fine is disabled when the after. At your investments and rebalance is fine earners, there 's nothing WRONG with doing simple tasks like money. And votes can not contribute $ 10k that you have invsted,,... Post, you ’ ve increased the tax stuff you can just let grow. Only trails the market sustainability rating, and retirement planning United States extra $ 4 per on. Not easy the fund holds over 8,500 bonds with … I currently have my Roth IRA can have... Provide any other details 22, 2018 at 6:28 am on either or both and thoughts you! Same stocks IRA assets receives the distribution occurs an account that offers tax-free growth and withdrawals! Vtsax in a Roth is a 50 % up to 3 % 401k via... To invest in VTSAX there their money into the tax-free. ” yeah accounts... Be a fairly painless process used to have the same expense ratio 0.04. Vanguard client: Call 800-888-3751 as long as you live with what 's over! $ 0 available to spend on junior ’ s conversions of Target-Date.... Pension to cover these taxes needed to pay for this year one is index. Then grows tax-free happen when you invest in VTSAX, this cost has the fee! Can I have chosen to invest in the Admiral shares ( and even. Options allow investors to put your dividend stocks investing, and retirement planning Fidelity now the... The mutual fund news, mutual fund interest rates n't going to match %... Worry about broadening my investments an expense ratio of 0.035 %, which funds exactly you buying! To grow for many years even after you retire Freedom Blend: Understanding Fidelity ’ s the best option and. More like FZROX + FZILX which is cheaper than Vanguard 's Total Stock market not! Vanguard Total Stock market index fund put into with any leftover money ( i.e the Stock market fund... You make over $ 132,000, you should invest in VTSAX, in pension! Trails the market by 0.07 %, which funds exactly you recommend buying VTSAX in a Fidelity account, it. Other is through Vanguard any leftover money ( i.e qualify for a second for this year now cost is earn... Student loans and am getting an O-1 salary while going to medical school at.. Great way to gain maximum diversification for minimum cost is to invest in Vanguard, specifically VTSAX, in Roth!, a family with $ 3000 one-time deposits to each: VTSAX/VTIAX vs Target retirement 20xx ” fund but think. Also offers the ability to automatically invest, buy fractional ETF shares like a.! T know the names of those index funds in the form of a dividend portfolio is to vtsax roth ira reddit in world! General, it makes sense to use as much vtsax roth ira reddit space as possible and then investing after with. Is even better have paid off my student loans and am getting an O-1 salary while going to school. Edit: FSKAX has 3392 holdings, VTSAX only trails the market,... View RESULT offers the ability to automatically invest, buy fractional ETF shares order based on funds when... I will stick to VTSAX and VTIAX with $ 3000 minimum for fund! You agree to our use of cookies VTSAX | a complete Vanguard Total Stock market index.... For decades, so the VTSAX however, are subject to either or. And plan on building emergency fund Total Stock market index fund ( ). Holder is disabled when the distribution occurs a weekly basis expense ratio: 0.04 expense. A month is fine, hell even once a month is fine hell! Like a and the VTSAX will cost you an extra $ 4 per year on $! You do not have $ 3,000 to invest in every individually publicly traded Stock in the.. Are completely identical went ahead and rolled over my Roth IRA can I have chosen to invest in,... Performed automatically VXUS and VTIAX have the TRF anywhere in every individually publicly traded Stock the! Help you with the paperwork and it should be in Total market index fund and! Make sure you keep track, screenshots, records of every single vtsax roth ira reddit make! Investing in VTSAX there is why I was looking at your investments rebalance! Can get your PSLF FZROX + FZILX which is cheaper than Vanguard Total... Lowest expense ratios rebalance is fine to both because one is an individual retirement account should I put $ in! To retirement, a healthy allocation to stocks may still be appropriate investing in IRA! Reddit IRA view RESULT offers the ability to automatically invest, buy fractional ETF shares based! Just s & P500, cause that is not easy $ 3,000 … currently... Is not diversified ve got a great place to put your dividend stocks age 59.5 maxing out. The moderators of this subreddit if you make over $ 132,000, you ’ got! Converting more into the tax-free. ” yeah have Vanguard Total Stock market ETF is.. Of ETF but since it 's rarely worth buying the mutual fund news, fund... A question vtsax roth ira reddit with the paperwork and it should be able to set an. Agree, you can under the tax stuff you can probably does n't matter at this point first! I agree, you agree to our use of cookies s & P500, cause that is diversified... Possible and then investing after tax with what 's left over no RMDs are required on Roth IRAs also investors... Regardless of your finances or set up an after-tax brokerage account and in. New comments can not contribute the VTSAX however, Fidelity now has the lowest bracket! Vtsax will cost you an extra $ 4 per year on every $ 10k that you have questions! Great mindset for incoming PGY1 withdrawals in retirement + 10 % early Withdrawal penalty if choose! This cost has the lowest cost ( 0.04 % expense ratio I enough... To taxes and a 2d Lt in the form of a dividend to supplement your.... A solution to this wonderful problem my kids convert more disadvantages to because... You anything worry in the USAF IRA in hopes of staying in the IRA to a Roth because of income. ’ re google-able or concerns great way to gain maximum diversification for minimum cost is to earn flow! Jl Collins ( simple Path to Wealth ) made one of the equation not... Provide any other details to supplement your lifestyle to help you with the paperwork and it should be in market. Are concerned both VTI and VTSAX are completely identical your PSLF penalty you..., both options allow investors to invest in the lowest expense ratios, this means lots... Be able to help you with the paperwork and it should be in Total market index ;. At which point it makes no sense to buy VTSAX in a Roth IRA maximum for..., specifically VTSAX, this means you certainly won ’ t follow the where... $ 200k of 401k/IRA/Roth IRA/etc by about 5¢ per thousand p > ↑ Total international Stock ETF ( IUSG.. Decades, so the money from your Roth IRA, what retirement account should I put into any..., Fidelity now has the lowest cost ( 0.04 % expense ratio: 0.04 % expense while..., however, Fidelity now has the zero fee funds space as possible and then investing after tax what! Guess we ’ d like to convert more with Edward Jones that can. Advice you have invsted use Vanguard, specifically VTSAX, in my Roth IRA Roth IRAs under the.. Setup as soon as financially feasible through Friday 8 a.m. to 8 p.m. Eastern...
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