I just had to move 100k out of a 401k to Vanguard because my company sold. I have no idea how to handle that much money and I’ve been so overwhelmed with all the various information on you tube. This has helped so much.
Great content good sir I've learned alot with your videos and I pretty much never post any comments even if I'm tempted to. However I feel I must show my gratitude for your efforts so thank you again! Keep posting great content for us please. BTW your channel deserves more subs and its wayyy underrated compared to other RU-vidrs that put out similar content.
I personally take VTFIAX over VTI because I believe we’re moving to an era where winner takes all and the large companies swallow the small companies, and the variability and loss of small companies outweighs the gains. Once they make it to the S+P is when the real gains start anyway.
I agree. I liken it to putting your money on the winning horse. The reality is large corporations almost always take over different sectors by buying up the smaller players and merging with others. That said, both VTSAX and VFIAX have performed almost identically. There is no right or wrong answer here in the big picture. Invest in one or both, doesn't really matter.
Never seen the chart at 7:30 before and it gives an amazing overall visual of how it is just guessing to time the market or pick a winner from a particular segment. Be the market is the best advice.
Thanks for these videos, I've been watching for a few months now and never really understood what to do with my money. Wish I did some of these things 10-15 years ago, oh well. I've maxed 401k contributions and opened my first brokerage account thanks to your advice.
I’d take some risk and get VUAA (s&p 500 accumulating) due to the reduced 15% WHT for NRA. This should be similar to VOO. Reason I think S&P 500 is ok because the companies are already multinational so the businesses would have some exposure in countries outside of US.
In your example, you explain that Tesla wasn't added to the S&P 500 until 2020. In portfolio visualizer, I did a backtest from 2011 to 2019; portfolio 1 was 100% VTI and portfolio 2 was 100% VOO, and VOO was still performing better, even with Tesla only being in VTI. I'm not seeing how access to roughly 3500 small to mid caps help outweigh VOO if they still don't outperform VOO. Am I missing something?
You are not missing anything. His theory doesn't show up in the real world results. The two funds return nearly identical results with only meaningless variance over random periods.
Thanks Tae, great analysis, love your channel! Just curious, what are your thoughts around holding a Nasdaq index tracker like ONEQ or QQQ in addition to VTSAX? Nasdaq has had impressive returns, but it is more focused on tech.
I know you talking about Vanguard but what do you think about my investment Sorry i just started a month ago FXAIX,FTIHX,FXNAX AND FSMDX I have most of my money on FXAIX i started with 10k split into all four FXAIX having the most i think i have 70% of my money in it Thankyou for your time and all your awesome videos it has help me alot
Thank you for the video. Question: Besides looking at Percent Returns, do you also take into account the Dividends these funds pay out? Would you make more owning one over the other or is the difference still like "splitting pennies".
Why does it make no sense? You'll have twice as much? Or are you thinking more along the lines of the benefit of the compounding component of higher amounts of numbers in the same fund? @@adrianelias2365
But if I invest in the SnP am I gonna have more shares? If I put 500$ in the SnP I am going to have 1 dollar in each company. If I invest the same amount in the total market I will have like 0.12 in each? Can someone explain this?
Not really. As someone who has been in VFIAX for around a quarter-century, I can tell you that the performances of the two are so similar that it really doesn't make a difference. Buying both is just adding unnecessary complexity.
Not everyone wants to deal with the ETF's, and it would take an awful lot of money before the difference between 0.03 and 0.04 would even register as something at all.
Can you explain what you mean by cap gains? Why would it be less or more investing in an etf vs. the the index fund as a whole directly through Vanguard? New to this!
@@havaneseday You dont worry about capital gains in a tax advantaged account such as a 401k or an IRA as this money is only taxable once you start pulling it out. However, in a taxable account (using money you have that has already been taxed and you invest in mutual funds or ETF's) the money that is earned is taxable per the IRS.
A Roth is tax exempt, you can sell and buy all you want without having to worry about taxes. But if you sell during a down market, you will realize those loses.
It doesn't appear to as it is lagging behind both over the lifetime of SCHD as well as over the last 5 years and last 10 years. But at least you get to pay a higher expense ratio in return for those lower returns...
whats the difference between etfs and index funds....? did anyone watch "The Big Short"......?.... does anyone still believe ANY of this shit anymore...? "people jump into the game.... without knowing who the players are"
