The mantra has been – do not buy individual stocks or actively managed funds but only index funds.
Well, the problem is that there are a ton of index funds. If you look at Vanguard there are 31+ index funds. And their 10 year returns are all over the map.
I am forced to move one of my former work place 401K to Vanguard. Has probably 45K. Trying to find the right mix of funds for growth and not needing to take it out for 15+ years.
So what set of index funds do people here have?November 28, 2016 at 7:13 am MST #30068The White Coat InvestorKeymasterStatus: PhysicianPosts: 4473Joined: 05/13/2011
I would start with the big ones:
- Vanguard Total Stock Market Index Fund
- Vanguard Total International Stock Market Index Fund
- Any of the Vanguard bond funds act like an index fund (low cost, low turnover, broadly diversified) whether they say “index” in their title or not.
If you want to slice and dice your portfolio, popular choices are the Vanguard Small Value Index Fund and the REIT Index fund along with the Developed Markets Fund and Emerging Markets Index Fund.
But first you need an asset allocation before choosing investments. Then choosing investments is the easy part.
Also, be aware that rolling money from an old 401(k) to a traditional IRA at Vanguard is going to screw up your backdoor Roth IRA options. Might be better to leave it, roll it into your new 401(k), get some self-employment income and open up an individual 401(k) and roll it in there, or just pay the taxes and convert it all.
Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011StuRedmanParticipantStatus: PhysicianPosts: 36Joined: 01/09/2016
I have TIEIX(TIAA-CREF Equity Index Fund Institutional Class), VBTIX(Vanguard Total Bond Market Index Fund Institutional Shares) in my 403b.
And in my IRA and taxable account I have VTIAX(international), VTSAX(total stock market), VBMFX(total bond), VGSIX( REIT)November 28, 2016 at 9:53 am MST #30080PhysicianOnFIREModeratorStatus: PhysicianPosts: 1536Joined: 01/08/2016
I have total market / S&P 500 (TLH partners) and 2 international funds (TLH partners) in taxable.
I have small cap value, REIT, and emerging markets in Roth.
401(k) / 457(b) have a total bond fund, mid cap index, and small cap index.
Taxable VFIAX VFWAX VTMGX VTSAX Roth IRA VSIAX VEMAX VGSLX 401(k) VBMFX VSCIX 457(b) VMCIX VSCIX
40-something anesthesiologist and personal finance blogger @ https://physicianonfire.com [Part of the WCI Network] Find me on Twitter: @physicianonfire
FIRE. Financial Independence. Retire Early.CraigyParticipantStatus: SpousePosts: 2020Joined: 09/16/2016
“Forced to” more like “have the wonderful opportunity to” move to Vanguard. 😉
VFIAX – Vanguard 500 Index
VMVAX – Vanguard Mid-Cap Value Index
VSMAX – Vanguard Small Cap Index
I got my employer’s plan administrator to add Vanguard Small Cap Value Index too, so will be able to have that soon.
I also have some Vanguard ETFs in another account. I still feel like I am missing something on ETFs 😛
LEVEL 1 WCI FORUM MEMBER.November 28, 2016 at 2:09 pm MST #30094Also, be aware that rolling money from an old 401(k) to a traditional IRA at Vanguard is going to screw up your backdoor Roth IRA options. Might be better to leave it, roll it into your new 401(k), get some self-employment income and open up an individual 401(k) and roll it in there, or just pay the taxes and convert it all.Click to expand…
Unfortunately the money was in a holding company who would have invested in funds of their choice by 11/25 if I had not rolled over into Vanguard.
I plan to convert all my different IRA’s into Roth next year and use it mainly to leave it as inheritance. Just waiting for the right year to make sure that my tax bracket is not too high.November 30, 2016 at 2:02 pm MST #30215LithiumParticipantStatus: PhysicianPosts: 1159Joined: 02/15/2016
This is what I have (with overall percentages). My portfolio is kind of a mess due to multiple TLH partners and so many different accounts.
VWO .0834 <–> SCHE .0087
VO .0565 <–> SCHM .0154
VEA .0358 <–> SCHF .0053
IWN .0180November 30, 2016 at 5:48 pm MST #30230Vagabond MDParticipantStatus: PhysicianPosts: 3424Joined: 01/21/2016
My retirement accounts and largest taxable accounts are at Fidelity, so my largest pure index funds are Fidelity Spartan Index Funds: total stock market, total bond market, and total international stock. That said, my largest holdings are the DFA Core Stock II fund (including the tax managed version in my taxable account) and the Bridgeway Omni Small Cap Value fund (again including the tax managed version in my taxable account). Both of these funds were obtained when I used an advisor.
"Wealth is the slave of the wise man and the master of the fool.” -Seneca the YoungerNovember 30, 2016 at 6:49 pm MST #30233DMFAModeratorStatus: PhysicianPosts: 2138Joined: 06/24/2016
Domestic fixed income (just a little):
Pretty typical, really
"I like money." - Frito Pendejo (Idiocracy)
[Not a financial professional (yet), lawyer, or employee of The White Coat Investor]November 30, 2016 at 9:05 pm MST #30257StuRedmanParticipantStatus: PhysicianPosts: 36Joined: 01/09/2016
I wouldn’t put the REITs in taxable.Click to expand…
Yeah, the REIT is the IRA not in the taxable. Also have some TIAA Real estate fund(QREARX) in 403b,.December 1, 2016 at 10:00 am MST #30286AllonblackParticipantStatus: ResidentPosts: 56Joined: 02/12/2016
Bonus individual holdings:
Can’t help myself. There’s a justification for all of the components – for whatever it’s worth.December 2, 2016 at 1:28 pm MST #30393