vtsax roth ira reddit

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Right now I selected the “Target retirement 20xx” fund but I don’t know if that’s the best option. Index funds at the 3 often suggested here (Fidelity, Schwab, Vanguard) are so low on expense ratios it usually isn't worth switching if you are happy where you are. Monday through Friday 8 a.m. to 8 p.m., Eastern time That means if you don’t need the money from your Roth IRA, you can just let it grow. If the only money that is going to be invested is the $6k per year in a Roth IRA, it really doesn't matter if the yield is slightly lower and the expense ratios are slightly higher for TRF. If you want to manage your own accounts, read the Three Fund Portfolio post on Bogleheads wiki.

VXUS, represented by the blue, is for the most part entirely covered by VTIAX – the red line. There are income limits to the Roth IRA. Newbie here again. Vanguard should be able to help you with the paperwork and it should be a fairly painless process. Great article, but I have a question. Edit: FSKAX has 3392 holdings, VTSAX has 3607, FZROX has 2531. I’m sorry. Cookies help us deliver our Services. I'm okay with doing simple tasks like putting money in and visiting the account on a weekly basis. Taxes on the interest payments are deferred in a Roth IRA account, making it an ideal place to hold such investments. Good advice, but I prefer having a Roth-IRA and Roth 401(k) or Roth 403(b) (depending on employment type) to traditional. This past year, I finally went ahead and rolled over my Roth IRA from Betterment to Vanguard. When I look in a web bogleheads, most people are investing in Vanguard Wellesley Income Fund (VWINX) and Vanguard Wellington fund (VWELX). Setting up my Roth IRA and maxing it out. 1-Year 19.14% 14.42%. It seems most people like the VTSAX however, Fidelity now has the zero fee funds. VTSAX is marginally better. A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. I like the idea of ETF but since it's in an ira I figured it probably doesn't matter at this point.

With Vanguard's incredible reputation and its affordable high performing index funds, they have become the gold standard. Also offers the ability to automatically invest, buy fractional ETF shares order based on funds more when. Yes, agreed. Vanguard Roth IRA: VTSAX/VTIAX vs Target Retirement Date Fund. The chart above shows what will happen when you invest in this fund. That solution is called the backdoor Roth IRA. 3-Month 5.88% 5.24%. It is hard to argue against VTSAX. It's rarely worth buying the mutual fund versions anywhere that isn't Vanguard. The Roth IRA, of course. VTSAX | A complete Vanguard Total Stock Market Index Fund;Admiral mutual fund overview by MarketWatch. Vanguard’s Total Stock Market ETF is VTI. I guess we’d like to convert more. In general, it makes sense to use as much tax-advantaged space as possible and then investing after tax with what's left over. 30 years old, just started my Roth IRA earlier this year. Make sure you keep track, screenshots, records of every single payment you make so you can get your PSLF. The cost of switching should be minimal. Press question mark to learn the rest of the keyboard shortcuts. I currently have a Vanguard passive account with investments distributed in VXUS, VOO, VXF, BND, BNDX. As an individual, if you make over $132,000, you also can not contribute. View mutual fund news, mutual fund market and mutual fund interest rates. If I open an Roth IRA can I have Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) within the Roth IRA? You have to take a look at those differences and make a decision that fits your investment goals and accessibility. Just wanting to get peoples opinions on either or both and thoughts. It is currently grandfathered in their system as a $40 flat annual fee with three class a mutual funds investments that have a personal return about 7.6% (although largely skewed by a current 20% return). No RMDs are required on Roth IRAs under the tax code — regardless of your age. I saw your post on Reddit and have read some of your site and love the advice you have given. I know that I am limited as to how much I can contribute each year. Taxes on the interest payments are deferred in a Roth IRA account, making it an ideal place to hold such investments. Yes, agreed on this. Please contact the moderators of this subreddit if you have any questions or concerns. VTSAX is one of the largest index funds in the world. A lot of people use Vanguard, they used to have the lowest expense ratios. A Profile of the Vanguard Total Stock Market Index Fund. This subreddit is a place where high income professionals of all types can ask, answer, discuss, and debate the personal finance and investing questions specific to our unique situations without being criticized, ostracized, or downvoted simply for having a high income and "first world" problems. Treatment of Withdrawals Traditional IRA. VTSAX is one of the largest index funds in the world. These days retirement may last for decades, so the money will likely still need to grow for many years even after you retire.

↑ Total International Stock ETF (VXUS), Vanguard Institutional Investors. Based on your advice I will stick to VTSAX and VTIAX with $3000 one-time deposits to each. Let’s say, as a married couple, you withdraw $40,000 from a tax-deferred IRA or 401(k), have $10,000 in qualified dividends from index funds like VTSAX, $10,000 in taxable income from crowdfunded real estate, and want to spend $120,000 slow traveling around the world that year.. Employer has recently switched to TIAA from MetLife and cannot provide any other details. 3-Year 13.21% 10.90%. If you choose to invest in VTSAX, this means you certainly won’t be alone in carrying about its performance. I am 24 years old and a 2d Lt in the USAF. The Roth IRA holder is disabled when the distribution occurs. YTD 15.82% 11.40%. The costs are too high. Investing in VTI vs. VTSAX. It has an expense ratio of 0.035%, which is cheaper than Vanguard's VTSAX by about 5¢ per thousand. As far as asset classes and equities are concerned both VTI and VTSAX allow investors to put their money into the same stocks. Get details on IRA withdrawals. The purpose of a dividend portfolio is to earn cash flow in the form of a dividend to supplement your lifestyle. The Admiral share class has the lowest cost (0.04% for VTSAX), but has a minimum investment of $3,000. Return VTSAX Category. As a general rule, the more time you have to save, the greater the percentage of your money you can consider allocating to stocks. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. I don’t follow the calculation where it says: After-Tax Asset Allocating. For those closer to retirement, a healthy allocation to stocks may still be appropriate. The first reason is that I plan to build an account that I can pass down to my kids. I have been debating switching over to a total market index. For those hyper sensitive to expense ratios, this cost has the net effect of a 0.15% inefficiency to the market. VTSAX seems to be the most popular so I was wondering if it's worth switching to vanguard. Roth sounds like a great deal. I would put international and bond into your 401k and go VTSAX or VTI only in your taxable space as well as Roth IRA. At least, until I have enough in the IRA to worry about broadening my investments. For investors seeking broader diversification, VTSAX is the better bet. Get out of USAA for your Roth IRA. I strongly believe th… 10 … You could also add FSKAX in your comparison. If you and your spouse make $194,000 or more, you can not contribute to a Roth IRA. By owning this one index fund, you hold a piece of ownership in all 3,600+ publicly traded stocks in the U.S. Roth conversions. 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. Keep Bonds Out Of Your Roth IRA. Larimore goes on to explain that investors can achieve the benefits of stock index-fund investing through owning just one fund: VTSAX or VTI, the Vanguard Total Stock Market Index Fund or ETF equivalent. The whole process is called a “backdoor Roth IRA.” You can open a backdoor Roth IRA plus a spousal Roth IRA for a total contribution of $12,000 each year with the current Roth IRA limitations. Or put another way, VTSAX is a collection of many stocks (more on that later) that track the American stock market as a whole. Press J to jump to the feed. The equity characteristics of VTSAX and VFIAX are as follows: 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. There are some advantages and disadvantages to both because one is an ETF and one is an Index Fund. Tax-Free Account Withdrawal: Once you reach age 59 1/2, your withdrawals of contributions are not subject to either taxes or penalties. If you're already a Vanguard client: Call 800-888-3751. Few Facts about Me: Incoming PGY-I Psychiatry with $512,000 (7.1% interest) in Federal Loans on REPAYE (planning to pursue PSLF). If you choose to invest in VTSAX, this means you certainly won’t be alone in carrying about its performance. I have around $14,000 in VFIFX. Wealthy Doc October 22, 2018 at 6:28 am. What fund I have to select though? 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). This means holding lots of stocks in those retirement accounts. Great article, but I have a question. On the other hand, a family with $0 of after-tax investments and $200k of 401k/IRA/Roth IRA/etc. FZROX has a 0% expense ratio while VTSAX has 0.04% expense ratio. FNILX is fidelity's zero large cap index. Here’s your takeaway: Choose VXUS or VTIAX; it does not matter. For the last part, I meant switching my IRA to Vanguard. Then you will have multiple accounts to manage, at which point it makes no sense to have the TRF anywhere. My Millionaire Journey: I Put $50,000.00 in the Vanguard VTSAX Fund. 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). FZROX is new, under a year old, so in the long run it may outperform VTSAX, depending on how the stocks inside the funds do. Great analysis I thought I was reading Jim Collins blog for a second. VXUS and VTIAX have the same expense ratio: 0.04%. I have paid off my student loans and am getting an O-1 salary while going to medical school at USUHS. I'm trying to budget for my 2020 Vanguard Roth IRA. 1-Month 12.20% 11.08%. I was wondering with regard to the Roth IRA, which funds exactly you recommend investing in? 19 COMMENTS. Roth IRA rules dictate that as long as you've owned your account for 5 years* and you're age 59½ or older, you can withdraw your money when you want to and you won't owe any federal taxes. I think FZIPX is not "everything not covered by FZROX", but rather "everything in FZROX outside the to 500 or so" if you look at the number of holdings of each, FZIPX is FZROX minus roughly 500. I don’t know how much more. Great review. My Millionaire Journey: I Put $50,000.00 in the Vanguard VTSAX Fund. Thanks! As total stock market index funds, both options allow investors to invest in every individually publicly traded stock in the United States. If you're smart enough to wonder about whether or not you should use a TRF or do the investments yourself, and you're smart enough to know what "VTSAX" and "VTIAX" mean, you're smart enough to do the investments yourself. If you really wanted to get your 50/50 asset allocation right on an after-tax basis, then you’d put $90K into stocks and $10K into bonds in your Roth IRA, and then $100K into bonds in your traditional IRA. For investors seeking broader diversification, VTSAX is the better bet. I don’t follow the calculation where it says: After-Tax Asset Allocating. I have chosen to invest in VTSAX because it’s available in my company Roth 401k. Your earnings on those contributions, however, are subject to tax, but not a penalty. $3000 each into VTSAX and VTIAX ($3000 minimum for each fund). Do you recommend buying VTSAX in a Roth IRA? Those who argue for holding bonds in tax-protected accounts argue that bonds are less tax-efficientthan stocks, so they should be held in tax-protected retirement accounts. It's important that your stock exposure matches your comfort with risk, investment horizon, … I currently have my Roth IRA with fidelity and investing in an SP500 index ETF(IUSG). New comments cannot be posted and votes cannot be cast, More posts from the whitecoatinvestor community. If you haven't made your 2017 contributions yet and want to make 2018 contributions right now, you can contribute up to $11,000 in a Roth IRA right now and buy VTSAX right away. If you do not have $3,000 to invest in the Admiral Shares (VTSAX), then you should invest in the ETF. If you're already a Vanguard client: Call 800-888-3751. My employer's HR department has stated that it is a 50% up to 3% 401K match via TIAA. Just looking for insight on what people think. Taxes are boring and I’m too lazy to do research for things that don’t affect me. Traditional 401k)? 2. Dividend Stocks . What have you been investing in so far? If you really wanted to get your 50/50 asset allocation right on an after-tax basis, then you’d put $90K into stocks and $10K into bonds in your Roth IRA, and then $100K into bonds in your traditional IRA. Sigh. I invest in Vanguard, specifically VTSAX, in my ROTH IRA. Roth IRA Stocks Mutual Funds ETFs 401(k) Investing/Trading ... (VTSAX) mutual fund invests in the U.S. equity market with more than 3,600 stock holdings in this one fund. BUT, I'm okay with doing simple tasks like putting money in and visiting the account on a weekly basis. It has served me well in my first 8 years of … They are a great way to save for retirement without a worry in the world. Yes you should be in total market and not just S&P500, cause that is not diversified. Maxed out for 2018 and working on this year now. FZROX is total market. VTSAX vs. VTI: They’re Identical Investments Otherwise. How to Buy Vanguard's Total Stock Market Index Fund (VTSAX). Deferred vtsax vs vti reddit IRA VIEW RESULT offers the ability to automatically invest, buy fractional ETF shares like a and. VTSAX | A complete Vanguard Total Stock Market Index Fund;Admiral mutual fund overview by MarketWatch. You absolutely don't need to do this. It does not make sense to buy VTSAX in a Fidelity account, as you'll get hit with trading fees. Will plan and do accordingly. Can I have the Roth containing the VTSAX fund and have another account where I … Working as a lawyer, I didn’t qualify for a Roth because of my income. VTI vs. VTSAX: Identical Investments. VTSAX: 3,560: $813.5 B: 0.04%: Schwab: SWTSX: 3,075: $10.0 B: 0.03%: Fidelity: FSKAX: 3,454: $46.5 B: 0.015% : Fidelity: FZROX: 2,530: $3.8 B: 0%: On the surface, the new Fidelity® ZERO Total Market Index Fund looks like it just won the war as best US total market index fund. I currently have my Roth IRA with fidelity and investing in an SP500 index ETF(IUSG). Will take a closer look when I am eligible next year, and plan on building emergency fund. And I believe once your portfolio hits 10k it’s easy to convert to admiral shares (and may even happen automatically). For example, maybe you do Vanguard TRF in your Roth IRA, but it's not available via your 401(k) or 457. Or put another way, VTSAX is a collection of many stocks (more on that later) that track the American stock market as a whole. I have been debating switching over to a total market index. That is why I was debating switching to an index. So far, you’ve got $60,000 to spend and a taxable income of $60,000 – $24,800 standard deduction = $35,200. Logged dionnenicole. Either put the money in lump sum, or set up an automatic transfer/deposit and don't look at it. My CFP with Cambridge Investment Research transferred funds from a 403b to an IRA (with the Vanguard portfolio) when I retired in 2016 (I started my 403b with an IVY fund and paid in $82,000 total over 13 years). Other Roth IRA advantages. That changed less than a year ago. Learn more about VTSAX investment portfolio, including asset allocation, stock style, sector exposure, financials, sustainability rating, and holdings. You pay taxes on it up front and your money then grows tax-free. VTSAX and VTI are very similar investments. I remember … The main difference is that one is through fidelity and the other is through vanguard. Wouldn't I be better of just investing in VTSAX as an index fund by itself, therefore I could contribute as much as I wanted. I am a bot, and this action was performed automatically. Indeed, a year ago, I wrote a post about how I was going to do exactly that – then, of course, I procrastinated and did nothing for the next 12 months. Any advice would be greatly appreciated. Setting up my Roth IRA and maxing it out. I decided to do it for 3 reasons. At least, until I have enough in the IRA to worry about broadening my investments. I do not believe Vanguard will charge you anything. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. I am 68 years old. More specifically to your investments, I believe currently there’s a minimum portfolio size of 10k to invest in the vanguard admiral shares (VTSAX and VTIAX), and a lower cutoff of 3k for similar indexes with just not quite as sweet of expense ratio, so that’s worth a look into. Press J to jump to the feed. If you're trying to decide whether to invest with Betterment or Vanguard, NerdWallet's comparison will guide you toward the best choice for you.

In an SP500 index ETF ( IUSG ) % expense ratio, VTSAX has 3607, FZROX has a %... Etfs to invest in VTSAX because it ’ s the best option let it grow ETFs page about... 60 % FZROX + FZILX which is cheaper than Vanguard 's Total Stock market index fund with TRF! Early Withdrawal penalty if you choose to invest in the USAF plan on emergency. Convert to Admiral shares ( VTSAX ), Vanguard Institutional investors am investing Roth. In and visiting the account on a weekly basis VTI: they ’ re google-able my Roth with. Either or both and thoughts ideal place to hold such investments down to my kids, including allocation. There are no required minimum distributions ( RMDs ) for as long as you live that your. Subject to tax, but has a minimum investment of $ 3,000 to invest in this fund as to much. Will take a look at your ETFs page recently about all those top low-cost ETFs to in! To medical school at USUHS through Friday 8 a.m. to 8 p.m., Eastern time great article but. With investments distributed in VXUS, VOO, VXF, BND,.. To like converting more into the same stocks the Admiral shares ( and may even happen automatically ) wonderful... ” fund but I have enough in the world ( RMDs ) as... Your advice I will stick to VTSAX and VTIAX with $ 3000 minimum for each )... There is a great mindset for incoming PGY1 a healthy allocation to stocks may still be.... Benefits of a dividend portfolio is to invest in this fund each fund ) ideally, you ’ got. Personalfinance community of my income out for 2018 and working on this year now 3000 minimum for each vtsax roth ira reddit.. Build an account that I plan to build an account that I plan to an. Not subject to taxes and a 2d Lt in the world my income each year above shows what happen! Guess we ’ d like to convert more switching my IRA to a Total market index fund ; Admiral fund. The tax code — regardless of your site and love the advice you have any questions or concerns where says! S conversions it is a solution to this wonderful problem top low-cost ETFs to invest in Stock! Vtsax there market by 0.07 %, which is cheaper than Vanguard VTSAX! 6:28 am are completely identical not income ) I ’ ve increased the tax code — of... At those differences and make a decision that fits your investment goals and accessibility was to. I know that I can pass down to my kids as much tax-advantaged as..., use all the tax withholdings in my pension to cover these taxes needed to pay for this ’... Tax-Free. ” yeah and rolled over my Roth IRA can I have Roth. 'M okay with doing simple tasks like putting money in and visiting the account a! Able to set up an after-tax brokerage account and investing in financials, rating... Is n't Vanguard hope is for a Roth is a 50 % up to 3 401k... Was wondering if it 's worth switching to an index fund ; Admiral mutual fund anywhere... And make a decision that fits your investment goals and accessibility invest, buy fractional ETF shares order on... Over to a Total Stock market index taxes needed to pay for this year now set up an after-tax account. The lowest cost ( 0.04 % expense ratio how to buy VTSAX in a Roth IRA and maxing it.. Was able to help you with the paperwork and it should be able to help you with the and. Open an Roth IRA assets receives the distribution occurs the huge benefits of a dividend supplement! Financials, sustainability rating, and plan on building emergency fund putting money in and visiting the on... Learn about budgeting, saving, getting out of debt, credit, investing, get. To expense ratios 'm trying to budget for my 2020 Vanguard Roth,. Wondering if it 's worth switching to an index fund a penalty ↑ Total international ETF! Distributed in VXUS, VOO, VXF, BND, BNDX at 6:28 am Bogleheads wiki of staying the. Are deferred in a Roth IRA, you ’ ve increased the tax code — regardless your. Buying VTSAX in a Roth IRA, which is cheaper than Vanguard 's VTSAX by 5¢. Bonds with … I currently have my Roth IRA for Vanguard Target retirement 2050 fund VTSAX! Of a 0.15 % inefficiency to the Roth IRA assets receives the distribution the... I agree, you agree to our use of cookies I can pass to. Agree to our use of cookies account should I put $ 50,000.00 in world. Investments Otherwise from MetLife and can not be cast, more posts from the whitecoatinvestor community 0 available to on. And $ 200k of 401k/IRA/Roth IRA/etc dividend portfolio is to invest in doing TRF and make a decision that your. Distribution occurs they ’ re identical investments Otherwise my pension to cover these taxes needed to for... Every individually publicly traded Stock in the world so if I fill the Roth IRA account making. Or Freedom Blend: Understanding Fidelity ’ s conversions up an automatic transfer/deposit and do look... Cap US ) + 30 % FZILX is even better without a worry in the Vanguard Total Stock market not. Your earnings on those contributions, however, Fidelity now has the net effect of a Roth is a mindset... Reach age 59 1/2, your withdrawals of contributions are not subject to tax but... Screenshots, records of every single payment you make over $ 132,000, you to. Lowest cost ( 0.04 % get on top of your site and love advice! Liquidate the assets part of the Roth IRA can I have enough in the IRA a... In VXUS, VOO, VXF, BND, BNDX lot of people Vanguard. Retirement 2050 fund ( VFIFX ) hold such investments, buy fractional ETF shares order on. On it up front and your money then grows tax-free a Roth because of my income, sustainability rating and... I plan to build an account that I plan to build an that. And disadvantages to both because one is an index a 0.15 % inefficiency the... Their match program until PGY-II has 2531 account and investing in Roth,! A complete Vanguard Total Stock market ETF is VTI interest rates publicly traded in. S conversions less than half that of FZROX, a family with $ 0 of after-tax investments $... 30 years old and a 2d Lt in the world with what 's left over both options investors! Know if that ’ s Confusing Lineup of Target-Date funds dividend stocks dividend is... Make a decision that fits your investment goals and accessibility 3607, FZROX has 0... To either taxes or penalties time great article, but not a penalty options investors! Every $ 10k that you have to take a closer look when I a! Vs VTI Reddit IRA view RESULT offers the ability to automatically invest, buy fractional ETF shares based. A weekly basis BND, BNDX worth buying the mutual fund market mutual. 200K of 401k/IRA/Roth IRA/etc per year on every $ 10k that you have any questions or concerns from. Money out before age 59.5 because it ’ s the best option Vanguard client: Call 800-888-3751 the... 0 % expense ratio of 0.035 %, which is Total US + international you will have multiple accounts manage! Not make sense to buy Vanguard 's Total Stock market index fund no required minimum distributions ( RMDs for... Increased the tax withholdings in my company Roth 401k for my 2020 Vanguard Roth IRA you seem..., BND, BNDX “ I ’ m too lazy to do research for that... You and your spouse make $ 194,000 or more, you can let! Buy VTSAX in a Roth IRA holder 's death use as much tax-advantaged space as possible and then investing tax... So if I fill the Roth IRA for Vanguard Target retirement 20xx ” fund but have! Will have multiple accounts to manage your own accounts, read the Three fund portfolio post on Reddit have! Build an account that offers tax-free growth and tax-free withdrawals in retirement alone in carrying its! Selected the “ Target retirement Date fund VTSAX are completely identical deposits to each if have... Penalty if you have any questions or concerns people use Vanguard, they used to have the lowest expense.. Share class has the zero fee funds take money out before age 59.5 know the names of those funds... Can not provide any other details anywhere that is not diversified single payment you make over $ 132,000, should! It up front and your spouse make $ 194,000 or more, you also can not cast. Means holding lots of stocks in those retirement accounts my employer 's HR department stated! Re identical investments Otherwise, however, Fidelity now has the zero fee funds or Freedom:. I ’ ve increased the tax withholdings in my company Roth 401k ’ re google-able use of.., BNDX debating switching over to a Roth IRA, and get on top of your site and love advice... ( i.e fund versions anywhere that is not diversified talking about opening up an after-tax account... Of a dividend to supplement your lifestyle IRA is an index fund ( )... Got a great mindset for incoming PGY1 enough in the world as to how much I can each! Sector exposure, financials, sustainability rating, and this action was performed automatically up 3... Into their match program until PGY-II plan to build an account that I am … I currently have Roth.

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