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Warren Buffet tells his heirs to go 90% SP500 and 10% Bonds. So just buy VOO and BND, rebalance yearly and you are done. OR do a 3 fund portfolio like: https:/

Warren Buffet tells his heirs to go 90% SP500 and 10% Bonds. So just buy VOO and BND, rebalance yearly and you are done. OR do a 3 fund portfolio like: https://www.bogleheads.org/wiki/Three-fund_portfolio https://www.bogleheads.org/wiki/Three-fund_portfolio OR buy a target retirement fund from Vanguard: https://investor.vanguard.com/search/?query=Vanguard%20target%20retirement https://investor.vanguard.com/search/?query=Vanguard%20targe... OR fill out a risk profile on Wealthfront/Betterment and invest there. Bottom line is pick an approach and don't ever touch a damn thing. I believe this advice can fit on a single web page and doesn't need an app, a community or otherwise.

hkmurakami 9y ago
I'm opposed to your Wealthfront suggestion since their version of high risk (at least in the past) meant high commodities exposure.
snhelp2 9y ago
Good info! Sorry, our accounts keep getting rate limited. I personally like to follow my own index fund portfolio. Then when I first started index investing there was about a 90 day period where I had to research and figure out what I wanted my own portfolio to be. Also index funds do change over time. For example if you have more taxable income you will want a more tax advantaged index fund portfolio. You'll also want a special portfolio for your retirement accounts, and maybe something for your kid's 529 plan, etc... There are many popular index fund communities for these reasons, plus lots of people find investing fun and interesting and like to learn more about it and help others.
- goldenkey 9y ago
  Just because something is fun and interesting doesn't make it any better of an investment. You are passing the novice buck onto others
larrydag 9y ago
Couch Potato investor. 50 percent Vanguard Total Market Index, 50 percent Vanguard Inflation Protected Securities. Rebalance yearly. https://assetbuilder.com/lazy-portfolios https://assetbuilder.com/lazy-portfolios
gingerlime 9y ago
Any tips for investors in Europe? (Germany or UK in my personal case). I understand that these strategies are not country-specific, but not sure if Vanguard is accessible to non-US citizens, and there might be tax implications in different countries. That's why I'm asking.
- vldx 9y ago
  You might want to check the various ETFs - they're pretty much the same as index funds. http://www.investopedia.com/articles/mutualfund/05/etfindexfund.asp http://www.investopedia.com/articles/mutualfund/05/etfindexf... I'm from Europe and I'm holding couple of Blackrock ETFs. Here's handy site for screening EU based ETFs (no affiliation). https://www.justetf.com/ https://www.justetf.com/
- rb808 9y ago
  One thing about Index trackers is that the research and all the hype is largely about S&P500 and the US stock market. Europe wide indices are more complex and I haven't seen as much research. EuroStoxx 50 is very bank heavy and only has 50 stocks, the 600 is wider but not so popular. There is more of a case to buy active funds in Europe. For tax specific stuff you should look at your regional sites eg https://global.vanguard.com/portal/site/home https://global.vanguard.com/portal/site/home https://www.ishares.com/us/ishares-global https://www.ishares.com/us/ishares-global
- seardluin 9y ago
  You can buy Vanguard funds through Charles Stanley. https://www.charles-stanley-direct.co.uk/ViewFund?Sedol=B41XG30 https://www.charles-stanley-direct.co.uk/ViewFund?Sedol=B41X...
- objclxt 9y ago
  > (Germany or UK in my personal case) [...] not sure if Vanguard is accessible to non-US citizens, and there might be tax implications in different countries Vanguard operate mutual funds in the UK priced and traded in GBP, through their UK subsidiary. They're available through most major trading platforms. The one thing to note about Vanguard's UK funds is that the management fees are higher than their US equivalents (but still one of the cheapest in the UK market). As others have said, you can also just buy ETF versions of most of their funds, which are regular shares traded on the stock market. In that case you're buying in USD. As far as tax is concerned it's treated just like any other investment (and if you're tax resident in the UK and still have an ISA allowance you can just put it in there and negate the tax entirely).
triangleman 9y ago
Also worth knowing: Charles Schwab has reduced the minimum investment to $1 for 10 different index funds, many of which have expense ratios of 0.06% or lower. Their S&P 500 fund, for instance, has an expense ratio of 0.03% for any investment amount. Vanguard by comparison charges 0.15%, 0.04% for investments greater than $10k, and 0.03% for $3+ million.
- pc86 9y ago
  I use CS for my brokerage account and don't have any complaints about it.
- Abundnce10 9y ago
  That sounds much cheaper than the 0.25% that Betterment charges me. Do you happen to know if they offer a traditional/roth IRA and how much they charge?
  - jjeaff 9y ago
    They do. Vanguard doesn't charge anything extra for retirement accounts. It's just a matter of ticking a box when you sign up. Schwab is probably similar.
  - jonfriese33 9y ago
    I have a Schwab Roth IRA. They don't charge anything.
- toephu2 9y ago
  What if Schwab raises the .03% fee for their S&P 500 mutual fund to .06% in a few years? They can change their rates anytime right? In that case it would have better to stick with VOO? Of course Vanguard could raise their rates too.
  - jjeaff 9y ago
    The one advantage of Vanguard is that the company itself is owned by its funds. So the very people who pay the admin fees are the ones who vote the leadership in or out. So raising fees would be unlikely unless necessary and they are known to be very frugal as a company as well so I feel like they are unlikely to need more fees. Especially with almost $3 Trillion under management. Of course, there isn't any real cost to switching. So you could always switch to Schwab or vice versa as needed.
dkhenry 9y ago
why VOO and not SPY? I have always said do 60% SPY and 40% QQQ.
- zaius 9y ago
  SPY has a higher expense ratio at 0.09%, so for long term holding VOO is slightly better. The difference is tiny though
skdotdan 9y ago
I think this portfolio lacks an "antifragile" asset. Invest, say, 5% in something with high risks, high returns, and potentially anticyclic, such as cryptocurrencies. What do you think?
- max_ 9y ago
  I do this! :) I think its what every young person (under 30) should be doing.
  - fuckemem 9y ago
    And old person (over 30)
    - max_ 9y ago
      @ 30 I assume you have a wife & kids. I think its kind of irresponsible to make risky bets at that age. You should invest more is "safe bets" like bonds.
      - bbcbasic 9y ago
        It depends how risky. I agree you can't afford to lose the proverbial shirt. You can't completely avoid risk. Can't bonds lose a lot of value if interest rates rise for example?
lukewrites 9y ago
Yeah, I think "a community for index fund investors" already exists, and it's the boglehead forums and wiki. Index fund investing is (relatively) simple and (relatively) boring. Honest questions: What does an app with leader boards, individual portfolios, and stock picking add to that or how does this app fit in with that philosophy? (edit for grammar)
- exelius 9y ago
  The only thing it seems to add is the opportunity for people to sell you high-margin investment products -- which is exactly what index fund investors are trying to avoid. Any investment product with a marketing budget is taking fees to pay for that, which means they will be unattractive to index investors.
- rsync 9y ago
  "Yeah, I think "a community for index fund investors" already exists, and it's the boglehead forums and wiki." A community for index fund investors sounds oxy-moronish to me ... What's to talk about ?
  - oneshot908 9y ago
    How to schedule saving for retirement, annual fees, ETFs vs index Funds, index allocations, optimal portfolios based on personal temperament, and when to (very seldomly) change allocations (if ever)?
- sl03 9y ago
  My thought when going around the investment communities is that the challenge is not really the quantity of information/advice, but the quality. Anyone can give stock picks. To me, I'd like to understand more about the person's track records (historical returns) before following his advice. I started working with my colleague to build Keel to facilitate the verified information flow. People who are selling their stock/fund ideas on Keel will have to integrate directly with their personal brokerages. This way, users who are looking to follow credible ideas can see not only the historical returns, but also the real buy/sell activities. Working around brokerages is challenging but I believe transparency is an important missing piece in all of the online/offline sources of investment advice. Hope this will help those who offer credible ideas shine, and save time and money for those who look for advice. And (here comes to the self-promote part), if you think this is interesting, check it out: https://keel.io https://keel.io Of course, if you don't think it's interesting, still let us know how we can make it more interesting to you!
acpk 9y ago
To automatically see your returns rather than manually input your holdings, check out https://www.keel.io https://www.keel.io. Keel allows you to compare your returns to successful investors, and subscribe to their portfolios.
- bfang 9y ago
  It's cool to be able to follow the real stock purchase from other investors' brokerages!

hkmurakami 9y ago

I'm opposed to your Wealthfront suggestion since their version of high risk (at least in the past) meant high commodities exposure.

snhelp2 9y ago

Good info! Sorry, our accounts keep getting rate limited. I personally like to follow my own index fund portfolio. Then when I first started index investing there was about a 90 day period where I had to research and figure out what I wanted my own portfolio to be. Also index funds do change over time. For example if you have more taxable income you will want a more tax advantaged index fund portfolio. You'll also want a special portfolio for your retirement accounts, and maybe something for your kid's 529 plan, etc... There are many popular index fund communities for these reasons, plus lots of people find investing fun and interesting and like to learn more about it and help others.

goldenkey 9y ago
Just because something is fun and interesting doesn't make it any better of an investment. You are passing the novice buck onto others

larrydag 9y ago

Couch Potato investor. 50 percent Vanguard Total Market Index, 50 percent Vanguard Inflation Protected Securities. Rebalance yearly. https://assetbuilder.com/lazy-portfolios https://assetbuilder.com/lazy-portfolios

gingerlime 9y ago

Any tips for investors in Europe? (Germany or UK in my personal case). I understand that these strategies are not country-specific, but not sure if Vanguard is accessible to non-US citizens, and there might be tax implications in different countries. That's why I'm asking.

vldx 9y ago
You might want to check the various ETFs - they're pretty much the same as index funds. http://www.investopedia.com/articles/mutualfund/05/etfindexfund.asp http://www.investopedia.com/articles/mutualfund/05/etfindexf... I'm from Europe and I'm holding couple of Blackrock ETFs. Here's handy site for screening EU based ETFs (no affiliation). https://www.justetf.com/ https://www.justetf.com/
rb808 9y ago
One thing about Index trackers is that the research and all the hype is largely about S&P500 and the US stock market. Europe wide indices are more complex and I haven't seen as much research. EuroStoxx 50 is very bank heavy and only has 50 stocks, the 600 is wider but not so popular. There is more of a case to buy active funds in Europe. For tax specific stuff you should look at your regional sites eg https://global.vanguard.com/portal/site/home https://global.vanguard.com/portal/site/home https://www.ishares.com/us/ishares-global https://www.ishares.com/us/ishares-global
seardluin 9y ago
You can buy Vanguard funds through Charles Stanley. https://www.charles-stanley-direct.co.uk/ViewFund?Sedol=B41XG30 https://www.charles-stanley-direct.co.uk/ViewFund?Sedol=B41X...
objclxt 9y ago
> (Germany or UK in my personal case) [...] not sure if Vanguard is accessible to non-US citizens, and there might be tax implications in different countries Vanguard operate mutual funds in the UK priced and traded in GBP, through their UK subsidiary. They're available through most major trading platforms. The one thing to note about Vanguard's UK funds is that the management fees are higher than their US equivalents (but still one of the cheapest in the UK market). As others have said, you can also just buy ETF versions of most of their funds, which are regular shares traded on the stock market. In that case you're buying in USD. As far as tax is concerned it's treated just like any other investment (and if you're tax resident in the UK and still have an ISA allowance you can just put it in there and negate the tax entirely).

triangleman 9y ago

Also worth knowing: Charles Schwab has reduced the minimum investment to $1 for 10 different index funds, many of which have expense ratios of 0.06% or lower. Their S&P 500 fund, for instance, has an expense ratio of 0.03% for any investment amount. Vanguard by comparison charges 0.15%, 0.04% for investments greater than $10k, and 0.03% for $3+ million.

pc86 9y ago
I use CS for my brokerage account and don't have any complaints about it.
Abundnce10 9y ago
That sounds much cheaper than the 0.25% that Betterment charges me. Do you happen to know if they offer a traditional/roth IRA and how much they charge?
- jjeaff 9y ago
  They do. Vanguard doesn't charge anything extra for retirement accounts. It's just a matter of ticking a box when you sign up. Schwab is probably similar.
- jonfriese33 9y ago
  I have a Schwab Roth IRA. They don't charge anything.
toephu2 9y ago
What if Schwab raises the .03% fee for their S&P 500 mutual fund to .06% in a few years? They can change their rates anytime right? In that case it would have better to stick with VOO? Of course Vanguard could raise their rates too.
- jjeaff 9y ago
  The one advantage of Vanguard is that the company itself is owned by its funds. So the very people who pay the admin fees are the ones who vote the leadership in or out. So raising fees would be unlikely unless necessary and they are known to be very frugal as a company as well so I feel like they are unlikely to need more fees. Especially with almost $3 Trillion under management. Of course, there isn't any real cost to switching. So you could always switch to Schwab or vice versa as needed.

dkhenry 9y ago

why VOO and not SPY? I have always said do 60% SPY and 40% QQQ.

zaius 9y ago
SPY has a higher expense ratio at 0.09%, so for long term holding VOO is slightly better. The difference is tiny though

skdotdan 9y ago

I think this portfolio lacks an "antifragile" asset. Invest, say, 5% in something with high risks, high returns, and potentially anticyclic, such as cryptocurrencies. What do you think?

max_ 9y ago
I do this! :) I think its what every young person (under 30) should be doing.
- fuckemem 9y ago
  And old person (over 30)
  - max_ 9y ago
    @ 30 I assume you have a wife & kids. I think its kind of irresponsible to make risky bets at that age. You should invest more is "safe bets" like bonds.
    - bbcbasic 9y ago
      It depends how risky. I agree you can't afford to lose the proverbial shirt. You can't completely avoid risk. Can't bonds lose a lot of value if interest rates rise for example?

lukewrites 9y ago

Yeah, I think "a community for index fund investors" already exists, and it's the boglehead forums and wiki. Index fund investing is (relatively) simple and (relatively) boring. Honest questions: What does an app with leader boards, individual portfolios, and stock picking add to that or how does this app fit in with that philosophy? (edit for grammar)

exelius 9y ago
The only thing it seems to add is the opportunity for people to sell you high-margin investment products -- which is exactly what index fund investors are trying to avoid. Any investment product with a marketing budget is taking fees to pay for that, which means they will be unattractive to index investors.
rsync 9y ago
"Yeah, I think "a community for index fund investors" already exists, and it's the boglehead forums and wiki." A community for index fund investors sounds oxy-moronish to me ... What's to talk about ?
- oneshot908 9y ago
  How to schedule saving for retirement, annual fees, ETFs vs index Funds, index allocations, optimal portfolios based on personal temperament, and when to (very seldomly) change allocations (if ever)?
sl03 9y ago
My thought when going around the investment communities is that the challenge is not really the quantity of information/advice, but the quality. Anyone can give stock picks. To me, I'd like to understand more about the person's track records (historical returns) before following his advice. I started working with my colleague to build Keel to facilitate the verified information flow. People who are selling their stock/fund ideas on Keel will have to integrate directly with their personal brokerages. This way, users who are looking to follow credible ideas can see not only the historical returns, but also the real buy/sell activities. Working around brokerages is challenging but I believe transparency is an important missing piece in all of the online/offline sources of investment advice. Hope this will help those who offer credible ideas shine, and save time and money for those who look for advice. And (here comes to the self-promote part), if you think this is interesting, check it out: https://keel.io https://keel.io Of course, if you don't think it's interesting, still let us know how we can make it more interesting to you!

acpk 9y ago

To automatically see your returns rather than manually input your holdings, check out https://www.keel.io https://www.keel.io. Keel allows you to compare your returns to successful investors, and subscribe to their portfolios.

bfang 9y ago
It's cool to be able to follow the real stock purchase from other investors' brokerages!