VTWAX OR Target 2055

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Topic Author
chadamrein
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Joined: Mon Feb 22, 2021 8:09 pm

VTWAX OR Target 2055

Post by chadamrein »

Hi everyone, I'm 34 years old a little late to the game, but trying to decide which would be better to have in my Roth IRA VTWAX OR Target 2055. I'm also seeing a lot of people only investing in VTSAX. Wanting to have the most growth that I can get without losing sleep stressing about what to invest in. Does anyone have any suggestions? Thank you for your time. :happy
Last edited by chadamrein on Tue May 04, 2021 12:43 pm, edited 1 time in total.
lazyinvestor30
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Re: VTWAX OR Target 5055

Post by lazyinvestor30 »

VTWAX because you want stocks in Roth and they are the fastest growing asset

But this answer might not work, without knowing your complete situation. If you are new to investing, suggest you post your entire situation using the template of asking portfolio questions. Then you can get more nuanced answers.
RadAudit
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Re: VTWAX OR Target 5055

Post by RadAudit »

First suggestion - change the title of the thread. 2055 instead of 5055.
chadamrein wrote: Tue May 04, 2021 12:22 pm Wanting to have the most growth that I can get without losing sleep stressing about what to invest in. Does anyone have any suggestions?
Guess 2. As 2055 increases its bond allocation, VTWAX should surpass 2055 in performance.

Guess 3. VTSAX should surpass VTWAX as long as US firms - with overweights in technology - outperform internationals. I don't how long that may be. VTWAX has broader diversification than VTSAX in case some other sector takes off.

As for sleep, eat healthy and get more exercise, or go with 2055 until you get within five years or so in front retirement and then switch to a LifeStrategy fund in the Roth and ride it on out.
FI is the best revenge. LBYM. Invest the rest. Stay the course. Die anyway. - PS: The cavalry isn't coming, kids. You are on your own.
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Metsfan91
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Re: VTWAX OR Target 5055

Post by Metsfan91 »

lazyinvestor30 wrote: Tue May 04, 2021 12:30 pm VTWAX because you want stocks in Roth and they are the fastest growing asset
+1
"Know what you own, and know why you own it." — Peter Lynch
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watchnerd
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Re: VTWAX OR Target 2055

Post by watchnerd »

chadamrein wrote: Tue May 04, 2021 12:22 pm Hi everyone, I'm 34 years old a little late to the game, but trying to decide which would be better to have in my Roth IRA VTWAX
That's what I have in my Roth.

Well, VT, actually.

Same fund / index, but lower ER.
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
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asset_chaos
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Re: VTWAX OR Target 2055

Post by asset_chaos »

You don't say what your other investments/savings are; do you have a 401k or taxable investment account, have a pension, etc? If you want to retire comfortably in 30-odd years, you'll need to save more than the yearly limit for a Roth. No (likely) amount of investment growth will overcome a lack of savings. In isolation either total world or a target date fund could be fine, but it would be better to think of your Roth as integrated into your whole portfolio and make a plan for how to invest the entire portfolio for success.
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whereskyle
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Re: VTWAX OR Target 2055

Post by whereskyle »

asset_chaos wrote: Wed May 05, 2021 3:14 am You don't say what your other investments/savings are; do you have a 401k or taxable investment account, have a pension, etc? If you want to retire comfortably in 30-odd years, you'll need to save more than the yearly limit for a Roth. No (likely) amount of investment growth will overcome a lack of savings. In isolation either total world or a target date fund could be fine, but it would be better to think of your Roth as integrated into your whole portfolio and make a plan for how to invest the entire portfolio for success.
Completely agree that a global picture is necessary and more savings is effectively necessary. But, based on a Monte Carlo simulation of historical returns, a 60/40 US/ex-us portfolio funded by $6k/year over 30 years has a 50% chance of netting $1.3m. It won't be a ton, but many people retire on a lot less.
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
Topic Author
chadamrein
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Joined: Mon Feb 22, 2021 8:09 pm

Re: VTWAX OR Target 2055

Post by chadamrein »

Thank you everybody for your help,

I have a 401k sitting around $20,000 +employee matches @ 8%
I just started maxing this out at $19,500

HSA Sitting around $1200 + 600 employee contribution
I just started maxing this $3600 single

Fidelity RSU Released 12/2023
Sitting at around $12,000

Vanguard Roth IRA
2020 $6,000
2021 $6,000

School loan $20,000
No other debt

Emergency Fund
$3000

Just started maxing my Roth IRA just unsure what to invest in.
What goes into the Brokerage Bonds/Indexes?
So only stocks go into the Roth IRA? Should I be aggressive in this account?

Unfortunately getting a divorce set me back some but just now able to start saving again
Horton
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Re: VTWAX OR Target 2055

Post by Horton »

I would just use target date funds and call it a day.
80% global equities (faith-based tilt) + 20% TIPS (LDI)
lazyinvestor30
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Re: VTWAX OR Target 2055

Post by lazyinvestor30 »

chadamrein wrote: Wed May 05, 2021 10:26 am Thank you everybody for your help,

I have a 401k sitting around $20,000 +employee matches @ 8%
I just started maxing this out at $19,500

HSA Sitting around $1200 + 600 employee contribution
I just started maxing this $3600 single

Fidelity RSU Released 12/2023
Sitting at around $12,000

Vanguard Roth IRA
2020 $6,000
2021 $6,000

School loan $20,000
No other debt

Emergency Fund
$3000

Just started maxing my Roth IRA just unsure what to invest in.
What goes into the Brokerage Bonds/Indexes?
So only stocks go into the Roth IRA? Should I be aggressive in this account?

Unfortunately getting a divorce set me back some but just now able to start saving again
Yes, I think Roth needs to aggressive - Is likely better to put that in VTWAX. Then you can put your 401k in Target date funds if available at low costs. Then I believe you will have a pretty good allocation
Brand0n
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Re: VTWAX OR Target 2055

Post by Brand0n »

I’ve been back and forth on this to. right now i have both my roth ira in Vfifx “2050” and my 401k in target retire 2050 trust ii witch is the same but less exp ratio. but I’ve wondered if I should switch my roth to vt instead. i just started my roth this year and don’t have a lot in it
Rainmaker41
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Re: VTWAX OR Target 2055

Post by Rainmaker41 »

I hold VTWAX in my Roth IRA and taxable brokerage accounts, and approximate the global stock market & enough bonds in my employer retirement plan to meet my desired overall asset allocation.

Your option to do something similar seems fine to me.
85% Global Stock, 15% US Fixed Income
Topic Author
chadamrein
Posts: 13
Joined: Mon Feb 22, 2021 8:09 pm

Re: VTWAX OR Target 2055

Post by chadamrein »

Thank you everyone for your help, I really appreciate it! I know I'm probably just overthinking it.
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