Is 100% VTSAX good for early twenties?

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paulyb
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Is 100% VTSAX good for early twenties?

Post by paulyb »

I recently read the Simple Path to Wealth where I was exposed to VTSAX. After doing some research on my own, I see a lot of people suggesting either VTSAX + VTIAX or just VTWAX. I am turning 23 this year and starting a career in tech where I will be aggressively saving to invest (upwards of 75% of a FAANG salary). My question is, would it be wise to go 100% in on VTSAX for the next few years while I'm still young and then rebalance by adding more VTIAX as time goes on? Or, would it be smarter to just do like a 80/20 VTSAX + VTIAX split starting out and just stick to that and rebalance every year depending on the domestic + intl outlook of the market? I would greatly appreciate your input :)
Marseille07
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Re: Is 100% VTSAX good for early twenties?

Post by Marseille07 »

I personally recommend 100% VTSAX but this is a very heated topic here.

Common options are: 100/0, 80/20 (what Mr. Bogle said), 60/40 (just about world market cap).
klaus14
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Re: Is 100% VTSAX good for early twenties?

Post by klaus14 »

Do 100% VTWAX and you don't need to worry about international percentage ever. Peace of mind is the biggest benefit.
My investment algorithm: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=351899&p=6112869#p6112869
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Brianmcg321
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Re: Is 100% VTSAX good for early twenties?

Post by Brianmcg321 »

It would be a great start.
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dan7800
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Re: Is 100% VTSAX good for early twenties?

Post by dan7800 »

Great start.

I'd go some level of US/EX-US (80/20 - 60/40) in VTI, VXUS. If nothing else, it will be a minor education for you while still offering a great plan/return. Long term, you'll be in wonderful shape.
Malum Prohibitum
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Re: Is 100% VTSAX good for early twenties?

Post by Malum Prohibitum »

paulyb wrote: Wed Jan 19, 2022 11:23 pm I recently read the Simple Path to Wealth where I was exposed to VTSAX. After doing some research on my own, I see a lot of people suggesting either VTSAX + VTIAX or just VTWAX. I am turning 23 this year and starting a career in tech where I will be aggressively saving to invest (upwards of 75% of a FAANG salary). My question is, would it be wise to go 100% in on VTSAX for the next few years while I'm still young and then rebalance by adding more VTIAX as time goes on? Or, would it be smarter to just do like a 80/20 VTSAX + VTIAX split starting out and just stick to that and rebalance every year depending on the domestic + intl outlook of the market? I would greatly appreciate your input :)
I wish I had put 75% of my income into VTSAX 100% starting in my early twenties . . .

:annoyed

:dollar :moneybag
Booogle
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Re: Is 100% VTSAX good for early twenties?

Post by Booogle »

American stock market is toast.

The Boglehead approach will fail, just like it did from 1999-2009.

https://institutional.vanguard.com/iam/ ... 122021.pdf

https://www.gmo.com/americas/research-l ... ly-letter/
Bogle64Pilot
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Re: Is 100% VTSAX good for early twenties?

Post by Bogle64Pilot »

Go with VTI instead of VTSAX, but your plan is solid. No need for international exposure and thusly risk. You get enough international exposure through U.S. multinational corporations already.
dan7800
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Re: Is 100% VTSAX good for early twenties?

Post by dan7800 »

Bogle64Pilot wrote: Thu Jan 20, 2022 5:59 am Go with VTI instead of VTSAX, but your plan is solid. No need for international exposure and thusly risk. You get enough international exposure through U.S. multinational corporations already.
This is debatable about BH.
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anon_investor
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Re: Is 100% VTSAX good for early twenties?

Post by anon_investor »

Booogle wrote: Thu Jan 20, 2022 5:56 am American stock market is toast.

The Boglehead approach will fail, just like it did from 1999-2009.

https://institutional.vanguard.com/iam/ ... 122021.pdf

https://www.gmo.com/americas/research-l ... ly-letter/
Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
Booogle
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Re: Is 100% VTSAX good for early twenties?

Post by Booogle »

anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
UpperNwGuy
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Re: Is 100% VTSAX good for early twenties?

Post by UpperNwGuy »

I recommend 80% VTI and 20% VXUS. You'll be happier using ETFs than mutual funds.
bogledogle87
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Re: Is 100% VTSAX good for early twenties?

Post by bogledogle87 »

anon_investor wrote: Thu Jan 20, 2022 6:02 am
Booogle wrote: Thu Jan 20, 2022 5:56 am American stock market is toast.

The Boglehead approach will fail, just like it did from 1999-2009.

https://institutional.vanguard.com/iam/ ... 122021.pdf

https://www.gmo.com/americas/research-l ... ly-letter/
Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
Unexpected outcomes do not mean the empirical projection was wrong or misleading in hindsight. The grounds for the projection are solid. If you read closely into their research, they show scatter plots for a full range of outcomes. What we've actually seen has been on the edge of the more unlikely scenarios, further increasing a reversion toward more likely scenarios the longer it persists. Chasing recent returns and projecting forward is a risky game.

Its petty clear to me that a full decade of ex-US outperformance is much more statistically likely than not, but I won't bet on it, that's why I let the market decide in VTWAX.
VTWAX and chill
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anon_investor
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Re: Is 100% VTSAX good for early twenties?

Post by anon_investor »

Booogle wrote: Thu Jan 20, 2022 6:03 am
anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
That is not a new phenomenon.
Chris K Jones
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Re: Is 100% VTSAX good for early twenties?

Post by Chris K Jones »

Excellent plan. You can complicate/diversify it with other things later, but this would be a great start. Congratulations for figuring it out so early.
Booogle
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Re: Is 100% VTSAX good for early twenties?

Post by Booogle »

bogledogle87 wrote: Thu Jan 20, 2022 6:13 am Its petty clear to me that a full decade of ex-US outperformance is much more statistically likely than not, but I won't bet on it, that's why I let the market decide in VTWAX.
VTWAX isn't great either.

Most international companies are junk.

Japan has the best fundamentals.

America is second best, but way overpriced.
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Re: Is 100% VTSAX good for early twenties?

Post by Dude2 »

VTSAX (VTI) in taxable is great, but you didn't specifically say anything about this being a taxable account. Perhaps you just mean overall, or maybe you only have a taxable account. Need more info there perhaps. If this were a tax-advantaged account, a simple solution is to buy a target date fund. Otherwise, I like to keep US in taxable and ex-US in tax-advantaged due to high dividends and being more "unqualified" dividends. (Yes, there is a foreign tax credit if you hold ex-US in taxable, but I prefer the simplicity of ignoring that).
Then ’tis like the breath of an unfee’d lawyer.
Booogle
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Re: Is 100% VTSAX good for early twenties?

Post by Booogle »

If you are going to go American, you might as well go with QQQ or MGK.
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anon_investor
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Re: Is 100% VTSAX good for early twenties?

Post by anon_investor »

Booogle wrote: Thu Jan 20, 2022 6:57 am If you are going to go American, you might as well go with QQQ or MGK.
VOO/VFIAX or VTI/VTSAX are better and more in-line with the BH philosophy.
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Re: Is 100% VTSAX good for early twenties?

Post by Booogle »

anon_investor wrote: Thu Jan 20, 2022 7:08 am
Booogle wrote: Thu Jan 20, 2022 6:57 am If you are going to go American, you might as well go with QQQ or MGK.
VOO/VFIAX or VTI/VTSAX are better and more in-line with the BH philosophy.
The companies in QQQ and MGK are propping up the rest of the junk American stock market.
Last edited by Booogle on Thu Jan 20, 2022 7:15 am, edited 2 times in total.
Visitor76
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Re: Is 100% VTSAX good for early twenties?

Post by Visitor76 »

If being 100% VTSAX is good for this 45 year old, it would be great for you.
Wealth is not about having a lot of money; it's about having a lot of options.
bg5
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Re: Is 100% VTSAX good for early twenties?

Post by bg5 »

You could do alot worse than go 100% VTSAX. I personally prefer 50% VTSAX and 50% VIGIX but I like the extra weight in the big tech names. Whatever you choose stick with it and dont look back. Remember the most important part of investing is making sure you invest as much as you can and you stick to your plan. 100% VTSAX is a solid plan so job well done
tvubpwcisla
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Re: Is 100% VTSAX good for early twenties?

Post by tvubpwcisla »

Yes, nothing wrong with that strategy. You will do better than most of us if you do.
imyeti2
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Re: Is 100% VTSAX good for early twenties?

Post by imyeti2 »

UpperNwGuy wrote: Thu Jan 20, 2022 6:10 am I recommend 80% VTI and 20% VXUS. You'll be happier using ETFs than mutual funds.
What are the benefits for index funds?

With mutual funds, if OP is using salary at regular intervals, OP can set up auto investments in mutual funds. Not sure ETFs give you that option.
Triple digit golfer
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Re: Is 100% VTSAX good for early twenties?

Post by Triple digit golfer »

Hold some international. I prefer market weight, which is around 40-45%.

If you don't want that much, some is still better than none for diversifying your portfolio.
lostdog
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Re: Is 100% VTSAX good for early twenties?

Post by lostdog »

100% VT/VTWAX.

If you just do VTSAX and it starts to lag ex-US for a few years, what will you do?

The loudest US only folks around here will be secretly wringing their hands but telling you to stay the course and do what helps you "sleep well at night".

With VTWAX it's a win/win.

JCollins said due to the expense ratio decrease in VTWAX, he will recommend it for his daughter.

Some authors could be saying only VTSAX because of recent performance to help sell books. They probably feel that if they mention VTIAX, people will complain and not buy the book. Recency bias is a real thing for salesmanship.
Last edited by lostdog on Thu Jan 20, 2022 8:48 am, edited 1 time in total.
Stocks-80% || Bonds-20% || Taxable-VTI/VXUS || IRA-VT/BNDW
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Re: Is 100% VTSAX good for early twenties?

Post by UpperNwGuy »

imyeti2 wrote: Thu Jan 20, 2022 8:10 am
UpperNwGuy wrote: Thu Jan 20, 2022 6:10 am I recommend 80% VTI and 20% VXUS. You'll be happier using ETFs than mutual funds.
What are the benefits for index funds?

With mutual funds, if OP is using salary at regular intervals, OP can set up auto investments in mutual funds. Not sure ETFs give you that option.
Right, ETFs would not work for auto investments, but I've never used auto investments, so I don't even think about that.
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Re: Is 100% VTSAX good for early twenties?

Post by CyclingDuo »

paulyb wrote: Wed Jan 19, 2022 11:23 pm I recently read the Simple Path to Wealth where I was exposed to VTSAX. After doing some research on my own, I see a lot of people suggesting either VTSAX + VTIAX or just VTWAX. I am turning 23 this year and starting a career in tech where I will be aggressively saving to invest (upwards of 75% of a FAANG salary). My question is, would it be wise to go 100% in on VTSAX for the next few years while I'm still young and then rebalance by adding more VTIAX as time goes on? Or, would it be smarter to just do like a 80/20 VTSAX + VTIAX split starting out and just stick to that and rebalance every year depending on the domestic + intl outlook of the market? I would greatly appreciate your input :)
100% VTSAX probably won't hurt you. I assume you will also be getting RSU's from your FAANG company as well as participating in the ESPP. Factor that into your AA.

I advised our adult children in their 20's a bit away from JL Collins 100% in US, and more in the direction of what Bill Bernstein says in his excellent primer If You Can. The other guide we used was to use the makeup of the AA in each child's specific age appropriate Target Date Fund. Both Bill's suggestion and the Vanguard Target Data Funds are the Three Fund Portfolio of Total US, Total International, and Total Bond (target date funds at Vanguard also use Total International Bond).

If You Can by Bernstein spells out his case for the Three Funder here: https://www.etf.com/docs/IfYouCan.pdf

Bill's suggestion was to put 1/3 in each which, personally, I feel is a bit too much in bonds for a young investor in their 20's. So that's why we went more with the Target Date Fund guides for a starting point.

You can view the make up of Vanguard's Target Date Fund for your age here (2065 Target Date): https://investor.vanguard.com/mutual-fu ... file/VLXVX

Image

Plenty of options for you, but certainly lean heavily on equities in your 20's whether it is 100% US, or if you include international.

CyclingDuo
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CyclingDuo
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Re: Is 100% VTSAX good for early twenties?

Post by CyclingDuo »

UpperNwGuy wrote: Thu Jan 20, 2022 8:26 am
imyeti2 wrote: Thu Jan 20, 2022 8:10 am
UpperNwGuy wrote: Thu Jan 20, 2022 6:10 am I recommend 80% VTI and 20% VXUS. You'll be happier using ETFs than mutual funds.
What are the benefits for index funds?

With mutual funds, if OP is using salary at regular intervals, OP can set up auto investments in mutual funds. Not sure ETFs give you that option.
Right, ETFs would not work for auto investments, but I've never used auto investments, so I don't even think about that.
You can use ETFs for auto investing and partial share purchases at various robo-advisor accounts.

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
Onlineid3089
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Re: Is 100% VTSAX good for early twenties?

Post by Onlineid3089 »

anon_investor wrote: Thu Jan 20, 2022 6:14 am
Booogle wrote: Thu Jan 20, 2022 6:03 am
anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
That is not a new phenomenon.
Isn't that how it usually works? I thought a small handful of companies usually provide the majority of the total market gains, it's just not realistic to think you can pick out what those companies are before they start their out-performance.
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anon_investor
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Re: Is 100% VTSAX good for early twenties?

Post by anon_investor »

Onlineid3089 wrote: Thu Jan 20, 2022 8:51 am
anon_investor wrote: Thu Jan 20, 2022 6:14 am
Booogle wrote: Thu Jan 20, 2022 6:03 am
anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
That is not a new phenomenon.
Isn't that how it usually works? I thought a small handful of companies usually provide the majority of the total market gains, it's just not realistic to think you can pick out what those companies are before they start their out-performance.
EXACTLY! VTSAX (or VTI) and chill!
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Re: Is 100% VTSAX good for early twenties?

Post by Taylor Larimore »

paulyb wrote: Wed Jan 19, 2022 11:23 pm I recently read the Simple Path to Wealth where I was exposed to VTSAX. After doing some research on my own, I see a lot of people suggesting either VTSAX + VTIAX or just VTWAX. I am turning 23 this year and starting a career in tech where I will be aggressively saving to invest (upwards of 75% of a FAANG salary). My question is, would it be wise to go 100% in on VTSAX for the next few years while I'm still young and then rebalance by adding more VTIAX as time goes on? Or, would it be smarter to just do like a 80/20 VTSAX + VTIAX split starting out and just stick to that and rebalance every year depending on the domestic + intl outlook of the market? I would greatly appreciate your input :)
paulyb:

Welcome to the Bogleheads Forum!

Starting out with only VTSAX (Vanguard Total Stock Market Index Fund) is an option. However, you are certain to have a rough ride. The Dow plunged 89% during my lifetime.

I suggest you start-out enjoying the many benefits of The Three-Fund Portfolio. You should not need to change your funds again.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan."

"Simplicity is the master key to financial success." -- Jack Bogle
Bluemnatra
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Re: Is 100% VTSAX good for early twenties?

Post by Bluemnatra »

lostdog wrote: Thu Jan 20, 2022 8:19 am 100% VT/VTWAX.

If you just do VTSAX and it starts to lag ex-US for a few years, what will you do?

The loudest US only folks around here will be secretly wringing their hands but telling you to stay the course and do what helps you "sleep well at night".

With VTWAX it's a win/win.

JCollins said due to the expense ratio decrease in VTWAX, he will recommend it for his daughter.

Some authors could be saying only VTSAX because of recent performance to help sell books. They probably feel that if they mention VTIAX, people will complain and not buy the book. Recency bias is a real thing for salesmanship.
Where does he say this?
"The greatest enemy of a good plan is the dream of a perfect plan"
jand87
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Re: Is 100% VTSAX good for early twenties?

Post by jand87 »

If you're just starting out, or have a low balance, 100%VTSAX is great. Build some shares. You'll probably be able to fix allocations just with contributions for a while.
Bluemnatra
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Re: Is 100% VTSAX good for early twenties?

Post by Bluemnatra »

Booogle wrote: Thu Jan 20, 2022 6:03 am
anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
Why then was the equal weighted S&P 500 ETF return (RSP) practically identical to a cap weighted S&P 500? How do you explain this if only 5 companies are responsible for the entire stock market? Seems you just repeat what you read/watch.
"The greatest enemy of a good plan is the dream of a perfect plan"
mr_brightside
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Re: Is 100% VTSAX good for early twenties?

Post by mr_brightside »

yes. nothing wrong with 100% Total US Market at your age.

good luck and congrats !

--------------------------------
6NDone
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Re: Is 100% VTSAX good for early twenties?

Post by 6NDone »

Bluemnatra wrote: Thu Jan 20, 2022 9:40 am
Booogle wrote: Thu Jan 20, 2022 6:03 am
anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
Why then was the equal weighted S&P 500 ETF return (RSP) practically identical to a cap weighted S&P 500? How do you explain this if only 5 companies are responsible for the entire stock market? Seems you just repeat what you read/watch.
You can’t push logic with this crowd. You can show them hard data, backtest, empirical evidence proving them wrong and they’ll respond with the same 3-5 copy and paste talking points from “experts.”
100% US TSM
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Re: Is 100% VTSAX good for early twenties?

Post by Booogle »

Bluemnatra wrote: Thu Jan 20, 2022 9:40 am
Booogle wrote: Thu Jan 20, 2022 6:03 am
anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
Why then was the equal weighted S&P 500 ETF return (RSP) practically identical to a cap weighted S&P 500? How do you explain this if only 5 companies are responsible for the entire stock market? Seems you just repeat what you read/watch.

Index funds and S&P 500 futures.
Last edited by Booogle on Thu Jan 20, 2022 9:55 am, edited 1 time in total.
Zhuang
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Re: Is 100% VTSAX good for early twenties?

Post by Zhuang »

Yes 100% VTSAX! :beer
6NDone
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Re: Is 100% VTSAX good for early twenties?

Post by 6NDone »

Booogle wrote: Thu Jan 20, 2022 9:53 am
Bluemnatra wrote: Thu Jan 20, 2022 9:40 am
Booogle wrote: Thu Jan 20, 2022 6:03 am
anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
Why then was the equal weighted S&P 500 ETF return (RSP) practically identical to a cap weighted S&P 500? How do you explain this if only 5 companies are responsible for the entire stock market? Seems you just repeat what you read/watch.

Index funds.
:oops: :shock:
100% US TSM
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calmaniac
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Re: Is 100% VTSAX good for early twenties?

Post by calmaniac »

Good by me.
"Pretired", working 20 h/wk. AA 75/25: 30% TSM, 19% value (VFVA/AVUV), 18% Int'l LC, 8% emerging, 25% GFund/VBTLX. Military pension ≈60% of expenses. Pension+SS@age 70 ≈100% of expenses.
Bluemnatra
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Re: Is 100% VTSAX good for early twenties?

Post by Bluemnatra »

Booogle wrote: Thu Jan 20, 2022 9:53 am
Bluemnatra wrote: Thu Jan 20, 2022 9:40 am
Booogle wrote: Thu Jan 20, 2022 6:03 am
anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
Why then was the equal weighted S&P 500 ETF return (RSP) practically identical to a cap weighted S&P 500? How do you explain this if only 5 companies are responsible for the entire stock market? Seems you just repeat what you read/watch.

Index funds and S&P 500 futures.
How do index funds explain why an equal weighted S&P 500 ETF had better returns than the cap weighted equivalent?

2021 returns
Invesco Equal Weighted S&P 500 ETF RSP 29.35%
Vanguard S&P 500 ETF VOO 28.66%
"The greatest enemy of a good plan is the dream of a perfect plan"
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Randtor
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Re: Is 100% VTSAX good for early twenties?

Post by Randtor »

Learning about investing and starting the process at your age is a 100% win regardless of what you ultimately choose. You are in the right direction by going with an index fund rather than trying to beat the market picking individual stocks. WHAT you go with really depends on your ability to stay calm, don't panic when the market gets ugly, and keep investing. At 23 you have a 30-40 year horizon! I didn't start until mid 40's, and made ALL the typical mistakes trying to beat the market. What you will see here 'ad nauseum', is that you CANNOT beat it. So why not just go with it?

You will got tons of advice here. Pick an index fund, whatever is comfortable for you, and go with it. My preference at your age would be 100% VTSAX, but I wasn't smart enough, or in the right position then. I am older now, somewhat wiser through experiences (both good and bad), and realize that the market goes up/down. Sometimes it takes a long time to come back if it is a real bear market. But you have the advantage of TIME. Eventually you will want to diversify as you get older. But now is the time to take more risk. If you risk adversity is strong, then go with 10-20% bond fund like VBTLX (total US bond index). GL with your decisions!
"Whats done is done, and can't be undone"
Booogle
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Re: Is 100% VTSAX good for early twenties?

Post by Booogle »

Bluemnatra wrote: Thu Jan 20, 2022 10:03 am How do index funds explain why an equal weighted S&P 500 ETF had better returns than the cap weighted equivalent?

2021 returns
Invesco Equal Weighted S&P 500 ETF RSP 29.35%
Vanguard S&P 500 ETF VOO 28.66%
Depends on the year you start at:

https://www.portfoliovisualizer.com/bac ... ion3_3=100
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calmaniac
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Re: Is 100% VTSAX good for early twenties?

Post by calmaniac »

Booogle wrote: Thu Jan 20, 2022 6:57 am If you are going to go American, you might as well go with QQQ or MGK.
QQQ has an expense ratio of 0.20%.
VTSAX has an expense ratio of 0.04%

You decide
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Bluemnatra
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Re: Is 100% VTSAX good for early twenties?

Post by Bluemnatra »

Booogle wrote: Thu Jan 20, 2022 10:05 am
Bluemnatra wrote: Thu Jan 20, 2022 10:03 am How do index funds explain why an equal weighted S&P 500 ETF had better returns than the cap weighted equivalent?

2021 returns
Invesco Equal Weighted S&P 500 ETF RSP 29.35%
Vanguard S&P 500 ETF VOO 28.66%
Depends on the year you start at:

https://www.portfoliovisualizer.com/bac ... ion3_3=100
I'm not going by year of start. You stated 5 companies are propping up the American Stock Market. If that is the case. How in 2021 did an equal weighted S&P 500 outperform a cap weighted fund?
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mikejuss
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Re: Is 100% VTSAX good for early twenties?

Post by mikejuss »

No bonds whatsoever for you, OP?

Regardless, VTSAX is a great equities fund. Go for it.
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
hnd
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Re: Is 100% VTSAX good for early twenties?

Post by hnd »

Booogle wrote: Thu Jan 20, 2022 6:03 am
anon_investor wrote: Thu Jan 20, 2022 6:02 am Nobody knows nothing. Vanguard has been wrong about US vs. ex-US for several years in a row.
The GMO link explains things well.

Five companies (Apple, Amazon, Microsoft, Google, and Facebook) are propping up the entire American stock market.

All other American companies have mediocre fundamentals on average.
hard pass on "sky is falling" jeremy grantham. the guy who told us a year ago to go 100% emerging markets.
hnd
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Re: Is 100% VTSAX good for early twenties?

Post by hnd »

vtsax 100% is fine imo. i think vtsax/vtwax will likely get you to the same place in the end. reversion to the mean and all that but I appreciate a home team tilt as I believe this is still the best place for the entrepreneurial spirit. gvt/regime issues plague emerging markets and complacency hampers developed markets. comparatively speaking to the US IMO. certainly doesnt mean there isn't opportunity at all and I invest internationally but i'm definitely not all in.
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vineviz
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Re: Is 100% VTSAX good for early twenties?

Post by vineviz »

klaus14 wrote: Thu Jan 20, 2022 2:57 am Do 100% VTWAX and you don't need to worry about international percentage ever. Peace of mind is the biggest benefit.
+1

Keep it simple and globally diversified.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch
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