General investing questions, newbie queries and thoughts megathread - Page 181

People with aspirations don't suffer from existential angst because they are too busy focused on getting sh*t done. They have a clear goal in mind and believe they will be happy when they achieve it. If they had existential angst, they wouldn't have aspirations, they would just be whiney and sad about how life is so unfair.

no this is naive thinking from someone who doesn't know a lot of successful peeople. existential angst is universal.

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05-15-2017 , 01:39 AM

#4503

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

Quote:

Originally Posted by NajdorfDefense

Life ain't that simple, son. Also, existential angst doesn't mean what you seem to think it means.

It is actually almost precisely that simple. He just has it backwards. He might as well have piped up and said that Xanax users aren't anxious because they are too busy taking Xanax.

Quote:

Originally Posted by spaceman Bryce

no this is naive thinking from someone who doesn't know a lot of successful peeople. existential angst is universal.

This isn't quite true, at least as you state it. I do think that it is possible that everyone has had at least a taste of existential angst. I had some once. Not much; just a tiny bit of it. It was on a Thursday. Can't remember what the month or the year was. I am nearly certain that it was quite a while ago.

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05-15-2017 , 01:59 AM

#4504

TeflonDawg

Pooh-Bah

Join Date: Oct 2006 Posts: 5,929

Quote:

Originally Posted by BrianTheMick2

100% in VT.* Invest as much as you can every month.

*The ETF, not the state.

Why not VTI? Do we care about international stock exposure if we are being hyper-aggressive?

Also, VT expense ratio is .11% while VTI is .04%. That will make a big difference will it not?

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05-15-2017 , 02:16 AM

#4505

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

Quote:

Originally Posted by TeflonDawg

Why not VTI? Do we care about international stock exposure if we are being hyper-aggressive?

Also, VT expense ratio is .11% while VTI is .04%. That will make a big difference will it not?

Because VT is more aggressive

.11 vs .04 probably makes a difference over 3896 years,

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05-15-2017 , 06:56 AM

#4506

jeccross

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Join Date: May 2005 Posts: 3,807

Quote:

Originally Posted by BrianTheMick2

Because VT is more aggressive

.11 vs .04 probably makes a difference over 3896 years,

We're talking about say a 40 year horizon, it makes a 3% difference, not meaningless.

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05-15-2017 , 08:33 AM

#4507

bahbahmickey

Carpal \'Tunnel

Join Date: Mar 2011 Posts: 15,250

Quote:

Originally Posted by jeccross

We're talking about say a 40 year horizon, it makes a 3% difference, not meaningless.

Lol.

Quote

05-15-2017 , 10:04 AM

#4508

TeflonDawg

Pooh-Bah

Join Date: Oct 2006 Posts: 5,929

Quote:

Originally Posted by BrianTheMick2

Because VT is more aggressive

How is it more aggressive if it's more diversified than VTI? What am I missing here?

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05-15-2017 , 01:51 PM

#4509

unfrgvn

old hand

Join Date: Jan 2004 Posts: 1,850

Quote:

Originally Posted by bahbahmickey

Lol.

On a $100,000 investment over 40 years it's ~$40,000. Might be nothing to you but most investors would like to have it in their account.

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05-15-2017 , 02:00 PM

#4510

unfrgvn

old hand

Join Date: Jan 2004 Posts: 1,850

Quote:

Originally Posted by TeflonDawg

How is it more aggressive if it's more diversified than VTI? What am I missing here?

It's not, and nothing. If we want to go more aggressive still, why not go VB? Small company growth.

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05-15-2017 , 08:19 PM

#4511

bahbahmickey

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Join Date: Mar 2011 Posts: 15,250

You are if one should invest in either 100% US or 50% US & 50% international because of a difference in fee of .07%.

Quote

05-16-2017 , 01:25 AM

#4512

TeflonDawg

Pooh-Bah

Join Date: Oct 2006 Posts: 5,929

What is the difference between owning VXUS and VTI vs just owning VT?

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05-16-2017 , 01:25 AM

#4513

TeflonDawg

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Join Date: Oct 2006 Posts: 5,929

Quote:

Originally Posted by bahbahmickey

You are if one should invest in either 100% US or 50% US & 50% international because of a difference in fee of .07%.

Please elaborate. This is the noob thread and I am clueless.

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05-16-2017 , 01:53 AM

#4514

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

Quote:

Originally Posted by unfrgvn

It's not, and nothing. If we want to go more aggressive still, why not go VB? Small company growth.

+ev tilt towards value factor by going with VT over VTI.

Aggressive = +ev in my book. Adding in +ev from low p/e and p/e10 (value) is seeking greater returns; that is what you add by adding not US.

VB is +volatility with no +ev of small cap growth fits into gambling (more volatility) for no clear factor category. It is more aggressive in the same way as asking Mike Tyson to spar is aggressive

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05-16-2017 , 07:44 AM

#4515

bahbahmickey

Carpal \'Tunnel

Join Date: Mar 2011 Posts: 15,250

Quote:

Originally Posted by TeflonDawg

Please elaborate. This is the noob thread and I am clueless.

I was just pointing out that Unfrgvn was arguing to make a big picture investment decision on a very small difference in fee. A lot of investors get way too caught up with minimizing fees and not enough about maximizing returns.

Btw, I missed a word in my original post:
"You are (arguing) if one should invest in either 100% US or 50% US & 50% international because of a difference in fee of .07%."

Quote

05-16-2017 , 10:52 AM

#4516

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

Quote:

Originally Posted by bahbahmickey

You also missed putting "?!?" at the end of the sentence.

Quote

05-16-2017 , 12:42 PM

#4517

levbronstein

newbie

Join Date: May 2012 Posts: 24

So I want to open a Roth IRA. I make about $50k a year and want to be very aggressive with my investment. Vanguard is looking like the place to be judging from reading these posts. Should I invest in the 2050 target fund or the 3 fund portfolio?

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05-19-2017 , 12:33 AM

#4518

TeflonDawg

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Join Date: Oct 2006 Posts: 5,929

Out of curiosity, what does the most recession-proof "lazy" portfolio look like? 25% gold, 25% BND, 25% VTI, 25% VXUS?

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05-21-2017 , 07:10 AM

#4519

TeflonDawg

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Join Date: Oct 2006 Posts: 5,929

Is this thing on?

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05-21-2017 , 07:16 AM

#4520

TeflonDawg

Pooh-Bah

Join Date: Oct 2006 Posts: 5,929

Quote:

Originally Posted by TeflonDawg

What is the difference between owning VXUS and VTI vs just owning VT?

Found the answer to my own question:

VT is something like 3000 stocks all large cap (.11% expense)

VTI and VXUS, together, covers the same domain, but with something like 9000 and includes small cap (.04% and .11%, respectively)

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05-21-2017 , 10:37 AM

#4521

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

Quote:

Originally Posted by TeflonDawg

VT holds over 7700 stocks. Not all large cap...

Quote

05-21-2017 , 05:01 PM

#4522

unfrgvn

old hand

Join Date: Jan 2004 Posts: 1,850

Quote:

Originally Posted by bahbahmickey

I was just pointing out that Unfrgvn was arguing to make a big picture investment decision on a very small difference in fee. "

Please point to the post where I made that argument. The only point I intended to make was that .07% is not nothing with a large enough investment and enough time.

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05-21-2017 , 05:14 PM

#4523

Jbrochu

banned

Join Date: Jan 2005 Posts: 16,054

Quote:

Originally Posted by TeflonDawg

I'm pretty sure it's this:

* VT is total world including US
* VTI is total US
* VXUS is total world ex US

It used to be cheaper to model VT by purchasing VTI and VXUS in the correct ratio. Not sure if that's still true.

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05-21-2017 , 05:21 PM

#4524

unfrgvn

old hand

Join Date: Jan 2004 Posts: 1,850

Quote:

Originally Posted by BrianTheMick2

Perhaps we just don't agree on the definition of aggressive. What is more aggressive, betting on a single number in roulette or betting on red or black? Based on your description of whichever has the better ev is more aggressive, it seems you would say betting on red or black is more aggressive? I would argue betting a single number is more aggressive. Greater risk for greater reward. Me saying that doesn't mean I advocate betting that way, btw.

Quote

05-22-2017 , 01:19 AM

#4525

BrianTheMick2

Long way to go and a short time to get there.

Join Date: May 2012 Posts: 19,410

Quote:

Originally Posted by Jbrochu

It is still true (so long as you are using Vanguard as your broker). What you are getting with VT is something you never have to fiddle with. To me that is worth the couple of dollars per $10k that you'd save by splitting your money between VTI and VXUS.

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