VGSTX vs. VWELX vs. VTSMX |
|
|
|
wyclef
Full Member
Cash: $ 18.22
Posts: 99
Joined: 08 Oct 2004
|
VGSTX vs. VWELX vs. VTSMX |
|
|
Hello,
I've got 10k in Vanguard Star Fund. Thinking about adding another 10k and was pondering switching from Star Fund to Wellington and then putting the other 10k in the Vanguard Total Stock Index. I'm in mid thirties. Wondering if I should just put everything in VTSMX. I'm sort of partial to using Vanguard as I've been happy with them and like their funds.
Thoughts?
|
Mon Jan 12, 2015 5:14 pm |
|
|
littleroc02us
Moderator
Cash: $ 384.35
Posts: 1891
Joined: 09 Feb 2009
|
I love the VTSMX, it's my go to fund for just about everything I invest in as far as Roth IRA's. I also have the Wellington Fund, but haven't been adding much to it, because the performance hasn't matched the Total Stock market index fund. The VTSMX gives you a great exposure to the market of over 3000 holdings in America's largest companies. I have their admiral VTSMX and it's expense ratio is .05% which is like nothing. Here are the returns thus to date. 1 year, 3 year, 5 year, 10 year and since inception.
12.43% 20.34% 15.56% 7.99% 9.62%
As you can see the fund has been doing quite well. Where as the Wellington fund hasn't performed quite as well.
9.82% 13.94% 11.25% 7.97% 8.32%
I simply invest and hold long term.
Risk comes from not knowing what you're doing. (Warren Buffet)
|
Mon Jan 12, 2015 5:31 pm |
|
|
wyclef
Full Member
Cash: $ 18.22
Posts: 99
Joined: 08 Oct 2004
|
So you think it would be a smart move and an improvement to bail on Star and switch to Wellington and then start up the Vanguard Total Stock Index? Currently Star is in Roth IRA... how does Vanguard handle switches like this? Can I have 2 funds under one IRA?
|
Mon Jan 12, 2015 5:58 pm |
|
|
wyclef
Full Member
Cash: $ 18.22
Posts: 99
Joined: 08 Oct 2004
|
What would the pros/cons be to having the VTSMX in the Roth IRA vs Taxable Account?
|
Mon Jan 12, 2015 6:33 pm |
|
|
littleroc02us
Moderator
Cash: $ 384.35
Posts: 1891
Joined: 09 Feb 2009
|
IMO, I'd rather pay taxes now while you know what tax rate you have. You never know what congress will come up with when you retire. What if income tax brackets jump to 50% for the middle class?
Risk comes from not knowing what you're doing. (Warren Buffet)
|
Tue Jan 13, 2015 9:50 pm |
|
|
wyclef
Full Member
Cash: $ 18.22
Posts: 99
Joined: 08 Oct 2004
|
Right. But there is a max i can contribute to the Roth IRA every year so... I can max that out I suppose and then have extra in taxable account
|
Wed Jan 14, 2015 12:42 am |
|
|
littleroc02us
Moderator
Cash: $ 384.35
Posts: 1891
Joined: 09 Feb 2009
|
yes, exactly. Max out the Roth first and then other investment vehicles second.
Risk comes from not knowing what you're doing. (Warren Buffet)
|
Wed Jan 14, 2015 3:17 pm |
|
|
wyclef
Full Member
Cash: $ 18.22
Posts: 99
Joined: 08 Oct 2004
|
Ok, I think I'm going to exch the current STAR shares I have for VWELX and then max out 2014 contributions. Is using the default cost-basis method where it averages the shares when you exchange what most people normally do? Are there any fees associated with exchanging? Also, when I do this will it keep everything in Roth IRA? or will it be considered taking money out of Roth IRA to do this.
|
Fri Jan 23, 2015 7:15 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona |
If the money is Roth, the cost - basis may not be an issue.
|
Fri Jan 23, 2015 7:44 pm |
|
|
wyclef
Full Member
Cash: $ 18.22
Posts: 99
Joined: 08 Oct 2004
|
i see. is that only an issue if you are selling? do you know if i would be charged any fees to exchange star fund for wellington in roth? it's unclear to me. Also, would I be taxed in anyway now for exchanging?
|
Fri Jan 23, 2015 8:07 pm |
|
|
blixet
Preferred Member
Cash: $ 32.55
Posts: 156
Joined: 28 Apr 2013
Location: Southern California |
There is no tax on an exchange within the Roth. And you can have as many funds as you want within an IRA account.
Information is more valuable sold than used – Fischer Black
|
Fri Jan 23, 2015 9:54 pm |
|
|
wyclef
Full Member
Cash: $ 18.22
Posts: 99
Joined: 08 Oct 2004
|
So I got VWELX in Roth IRA and maxed out. Now I want to get VTSAX but am unclear how it works. I only have a Roth IRA through Vanguard.... do I need to open a new brokerage account? When I go to open account I get 2 options... Open New Account or Open Brokerage Account... the process is a bit confusing. Anyone familiar with this?
|
Mon Feb 23, 2015 6:18 pm |
|
|
GardenCat
Full Member
Cash: $ 12.80
Posts: 63
Joined: 07 Dec 2014
Location: Colorado |
|
|
|
You are confusing yourself. You already have an "account", your Roth IRA account. You just want to add a different Mutual Fund to that account. You do not need to open another "account". You can have many mutual funds within one IRA account.
You have a Vanguard account. You need to set up your online account access, which will involve choosing a log-in name and a password. Then when you go on-line to Vanguard you will log into your existing account. If this seems confusing to you, call the good people at Vanguard. They can help guide you in getting set up and through the steps of moving money around. If you can, be in front of your computer when you call them as it will make the process easier as they will walk you step by step.
Once you have a Roth account, you can add to it using the same mutual fund or adding different funds within that account. Within Vanguard there are no fees to transfer money from one fund to a different fund within the same account.
You do not need a brokerage account to add different mutual funds to your Roth IRA.
With an IRA or a Roth IRA you cannot truly "max out the account", you can only max out your annual contribution, which at this time is $5,500/year. In any given year, you can only contribute this total amount whether into one IRA or more than one IRA - OR whether into one mutual fund or more than one mutual fund.
Good Luck[/u]
|
Tue Feb 24, 2015 9:31 pm |
|
|
moneymaker56
New Member
Cash: $ 1.00
Posts: 5
Joined: 21 May 2015
|
Great ways to make money |
|
|
I myself have spent hours trying to make money online and ifs definitely not easy. I have found affiliate marketing which is a great way to make tons of cash. Affiliate narketing is simple all you do is pick a product promote it with your narketing skills and then boom you get a percentage of the profit when somebody buys it. Many have turned this into theirmain source of income and you can to any of the sources below are great programs that will get you on the right track and make you thousands.
http://bit.ly/1El6zgZ
http://bit.ly/1FpEclI
http://bit.ly/1KlA1vK
|
Thu May 21, 2015 11:10 pm |
|
|
|