So Vanguard is one of the largest investment brokers in the world. It has about $5T in assets under management and the founder of Vanguard John Bogle pioneered the creation of the index fund. I am a huge fan of vanguard and in this video I will discuss why their S&P 500 index fund is the best investment you can make in the stock market…Let’s Get into it
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DISCLAIMER: THIS VIDEO IS FOR ENTERTAINMENT PURPOSES ONLY. YOU SHOULD ALWAYS CONSULT WITH A PROFESSIONAL FINANCIAL ADVISOR BEFORE MAKING ANY DECISIONS WITH YOUR MONEY
Alright so we are going to be talking about the Vanguard index fund that John Bogle created in 1976 as it was the very first one. This funds ticker symbol is VFIAX. It used to be VFINX as well, but this was just another version of the fund with a lower minimum, but they have since closed it to direct all traffic to the less expensive option which is VFIAX. This S&P 500 index fund has an expense ratio of 0.04% and you just can’t get any lower than that. This fund is the perfect instrument to invest into because it has low cost, it will perform exactly how the overall market will. This investment may not be for everybody, so here are the people that I do think it will be for. First, for those that have a very long-time to invest. So if you are young with a lot of time on your hands this fund is for you because there is no telling what will happen to other funds that are managed differently than this index. Second, you have to have serious self-control. You need to invest in it when you're 20 years old and then don’t touch it at all until you’re retired. If you can’t handle the ups and downs of the market and not let it drain your emotions from you then you need to find another way to invest. You need to be okay with index fund odds. Those are that 85% of the time you will beat all other actively managed mutual funds out there. If you are chasing the 15% then you need to look elsewhere. This is in my opinion the best investment you could make over your life because you're pretty much guaranteed to earn the return that the market earns without doing anything. There is no need for a financial advisor, no need to do research on the best single stocks. Also no need to try and time the market to figure out when is the best time to buy and sell. If you just invest throughout your whole life to this index fund, you will pay hardly anything in costs and you can grow really small amounts of money to huge amounts over time with no work. If you are 23 years old and you invest $6k a year into your Roth IRA until you’re 60 then you would have anywhere from $1M – $4M depending on the rate of return over the next several decades. If you are torn between where to invest your money then the best advice I can give is to read John Bogle’s book “Common Sense Investing” This will tell you all you need to know about index funds and will provide a ton of data to support why they are the better investment for most people.
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I respectfully disagree even though VFIAX is a very good fund. There are multiple S&P 500 funds with lower expense ratios, lower initial investment, and some with better returns.
– FNILX: 0% expense ratio, better performance, and $1 minimum initial investment.
– ETF IVV: 0.03% expense ratio, same performance, and $1 minimum if used on a fractional share platform.
– SWPPX: 0.02% expense ratio, slighly lower performance, and $1 minimum initial investment.
– ETF SCHX: 0.03% expense ratio, better performance, and $1 minimum initial investment on platforms that use fractional shares.
I invest with vfiax but I might have to check these out as well.
Why do people hate VFIAX
Because you lose out on all other stocks outside of top top 500. So some othersike total stock index fund.
VOO ETF for me! 👍
Great vid
If I put 3000 in the start, can I put in less money than 3000 dollars a month in the fund? thanks 🙂
Yes
Additional investments as little as $1 month
With a 3k investment how much can i make in a year or month
This info might help. 11 months ago I invested into VFIAX with 5,500. I completely forgot about it and never added anything to it. I checked it last night and it is at 6000 dollars. Yes it made 500 dollars during one of the most rollercoaster years but I literally did nothing but park this money into this fund. This next year I plan to actively invest monthly into my VFIAX
If you were to invest that 3K when the price drop to $206 in March 2020, you would have had $5209 as of Feb 7, 2021. And a little more because it pays dividends.
I’m thinking about buying into VFIAX and/or VTSAX and maybe a little total bond market index also with the goal of working towards financial independence. Regular contributions monthly and reinvesting the gains. Is this a good idea?
need to hodl
If I open a Roth IRA vanguard account can I purchase the VFIAX or only EFT which is VOO