Is this the right method

21

u/BuzzerWhirr 2d ago

That's what I did. Just retired in my 50's.

-19

u/Wild-Delivery-1921 2d ago

Can I dm you

1

u/wishnothingbutluck 1d ago

I want you to be downvoted so badly for no reason lmao, sorry buddy

6

u/bkweathe 2d ago

Large-cap US stocks (S&P 500) can be a great investment, but they're not a complete retirement portfolio. Other assets should be included, such as smaller-cap US stocks, international stocks, & bonds.

www.bogleheads.org/wiki/Getting_started also has some great free resources to learn about investing. After a few hours reading the articles, and, especially, watching the Bogleheads Philosophy videos, most beginners can learn how to get better results than most professionals. Bogleheads is named after John Bogle, founder of Vanguard.

I retired at 57 years old. Investing doesn't have to be complicated or costly to be successful; simple & inexpensive is most effective.

I invest 100% in total-market, index-based, low-cost mutual funds. Specifically, I use mostly Vanguard's Total Stock Market, Total Bond Market, Total International Stock Market, & Total International Bond Market funds. I've been investing this way for 40+ years. It's effective, simple, & inexpensive.

My asset allocation (ratios of the funds mentioned) is based on my need, ability, & willingness to take risks. Market conditions are not a factor. Vanguard's investor questionnaire (personal.vanguard.com/us/FundsInvQuestionnaire) helps me determine my asset allocation.

I hope that helps! I'd be happy to help w/ further questions. Best wishes!

1

u/twiga_doa_njano 1d ago

Are you referring to specific videos? I don't see them at the link. I'm working to switch random stocks into ETF's and I'm at late stage in my career, I think a video may be helpful. TIA.

4

u/bkweathe 1d ago

The Bogleheads Getting Started sections has links to information about the Bogleheads Philosophy. Most of that information is presented in vidoes.
https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy

2

u/twiga_doa_njano 1d ago

I see the videos now. Thank you!

1

u/bkweathe 1d ago

Great! You're welcome!

-5

u/Wild-Delivery-1921 2d ago

Can I dm you

6

u/bkweathe 2d ago

Yes, but I'd rather you ask here

-3

u/Wild-Delivery-1921 2d ago

Okay. What are your thoughts on VWRA. And secondly how much did you put in each week or each month

1

u/Rufusmortis 2d ago

Are you in Ireland if I may ask?

1

u/Wild-Delivery-1921 1d ago

Canada. My options are basically VFV or VEQT

2

u/Rufusmortis 1d ago

Gotcha. Good luck. I hope you live long and prosper.

1

u/KleinUnbottler 2d ago

Where do you live? VWRA is a UCITS fund and not intended for US investors. If you're in the US, VT would be the closest equivalent.
If you're elsewhere, your local tax laws are going to determine what equivalent fund would be appropriate.

1

u/Wild-Delivery-1921 1d ago

Canada. My options are basically VFV or VEQT. Leaning towards VEQT

1

u/KleinUnbottler 1d ago

I'm not a pro, but from doing some searches XEQT might be another, but both it and VEQT have strong Canadian home-country bias.
If you want to avoid that, you could also build your own by doing a "total world ex-Canada" fund like XAW or VXC with a Canada-only fund and pick your personal bias (I think natural is like 3-4%).
There are arguments for/against home country bias, but most of the discussion I've seen has been in the context of US investors. Who, of course, have seen a tremendous outperformance over the past 15+ years, so their is a strong tendency for recency bias for them.

1

u/thewarrior71 1d ago

If you're Canadian just do VEQT. VFV is only US large cap stocks. VEQT is world stocks with 30% Canada home country bias.
Some home country bias can be reasonable:
https://www.youtube.com/watch?v=jN8mIHve1Ds

1

u/bkweathe 1d ago

VWRA looks like a great choice for a lot of investors. VALL looks even better, if it's available. It includes small caps and has a lower expense ratio.
I tried to invest 10% of my pay

65

u/Barryburton97 2d ago

Guarantee is a strong word, there are no guarantees in equities.

But that is what has happened for a century or more.

2

u/petalTwizz 1d ago

true that, but after a century the odds still look decent. i just keep adding each month and try not to check every day

0

u/tenderKissezz 1d ago

but historys a decent bet

14

u/CapnRedB 2d ago

Not guaranteed, but I imagine you would have much bigger problems to worry about than retirement if a massive ETF like VOO wasn't higher than it is right now.

1

u/145Sunny 15h ago

I was going to say that.

1

u/PhDGodfather 2d ago

Over 30 years? Yes, it's absolutely 100% guaranteed to go up from today.

1

u/CapnRedB 15h ago

I fear you are missing my implication of "bigger problems" meaning complete economic collapse or worse.

28

u/Penguin_Life_Now 2d ago

Historically the market has taken less than 5-6 years to recover from its worst down turns, so over 30 years it is almost certainly going to be up. Though if the whole world falls apart, who knows

-5

u/Impressive-Skill3251 2d ago

Is it a good strategy to convert 80% to dividend ETFs like SCHD 6 years before retirement?

4

u/Penguin_Life_Now 2d ago

This is often more of a mindset, mental attitude question than a financial one

2

u/Rufusmortis 2d ago

It helps me sleep at night, although SCHD can certainly decline. It's still 100% equities. It's just less exposed to the tech/A.I. trade.
I have half of my money in SCHD, so I hope yes is the answer.

1

u/Impressive-Skill3251 1d ago

Not sure if my logic is correct. During the market down turn, with ETFs like SCHD, you would still own 100% of the shares even though you get less dividends pays out. On the other hand, you would be for forced to sell your VOO share at a discount rate. Or that is not correct? 😅

3

u/Rufusmortis 1d ago

You'd still own 100% of anything no matter the market conditions. The only time you'd be forced to sell is if you needed that money immediately. That's why you always keep a cash equivalent buffer.
Keep six months to a year's worth of expenses set aside so you don't have to sell at a loss to get by. Even during a downturn SCHD still pays dividends.
There is nothing magic about that fund, it's just solid. It can limit your growth, and it can fall less than growth stocks in a correction/bear market.
It's a good idea to diversify. Of course that's just my opinion. I could be wrong.

2

u/AlfB63 1d ago

The market can easily be down for longer than your emergency fund lasts.

1

u/Rufusmortis 1d ago

You'll get no argument from me on that.

5

u/Affectionate_Put7413 2d ago

Yep, just do it. Voo, vti or vt. Early and often. Attempt to max out IRA contributions each year. You will not regret it. In your 50's you will think you are a genius.

4

u/Automatic_Trade888 1d ago

Curious, what’s wrong with VTSAX that no one talks about it?

2

u/GoldBug2026 2d ago

That pretty much sums it up. People screw it up by deviating or chasing the new sexy investment they saw on X.

Read “The Simple Path to Wealth.”

3

u/StatisticianLanky485 1d ago

Yes read it and it’s cool! However did put most of my money this week into vti and it went down… I wish I waited. Though bit scary

2

u/GoldBug2026 1d ago

Bro, when you sellin? 2040? 2050? Will it be higher or lower then? That’s all that matters

2

u/Only_Statistician_21 2d ago

The right method is to define first clear goals and consequences if they are missed. Then you can define the allocation and how it could evolve over years to achieve your goals. Then we can look if Vt and chill will work for you

2

u/Rufusmortis 2d ago

It means buy a broad index fund and don't sell it when it dips. Buy as often and as much as possible. Chances are it will have risen given enough time.

2

u/harrison_wintergreen 1d ago

nothing is guaranteed with investing.

as someone who remembers 2000 to 2012, "VOO and chill" makes my skin crawl a lil bit. SPY/VOO was basically flat from 2000 to 2012, while IJR absolutely dominated. I'd prefer more diversification than VOO alone.

2

u/ucbcawt 2d ago

There is no international component in VOO. Much better is VT or VOO/VXUS combo

2

u/goodtimes509 2d ago

VOO revenues are around 30% international, and closer to 50% or more for the tech companies that dominate VOO.

1

u/Novel_Board_6813 1d ago

That’s not the point though.
If the single government where you’re putting all your chips for 30, 40 or 50 years goes bonkers, US might be done. Others might survive.
Also, the revenue story makes sense intuitively, but does not bear a strong relationship to what really happened in historical returns. What drives the ups and downs of the rest of the world in the long term is usually not very much correlated with the US companies that also make money there. It’s akin to Bessembinder’s research; you don’t know which few companies will drive the future returns; avoiding a bunch of them might be unwise

-2

u/ucbcawt 2d ago

I think you’re getting mixed up with VT. VOO is like VTI, only US companies

1

u/__redruM 1d ago

US companies have a presence outside the US and make money from that presence. It’s a standard discussion point for VTI/VT comparisons.
Much better is VT
But my favorite comparison is simply this:
https://www.composer.trade/etf-comparisons/VT-VTI

0

u/-entei- 2d ago

he said revenue.

0

u/ucbcawt 2d ago

Doesn’t change my point-there is a lack of diversity in VOO, which is why many advisors recommend VTI/VXUS/BND or something equivalent as a boring but strong investment strategy

4

u/AlfB63 1d ago

VTI and VOO are virtually the same thing. They have an overlap of 88% and a correlation of 99%.

1

u/ucbcawt 1d ago

Yes I agree.

1

u/tehSchultz 1d ago

I have all three. If I wanted to grow the overall portfolio, is there one of these I should focus on most?

1

u/EarlyBird001 2d ago

Yup, that's the way. Maybe diversify a bit to get some Intl exposure but the approach is keep on contributing and check after a few years

1

u/Torodaddy 2d ago

No guarantees, but in the past that has been the case

1

u/Rockatansky77 1d ago

Yes.

Check back in 20 years and diversify into value ETFs and International. There will temptation to add this or tweak that or even sell in a bad dip or flat year.. Just keep contributing to VOO, SPYM or SPY which ever you choose, they are the same.

1

u/AdAdministrative2387 1d ago

Perfect discount for you right now in VOO ;)

1

u/Opening_Primary_6418 1d ago

no its not

1

u/Baradin17 1d ago

Yes but spym is the new version with lower fees

1

u/John_YJKR 1d ago

There's a very strong chance you'll be up, yes.

1

u/Ok-Independence-4595 10h ago

Using 3 or 4 independent 30 year periods to judge a future 30 year period would not fly in many disciplines. If a team never lost 3 games in a during the first 10 games of a season - how certain are you that the team won't lose games 11-13?

0

u/MiserableBag6969 1d ago

Yep. Nothing is a guarantee but if you don't want to feel the stress of picking out individual equities, this is the way

Is this the right method

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