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/biz/ - Business & Finance

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18745087 No.18745087 [Reply] [Original]

What do you prefer biz?

>> No.18745099

shitcoins

>> No.18745142

>>18745099
checked, I guess

>> No.18745285

ETFs I guess. Seems like big money is in ETF

>> No.18745316

>>18745087
mutual fund. At least you will promote price discovery to some degree

>> No.18745342

Mutual funds are for cucks who want to get charged by someone to lose their money

>> No.18745363

>>18745087
S&P 500 INDEX mutual fund

>> No.18745390

>>18745363
VFIAX?

>> No.18745423

>>18745087
Depends on your goal. Mutual funds are for the long term. However do note that active funds are not worth it - see >>18745342. Go with passively managed mutual funds with very low expense ratios. ETFs on the other hand can give you more specific exposure to factors, sectors, and styles and can be day traded and do not require any upfront investment. I would say that with mutual funds you can buy fractional shares but nowadays you can buy ETFs and single stocks that way too.

>> No.18745446

>>18745390
Yes, but there is also an ETF equivalent (VOO). With the ETF you do not need to directly invest through Vanguard, you do not need any initial investment (e.g. $3K, $10K, etc), and with fractional shares you can invest as you go. Neither approach is particularly wrong though.

>> No.18745458

>>18745087
100% INTO $UPRO HOLD UNTIL YOU DIE LITERALLY CAN"T GO WRONG AMERICA WILL NEVER DIE GOD BLESS WITH WONDERFUL MELTING POT AND OUR GRACIOUS LEADER MR TRUMP FOR STEERING THIS SHIP STRAIGHT, AWAY FROM BEANERS AND HOMOSEXES AND INTO THE LOVING ARMS OF JESUS H. CHRIST

>> No.18745599

Interesting responses, thanks everyone. Right now I hold a lot of VTI but need to branch out

>> No.18745646

>>18745087
Never go Vanguard. There are too many high yielding ETFs and besides that CEFs

>> No.18745713

>>18745646
>high yielding ETFs and besides that CEFs
explain

>> No.18745732
File: 481 KB, 800x535, RTX gets its wings.png [View same] [iqdb] [saucenao] [google]
18745732

>>18745087
Neither. RTX is where its at.

>> No.18745738

>>18745087
GILEAD

>> No.18745740

I started putting money in my 401k 5 years ago. Max contributions.

I only have like 60k in there now.

Conversely, I put 5k in a Roth IRA 3 years ago and have 35k in there now just from stocks and options trading, and I've really only been active on it for about a year.

Seems so my Roth is like +700 % and the "managed" 401k that I pay fees on is -12%

seems like a Jewish scam to me... I wish I could take it all out.

>> No.18745750

>>18745342
yeah this guy gets it

>> No.18745834

>>18745740
I got lucky that my 401k lets me invest in VITSX. Everything else is overpriced, actively managed, and cannot meaningfully beat the market on any length of time. I switch over exclusively to it and called it a day. However, I also later discovered that a taxable account is better than a tax-deferred account if I hold for the long term so I also stopped contributing to my 401k.

>> No.18745835

>>18745740
The purpose of the 401k is free money from your employer, and lowering your taxable income. Yes, you can easily outperform it by actively trading if you are lucky, but you shouldn't want to actively manage it. It's supposed to be a safety net rather that grows steadily with the market. Make all your risky moves in your after tax account brokerage if you think you're the wolf of wall street. It's better than being forced to wait till you're 60 for the money.

>> No.18745847

>>18745713
an 8% annual yield is better than 2%. what is there to explain?

>> No.18745902

>>18745835
One can hold all of their investments in their taxable account and just collect qualified dividends for life. Long term capital gains beats federal and state income plus medicare and social security taxes in the long run. If one cannot be disciplined enough to never sell then sure they should use the 401k or IRA but if they are wise enough they should only invest as much as their employer will match them and no more.

>> No.18745920

>>18745847
> 8% > 2%
> Vanguard has too many high yielding ETFs
?

>> No.18745933

>>18745920
kek you're absolutely gone

>> No.18746113

>>18745423
most mutual funds dont outperformed index funds.
mutual funds a meme

>> No.18746143

>>18746113
That's what I was saying. Most actively managed mutual funds either fail to outperform any given index or else their outperformance is undone by all of the taxation created by the turnover. However, index funds are a type of mutual fund.

>> No.18746258

>>18745834
>taxable account is better than a tax-deferred account
How so? Do you invest in anything else besides VITSX?

>> No.18746272
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18746272

>>18745087
neither, old boy
only options, pennystocks, and crypto

>> No.18746473

>>18746258
My 401k offers VITSX versus a lot of JP Morgan mutual funds that had expense ratios starting at 0.4+%. The choice was clear. I have an unusual 401k plan in that I do not get a match but rather a flat $10/hour from the employer regardless of my contributions. If you get an employer match then invest that much because a 100% ROI is always good.

However, a taxable account could be a better investment in the long run than a 401k/IRA if you live in the right state. The federal long term capital gains tax is 15%. When you pay those taxes you do not also pay Medicare or Social Security tax like you do out of your pay check - those two taxes by the way are never deferred. When you contribute to a Roth or withdraw from a 401k you are taxed as regular income for both federal and state no matter how long you held them. The deciding factor therefore is your state's Long Term Capital Gains tax. In my case of IL it is 4.95%. Some states, like TX, have no state tax on capital gains which means that TX investors only have a flat 15% federal tax to pay on any long term investments or qualified dividends. As of the current tax code you also still get standard deduction.

I don't want to say that IRAs and 401ks are a scam or a trap because it might depend on your state and due to the recency of researching this there is every possibility that they used to be better deals than they are now. However, the case now is that those in the right states might not have much incentive to contribute to them. Figure out for yourself what is best. Look up your state's capital gains tax rates.