Getting started with Vanguard


#1

I am finally ready to invest. So all my Vanguard people… where do I even start? Any great funds to start that do not require 3k or 10k investment? Thanks for your time in advance.


#2

100% VOO call it a day!!

That is what I do anyway. Technically all of my money is in VFIAX and VINIX but VOO is the underlying ETF with no minimum requirements other than the current price. 100% equities requires a long investing horizon, which I imagine if you are just starting you have, and a high level of comfort with volatility. But if you wan’t the highest expected return with the simplest set up, I’d say tracking the 500 largest companies in the US is a good place to start. Plus, I heard Buffett is kind of a fan of this strategy…

If you want some more reading on the matter I’d suggest reading JL Collins stock series. He’s a fan VTSAX which you can’t go wrong with either.


#3

Thanks for the quick reply. I will definitely look into it!


#4

Vanguard is a great place to start - and stay - with.

You can go with an ETF, which have no minimums, or if you prefer mutual funds, consider their Target Retirement funds for a great starting point:

https://investor.vanguard.com/mutual-funds/target-retirement/#/

The minimum initial investment is only $1,000, the fees are very low and they are well diversified. They even take care of the re-balancing for you! I often recommend them as a starting investment for my coaching clients.

Good luck,

John


#5

After you establish your account, be sure to link it to your checking account or wherever you have your income direct-deposited to. Then you can set up automatic transfers from your bank account to your new funds.

Pay yourself first!


#6

I agree that target retirement funds (by age) are a great place to start, they do the balance/mix for you according to your retirement timetable, they have low expenses and good returns.


#7

I am a big fan of both VOO and VTI (both ETF) - No minimums.

You can also set up a direct deposit to your vanguard account. That seems to make sure that we definitely invest part of every pay. We also have connected our bank account so that anything we can spare can be invested too.

All the best!


#8

I first started with Vanguard many years ago with their STAR fund. This is before they had target date funds, and it only has $1k minimum. It’s a stock/bond fund with some international thrown in. It’s still done well (I still have that fund) but if I were starting today I’d probably use either a target date fund or go the ETF route


#9

Vanguard is the best place and low cost fees. Schwab also good, but here is what you do. IRAs are only 1,000 dollarsto start, but if you don’t have the money upfront, open a money market save in the money market until you do, then transfer it over. and then dump it in index funds. Good that you are thinking about it.