Since a lot of us here have expressed interest in not starving to death in a gutter, I figured I'd start a weekly thread to discuss financial matters.
Ground Rules
- Remember that we're all just Internet randos. Don't bet your life savings on a hot tip from this thread.
- Keep culture war in the culture war thread. Yes, global events may impact our personal finances, but that does not mean we have to incessantly harp on culture war aspects here. If you are going to discuss it, please stick to the practical impacts of it on an individual level.
- Be kind. Remember that everyone here comes from different circumstances. We all have different resources available and different risk tolerances.
- Don't let the perfect be the enemy of the good. Better is better. Celebrate people when they take a step up and work to move their finances in the right direction. Don't flame out because they haven't followed what you consider the optimal path. Everybody has to start somewhere.
Jump in the discussion.
No email address required.
Notes -
Personally I'm getting into the upper 6-figures now with VTSAX only, with the total amount from returns about to catch up to my total contributions, with my vanguard account 'personalized rate of return' now over 15% nominal since starting in 2017. I've assumed that probably after 1 or 2 mil, I would think about being more defensive with extra diversification, but maybe not.
It just seems hard to beat US index funds when it comes to getting the most out of confidently throwing a lot of money into investments you don't even have to look at or think about. I'm very appreciative that "VTSAX and chill" was the meme in the FIRE community, who are people who have an interest in actually making the most amount possible without resorting to gambles. A lot of other advice comes from people who have some need to cover their ass, so they'll hedge and try to be prudent suggesting bonds and/or international equities. As for the other side, the intuition that 'index fund advice is for average normie sheep, if you're smart you can beat the market', I'm just happy I don't have that itch because I think it's ruinous with way more losers than winners in the long run.
I'm also sympathetic to people who don't have the incomes or savings rate in order to start socking away enough money for index funds to feel impactful. I think that's where there's more of a sense of 'missed the boat' hopelessness and a felt need to gamble for an initial win to jumpstart/catchup into the index fund 'chill' game.
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