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Show HN: StockNerd – A community for index fund investors

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Re: Show HN: StockNerd – A community for index fund investors

#71

Post by fpgaminer »

ryandrake wrote: post #69
fpgaminer wrote: post #65

Earlier quoted context omitted.

> I'd love to see a Financial Independence plan around growing [a] business(es) and retiring early but not crazy early (40-55) and living on a substantial middle/upper-middle income for several decades. That's roughly my plan. My goal is to achieve financial independence, but my wife and I will continue working even after that. FI just gives us the freedom to do work the way we want. My current projections put us at…

Jeez, $24k/yr is my housing budget alone, and I went out of my way to live in a cheap area, multiple hours from work.

Yeah, same here, mortgage is huge in these expensive areas. But having the house paid off is part of our FI plan. That's probably not true of the more hardcore FI crowd. They believe, rightly so, that stocks are better investments than a house and that a mortgage is basically just free investment money. I don't disagree, but I want to own a home ... just cause. So our investment portfolio is definitely real estate heavy :P I sort of balance it out by having less in bonds and more in stocks compared to the Boglehead's advised ratios (I don't see the value in having bonds for an FI plan anyway, but perhaps I'm just misunderstanding something?).

EDIT: See my edit above; I realized I forgot to clarify that my $24k/yr figure was excluding mortgage.

Re: Show HN: StockNerd – A community for index fund investors

#72

Post by ryandrake »

pc86 wrote: post #49
hamstercat wrote: post #46

Earlier quoted context omitted.

It's pretty popular in the Financial Independence crowd, where the goal is to get enough money to be able to live on interest alone. It's not for the extremely wealthy, rather the somewhat high-income middle class. You can even make it work with less income if you can manage to cut your expense. Most people adjusts (ie: increases) their spending when they get additional income, but it doesn't have to be that way. In…

The FI crowd is 90% expense management and 10% investment. It seems like most folks there have a goal to stop working but are willing to do that and live like a pauper the rest of their lives. If that works for them, great, but I'd much rather work at a job I love, make very good money, and enjoy my life, rather than "retire" at 35 and live on $24k/yr in interest for the rest of my life. I'd love to see a Financial I…

I've read some of those web sites and they're insufferable. Buy a house in cash so you have no payments, shop only at Goodwill, collect rain water for drinking, and never, ever get sick, and you, too can retire at 40!!

Re: Show HN: StockNerd – A community for index fund investors

#73

Post by lukewrites »

baccredited wrote: post #25

Warren Buffet tells his heirs to go 90% SP500 and 10% Bonds. So just buy VOO and BND, rebalance yearly and you are done. OR do a 3 fund portfolio like: https://www.bogleheads.org/wiki/Three-fund_portfolio OR buy a target retirement fund from Vanguard: https://investor.vanguard.com/search/?query=Vanguard%20targe... OR fill out a risk profile on Wealthfront/Betterment and invest there. Bottom line is pick an approach a…

Yeah, I think "a community for index fund investors" already exists, and it's the boglehead forums and wiki.

Index fund investing is (relatively) simple and (relatively) boring. Honest questions: What does an app with leader boards, individual portfolios, and stock picking add to that or how does this app fit in with that philosophy?

(edit for grammar)

Re: Show HN: StockNerd – A community for index fund investors

#74

Post by Abundnce10 »

triangleman wrote: post #36
baccredited wrote: post #25

Warren Buffet tells his heirs to go 90% SP500 and 10% Bonds. So just buy VOO and BND, rebalance yearly and you are done. OR do a 3 fund portfolio like: https://www.bogleheads.org/wiki/Three-fund_portfolio OR buy a target retirement fund from Vanguard: https://investor.vanguard.com/search/?query=Vanguard%20targe... OR fill out a risk profile on Wealthfront/Betterment and invest there. Bottom line is pick an approach a…

Also worth knowing: Charles Schwab has reduced the minimum investment to $1 for 10 different index funds, many of which have expense ratios of 0.06% or lower. Their S&P 500 fund, for instance, has an expense ratio of 0.03% for any investment amount. Vanguard by comparison charges 0.15%, 0.04% for investments greater than $10k, and 0.03% for $3+ million.

That sounds much cheaper than the 0.25% that Betterment charges me. Do you happen to know if they offer a traditional/roth IRA and how much they charge?

Re: Show HN: StockNerd – A community for index fund investors

#75

Post by toephu2 »

triangleman wrote: post #36
baccredited wrote: post #25

Warren Buffet tells his heirs to go 90% SP500 and 10% Bonds. So just buy VOO and BND, rebalance yearly and you are done. OR do a 3 fund portfolio like: https://www.bogleheads.org/wiki/Three-fund_portfolio OR buy a target retirement fund from Vanguard: https://investor.vanguard.com/search/?query=Vanguard%20targe... OR fill out a risk profile on Wealthfront/Betterment and invest there. Bottom line is pick an approach a…

Also worth knowing: Charles Schwab has reduced the minimum investment to $1 for 10 different index funds, many of which have expense ratios of 0.06% or lower. Their S&P 500 fund, for instance, has an expense ratio of 0.03% for any investment amount. Vanguard by comparison charges 0.15%, 0.04% for investments greater than $10k, and 0.03% for $3+ million.

What if Schwab raises the .03% fee for their S&P 500 mutual fund to .06% in a few years? They can change their rates anytime right? In that case it would have better to stick with VOO? Of course Vanguard could raise their rates too.

Re: Show HN: StockNerd – A community for index fund investors

#76

Post by exelius »

lukewrites wrote: post #73
baccredited wrote: post #25

Warren Buffet tells his heirs to go 90% SP500 and 10% Bonds. So just buy VOO and BND, rebalance yearly and you are done. OR do a 3 fund portfolio like: https://www.bogleheads.org/wiki/Three-fund_portfolio OR buy a target retirement fund from Vanguard: https://investor.vanguard.com/search/?query=Vanguard%20targe... OR fill out a risk profile on Wealthfront/Betterment and invest there. Bottom line is pick an approach a…

Yeah, I think "a community for index fund investors" already exists, and it's the boglehead forums and wiki. Index fund investing is (relatively) simple and (relatively) boring. Honest questions: What does an app with leader boards, individual portfolios, and stock picking add to that or how does this app fit in with that philosophy? (edit for grammar)

The only thing it seems to add is the opportunity for people to sell you high-margin investment products -- which is exactly what index fund investors are trying to avoid. Any investment product with a marketing budget is taking fees to pay for that, which means they will be unattractive to index investors.

Re: Show HN: StockNerd – A community for index fund investors

#78

Post by pc86 »

ryandrake wrote: post #69
fpgaminer wrote: post #65

Earlier quoted context omitted.

> I'd love to see a Financial Independence plan around growing [a] business(es) and retiring early but not crazy early (40-55) and living on a substantial middle/upper-middle income for several decades. That's roughly my plan. My goal is to achieve financial independence, but my wife and I will continue working even after that. FI just gives us the freedom to do work the way we want. My current projections put us at…

Jeez, $24k/yr is my housing budget alone, and I went out of my way to live in a cheap area, multiple hours from work.

Where are you "multiple hours" away from work (presumably in a place that doesn't have salaries close to what you make now) and still paying $2k/mo+ in housing?

Re: Show HN: StockNerd – A community for index fund investors

#79

Post by jjeaff »

toephu2 wrote: post #75
triangleman wrote: post #36

Earlier quoted context omitted.

Also worth knowing: Charles Schwab has reduced the minimum investment to $1 for 10 different index funds, many of which have expense ratios of 0.06% or lower. Their S&P 500 fund, for instance, has an expense ratio of 0.03% for any investment amount. Vanguard by comparison charges 0.15%, 0.04% for investments greater than $10k, and 0.03% for $3+ million.

What if Schwab raises the .03% fee for their S&P 500 mutual fund to .06% in a few years? They can change their rates anytime right? In that case it would have better to stick with VOO? Of course Vanguard could raise their rates too.

The one advantage of Vanguard is that the company itself is owned by its funds. So the very people who pay the admin fees are the ones who vote the leadership in or out. So raising fees would be unlikely unless necessary and they are known to be very frugal as a company as well so I feel like they are unlikely to need more fees. Especially with almost $3 Trillion under management.

Of course, there isn't any real cost to switching. So you could always switch to Schwab or vice versa as needed.

Re: Show HN: StockNerd – A community for index fund investors

#80

Post by jjeaff »

Abundnce10 wrote: post #74
triangleman wrote: post #36

Earlier quoted context omitted.

Also worth knowing: Charles Schwab has reduced the minimum investment to $1 for 10 different index funds, many of which have expense ratios of 0.06% or lower. Their S&P 500 fund, for instance, has an expense ratio of 0.03% for any investment amount. Vanguard by comparison charges 0.15%, 0.04% for investments greater than $10k, and 0.03% for $3+ million.

That sounds much cheaper than the 0.25% that Betterment charges me. Do you happen to know if they offer a traditional/roth IRA and how much they charge?

They do. Vanguard doesn't charge anything extra for retirement accounts. It's just a matter of ticking a box when you sign up. Schwab is probably similar.
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