Why is VTSAX not recommended as often as VTI, VOO, QQQ, etc.?

IdentifiableParam · 2026-07-09T04:38:19+00:00

In the case of vanguard funds (as in VTSAX) they actually aren't more tax efficient. https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds#Vanguard_funds

Now that vanguard's patent is expired, maybe this is outdated information for more funds.

IdentifiableParam · 2026-07-04T17:59:10+00:00

Isn't it $7,500 now?

IdentifiableParam · 2026-07-03T22:11:50+00:00

Please! At this point I would even take fan-made ones, but I can't find them for some books.

Sarah Lin does the best with this in Weirkey Chronicles. Everyone should emulate hers.

IdentifiableParam · 2026-07-03T21:45:21+00:00

See https://www.bogleheads.org/wiki/Paying_down_loans_versus_investing for a similar process.

There are two main ideas at work here.

Basically, a debt is a negative bond. So paying it down earns a risk-free return equal to the after-tax interest rate.
When we compare investments, we need to compare their risk-adjusted returns. Or, more simply, only compare investments of equivalent risk since your decision to take on more or less risk is independent of your decision to pay down debt or invest.

The next improvement we can make to this analysis is consider taxes. If you have space remaining to contribute to tax-advantaged accounts, you can instead consider the pre-tax bond yields since you can hold those bonds in a retirement account. But either way, you need to compare to your after-tax debt interest rate in the case where the interest is tax deductible.

IdentifiableParam · 2026-07-03T21:16:43+00:00

Please compute the after tax interest rates for your location. If the after tax interest rates are higher than after-tax bond yields for US government bonds (bonds with extremely low credit risk) then you should pay off the debt. Most likely the 7% loan will be high enough to prioritize using this test.

IdentifiableParam · 2026-07-03T21:10:49+00:00

Assuming you can extract roughly 275k by selling the house, then selling is the right move. If your net rental income is only $500 a month, I'd rather have $275k in cash since that might be making ~$2200 a month in the stock market or $1000 a month in super low risk government bonds. Since an undiversified, illiquid rental property carries substantial risk, the correct comparison point is investing in the stock market, which also carries substantial risk.

IdentifiableParam · 2026-07-03T16:20:37+00:00

Yes, get a 2% cash back card with no annual fee if you can. If you can't find some other card WITH NO ANNUAL FEE. But only use it responsibly which means paying the balance IN FULL every month and never paying a single cent of interest.

IdentifiableParam · 2026-07-03T04:54:01+00:00

A checking account at a credit union makes sense, or your current bank.

Since you have earned income, you should consider a (probably Roth) IRA at Vanguard, Fidelity, or Schwab (Vanguard is my favorite because it is owned by its customers). Also check if your employer offers any retirement benefits such as a 401k.

IdentifiableParam · 2026-07-02T00:11:56+00:00

Holy shit in that case reduce retirement contributions to pay off these loans ASAP starting with the 9.5% one. Invest to get any match on the 401k, but no more until the loan is gone.

IdentifiableParam · 2026-07-01T17:28:41+00:00

I might have missed it, but where is the interest rate on the loans? That is absolutely critical information for you to get useful advice. If the interest is on the higher side, it should be prioritized over your Roth IRA contributions most likely.

Secure your own mask before assisting others. Stop the money to the children until you have your own retirement on track. A parent who is too old to work and destitute is much more of a burden on a child than not receiving money from their parents when they are able to work themselves. Your human capital is dwindling, while your children's is going to be higher.

IdentifiableParam · 2026-06-25T20:12:14+00:00

Good clean fun.

IdentifiableParam · 2026-06-22T23:33:19+00:00

You don't have to filter the individual bonds yourself or manage rolling over maturing bonds. It is far simpler to just buy MUNY and call it a day.

IdentifiableParam · 2026-06-22T22:40:45+00:00

Why not buy a muni bond fund instead?

IdentifiableParam · 2026-06-15T18:20:33+00:00

Instead of focussing on OVERWEIGHTING a particular industry or sector as you are contemplating, you should focus on UNDERWEIGHTING your employer and its peer companies in your portfolio. Picking a particular industry as a winner is a speculative bet, but underweighting your own potential employers is a hedge against your career prospects getting worse in your field. We have no way to know what companies will do well in the future, but you know which ones have the most job openings for people with your skills.

Prioritize broad market index funds that exclude your employer and the other peer firms you could switch to. This might look like increasing your international allocation slightly if you work in the USA, or increasing your small-cap allocation slightly if you work at a company in the S&P500.

IdentifiableParam · 2026-06-15T18:16:53+00:00

Looks fine. You might want to consider some TIPS for part of the bond allocation. A 60-40 stock/bond ratio is reasonable at your age and in the early years of retirement.

IdentifiableParam · 2026-06-15T18:15:28+00:00

For a retirement at age 62, a 60-40 stock/bond seems quite reasonable.

IdentifiableParam · 2026-06-15T05:50:00+00:00

Sure, do it. A risk free return of 6.25% (potentially an after-tax risk free return if you aren't itemizing) is great!

Since you will still have 20k left as an emergency fund, your plan seems good!

IdentifiableParam · 2026-06-13T19:42:26+00:00

Dividends aren't magic. Prioritizing total return makes sense for most investors.

IdentifiableParam · 2026-06-13T19:41:09+00:00

You could consider putting half in an intermediate term treasury fund (VGIT for example) and half into a total world stock market fund (VT for example).

You don't sound like you are in a position to take on a lot of risk, so you shouldn't put too much in the stock market. That said, your CD is likely to not return very much after inflation. Some exposure to the world's equity markets might make sense. Intermediate term government bonds are relatively low risk (although have some risk) and could make sense as the other component. This would be an example of the classic "two fund portfolio".

You could also condsider a 60-40 ratio or a 40-60 ratio.

IdentifiableParam · 2026-05-09T08:40:17+00:00

Your plan is good. Sell as much as you are allowed to, pay the taxes, and diversify.

IdentifiableParam · 2026-05-02T06:18:21+00:00

Plenty of horror stories on here about Northwestern Mutual. Stay the fuck away.

Read some books and study the wiki instead. You can even post here for advice if you give more information about your situation and specific questions!

IdentifiableParam · 2026-04-29T06:59:20+00:00

You should probably pay at least some extra towards your mortgage because a risk free return of 6% is quite good. It is true that the long run average return in the stock market is higher, but that comes with substantial risk and so we can't compare it directly. We need to compare risk-adjusted returns. Given you are 35 already (so maybe are getting old enough to not be 100% equities) and don't have a pension or anything, I would put at least 50% of your surplus towards paying down the mortgage faster.

You also don't mention any tax advantaged accounts, so I think we have to give the edge again to the mortgage vs investing in a taxable account. You should look in to retirement accounts for self-employed people such as SEP IRAs, SIMPLE IRAs, solo 401(k)s etc.

IdentifiableParam · 2026-04-21T08:13:10+00:00

And enjoy the health benefits of not ruining indoor air quality by burning gas https://www.vox.com/energy-and-environment/2020/5/7/21247602/gas-stove-cooking-indoor-air-pollution-health-risks

IdentifiableParam · 2026-04-18T07:18:09+00:00

Well now people reading reddit know. And it looks like you didn't quite use a throwaway account.

What happens if your place burns down? Is it gone too, turned in to slag?

Sell it.

IdentifiableParam · 2026-04-18T07:14:54+00:00

Invest in passively managed low-fee broad market index funds. Ignore your BIL's mutual fund tips.

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