5 Best Vanguard Index Funds for Financial Independence
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- Äas pĆidĂĄn 11. 09. 2024
- This video covers the 5 best Vanguard index funds that you can buy in 2021 and hold forever. Index funds are the easiest way for beginner investors to build wealth in the stock market. Don't miss out on these top funds from Vanguard!
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Vanguard is a trustworthy name in the investing space as they have built up a solid reputation of offering well-managed, low-cost funds. Broadly diversified Vanguard funds have become a fan favorite in the FIRE (Financial Independence Retire Early) community.
Many of these index funds do have minimum investment amounts that can be scary for beginner investors. So, I also go over the ETF equivalents of these mutual funds that can be bought with even a few dollars on any brokerage.
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I want to share stories and lessons learned while first moving to America, planning my journey to financial literacy, and adopting best practices into my life. As an international, it was difficult to find relevant resources to understand the aspects of life that were different in a new country. This channel is a comfortable space to have those discussions and help each other out!
DISCLAIMER:
1. The advice provided in this video is for informational/entertainment purposes only. The creators take no responsibility for any actions or decisions you may take based on the contents of the video. Please consult a professional for strategies related to your specific needs.
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#indexfunds #vanguard
Here are my top picks for index funds to invest in. Enjoy!
đ Timestamps:
00:55 - What is an index fund?
01:33 - Pick #1
03:22 - Pick #2
04:50 - Pick #3
06:15 - Pick #4
07:34 - Pick #5
10:26 - ETF equivalents
great as always, one thing you called it out is very true "Don't rely on past performance" ..
Agreed, history might not repeat itself.
Keep going mate with your amazing content. đ đ đ
Appreciate it :)
âVanguard is owned by fund holders you mean right and not share holdersâ .. are you both mba , reminding me of my investment and portfolio management classes during my mba đ
Vanguard is owned by the funds managed by the company and is therefore owned by its shareholders - same ideas as a co-op or credit union. No MBA here, just good old learn-as-you-go knowledge haha.
Nice video, it would be nice if you included chapters that we can bounce between for each pick.
Thanks for the suggestion, Karan. I will add it in.
Arjun you are excellent in explaining things in simple and easier way to understand even for people not aware of complex financial planning opportunities.
Could you please share your take on IULs as most of community is trying to jumping in to IULs recently. How good these are for people who are looking for long term retirement planning? Any risk in loosing investments? What are pros and cons? A video on IULs would be great help.
Thanks Srinivas! I would approach IULs with skepticism because they are usually bad investments resulting in big commissions for sales people. I made a video about insurance earlier on my channel that I would encourage you to check out. There are better options
Got it, will explore other videos as well. Thank you for prompt response Arjun. Your video on Power of compounding is simply superb, I forwarded to my familiy groups while they are young and realize compounding power.
Hey Arjun
Great content and a much needed one for those who are in H1b
Quick questions
1. does Vanguard allows H1b holder to open an account?
2. What if an individual wants to go back to India (say a couple of years) and comeback to USA after, what will happen to those funds and vanguard account?
3. If Vanguard doesnât allow to invest for h1b , can we invest in vanguard ETFs through other brokers such as Charles Schwab or ameritrade or fidelity ?
Thanks
Thanks Bhargav! Here are my answers:
1) I have seen some H1B folks have issues opening Vanguard accounts but some have opened them successfully. If you're unable to, Fidelity and Schwab are good options
2) You likely wont be able to contribute to the account if you leave. Not sure if they will let you keep the existing funds - check with customer support
3) Yes, this is always an option. Vanguard ETFs are available across pretty much all other brokerages
@@FinancewithArjun Awesome thanks for the reply.
1.Index funds and ETFs are same and I can go to any other brokerage accounts to invest in Vanguard ETFs isnât it? (especially the ones that are equal to each other interms on holding etc.,)
2. I am assuming there is no commission either with other brokerage accounts if I invest in these vanguard ETFs ?
1) Not exactly. There are actively managed ETFs too (Index funds are passive and just track an index)
2) Investing in Vanguard ETFs from other brokerages should not have any commissions. For eg. you can buy VTI from Fidelity with no extra fees
Great Video!! Thanks!!
I have few questions:
1. Do you invest in index funds directly on Vanguard website or you buy the corresponding etfs from webull(any broker)?
2. Whats the benefit buying directly from Vanguard if you have the minimum capital vs buying from any broker?
Thanks Makrand!
1) I do a combination of both but you can do either one, doesn't really matter. Probably less friction to use your existing brokerage to buy the ETF
2) One is a mutual fund (Vanguard) and one would be an ETF (other brokerages). ETFs trade like stocks while mutual funds settle on a price at the end of day. Advantage earlier used to be automated investing with mutual funds but you can do that with most ETFs now
Hey another great video! Thanks for sharing! Do you know if vanguard lets you keep the IRA accounts untouched until retirement if you leave the country like fidelity does?
Thanks Bhakti! I think Vanguard is less flexible when it comes to that. Would be worth calling up customer service and asking though.
super helpful! thank you brother
Off course!
Hi Arjun, Great video! I was wondering if you could guide people as to opening a Vanguard account and the difference between IRA and general investing. I have been wanting to start investing but I don't know what kind of an account should I even open?
Thanks Madhuri! Please watch my "ultimate wealth building guide" where I walk through exactly which account to open when. I also have a video on IRAs specifically if you're interested in that
@@FinancewithArjun You replied!!!! thank you!!
Thanks for the great content âșïž
Glad you liked it, Ashmit!
Hi Arjun , very helpful finance videos for H1B holders . Can you also do a video on how to effectively save for kidsâ college funds ? Thank you đ
Thanks Smita. I will add that to my list of topics :)
Great information. Thankyou.
Appreciate it :)
Recently noticed ur videos...both of u doing great! Thanks for sharing your ideas.
Just have a doubt..we are on h1b visa. When tried to open a vanguard account got the message "not allowed to do" as we selected the option non resident alien..
So is it not possible to open an account while on visa status or is there any other option
Thanks Manoj! Vanguard can be a little iffy about this but I recommend calling their customer care and checking. If not, Fidelity is another excellent brokerage that you can consider.
thanks for sharing!
Appreciate it!
This is not available on grow app
Excellent information. New fan here. How much % would you allocated to each of the index funds in your taxable brokerage account?
Around 80% of my stock portfolio is in broad based index funds (mainly VTSAX but some VTIAX for international exposure. No bonds yet as I have a lot of investing years ahead)
@@FinancewithArjun : Do you try to diversify across sectors in the remaining 20% or stick with blue chip tech stocks?
Remaining 20% is mixed with both blue chip individual stocks and random fun stocks
@@FinancewithArjun : Hey Arjun, is there any brokerage that automatically invests in individual stocks for dollar cost averaging? Automating investing in stocks would make life much easier for me.
@@44444cesc M1 finance is the one that immediately comes to mind
Hey Arjun,
Great videos!
What are your thoughts on the Fidelity Zero Total Market Index Fund?
Thanks so much Kevin! FZROX? Love it! It's Fidelity's equivalent to VTSAX
Do you hire any financial advisors ? whats your view on it ?
Nope, with these index funds I don't really need one
Excellent !!!
Thank you! Cheers!
Based on current market situation..is it good to start investing now ?
Yes, the market has come down significantly since the beginning of the year
@@FinancewithArjun thank you for your response.
so through work I invest in VFIAX in 401k and I max it out. I just started investing VTSAX through vanguard and planning to do automatic investments every months a fixed $$.
Im investing for long term( 5 to 10 yrs) and I just want to be a passive investor as I dont have time to monitor them every day.
Do you think I'm doing it correctly or is there any other stock options I need to consider apart from VTSAX and VFIAX ?
@@siriconnects8208 that is excellent. You can consider international exposure with VTIAX (and bonds with VBTLX if you're closer to retirement) but VTSAX alone itself is pretty decent
@@FinancewithArjun thank you..appreciate your guidence.i have atleast 25 yrs before retirement.
Do ETF posses any risks compare to traditional index funds ?
They're identical risk wise
Vfiax is mutual fund .. better option is voo
Watch the end of the video where I talk about exactly this :)
@@FinancewithArjun thanks .. your channel is very informative and useful.. it will be good if you share your weekly view on USA stock market