Stock, the economy and the Fed for 2023

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rowsdower88 said:
Fidelity ZERO funds - no expense ratios

If you got $500k in VTI you could be saving >$150/yr if you had it in FZROX instead.
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That’s a good option if your money is already in a Fidelity account.
Selling your shares, transferring to Fidelity, and buying FZROX might cost or save you a lot of money as the market moves during the time between your sale and purchase.
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triggermaster said:
That’s a good option if your money is already in a Fidelity account.
Selling your shares, transferring to Fidelity, and buying FZROX might cost or save you a lot of money as the market moves during the time between your sale and purchase.
Click to expand...

Wasn't meant to be advice for sale, more like advice for where to put future money if you're into broad based etfs.
 
rowsdower88 said:
Wasn't meant to be advice for sale, more like advice for where to put future money if you're into broad based etfs.
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I get it. I was just pointing out to everyone that that fund is kind of a loss leader to get people into fidelity rather than a generally available fund. It’s great if you are starting a new account or already with Fidelity though 👍
 
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ChiDO said:
DFA funds are typically harder for novice investors to get into and understand. Thus, again, dump money into the us stock index fund of your choosing at one of the big brokerages.
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DFA now offers ETFs. They are superior to Vanguard for International and Small Cap exposure. Their returns have been validated over decades. The expense ratios re very low and well worth the extra few dollars over Vanguard.

About half my money is with Vanguard so I like them for low cost, tax efficient funds/ETFs. But, there are others out there like Fidelity, Schwab and DFA that offer excellent alternatives. For retirement accounts, you also have TRowe Price as an excellent choice.
 
BLADEMDA said:
DFA now offers ETFs. They are superior to Vanguard for International and Small Cap exposure. Their returns have been validated over decades. The expense ratios re very low and well worth the extra few dollars over Vanguard.

About half my money is with Vanguard so I like them for low cost, tax efficient funds/ETFs. But, there are others out there like Fidelity, Schwab and DFA that offer excellent alternatives. For retirement accounts, you also have TRowe Price as an excellent choice.
Click to expand...

I just stick with vanguard because they were the first and I trust them.
 

Avantis Investors

www.avantisinvestors.com www.avantisinvestors.com

My understanding is that American Century created Avantis to use the DFA strategy of smart investing. So, between Avantis and DFA ETFs, almost all the mutual funds from DFA are now offered as an ETF without an adviser. Prior to 2020, the only way to buy DFA funds was through an adviser or some select retirement accounts. I think Vanguard's products are just as good for US based ETFs except Small Cap. For international exposure, both DFA and Schwab are better than Vanguard.
 
"Avantis funds are a great new option for savvy investors and worth a careful look. While the expenses are higher than Vanguard index funds/ETFs, the tilting and execution just might be worth the price."

www.whitecoatinvestor.com

Avantis vs. Vanguard — Which Is Better? | White Coat Investor

Trying to determine whether you should invest in Avantis funds? Let's take a deep dive and compare it to what Vanguard offers.
www.whitecoatinvestor.com www.whitecoatinvestor.com
 
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I was playing around on the retirement calculator. Many of you will need to save about $11,000 per month to retire at age 66 in order to collect $20,000 per month. Estimated retirement number is $9 million US Dollars. 15 million saved to get 30,000 per month in retirement. That's quite a lot of savings and bull markets.

Retirement Calculator - How much to retire?

Looking for a retirement calculator? This calculator shows what interest rate you needto earn to reach a retirement goal.
www.bankrate.com www.bankrate.com
 
BLADEMDA said:
I was playing around on the retirement calculator. Many of you will need to save about $11,000 per month to retire at age 66 in order to collect $20,000 per month. Estimated retirement number is $9 million US Dollars. 15 million saved to get 30,000 per month in retirement. That's quite a lot of savings and bull markets.

Retirement Calculator - How much to retire?

Looking for a retirement calculator? This calculator shows what interest rate you needto earn to reach a retirement goal.
www.bankrate.com www.bankrate.com
Click to expand...


Why would anyone need $20k/month in retirement? College tuition for grand kids?
 
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nimbus said:
Why would anyone need $20k/month in retirement? College tuition for grand kids?
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Seriously, after I have no mortgage, my cash-flow requirements will be MUCH lower.
 
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Small Caps Still Look Cheap​

One area of the market that hasn’t changed much over the past year is small cap stocks—especially small-cap value stocks, which are trading at a discount of about 33%.

Small-cap stocks in every style category were trading at an average P/FV ratio of 0.81 as of Dec. 13—a 19% discount. That’s smaller than the 32% discount the category averaged a year ago, but still significant compared to other areas of the market.
 
BLADEMDA said:
I was playing around on the retirement calculator. Many of you will need to save about $11,000 per month to retire at age 66 in order to collect $20,000 per month. Estimated retirement number is $9 million US Dollars. 15 million saved to get 30,000 per month in retirement. That's quite a lot of savings and bull markets.

Retirement Calculator - How much to retire?

Looking for a retirement calculator? This calculator shows what interest rate you needto earn to reach a retirement goal.
www.bankrate.com www.bankrate.com
Click to expand...
Best calculator I've found FIRECalc: A different kind of retirement calculator
 
As you can see, a 3% withdrawal rate is bulletproof, and most people consider 4% as good enough. Five percent starts introducing some significant risk (runs out of money one-third of the time in a 30-year retirement with 50% stocks). It's a 50/50 proposition at 6%, and by 8%, you would have run out of money 90% of the time. This is why you hear about the “4% rule” (really it's more of a 4% guideline).



The 4% rule isn't really a great withdrawal/spending method in retirement, but it's pretty useful as a rule of thumb to determine how much you need to retire. You just have to reverse-engineer it. If you can spend 4% a year, then you need 25X what you spend. That's a lot of money. At least a million, and for many doctors, $5 million-$10 million dollars. This is the bad news of physician retirement.

WCI

www.whitecoatinvestor.com

How Much Money Do Doctors Retire With? | White Coat Investor

How much money will you need to retire? Let's run through all the information you'll need to calculate your target number.
www.whitecoatinvestor.com www.whitecoatinvestor.com
 
BLADEMDA said:
As you can see, a 3% withdrawal rate is bulletproof, and most people consider 4% as good enough. Five percent starts introducing some significant risk (runs out of money one-third of the time in a 30-year retirement with 50% stocks). It's a 50/50 proposition at 6%, and by 8%, you would have run out of money 90% of the time. This is why you hear about the “4% rule” (really it's more of a 4% guideline).



The 4% rule isn't really a great withdrawal/spending method in retirement, but it's pretty useful as a rule of thumb to determine how much you need to retire. You just have to reverse-engineer it. If you can spend 4% a year, then you need 25X what you spend. That's a lot of money. At least a million, and for many doctors, $5 million-$10 million dollars. This is the bad news of physician retirement.

WCI

www.whitecoatinvestor.com

How Much Money Do Doctors Retire With? | White Coat Investor

How much money will you need to retire? Let's run through all the information you'll need to calculate your target number.
www.whitecoatinvestor.com www.whitecoatinvestor.com
Click to expand...
Try it where you ramp down from 5% to 3% over 20 years,
 
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S&P approaching 5000. Soft landing seems achievable and it’s an election year. $6 trillion on sidelines. Distant wars seem to be a stimulus. The Fed hasn’t actually touched interest rates yet.


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anbuitachi said:
how do they make money wthi this fund? by hoping people use other services?
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Yup. Loss leader. Also can’t own these funds outside of Fidelity. Can’t buy in another company’s brokerage account. Can’t transfer in kind to another fund company after purchasing at Fidelity. Must sell. If not in IRA that means taxable event.
 
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Dr. Rude said:
Yup. Loss leader. Also can’t own these funds outside of Fidelity. Can’t buy in another company’s brokerage account. Can’t transfer in kind to another fund company after purchasing at Fidelity. Must sell. If not in IRA that means taxable event.
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Also make money through securities lending.
 
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