I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
"the only person you should be comparing yourself to is your past self" Thank you for acknowledging that all of us are here because we are new to this and want to be better.
@@SeanLei Not as well diversified as you...about 10 different individual stocks that I think are cheap. Discover, Shake Shack, Lockheed Martin, Progressive insurance...a couple small caps, etc. For me, it is the position I want to be in so I'm fine with it, but I still love your portfolio! Probably a portfolio I'd gently suggest to a beginner! Very simple, diversified, good long term return potential. I like that you considered having some exposure to international stocks to further balance risk.
Great video !!! I’m finding hard sometimes to max out my Roth because I’m so focused on the taxable account .. going to leave the taxable account alone from now on . On your taxable account do you have VTI as well or an S&P?
It’s a great move to focus on your Roth IRA first. I take on more risk in my taxable account, and invest in etfs and individual stocks. I share it here: ua-cam.com/video/VF9IhQqXWLg/v-deo.html
Great stuff! You got a new subscriber. One thing I am confused about though. You have made videos in the past talking about how great VTI is. VTI being the ETF version of VTSAX, and VXUS being the ETF version of VTIAX. So why did you end up picking the low cost index funds over the ETF equivalents? From what I can tell there is basically no difference between them other than the ETF's having slightly lower expense ratios as well as the low cost index funds having a large minimum requirement of 3k. Both of these things makes me more interested in the ETFs but if you have good reasons for going for the low cost index funds I would love to know your thoughts. Thanks for the videos!
The etfs are slightly better! Because my Roth IRA is in vanguard.com, I can’t buy fractional shares of VTI. VTSAX let’s me use all of my dollars, and reinvest my dividends. I’ve chosen to pay the .01% more (for the fee) just so I can automate my dividend reinvestments
@@SeanLei Yup. I just looked into this after posting the comment. I would like to set up automatic payments as well so I went ahead and bought into VTSAX to get started. But since i want to go for the 80-20 split with international, Im going to buy ~$1200 (20% of my first 6k in roth ira) of VXUS for now, then move it over to VTIAX when I own 3k of VXUS
@@SeanLei I had the same question and am a SUPER beginner so just wanted to clarify what this means: I think this commenter wants to do the 80/20 split with domestic/international stocks and is proposing purchasing 20% VXUS and then waiting until they reach the minimum $3k amount with this stock to then purchase and switch from an ETF version to VTIAX. I am wondering how one goes about this? Would I just buy 80% VTSAX and 20% VXUS right now and then check in at some point when I've got $3k worth of VXUS to then sell it for VTIAX? I'm just not sure what it means to purchase the ETF version instead and if there's any cons with that for the time being. I'm 24 so I'm trying to be more risky while I'm younger and plan to invest all in stocks with a 80/20 split for my Roth IRA and am hoping for some clarification before I make a big mistake in my first purchase.
Up 22.4% from 1 year ago. Hasn’t changed! Come January 1st I’ll contribute the Roth IRA max of $6000/year. My traditional brokerage account with m1 finance is where I play around a bit more with individual stocks and etfs
I have a Roth IRA with Fidelity and only have VTI & Apple!!! I want to do a 2-fund portfolio of index funds of FZROX & FZILX. Problem is VTI & FZROX have the exact holdings but FZROX carries a zero expense ratio. Would you suggest selling VTI and doing the 80/20 split??? And lastly, would it make sense to buy VTI in a regular Brokerage? Just mad bcuz I got in VTI at $198
Thanks Gabrielle! I actually made a Vanguard Roth IRA guide here (it's set to the exact time where I talk about DRIP) ua-cam.com/video/BPWwMIB7YCM/v-deo.html
The exact percentage is something I thought about a lot, but i decided this because I knew I wanted majority domestic and little international exposure. Domestic tends to outperform international most years, but for the few years international pops off I want to be sure I benefit from that as well. 80/20 just seemed like a solid split I’d be happy with (and have been!)
Hi Sean! Your videos are so helpful so thank you for starters! What happens if you don't pick an investment in the 7 days after you open your account? I just opened my roth IRA account (yay) but I don't have the 3,000 minimum just yet for the index funds I want to invest in? Any suggestions? Thanks! :)
Nothing happens if you don’t invest ASAP. If you can’t meet the 3000 minimum for one of the low cost index (mutual) funds, you can invest in the etf equivalent instead! For example, VTSAX equivalent is VTI
Hopefully i can get a response, should i just let stuff sit until i retire? OR should i be actively selling? I want to be a millionaire but i dont want to constantly open my account and do research..please help with a response, thanks.
Do you think it would be smart to open up a Roth IRA & an Index Fund? I hear you mentioned you had two accounts. Right now I have a Target Date Fund Roth IRA (VTTSX) but once I financially get into a better place I'd like to also invest in VTSAX separately. I would like to have both but not sure if it pointless.
A Roth IRA is a type of account, and index fund if a fund is an investment. You buy an index fund within a Roth IRA. Totally valid to have both vttsx and vtsax!
Hi Sean! If you have extra money you want to invest after maxing your Roth IRA, would you recommend mirroring the investments in your Roth IRA (80/20 split between VTSAX & VTIAX) in a taxable brokerage account with Vanguard?
hi sean! i contributed 6k into my vanguard account. i want to invest in vttsx and vtsax. how do i split this? i see that vtsax has a 3k minimum. does this mean every year i should invest that much? i want to focus more on the target fund. what do people mean by splitting 80% and 20% between investments. i’m trying to do this with these two investments i’ve chosen. also, every year when we contribute 6k, do we continue to jsut “buy” the same investment for example by 3k or more of vtsax?
Awesome that you've contributed to your Roth IRA! Congrats, this is huge. FYI if this contribution is for 2023, the Roth IRA maximum contribution has been changed to $6500. Letting you know in case you can contribute more. $3k minimum only applies once. Once you have $3k in a fund, you can contribute any amount afterwards. So say you haven't invested at all, the first year you would purchase $3k in vtsax, $3k in vttsx. Then every year following you'd "buy" according to your desired split, in your case you'd purchase $4800 of vttsx and $1200 of vtsax.
im new to all this but.... is an index fund a group of companies in one? btw you got about 6k from one of your index funds ... what did you do with that money? did you contribute some to your Roth Ira
Yes, the index fund I have is a total us stock market index fund which has every us company. Yup, I contribute 6k to my Roth IRA every year and just leave it
Does vanguard charge an annual fee to have a roth IRA. I opened one to see what it looks like but i havent invested and I dont want to be charged fees for not using it
You can do both! But I’d max the Roth IRA first before considering a taxable brokerage. Vtsax must be on the vanguard platform, vti can be bought on nearly any investing platform
I am 19 and am going into ten Cybersecurity field. I know I will be making 6 figures pretty quickly so I would only qualify for a 401k. Would you recommend a Roth or regular 401? Great channel!
Thank you for another great content! I have a question I am in my mid 40s and just opened a new ROTH IRA. This is what I came up with: VTI 45% SCHD 5% (added for dividend purposes) VXUS 20% REITs 10% (custom portfolio with about 1o reits) BND 20% Please let me know what you think of this. Do I need SCHD/REITS? Allocation %? Thank you so much for all your videos!!!
I think this is pretty decent! VTI technically already has Real estate (3.4%), but if you’d like more in REITs that’s totally valid. The bond percentage may be high, but if you’re closer to retirement than this makes sense
I was thinking about creating a Roth IRA in TD Ameritrade bc I already have an account. Why did you switch to Vanguard? This would be helpful to know. Thanks!
Vanguard mutual funds (like vtsax) is only offered in vanguard, and they always have the customers in mind because vanguard is owned by its fund and we are the fund owners
I think it’s great if you want everything automated for you for the rest of your life! Very passive. The one downside is that it does include bonds, and I personally like to be more aggressive and have no bonds (all in stock until I’m closer to retirement)
@@SeanLei Awesome thanks! Another sort of related to your video question, atm I'm student and can put in only $500/mo versus $6k at once in my Roth IRA so it'll take me a few months to be able to meet the minimum for VTSAX. Do you recommend buying ETFs (VTI) in the meantime, sell when I reach minimum for VTSAX ($3k) and go on from there?
Hi Sean , can a nurse with valid DACA status, employment authorization , and 7 years worth of income taxes documented with the IRS open a Roth IRA with vanguard?
Hi, i just subscribe to your channel and great video and tutorial by the way. This is my first time investing in roth ira, i accidently buy a vti instead if vtsax. Should i cancel the vti? And start $3000 on vtsax? Im planning to retired in 30 yrs. Will i lose money overtime putting the $3000 in vtsax for long term in 30 years? Sorry about the noob question. This is my first time investing for retirement and your video make me brave enough to do it. Thank you in advance!
Congrats! Getting started is the toughest part. I would cancel (or sell) vti and go with vtsax instead if I had $3000 because with vtsax you can set up automatic contributions/dividend reinvestment with any dollar amount. If you let your $3000 sit in vtsax for 30 years, it’ll grow on average 10% a year and end up being worth $52,348.21
I am considering transferring my newly opened td Ameritrade Roth IRA over to vanguard as well. I am all in VOO at the moment. I thought I read on TD Ameritrade’s website that I will be charged a $75 fee to do this. You didn’t pay any fees to switch?
I figured if I was only going to be investing in vanguard funds, doing it through their platform was best. My only two funds are only offered by vanguard!
@@SeanLei btw I'd love to see a video on student debt, and what students graduating soon should do..not sure if I should pay off my debt asap or wait until Biden passes legislation to get rid of student debt. Currently there is not interest being taken for a month or so, so I'm just sitting around atm.
What stocks do you have? The more you invest in quality stocks within your Roth IRA and the more time you give it, the fatter your investment portfolio will be!
@@SeanLei Apple-Bank Of Ameria and Tesla. I have a question: Vanguard Roth RIA only let you contribute $6,000 per year. And once it's in there, you can use to buy stocks, mutual funds etc???
I just started on your channel. Question: 1.) I have existing Traditional IRA to my bank. If I roll it over and open a Vanguard Roth IRA, em I get tax to transfer it? How much % will get tax?
@@tukongstv6583 it’s all taxable because the money in the traditional is all pre-tax, meaning it hasn’t been taxed at all. If you want to benefit from the Roth IRAs tax-free earning and withdrawals then you have to pay the taxes up front
@@SeanLei , last question on this topic , if you transfer it 2021 , much tax % is gonna be upfront and another tax % when you file your income tax for 2022?
@@tukongstv6583 I believe this is paid when you file the return for 2021. Fidelity has a pretty good guide here www.fidelity.com/tax-information/tax-topics/roth-conversion
Are you allowed to dump 6k at the start of the year? I thought you could only invest equal to how much earned income you have for the year. So you can't have 6k invested until you've earned 6k for the year?
I am investing a set amount of money each month into a Vanguard Brokerage Account with the intent of purchasing ETFs. I'd like to set this up so each month it automatically invests into three ETF's at a set % allocation. I have been successful in setting up an auto-transfer from my bank account to my Vanguard Brokerage Account, but I can't find a way to then convert this into ETFs' without making a manual transaction each month. Is there an easier way?
I have one more question -- If you dump $6,000 dollars into your ROTH IRA on January 1st, 2023 with money you saved up during 2022, does that mean you need to earn $6,000 in 2023 with income that is taxed so you will not be penalized in 2023? What happens if you invest $6000 in 2023 Jan 1st without earning any money in 2023 and the money came from 2022?
You can contribute for 2023 with money you’ve earned in 2022! It doesn’t matter when you earn the money, just that it’s taxed and your contributions falls under $6000
I don’t, since my two funds are mutual funds that can’t be bought with limit orders (the transaction happens at the end of day at the set amount of dollars)
I have a question for you, or anyone that can answer. I recently opened a roth ira with schwab and it gives me the option to contribute to 2020, 2021, and 2022. I will contribute to 2020 first am I still allowed to invest the 2020 contribution into the an etf or mutual fund even though its 2021?
Which funds? If you click “edit pie”, the + button, then at the top it’ll be highlighting stocks - but click the “funds” button instead then search for what you’d like
@@SeanLei I've been thinking of rebalancing my pie in M1 finance and looking at yours I think simplicity is best. I've decided to go with VXUS i.e VTIAX and VTI i.e VTSAX.
How's your Roth IRA looking like!?
I still dont know what a roth ira is
21 years old with 55% voo 25% Vxus 20% viov (small cap value)
I appreciate this video so much
just opened it today, thanks to your videos. Awesome work man, very informative
Lol you people. That’s no surprise of you really
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@rachealhubert74 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@rachealhubert74 I will give this a look, thanks a bunch for sharing.
"the only person you should be comparing yourself to is your past self"
Thank you for acknowledging that all of us are here because we are new to this and want to be better.
Glad to hear that you are taking a simple approach to investing. I like that kind of investing.
I like your simple yet performant and highly diversified portfolio dude! In my humble opinion, a great setup!
Thanks Ken!! What’s your portfolio look like?
@@SeanLei Not as well diversified as you...about 10 different individual stocks that I think are cheap. Discover, Shake Shack, Lockheed Martin, Progressive insurance...a couple small caps, etc.
For me, it is the position I want to be in so I'm fine with it, but I still love your portfolio! Probably a portfolio I'd gently suggest to a beginner! Very simple, diversified, good long term return potential. I like that you considered having some exposure to international stocks to further balance risk.
A simple Roth IRA setup, I like it! I’ll check out your vanguard Roth IRA guide as well
Thanks for the support my guy!
@@SeanLei of course!
Great video !!! I’m finding hard sometimes to max out my Roth because I’m so focused on the taxable account .. going to leave the taxable account alone from now on . On your taxable account do you have VTI as well or an S&P?
It’s a great move to focus on your Roth IRA first. I take on more risk in my taxable account, and invest in etfs and individual stocks. I share it here: ua-cam.com/video/VF9IhQqXWLg/v-deo.html
Great, simple, and straightforward video!
Thank you for sharing this.
Thanks for the video. I your simple portfolio. It's a wise approach. Do you plan to invest in bonds when you get older and closer to retirement?
I do plan to invest in bonds when I’m 5-10 years from retirement!
Super helpful! Thank you for posting!
Happy to!
Great stuff! You got a new subscriber.
One thing I am confused about though. You have made videos in the past talking about how great VTI is. VTI being the ETF version of VTSAX, and VXUS being the ETF version of VTIAX. So why did you end up picking the low cost index funds over the ETF equivalents? From what I can tell there is basically no difference between them other than the ETF's having slightly lower expense ratios as well as the low cost index funds having a large minimum requirement of 3k. Both of these things makes me more interested in the ETFs but if you have good reasons for going for the low cost index funds I would love to know your thoughts. Thanks for the videos!
The etfs are slightly better! Because my Roth IRA is in vanguard.com, I can’t buy fractional shares of VTI. VTSAX let’s me use all of my dollars, and reinvest my dividends. I’ve chosen to pay the .01% more (for the fee) just so I can automate my dividend reinvestments
@@SeanLei Yup. I just looked into this after posting the comment. I would like to set up automatic payments as well so I went ahead and bought into VTSAX to get started. But since i want to go for the 80-20 split with international, Im going to buy ~$1200 (20% of my first 6k in roth ira) of VXUS for now, then move it over to VTIAX when I own 3k of VXUS
@@Ultoman10 that’s the exact approach I’d do if I was in your situation 🤙🏼
@@SeanLei Awesome! Thanks for the quick reply. Your channel is definitely gonna pop off in no time if you keep up the good quality
@@SeanLei I had the same question and am a SUPER beginner so just wanted to clarify what this means: I think this commenter wants to do the 80/20 split with domestic/international stocks and is proposing purchasing 20% VXUS and then waiting until they reach the minimum $3k amount with this stock to then purchase and switch from an ETF version to VTIAX. I am wondering how one goes about this? Would I just buy 80% VTSAX and 20% VXUS right now and then check in at some point when I've got $3k worth of VXUS to then sell it for VTIAX? I'm just not sure what it means to purchase the ETF version instead and if there's any cons with that for the time being. I'm 24 so I'm trying to be more risky while I'm younger and plan to invest all in stocks with a 80/20 split for my Roth IRA and am hoping for some clarification before I make a big mistake in my first purchase.
Simple strategies for the win 🚀🔥✌🏾
How's your Roth IRA looking right now? Did you add any other funds to it? Keep up the great work, Sean!
Up 22.4% from 1 year ago. Hasn’t changed! Come January 1st I’ll contribute the Roth IRA max of $6000/year. My traditional brokerage account with m1 finance is where I play around a bit more with individual stocks and etfs
I have a Roth IRA with Fidelity and only have VTI & Apple!!! I want to do a 2-fund portfolio of index funds of FZROX & FZILX. Problem is VTI & FZROX have the exact holdings but FZROX carries a zero expense ratio. Would you suggest selling VTI and doing the 80/20 split???
And lastly, would it make sense to buy VTI in a regular Brokerage? Just mad bcuz I got in VTI at $198
This was super helpful! Thank you 🤎How did you set up drip? I have that with my TD account but I’m not sure how to set that up through vanguard
Thanks Gabrielle! I actually made a Vanguard Roth IRA guide here (it's set to the exact time where I talk about DRIP) ua-cam.com/video/BPWwMIB7YCM/v-deo.html
What made you decide to go 80% VTSAX and 20% VTIAX? I keep going back and forth on how much international exposure I want.
The exact percentage is something I thought about a lot, but i decided this because I knew I wanted majority domestic and little international exposure. Domestic tends to outperform international most years, but for the few years international pops off I want to be sure I benefit from that as well. 80/20 just seemed like a solid split I’d be happy with (and have been!)
@@SeanLei Thanks for the explanation. I think I’m going to copy you for my Roth
Why don't you use vanguard for your taxable brokerage account?
Hi Sean! Your videos are so helpful so thank you for starters! What happens if you don't pick an investment in the 7 days after you open your account? I just opened my roth IRA account (yay) but I don't have the 3,000 minimum just yet for the index funds I want to invest in? Any suggestions? Thanks! :)
Nothing happens if you don’t invest ASAP. If you can’t meet the 3000 minimum for one of the low cost index (mutual) funds, you can invest in the etf equivalent instead! For example, VTSAX equivalent is VTI
Hopefully i can get a response, should i just let stuff sit until i retire? OR should i be actively selling? I want to be a millionaire but i dont want to constantly open my account and do research..please help with a response, thanks.
That’s my plan! Let it sit and continually reinvest (automatic with drip) until I need to pull it out for retirement income
Do you think it would be smart to open up a Roth IRA & an Index Fund? I hear you mentioned you had two accounts. Right now I have a Target Date Fund Roth IRA (VTTSX) but once I financially get into a better place I'd like to also invest in VTSAX separately. I would like to have both but not sure if it pointless.
A Roth IRA is a type of account, and index fund if a fund is an investment. You buy an index fund within a Roth IRA. Totally valid to have both vttsx and vtsax!
I contribute $100 per week to Roth IRA how often should I be buying ETF shares, should I invest all of the $6000 per year? Great video by the way!
That’s awesome. If you can max out the Roth IRA and invest it all then you’ll be in great shape
Hi Sean! If you have extra money you want to invest after maxing your Roth IRA, would you recommend mirroring the investments in your Roth IRA (80/20 split between VTSAX & VTIAX) in a taxable brokerage account with Vanguard?
If you’re happy with that then yes! And if you want to dabble in a few individual stocks I’d say keep it less than 10% of your portfolio
hi sean! i contributed 6k into my vanguard account. i want to invest in vttsx and vtsax. how do i split this? i see that vtsax has a 3k minimum. does this mean every year i should invest that much? i want to focus more on the target fund. what do people mean by splitting 80% and 20% between investments. i’m trying to do this with these two investments i’ve chosen. also, every year when we contribute 6k, do we continue to jsut “buy” the same investment for example by 3k or more of vtsax?
also, can i contribute 3k to vtsax and then do 3k in target fund? then in the future just contribute more to my target fund (as i want to be safer)
Awesome that you've contributed to your Roth IRA! Congrats, this is huge. FYI if this contribution is for 2023, the Roth IRA maximum contribution has been changed to $6500. Letting you know in case you can contribute more.
$3k minimum only applies once. Once you have $3k in a fund, you can contribute any amount afterwards. So say you haven't invested at all, the first year you would purchase $3k in vtsax, $3k in vttsx. Then every year following you'd "buy" according to your desired split, in your case you'd purchase $4800 of vttsx and $1200 of vtsax.
im new to all this but.... is an index fund a group of companies in one? btw you got about 6k from one of your index funds ... what did you do with that money? did you contribute some to your Roth Ira
Yes, the index fund I have is a total us stock market index fund which has every us company. Yup, I contribute 6k to my Roth IRA every year and just leave it
Does vanguard charge an annual fee to have a roth IRA. I opened one to see what it looks like but i havent invested and I dont want to be charged fees for not using it
They charge $20/year, but it can be waived by signing up for electronic statements!
@@SeanLei affirmative.
So should I bother putting VTI / VTSAX in a standard taxable fund or should that all be for a Roth Ira?
You can do both! But I’d max the Roth IRA first before considering a taxable brokerage. Vtsax must be on the vanguard platform, vti can be bought on nearly any investing platform
@@SeanLei Thank you man! Your videos are very helpful and you convey the information in a friendly, no B.S. manner which I appreciate.
I am 19 and am going into ten Cybersecurity field. I know I will be making 6 figures pretty quickly so I would only qualify for a 401k. Would you recommend a Roth or regular 401? Great channel!
Roth.
Thank you for another great content! I have a question I am in my mid 40s and just opened a new ROTH IRA. This is what I came up with:
VTI 45%
SCHD 5% (added for dividend purposes)
VXUS 20%
REITs 10% (custom portfolio with about 1o reits)
BND 20%
Please let me know what you think of this. Do I need SCHD/REITS? Allocation %? Thank you so much for all your videos!!!
I think this is pretty decent! VTI technically already has Real estate (3.4%), but if you’d like more in REITs that’s totally valid. The bond percentage may be high, but if you’re closer to retirement than this makes sense
@@SeanLei Thank you!
I was thinking about creating a Roth IRA in TD Ameritrade bc I already have an account. Why did you switch to Vanguard? This would be helpful to know. Thanks!
Vanguard mutual funds (like vtsax) is only offered in vanguard, and they always have the customers in mind because vanguard is owned by its fund and we are the fund owners
@@SeanLei VTSAX is offered at Fidelity but Fidelity charges additional *$75* _per_ purchase of VTSAX shares.
@@alrocky ouch it seems like if you’re using fidelity it’s better to use Fidelity’s funds (which are actually great)
@@SeanLei Not using Fidelity. Just pointing out your prior post that Vanguard mutual funds only offered at Vanguard is incorrect.
thank u for this video!
is it okay to start off with etfs if you don't have $3000 to invest into an index?
Yes definitely! I invested in ETFs until I had the $3k minimum
@@SeanLei did you transfer all the money that you had invested into your etfs into a index fund
@@callmeb793 not all of it since I had more than the $6k/year limit
Sean, what's your opinion on the Vanguard target date funds?
I think it’s great if you want everything automated for you for the rest of your life! Very passive. The one downside is that it does include bonds, and I personally like to be more aggressive and have no bonds (all in stock until I’m closer to retirement)
@@SeanLei Awesome thanks! Another sort of related to your video question, atm I'm student and can put in only $500/mo versus $6k at once in my Roth IRA so it'll take me a few months to be able to meet the minimum for VTSAX. Do you recommend buying ETFs (VTI) in the meantime, sell when I reach minimum for VTSAX ($3k) and go on from there?
@@iminlalaland4ever yes! That’s a solid plan
I am a first time investor and looking to use vanguard to invest in global funds. 80 In equity and 20 in bonds. Open to suggestions and tips?
Here are some options!
Total us stock market - VTI
Total international stock market - VXUS
Total bond market - BND
@@SeanLei thanks
Hi Sean , can a nurse with valid DACA status, employment authorization , and 7 years worth of income taxes documented with the IRS open a Roth IRA with vanguard?
How do you set up drip or dividend reinvestment plan?
very nice bro
What does roth mean....and where is that section on the vanguard website?
Hi, i just subscribe to your channel and great video and tutorial by the way. This is my first time investing in roth ira, i accidently buy a vti instead if vtsax. Should i cancel the vti? And start $3000 on vtsax? Im planning to retired in 30 yrs. Will i lose money overtime putting the $3000 in vtsax for long term in 30 years? Sorry about the noob question. This is my first time investing for retirement and your video make me brave enough to do it. Thank you in advance!
Congrats! Getting started is the toughest part. I would cancel (or sell) vti and go with vtsax instead if I had $3000 because with vtsax you can set up automatic contributions/dividend reinvestment with any dollar amount. If you let your $3000 sit in vtsax for 30 years, it’ll grow on average 10% a year and end up being worth $52,348.21
@@SeanLei thank you very much for your prompt response. Will i get penalty fee if i cancel/sell the vti?
@@yugokool3670 in vanguard, trading/selling is free. Plus you won’t be taxed at all since it’s all in a Roth IRA. So it’s all free!
Was it hard to transfer funds from TD Ameritrade to vanguard? And was there any fees?
Really simple! Just filled out a form, and no fees
I am considering transferring my newly opened td Ameritrade Roth IRA over to vanguard as well. I am all in VOO at the moment. I thought I read on TD Ameritrade’s website that I will be charged a $75 fee to do this. You didn’t pay any fees to switch?
I may have missed the explanation, but what made you switch from TD Ameritrade to vanguard?
I figured if I was only going to be investing in vanguard funds, doing it through their platform was best. My only two funds are only offered by vanguard!
@@SeanLei also why roth IRA when you could just put all your life savings into dogecoin? seems like you haven't thought this through.. ;)
@@ethan_b risk it on Doge coin? IM ALL IN 😂
@@SeanLei btw I'd love to see a video on student debt, and what students graduating soon should do..not sure if I should pay off my debt asap or wait until Biden passes legislation to get rid of student debt. Currently there is not interest being taken for a month or so, so I'm just sitting around atm.
@@ethan_b if there’s no interest, I’d hold off! But as soon as interest comes back it’s important to pay the minimum. Thanks for the video idea 💡
I’m a newbie. I only have stocks in my account. :) How’s the Roth IRA gonna work?
What stocks do you have? The more you invest in quality stocks within your Roth IRA and the more time you give it, the fatter your investment portfolio will be!
@@SeanLei Apple-Bank Of Ameria and Tesla.
I have a question: Vanguard Roth RIA only let you contribute $6,000 per year. And once it's in there, you can use to buy stocks, mutual funds etc???
@@h316tran3 that’s correct, once the money is in there I can use it to buy whatever I want!
I just started on your channel.
Question:
1.) I have existing Traditional IRA to my bank. If I roll it over and open a Vanguard Roth IRA, em I get tax to transfer it? How much % will get tax?
Doing a Roth conversion will require you to pay tax! That money you transfer will be taxed as income for the year you make the conversion.
@@SeanLei , even if you roll it overall 100% , it’s still be taxable? But you didn’t take the money it’s just transfer?
@@tukongstv6583 it’s all taxable because the money in the traditional is all pre-tax, meaning it hasn’t been taxed at all. If you want to benefit from the Roth IRAs tax-free earning and withdrawals then you have to pay the taxes up front
@@SeanLei , last question on this topic , if you transfer it 2021 , much tax % is gonna be upfront and another tax % when you file your income tax for 2022?
@@tukongstv6583 I believe this is paid when you file the return for 2021. Fidelity has a pretty good guide here www.fidelity.com/tax-information/tax-topics/roth-conversion
Are you allowed to dump 6k at the start of the year? I thought you could only invest equal to how much earned income you have for the year. So you can't have 6k invested until you've earned 6k for the year?
Yes you are allowed to dump $6k on January 1st. There’s no rule on investing only what you’ve made within the year!
Is it a good idea to contribute into 2020 in 2021? What are the positives and negatives for doing this?
Contribute for 2020 while you still can! There are only positives. That way you can contribute more money into the Roth IRA
What Funds do you invest in?
It’s all in the video!
I am investing a set amount of money each month into a Vanguard Brokerage Account with the intent of purchasing ETFs.
I'd like to set this up so each month it automatically invests into three ETF's at a set % allocation.
I have been successful in setting up an auto-transfer from my bank account to my Vanguard Brokerage Account, but I can't find a way to then convert this into ETFs' without making a manual transaction each month.
Is there an easier way?
Unfortunately you cannot with ETFs, only their mutual funds like vtsax
@@SeanLei Thanks for the reply.
What’s the Max you can withdraw just in case on an emergency ?
You can withdraw any amount, but anything over what you’ve contributed will incur an early withdrawal fee
What made you move from TD Ameritrade to V
More than likely fees
I have one more question -- If you dump $6,000 dollars into your ROTH IRA on January 1st, 2023 with money you saved up during 2022, does that mean you need to earn $6,000 in 2023 with income that is taxed so you will not be penalized in 2023?
What happens if you invest $6000 in 2023 Jan 1st without earning any money in 2023 and the money came from 2022?
You can contribute for 2023 with money you’ve earned in 2022! It doesn’t matter when you earn the money, just that it’s taxed and your contributions falls under $6000
@@SeanLei Hi! If I earned no money in 2022, can I contribute to my 2022 ROTH IRA using income from 2023?
Thank you for answering my question!
@@hiphopolopulus yes! you can make 2022 IRA contributions until April 18, 2023
@@SeanLei Much appreciated!
Do you use limit orders when choosing investments for your Roth IRA?
I don’t, since my two funds are mutual funds that can’t be bought with limit orders (the transaction happens at the end of day at the set amount of dollars)
I have a question for you, or anyone that can answer. I recently opened a roth ira with schwab and it gives me the option to contribute to 2020, 2021, and 2022. I will contribute to 2020 first am I still allowed to invest the 2020 contribution into the an etf or mutual fund even though its 2021?
Yes! The contribution just assigns it to a certain year. Once you contribute you can invest it however you’d like
@@SeanLei thank you
Cool!
Thanks
Thanks
My pleasure!
@Sean Lei on Investing FAKE ACCOUNT
How to get the mobile app?
Download from the App Store (Apple) or google playstore for android
I'm using M1 Finance for my ROTH IRA. I don't see the mutual funds that you described in M1 Finance.
Which funds? If you click “edit pie”, the + button, then at the top it’ll be highlighting stocks - but click the “funds” button instead then search for what you’d like
@@SeanLei I've been thinking of rebalancing my pie in M1 finance and looking at yours I think simplicity is best. I've decided to go with VXUS i.e VTIAX and VTI i.e VTSAX.
@@flyung5879 happy to hear that! Glad you were able to find the funds
@@flyung5879 hello! What percent did you do for each?
im too old for roth now at 57
Background 'music' is so annoying. We're on computers listening to our own music, why do you need dance music to discuss ROTH?
welp.. there goes my 1k to waste
Good video! Please get rid of the music.
I’ll keep that in mind!