Redpill me on index funds

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>Solid wealth buliding tool
but as we all know, past performance is limited in predicting future performance. I will say that there's still a lot of room to grow in Emerging Market countries, not to speak of Developing Countries, so personally I don't see a reason why the past general upward trend of markets should suddenly stop.

And Index ETFs certainly don't look like any sort of scam, as they're really quite transparent financial instruments. If you heed the old rule of only investing into stuff you understand, you should now exactly what you're getting yourself into, much more so than with managed funds.

What happens in this scenario is that money gets put disproportionately into those stocks that make up each index (primarily S&P500, but could also be NASDAQ or Russell 2000, etc.) That's why there was such a huge runup of the FAANG stocks and we're seeing stocks that really pull ahead of the market.

Long term, it's possible that these low-cost spider funds that mimic the overall market will eventually cause a total skew of the market and cause an eventual correction.

That being said, I invest pretty much in dividend stocks (RDS, LYG, BTI, LVS) and Visa. And 90% in on ZIL.

IMO its far better to put your money into high yielding ETNs that pay monthly like SMHB and then reinvest

I'm trying to sign up on the site and it says I need to "contact them" anyone have that issue when signing up?

>SMHB

Redpill me, it sounds too good to be true

>Quads

Wow, he's really going to squander away his parents hard earned money!

ETNs are very tax inefficient.

Also, SMBH is somewhat illiquid. It only traded $350k today.

Investing in a stock is like investing in one ant and investing in an index fund is like investing in the whole anthill. That one ant could come back with a nice big lump of sugar and you make big bucks or the (more likely) option is that it gets nothing or doesn't come back at all.
As long as our capitalist society functions, index funds will always be the best choice. There will always be idiots coming along trying to scam you out of it with their get-rich-lmao memes, and sometimes it's actually not a scam, but index funds are the single best option for optimizing risk and reward.

I put in $1500 a month split among a few funds

Its boring to being with but after a few years your wealth really does seem to snowball. The first $10 dividend is quickly replaced by $100 dividends, then $500, and its just fun and autistic RPG style grinding for an epic mount

>SMBH is somewhat illiquid. It only traded $350k today.

Most ETNs have low volume, because most people don't actively trade them, they buy and hold to get dividends. Btw, I don't know where you live but it's a federal holiday today so the markets were closed in the US.

>ETNs are very tax inefficient.

How's that? From what i've read ETNs have more tax benefits when compared to ETFs

From Investopedia:

"Since long-term capital gains are treated more favorably than short-term capital gains and interest, the tax treatment of ETNs should be more favorable than that of ETFs."

What does the N stand for?

Leverage means twice the losses as well as twice the gains.

no because dividends. i will never sell. ever.

75% VTSAX 25% VTIAX

Will add a bond position (VBTLX) once I hit 100k total invested.

That's all you need to make it.

My bad. That was Friday’s volume.

As to ETF vs ETN...not sure what capital gains has to do with taxation of the income stream. You pay short term or long term capital gains tax on both ETFs and ETNs based on the length of time held. The gain on the sale is taxed the same.

It’s the income that’s taxed differently, and where ETNs are at a disadvantage. By definition, an ETN is an unsecured debt of the issuer. They don’t pay dividends, they pay interest, which is taxable as ordinary income. That can mean that you end up paying 28% or more tax on the monthly payments, vs a maximum of 15% per qualified dividends.

Obviously none of this applies if you’re holding these in a tax deferred account like an IRA or Coverdell account.

If you’re going to go for leveraged ETNs, go with something like MORL that pays a high enough rate to offset the tax fucking that you’ll take.

If any vanguard bros see this it would be sweet to have adjustable index funds. For example, now I am young so im taking more risk. I've developed a little sliding scale that rebalances into safer stuff as I age. Would be neat to automate that sort of thing, trying not to watch it all

This is a thing. It's called target date funds. They re-balance as you get older and closer to the target retirement date. I don't use them because they're a little to conservative for me. I'd rather do my own manually re-balancing (it's really not that much or as complicated as it seems) so I can be more aggressive while I'm young

>fun and autistic RPG style grinding for an epic mount
I am amazed I'm not the only one way that feels like this about investing.

>
Why VTIAX? US businesses do plenty of business overseas.

ETF funds allow bag mongers to package their shitbsgs with the good stuff.

*crack*
*sip*
yep vanguard, now that's a good investment

>I think December and the quick recovery was just kikes trying to crash the market and get goys cheap shares, but the goys just kept living life as their index funds auto bought the dip every two week and the kikes panicked and bought back in pumping us close to the ATH today.

So complacent. Like we have returned to normal.

I just want maximum diversity, international emerging markets, etc.

I was 100% VTSAX up until my portfolio hit 25k. Having a small international portion just helps me sleep a little better night with my portfolio growing so quickly.

It's the same thing with bonds. Don't need them now but once I hit 100k and start seeing daily swings of over 1k, a little bit of bonds to smooth out the ride will be nice.

I honestly feel now is the window for Boomers to dump all of their stocks and properties for cash before their retirement gets fucked in the ass by market wide collapse

i just do VFIFX twice a month in a brokerage account. it's whatever.

Bitcoin will out perform all of them short term

were great like 15 years ago, now they will never mature

Would 1mil be enough to make like 70k for life after taxes? Ignoring inflation for now.

>fun and autistic RPG style grinding for an epic mount
actually pretty based

The golden rate is a 3.5% withdrawal, so that would only get you $35k/year. If you're without debt though that goes a long way for an old boomer.

where do i buy this coin