The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Is it is Wise for a beginner to start investing in VTSAX?

Anything related to investing, including crypto

LamboKing

Bronze Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
123%
Jul 1, 2016
111
136
35
Houston
Just wondering with all the news about the economy, I am just starting out and received a little money in a bene ira. I was thinking of rolling it into Vanguard into VTSAX, letting it grow, and taking the minimum distributions? Then as I educate myself more in the market, I can invest in other assets, or is there a high chance it could tank? Its about 29k total.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

MJ DeMarco

I followed the science; all I found was money.
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
445%
Jul 23, 2007
38,079
169,495
Utah
I think there's a good chance you'll be investing at the top of the market.

However what's your investing time horizon? 4 years? or 40?

I
 

LamboKing

Bronze Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
123%
Jul 1, 2016
111
136
35
Houston
I think there's a good chance you'll be investing at the top of the market.

However what's your investing time horizon? 4 years? or 40?

Im terrible at planning the market *laughs, and wondering if thats a good decision? Feels like im going into a bullish market, as for time frame, im thinking because of this scenario, it may be wiser to invest as long as possible, since i have to take minimum distributions (about $650 right now) and am taxed for whatever i take out.

Thanks for chiming in!
 

SD Entrepreneur

Bronze Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
226%
Jul 12, 2019
86
194
San Diego, CA
Just wondering with all the news about the economy, I am just starting out and received a little money in a bene ira. I was thinking of rolling it into Vanguard into VTSAX, letting it grow, and taking the minimum distributions? Then as I educate myself more in the market, I can invest in other assets, or is there a high chance it could tank? Its about 29k total.
If you are in for the long haul Vanguard funds can be a very low cost, safe choice for some of your saved $.... really depends on what your situation and risk levels are. Instead of investing in that, can you use that money to grow your business or start a business that has much higher return potential?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

LamboKing

Bronze Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
123%
Jul 1, 2016
111
136
35
Houston
If you are in for the long haul Vanguard funds can be a very low cost, safe choice for some of your saved $.... really depends on what your situation and risk levels are. Instead of investing in that, can you use that money to grow your business or start a business that has much higher return potential?

I would love to use some money out of it, but wouldnt i be subject to taxes as opposed to growing it? My thinking was to let the pot grow as big as it can, while taking minimum distributions.

Right now the money is sitting at TD Ameritrade, which i dont think is a bad place either, and i think there fund similar to VTSAX is BND, but fees and overall right now, i think Vanguard would be hard to beat comparing index to index.

Really appreciate your thoughts on this.
 
Last edited:

SD Entrepreneur

Bronze Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
226%
Jul 12, 2019
86
194
San Diego, CA
I would love to use some money out of it, but wouldnt i be subject to taxes as opposed to growing it? My thinking was to let the pot grow as big as it can, while taking minimum distributions.

Right now the money is sitting at TD Ameritrade, which i dont think is a bad place either, and i think there fund similar to VTSAX is BND, but fees and overall right now, i think Vanguard would be hard to beat comparing index to index.

Really appreciate your thoughts on this.
I use Vanguard funds because of their really low fees... If you did take some of the IRA money out, you would be subject to an early withdrawal penalty. Again, really depends on your situation but if that 10% fee (or whatever the penalty is) is worth it (ex. you feel confident you can grow that $ way quicker than in the IRA/fund) then it would be something to really consider. Definitely talk to a CPA for more details...
 

LamboKing

Bronze Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
123%
Jul 1, 2016
111
136
35
Houston
I use Vanguard funds because of their really low fees... If you did take some of the IRA money out, you would be subject to an early withdrawal penalty. Again, really depends on your situation but if that 10% fee (or whatever the penalty is) is worth it (ex. you feel confident you can grow that $ way quicker than in the IRA/fund) then it would be something to really consider. Definitely talk to a CPA for more details...

Thanks for the advice.

Yes you hit it on the nail with the fee. This was my strategy, right now its growing 0%, so i was going to move it vanguard and invest it all in VTSAX, that way it as least will grow somewhat while i build a business. Maybe this could be a emergency fund or fund to help grow it?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top