I have $5,000 to invest and zero experience — help
Expense ratio realization: I was in a target date fund with 0.75% ER. Switched to same fund at 0.12% ER. That difference on $50k over 30 years at 7% is over $80,000.
63 Comments
I ran the same numbers. You're on the right track.
Great post, thanks for sharing this.
The hardest part is just not touching it during a crash.
What's your thoughts on the downside risk here?
The international allocation debate never gets old.
Fees really do compound in the wrong direction.
The fee math always surprises people when you actually do it out.
The hardest part is just not touching it during a crash.
This is a solid framework. Saving this post.
What's your thoughts on the downside risk here?
Love the transparency. This community needs more of this.
This is the post I needed. Exactly my situation.
I've been thinking about this too. What's your time horizon?
The compounding at year 20+ is when it gets really wild.
Mind sharing your full allocation?
Appreciate the transparency here. Most people gatekeep this stuff.
Appreciate the transparency here. Most people gatekeep this stuff.
Have you considered the tax implications of this approach?
Real talk: most people can't stick to this when it gets hard.
Interesting perspective. I see it differently — happy to elaborate.
This is the way.
Mind sharing your full allocation?
I respectfully disagree. The data suggests otherwise.
What catalyst are you watching for?
Exactly. The sequence-of-returns issue is severely underappreciated.
This is either genius or the most expensive lesson of your life.
This is either genius or the most expensive lesson of your life.
Real talk: most people can't stick to this when it gets hard.
I've been burned by this before. Your caution is warranted.
Great post, thanks for sharing this.
This is either genius or the most expensive lesson of your life.
The psychology of money matters as much as the math.
Counterpoint: what happens if rates stay elevated longer?
Counterpoint: what happens if rates stay elevated longer?
Have you stress tested this against a 40% drawdown?
Counterintuitively, the best time to buy is when you're most scared.
The hardest part is just not touching it during a crash.
Fees really do compound in the wrong direction.
Be careful about survivorship bias in this analysis.
Have you considered the tax implications of this approach?
Exactly. The sequence-of-returns issue is severely underappreciated.
Counterintuitively, the best time to buy is when you're most scared.
Not financial advice but I'm doing the exact same thing.
Appreciate you sharing the L's too. Most people only post wins.
Mind sharing your full allocation?
Have you modeled different interest rate scenarios?
Be careful about survivorship bias in this analysis.
The compounding at year 20+ is when it gets really wild.
Fees really do compound in the wrong direction.
I've been burned by this before. Your caution is warranted.
Real talk: most people can't stick to this when it gets hard.
Be careful about survivorship bias in this analysis.
The hardest part is just not touching it during a crash.
Counterintuitively, the best time to buy is when you're most scared.
The behavioral aspect of investing is so underrated.
Mind sharing your full allocation?
Appreciate the transparency here. Most people gatekeep this stuff.
This is a masterclass. Bookmarked.
The fee math always surprises people when you actually do it out.
FIRE community is the most underrated corner of personal finance.
I've been burned by this before. Your caution is warranted.
This is the post I needed. Exactly my situation.
The hardest part is just not touching it during a crash.
Sign in to leave a comment
Sign In