Financial Independence Daily FI discussion thread - Saturday, January 22, 2022 |
- Daily FI discussion thread - Saturday, January 22, 2022
- Why are ETFs praised as the superior investment vehicle?
- UPDATE to "Have soaring real estate prices changed your FIRE timeline?"
| Daily FI discussion thread - Saturday, January 22, 2022 Posted: 22 Jan 2022 02:02 AM PST Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments] |
| Why are ETFs praised as the superior investment vehicle? Posted: 21 Jan 2022 04:21 PM PST Why are ETFs seeming more and more to be considered the better option compared to mutual funds? For this discussion let's compare VTI and VTSAX. I understand that ETFs are lower fee. In the case of VTI vs. VTSAX though, it's only a difference of 0.01%. If I had a million dollar portfolio, I would only be paying $100 extra by having VTSAX instead of VTI. To me, that is worth it to have the option of automatic reinvestment of dividends. The other most significant benefit of ETFs that I'm aware of is that they can be traded instantly when the market is open instead of waiting for the end of the day for an order to clear for a mutual fund. This would be great if I gambled and tried to time the market. However, I think I speak for most people in the Financial Independence community when I say that we are not traders, but long term buy and hold investors. For that reason, the ability to instantly trade ETFs has no appeal to me at all. The thing I'm most concerned about, is that I'm missing some nuance between mutual funds and ETFs when it comes to things like tax loss harvesting and capital gains harvesting. So far, I've found no substantial differences. I hope someone here can explain in depth what I'm missing (if anything) about the miracle of ETFs and the antiquity of mutual funds. [link] [comments] |
| UPDATE to "Have soaring real estate prices changed your FIRE timeline?" Posted: 21 Jan 2022 07:11 AM PST It's roughly about 1 year later and prices for RE atleast in the US have kept increasing even faster last year. Supposedly the average increase in listing in 2021 was 22.3% in my locality, which I believe might be the fastest annual increase ever. Just wanted to check in on the community and see if anyone pulled the trigger and cashed out the equity in their primary residence or rental. If you did, what was your next step? Move to LCOL and/or rent? As for me, I did nothing but definitely feel like the RE party is about to end. Original post: https://www.reddit.com/r/financialindependence/comments/llacl2/have_soaring_real_estate_prices_changed_your_fire/ [link] [comments] |
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