Quote History Quoted:
Lots of great advice here.
Something to keep in mind is the money market funds have higher expense ratios. You'll save a lot in the long run by going for an index fund like VTSAX or a ETF like VTI.
Also life is short. Do something YOU would like for yourself or your family. $1,000/mo in savings is a decent amount of money. That's easily a family vacation or great dinners. Make some memories with your family my friend. You can always save money, making memories is a better investment.
VTSAX tracks 3000+ US stocks and VOO tracks the SP500. VTSAX is an index fund which only trades after the day is over and has a minimum investment requirement of I think $3,000. VTI is an ETF with no minimum requirement and you trade it any time during normal trading hours like any other stock. Both are lower expense ratios than money market funds.
View Quote View All Quotes
View All Quotes
Quote History Quoted:Lots of great advice here.
Something to keep in mind is the money market funds have higher expense ratios. You'll save a lot in the long run by going for an index fund like VTSAX or a ETF like VTI.
Also life is short. Do something YOU would like for yourself or your family. $1,000/mo in savings is a decent amount of money. That's easily a family vacation or great dinners. Make some memories with your family my friend. You can always save money, making memories is a better investment.
Quoted:
What's the difference between voo and vtsax?
VTSAX tracks 3000+ US stocks and VOO tracks the SP500. VTSAX is an index fund which only trades after the day is over and has a minimum investment requirement of I think $3,000. VTI is an ETF with no minimum requirement and you trade it any time during normal trading hours like any other stock. Both are lower expense ratios than money market funds.
Comparing a MMF to an equity index fund is apples and oranges. There is NOTHING similar about these - and the expense ratio as a reason means you might not fully understand MMF's. The expense ratio on a MMF is largely irrelevant, and you do not compare the expense ratio of a MMF like you would to an equity based mutual fund or ETF. MMF is a fixed income asset, measured in 7 day yield. This is net yield, AFTER expenses. So you only really compare Money Market Funds by their net 7 day yield.
It *is* important to compare expense ratios for long term investing of *similar* equity funds and ETF's, just for greater returns over a long term.
If your argument is to invest the money in equity assets for the chance of greater returns in the long run - that's fine. But comparing equity funds to MMF based on expense ratio is kind of nonsense.