Should I invest in vanguard index fund?

[Rodriguez]

I heard a lot about index fund and vanguard. Should I invest in vanguard index fund?

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[TMP-SMX]

This thread should be posted in Finance and Investment. It has been moved and you may get a better response there.

 

[The Sonoran]

Yes, you should invest in a Vanguard index fund. But first you'll want to know why. Become more knowledgeable beforehand by visiting the Bogleheads Investment Forum.

http://www.bogleheads.org/forum/index.php

 

[doctorloans]

I would highly recommend it, BUT ONLY IF IT'S A LONG TERM INVESTMENT!
Right now would be a really good time to invest, since the market is down.

The Vanguard 500 closely tracks the S&P 500, and in general, produces on average 10.4% a year, which is good. But, if you jump into a fund like this and expect high short-term returns, you may get hit with a -22% return like what happened in 2002!

 

[doctorloans]

Oops, I just saw this was posted by a spammer. I wouldn't have responded if I knew that. Mods, please delete my post above if necessary.

 

[blanche]

my answer: most def!

over the long term, the low maintenance feeds will make the Vanguard Index fund more of a winner than returns alone. that's why I've chosen Vanguard for my Roth (though I have to choose from a limited set of Fidelity funds for my 401k b/c that's who my hospital uses..)

i think Vanguard indexes are a great place to park $$ for long term investments...

 

[blanche]

not really. define long term. i bet since you've left college, your indexes have gone nowhere nominally. now when you account for rampant inflation of 30% since 2000, you've probably lost real value in your investments.

stocks are a sham. the explosion in stock wealth from 1980-2000 is a result of many many more people getting into the system, i.e., the baby boomers. america does not have any more people who have extra capital to invest. over 65% of people are already invested in the market. the rest don't have a job.

consistent 10% annually returns are a farce and not gonna happen in the "long term".

you should park your capital into real investments not stocks. buy Ownership of a company or a small business that produces services or goods of value.

NO, long term is not 'since you left college'. that's short term, and you've missed the point. Long term= 20+ years. Since I've left college, the indexes have done quite well overall (I've been out a little longer than you I'm guessing )

 

[The White Coat Investor]

you should park your capital into real investments not stocks. buy Ownership of a company or a small business that produces services or goods of value.

As opposed to Exxon, GE, Google, and those other 500 businesses that make up the S&P 500 that apparently don't produce any services or goods of value. What exactly is your understanding of what a stock is?

Yes, stocks are risky. They don't always outperform bonds and other "safe" investments. Lately (the last decade) that risk has actually shown up.

I don't expect my stocks to do 10% over the long haul, but I do expect 6-9%, which should comfortably outpace inflation over the long haul (my investing horizon is 20-70 years.)

 

[michaelrack]

I heard a lot about index fund and vanguard. Should I invest in vanguard index fund?

The Vanguard S+P 500 index fund is pretty good. I also like their high yield bond fund.

 

[michaelrack]

what has been their return. pretty ass crappy.

I don't invest long-term in broad stock market index funds. I have been in and out of Vanguard stock index funds multiple times, as well as in and out of index funds at other companies. I also trade the spiders and diamonds, as well as options based on these.