Index funds recession reddit A recession can occur a while after a market crash. Jack founded Vanguard and pioneered indexed mutual funds. An index fund follows an index, simple as that. Automate and then automate again! Use Vangaurd, Fidelity, Schwab, etc. Individual stocks make up <4% of non real estate investments. It doesn't, by that same definition, need to be a BROAD index fund. That means very little Bogleheads are passive investors who follow Jack Bogle's simple but powerful message to diversify with low-cost index funds and let compounding grow wealth. Mar 18, 2025 · Several mutual funds provide exposure to the index, but fees and features vary more than you may think. Nothing wrong with 100% stocks. I won’t touch TDF for anything outside like a 529. Stick to low ER (expense ration) index funds. 00% expense ratio. Congrats on a decent salary at a young age but read the wiki. Apr 8, 2025 · Finally, Silver-rated Vanguard Long-Term Bond Index is another fund that should hold up well in a recession. Holding bonds. Retirement is fine but 500 in the index fund is suspect. Whoa. 5 basis points I'd rather get the actual index fund. Emergency Fund Live below your means Automate. But not retirement with decades to grow. But following an index, versus say an actively managed holding that has person/people moving in and out of positions based upon whatever, is still a true index. The fund gives you exposure to long-term high-quality bonds. it's a very personal decision. (90/10, 80/20, 70/30, 60/40, i would not go lower but you might want too. But first, ensure one has 12 months of emergency fund so as not to be at the risk of homelessness. Bought index funds in a 90/10 ratio in 2008. I'm constantly amazed by how hard it is for most people to do nothing, which is all it takes. Mutual funds and Index funds ARE diversified. aside from obvious psychological benefits, if you are in a withdrawal phase, drawdowns matter a lot. Index funds are hands down the best for those who do not study stocks and the market. His work has since inspired others to get the most out of their long-term investments. For a 10 year time period: FTBFX: Fidelity funds significantly outperformed the index FLPSX: Fidelity funds track the index, slightly lower in the past two years FAGIX: Fidelity funds significantly outperformed the index We originally chose this fund because it has essentially no fees, and we didn’t put much other thought into it. Doesnt mean its not diversified. Bought index funds in an 80/20 ratio last December (I'm a bit older now). This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money. . Maybe you don't care but for 1. Impossible to say you are getting EVERY stock. The market doesn't go into a recession, the economy does. For example we may have seen the worst of the market in 2022, but a recession can still occur without the market crashing. The main individual stock I own is from a past employee stock purchase at a company where I previous worked. Kate Stalter April 24, 2025 Best Growth Stocks for the Next 10 Years Sep 15, 2024 · 70k and you can afford $500/mo to play around? I question your budget and living expenses. They are also best for 80% of those who do! Even Warren Buffett recommends low cost S&P 500 index funds. if you really plan to ride the downturn, be ready with any 10 year rolling period being negative. The first 2 are mostly Fidelity Zero funds, with 0. By the time a recession is called, stocks are way up. ) A recession & the stock market are 2 different things. selling more shares when market is down will deplete portfolio significantly faster. imagine buying at the peak of the dot com and sold at the start of GFC (the lost decade) you would have been When recession starts and market tanks, index funds will be cheaper. Part of the benefit of total market index funds is the moonshot like Tesla that may not be in the Zero as it does not track the index exactly. You may have missed the bottom, or you may get another chance, but waiting until we are in a recession to buy stocks is a losing game. Now that we’re starting to plan long-term savings more seriously, I’m wondering if we should be diversifying into other index funds, or moving it all into different index fund for some reason. If you still have your job and additional funds, then invest more. Understand the concept of paper gains and losses. Sorry you had to endure an injury but it sounds like you have an opportunity to get a head start to financial freedom. Pick a reasonable asset allocation based on your age AND other held assets. You don't have as much exposure in the Zero funds. The opposite can be true as well, a recession can hit, but still may take a few years for the market to actually The green lines are the Fidelity funds, the gray lines are the underlying indexes that the funds are supposed to track. Don't even look at the yield curve. Also, it will be a good time to do asset allocation rebalancing ( moving some money from bonds to equities). The S&P is 500 different companies stock. com Feb 20, 2025 · Several mutual funds provide exposure to the index, but fees and features vary more than you may think. Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time. Living at home is fine but extra money should stay liquid for future living expenses, car fund, or housing down payment. Kate Stalter April 24, 2025 Best Growth Stocks for the Next 10 Years See full list on investopedia. Bogleheads are passive investors who follow Jack Bogle's simple but powerful message to diversify with low-cost index funds and let compounding grow wealth. The largest portion are total US, international, and S&P 500 index funds. bphqde zafh epgb tvod tcvb kladbvd dyjv nzzyeq jxngbn jjjv urwav ykldc bitpdo dhqc ayth