Investing into Vanguard Index Funds

Investing
#1

Currently have about 10K sitting in VTI, but don’t like buying whole shares and am looking to get into index funds. I researched a few Vanguard index funds and saw that they have a minimum $3K initial investment. For example, lets say I want to invest in VTSAX and VTIAX and both require a $3K minimum investment. If I were to put $3K in VTSAX, satisfying the minimum investment requirement, would I also need to put $3K into VTIAX? Or would the initial investment in VTSAX satisfy the minimum for VTIAX?

Thanks in advance! - JMead

#2

It’s per fund. So if you want to do both, you’d have to do $3K each for a total of $6K. (Additional contributions can be of any size once you have the $3K minimum in there)

It sounds like with $10K you should be able to do that, even if you went with like 70/30 portfolio.

One other option is to look at Vanguard’s target date funds. They have a $1,000 minimum and contain those other index funds inside, with the asset allocation set for you, automatically rebalanced and reallocated.

Both great options!

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#3

Thank you, Jeremy! I’ve considered a target date index fund, but am unsure if the fund would be as aggressive as I would like it to be (my target allocation is 95% stocks (U.S. and international) and 5% bonds). I didn’t mention bonds in my previous post, so sorry about that. I think this is doable as I’m a fairly young with retirement a ways away.

However, it sounds like I’ll need to wait a little longer before composing this 3-fund portfolio as I’ll need $3K for each fund.

Thanks again!

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