I’m 30. Should I invest in total stock market index or SP500?

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  • #92715 Reply
    Danielle

      I’m 30 years old and considering investing in either a total stock market index fund or the S&P 500. I’m looking for advice on which option might be better suited for someone my age in terms of long-term growth potential and diversification. Can anyone share their thoughts or experiences with investing in either of these options?

      I’m particularly interested in understanding the pros and cons of each and how they might align with my investment goals.

      Any insights or recommendations would be greatly appreciated.

      Thanks!

      #92716 Reply
      Colin

        Yes.

        #92717 Reply
        David

          i personally like the S&P simply because its essentially ”self-cleansing”. The index gets rebalanced and reevaluated to remove underperforming companies which’s keeps the returns so high.

          There’s little difference though between that and total market so you cant go wrong w either.

          Have you seen: Should I sell everything and reinvest in SP500?

          #92718 Reply
          Jared

            Yo yo yo. It greatly depends on who you’re setting the account with dude.

            #92719 Reply
            Angelo

              They are essentially the same thing.

              #92720 Reply
              Jimansy

                Same difference tbh

                #92721 Reply
                Jimansy

                  Just go all in on VOO and by time your 50 you will be a multimillionaire.

                  #92722 Reply
                  JT Doc

                    They’re virtually the same. I’m 32 and the majority of my money is in a total stock market index.

                    #92723 Reply
                    David

                      They’re practically the same.

                      I do total market because it is more diversified. But total market is about 80% s and p. Their returns end up being similar, although I’m pretty sure s and p has returned a little more in recent years. But it’s not a big difference.

                      Consider browsing: How are folks approaching this stock market spike?

                      #92724 Reply
                      Vee

                        VTSAX- “don’t look for the needle. Buy the entire haystack”

                        #92725 Reply
                        Cap

                          I prefer the S&P and if you specifically want small/midcap exposure you can choose funds for that purpose.

                          If you only want one fund, I prefer VOO but VTI won’t hurt you.

                          #92726 Reply
                          Wlamir

                            You likely have a 30 year investing horizon. I would use either one.

                            #92727 Reply
                            Nicholas

                              It does not really matter. The S & P 500 has historically performed slightly better but that may not be true in the future. These two are so close that having either one would work out just fine long-term.

                              I have both in different accounts as some of my retirement plans only offer one and not both.

                              Give these a glance: I have about 333k to put in the total stock market

                              #92728 Reply
                              Lizzie

                                Look at historical returns. Although it is not a prediction of the future it can tell you long term who should perform better.

                                Also, you can always change your strategy. You can sell & buy later something else.

                                #92729 Reply
                                Ruben

                                  The only advantage I see to SP500 if you need a low turnover ratio. I use it to save for real estate investments because less short term capital gains.

                                  Total market will have small caps that will sell more often and triggering taxes.

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