On Monday, November 19, Vanguard announced that they are lowering the minimum investment for Admiral shares on 38 index funds, VTSAX being one among them. The earlier minimum was $10k so this is a big deal for regular investors.
You read about the announcement here.
Even less reason for anyone to invest!
As to why you SHOULD be investing in VTSAX, because the “Godfather” says so!
The IRS came out with a directive on Nov 1, 2018 announcing changes to contribution limits in 2019.
Here’s in a nutshell what is changing.
- For employer sponsored plans such as 401(k), 403(b) – $19,000 (up from the current $18.5k)
- IRA – $6,000 (up from the current $5.5k)
- Roth IRA – $6,000 (up from the current $5.5k), with income phase-out range increasing from $193,000 to $203,000 (up from $189,000 to $199,000) for married couples filing jointly
You can read the original directive here or the technical guidance here.
Cheers to more saving!