Suze School: VOO or SPY, Which ETF is Best for You?
1Digest
This episode of the Women in Money Podcast features Susie Orman's announcements and financial advice. She reminds listeners of the June 5th deadline to enter the Alliant Credit Union $5,000 giveaway by answering five simple questions on myalliant.com. She also highlights the updated Must-Have Documents, including a will, revocable trust, advanced directive, and power of attorney, now available for purchase at must-have-docs.com. Susie then delves into the world of ETFs, specifically comparing the Vanguard Standard & Poor's 500 Index ETF (VOO) and the Spider S&P 500 ETF Trust (SPY). She explains the differences between the two, including expense ratios, dividend reinvestment policies, and tax efficiency. Susie ultimately recommends VOO for long-term investors due to its lower expense ratio, automatic dividend reinvestment, and historical tax efficiency. She emphasizes the importance of considering individual investment goals and risk tolerance when making investment decisions. The episode concludes with Susie's reminder to prioritize people, then money, and then things, and to stay safe to achieve financial success.
Outlines
Alliant Credit Union Giveaway and Must-Have Documents
This Chapter begins with Susie Orman reminding listeners of the June 5th deadline to enter the Alliant Credit Union $5,000 giveaway by answering five simple questions on myalliant.com. She also announces the updated Must-Have Documents, including a will, revocable trust, advanced directive, and power of attorney, now available for purchase at must-have-docs.com. Susie explains the benefits of these documents and encourages listeners to consider purchasing them.
Susie's School: Inflation, Interest Rates, and Investment Strategies
This Chapter dives into Susie's School, where she discusses the latest inflation data and its implications for interest rates. She explains that inflation is not significantly decreasing, leading to a potential delay in Fed funds rate cuts. Susie advises listeners to consider a diversified investment approach, including short-term treasuries, certificates of deposit, and money market accounts. She also addresses the question of whether to invest in long-term bonds, suggesting a balanced approach based on individual risk tolerance and market conditions.
Keith Fitz-Gerald's Investment Program and ETF Comparisons
This Chapter focuses on the anticipated investment program by Keith Fitz-Gerald, Susie's financial expert. Susie explains that the program is still under development and emphasizes the importance of patience while waiting for its release. She then transitions to a discussion about ETFs, specifically comparing the Vanguard Standard & Poor's 500 Index ETF (VOO) and the Spider S&P 500 ETF Trust (SPY). Susie provides a detailed analysis of the differences between the two, including expense ratios, dividend reinvestment policies, and tax efficiency. She ultimately recommends VOO for long-term investors due to its lower expense ratio, automatic dividend reinvestment, and historical tax efficiency.
Closing Thoughts: People First, Then Money, Then Things
This Chapter concludes the episode with Susie's final thoughts on financial success. She emphasizes the importance of prioritizing people, then money, and then things. She encourages listeners to stay safe and to remember that financial success is achievable through a balanced approach and a focus on personal well-being.
Keywords
Alliant Credit Union
Alliant Credit Union is a national credit union headquartered in Chicago, Illinois. It offers a wide range of financial products and services, including checking and savings accounts, loans, credit cards, and investment options. Alliant is known for its competitive interest rates and low fees. In this podcast episode, Alliant Credit Union is featured as a sponsor and is offering a $5,000 giveaway to listeners who answer five simple questions on myalliant.com.
Must-Have Documents
The Must-Have Documents are a set of legal documents designed to help individuals plan for their future and protect their loved ones. These documents include a will, revocable trust, advanced directive, durable power of attorney for healthcare, and power of attorney for finances. The Must-Have Documents are created by a lawyer and distributed by Hay House. In this podcast episode, Susie Orman highlights the updated Must-Have Documents, which are now available for purchase at must-have-docs.com.
ETF
ETF stands for Exchange-Traded Fund. It is a type of investment fund that tracks a specific index, sector, or commodity. ETFs are traded on stock exchanges like individual stocks, offering investors a way to diversify their portfolios and gain exposure to a wide range of assets. In this podcast episode, Susie Orman discusses two popular ETFs: the Vanguard Standard & Poor's 500 Index ETF (VOO) and the Spider S&P 500 ETF Trust (SPY). She compares their features and provides insights on which one might be better suited for different investment goals.
VOO
VOO is the ticker symbol for the Vanguard Standard & Poor's 500 Index ETF. This ETF tracks the performance of the S&P 500 index, which includes 500 of the largest publicly traded companies in the United States. VOO is known for its low expense ratio, automatic dividend reinvestment, and historical tax efficiency. In this podcast episode, Susie Orman recommends VOO for long-term investors due to its favorable features.
SPY
SPY is the ticker symbol for the Spider S&P 500 ETF Trust. This ETF also tracks the performance of the S&P 500 index. SPY is one of the most widely traded ETFs in the market. In this podcast episode, Susie Orman compares SPY to VOO, highlighting their differences in expense ratios, dividend reinvestment policies, and tax efficiency.
Inflation
Inflation is a general increase in the prices of goods and services in an economy over a period of time. It erodes the purchasing power of money, meaning that the same amount of money can buy fewer goods and services than before. In this podcast episode, Susie Orman discusses the latest inflation data and its implications for interest rates and investment strategies.
Interest Rates
Interest rates are the cost of borrowing money. They are set by central banks, such as the Federal Reserve in the United States. Interest rates influence the cost of loans, mortgages, and other forms of borrowing. In this podcast episode, Susie Orman discusses the current state of interest rates and their potential impact on investment decisions.
Fed Funds Rate
The Fed funds rate is the target interest rate that the Federal Reserve sets for overnight lending between banks. It is a key benchmark for other interest rates in the economy. In this podcast episode, Susie Orman discusses the Fed funds rate and its potential future trajectory based on inflation data.
Investment Program
An investment program is a structured plan that outlines how an individual or institution will invest their money. It typically includes investment goals, risk tolerance, asset allocation, and a timeline for achieving financial objectives. In this podcast episode, Susie Orman discusses the anticipated investment program by Keith Fitz-Gerald, her financial expert.
Keith Fitz-Gerald
Keith Fitz-Gerald is a financial expert and author who provides investment advice and insights. He is known for his work on the Five With Fitz newsletter and the One Bar Ahead newsletter. In this podcast episode, Susie Orman mentions Keith Fitz-Gerald's upcoming investment program and encourages listeners to subscribe to his free Five With Fitz newsletter.
Q&A
What is the deadline to enter the Alliant Credit Union $5,000 giveaway?
The deadline to enter the Alliant Credit Union $5,000 giveaway is June 5th.
What are the Must-Have Documents and where can I purchase them?
The Must-Have Documents include a will, revocable trust, advanced directive, durable power of attorney for healthcare, and power of attorney for finances. You can purchase them at must-have-docs.com.
What are the key differences between VOO and SPY?
VOO has a lower expense ratio, automatically reinvests dividends, and has historically been more tax-efficient than SPY. SPY, however, is more widely traded and may be better for active traders.
What is Susie's advice on investing in long-term bonds given the current inflation and interest rate environment?
Susie recommends a diversified approach, including short-term treasuries, certificates of deposit, and money market accounts. She suggests that investors should consider their individual risk tolerance and market conditions when making investment decisions.
When will Keith Fitz-Gerald's investment program be released?
Susie is not sure when Keith's program will be released, but she emphasizes the importance of patience while waiting for its development.
What is Susie's recommendation for investors who are unsure about which ETF to choose between VOO and SPY?
Susie recommends VOO for long-term investors due to its lower expense ratio, automatic dividend reinvestment, and historical tax efficiency.
What is Susie's overall message about financial success?
Susie emphasizes the importance of prioritizing people, then money, and then things. She encourages listeners to stay safe and to remember that financial success is achievable through a balanced approach and a focus on personal well-being.
Show Notes
Suze gives a quick recap of what’s happening with the Must Have Documents and the latest news regarding interest rates. Then, we go to Suze School for a lesson in the difference between the VOO and SPY ETFs and which one may be the right one for your needs.
Protect your financial future with the Must Have Docs: https://bit.ly/3Vq1V3G
Get your savings going with Alliant Credit Union: https://bit.ly/3rg0Yio
Get Suze’s special offers for podcast listeners at suzeorman.com/offer
Join Suze’s Women & Money Community for FREE and ASK SUZE your questions which may just end up on the podcast. Download the app by following one of these links:
CLICK HERE FOR APPLE: https://apple.co/2KcAHbH
CLICK HERE FOR GOOGLE PLAY: https://bit.ly/3curfMI
See omnystudio.com/listener for privacy information.
Table of contents
United States
