Did you see the news about all of the people camping out and lining up in order to buy the new iPhone 4S today? Now, I know I could never be mistaken for cutting edge, but I just don't get this.
You know what I'd like to see? People camping out and lining up around the corner of Fidelity or Schwab offices in order to open Roth IRA's. That would be awesome.
In the spirit of that, I'm going to do a little experiment. I'm going to create a fictitious portfolio as if I took the money it would cost me to buy a new iPhone 4S today and invested it in a total stock market exchange-traded fund (ETF). I'll use the Vanguard Total Stock Market Index ETF, ticker VTI, and its closing price for today, $62.67. According to my Google research, there are three options for the 4S: 16GB, 32GB, and 64GB. Naturally, the Joneses would go for the 64GB one (why camp out for anything less?), so that's the one I'll use. Retail cost I found was $399.99 (Wow. Good thing it's not $400, because that would just be extravagant.).
So, $399.99 buys 6.38 shares of VTI at $62.67 (I'm going to ignore the likely trading costs for now).
Let's see what happens...
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