roth question?

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trkymn6f0
Posts: 10
Joined: Sat May 21, 2011 9:59 am

roth question?

Post by trkymn6f0 »

currently I am 32 YO and have 50 grand in a vanguard roth ira. the entire balance
is invested in the target retirement 2045 fund. Should i allocate more money towards
other funds?
Niko
Posts: 129
Joined: Sat Oct 20, 2007 6:37 pm

Re: roth question?

Post by Niko »

trkymn6f0 wrote:currently I am 32 YO and have 50 grand in a vanguard roth ira. the entire balance
is invested in the target retirement 2045 fund. Should i allocate more money towards
other funds?
I would start by reading here, together with the linked material

http://www.bogleheads.org/wiki/Getting_Started
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Ice-9
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Joined: Wed Oct 15, 2008 12:40 pm
Location: MD

Re: roth question?

Post by Ice-9 »

It all depends on how you like the existing allocation in that fund, which is currently 90% equity (63% domestic, 27% Int'l) and 10% fixed income. If you feel this is too aggressive for you, you could add a bond fund as a 2nd fund. Or if you wanted to tilt your portfolio toward value, REIT, small cap, or whatever, you could add a fund for that purpose. But if you're content with 90/10 stock/bond allocation for now, then why add complexity.
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Sunflower
Posts: 422
Joined: Sun Nov 18, 2007 1:23 am
Location: Ess Eff, CA

Re: roth question?

Post by Sunflower »

No, you don't have to. You're well covered. But as stated above, you want more diversification, more international or bonds, then you may want to consider it. But you're fine.
yosef
Posts: 355
Joined: Tue May 24, 2011 2:10 pm

Re: roth question?

Post by yosef »

trkymn6f0 wrote:currently I am 32 YO and have 50 grand in a vanguard roth ira. the entire balance
is invested in the target retirement 2045 fund. Should i allocate more money towards
other funds?
The Vanguard TR funds are good funds that actually invest in 3 other funds internally (Total Stock, Total Bond, Total International). They basically implement the infamous 3 fund portfolio. There's nothing wrong with leaving everything in that fund as a one stop shop. You should ensure though that the stock/bond mix is appropriate for you and not just go by the year you plan to retire.
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mike143
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Joined: Thu Feb 02, 2012 7:55 pm

Re: roth question?

Post by mike143 »

I am 30 and use the 2060 fund instead to be exposed to more equities.
Nothing is free, someone pays...You can't spend your way to financial freedom.
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