Roth IRA

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Akinyi35
Posts: 18
Joined: Thu Apr 20, 2017 4:48 am

Roth IRA

Post by Akinyi35 » Tue May 02, 2017 11:26 pm

I'm planning to open a Roth IRA tomorrow with vanguard. What are some of the best funds to choose from. I'm looking for something that I don't have to rebalance Everytime except annually.

cmr79
Posts: 34
Joined: Mon Dec 02, 2013 4:25 pm

Re: Roth IRA

Post by cmr79 » Tue May 02, 2017 11:33 pm

I don't think you need to rebalance anything more than annually anyway. Vanguard has an excellent range of low cost funds across all asset classes. What you should pick depends on your IPS and other investments. If you don't have one, start here: https://www.bogleheads.org/wiki/Investm ... _statement

KT785
Posts: 79
Joined: Fri Jul 11, 2014 2:21 pm

Re: Roth IRA

Post by KT785 » Tue May 02, 2017 11:34 pm

My solution would be a target date fund--they're are an all-in-one solution and they rebalance on their own so there's no need to tinker with it (and in my case, helps remove the temptation of doing so). :happy

Also, depending on how much you have to invest at the outset, they have the lowest minimum investment of any Vanguard funds ($1,000) and include the four major funds others invest in separately but each with higher minimums: Total Stock, Total International Stock, Total Bond, and Total International Bond.

Akinyi35
Posts: 18
Joined: Thu Apr 20, 2017 4:48 am

Re: Roth IRA

Post by Akinyi35 » Tue May 02, 2017 11:40 pm

Thank you so much.

KT785
Posts: 79
Joined: Fri Jul 11, 2014 2:21 pm

Re: Roth IRA

Post by KT785 » Tue May 02, 2017 11:55 pm

I should also note that, if you have other investment accounts (401k, taxable accounts, etc.) then the investments held in those accounts should be taken into consideration when choosing the fund(s) for your Roth IRA. If this is you first and/or only investment account, I'd reiterate my suggestion to evaluate an age/risk-appropriate target date fund.

Akinyi35
Posts: 18
Joined: Thu Apr 20, 2017 4:48 am

Re: Roth IRA

Post by Akinyi35 » Tue May 02, 2017 11:58 pm

I do have a pension plan that I pay into and a 403b from work and not matched.

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celia
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Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Roth IRA

Post by celia » Wed May 03, 2017 12:45 am

The pension plan is likely already being invested for you and it's unlikely you have any choices to make there.

The 403b is similar to a traditional IRA except your fund choices are limited. What funds are you already using for that plan and are they stock-based, bond-based, or a mix? What percentage of your 403b money is in each fund?

Akinyi35
Posts: 18
Joined: Thu Apr 20, 2017 4:48 am

Re: Roth IRA

Post by Akinyi35 » Wed May 03, 2017 6:02 am

I had already posted the funds that we had in my 403 here and got suggestions which funds to go with. They are all vanguard. Not so bad.

sweeden22
Posts: 29
Joined: Fri Nov 18, 2016 6:11 am

Re: Roth IRA

Post by sweeden22 » Wed May 03, 2017 7:31 am

You could always choose to do ETFs with your Roth IRA too. They are a lot more work to manage, but some of us get a kick out of buying them. They have really low expense ratios (as low as admiral shares).

If you went that route, you could buy them in a ratio that makes since to you: Total Stock Market, Total International Stock Market, whatever. I like Mega Growth too (MGK). They have Total Bond Market too (BND), but you may want to focus more of your bond holding at your 403b.

With the Roth, many aim for it to be the more aggressive part of the portfolio, since the earnings are not typically taxed if you follow the rules for distributions, age 59 1/2 and 5 year waiting period.

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