Need Help starting out investing

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
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Lman924
Posts: 11
Joined: Sun Oct 05, 2008 11:36 pm

Need Help starting out investing

Post by Lman924 »

Im going to open a Vanguard account, Roth ira. Im 33 years old and im looking for long term investment strategy thats simple to start. I just want to get my feet wet, ive been reading books but i would like to hear some ideas from experienced investors. I want an index portfolio of stocks/bonds. 2 funds to start with, but what 2 funds? what fund should i put in a roth or should i put both in a roth? Im going to fund it each month, so how much do i put in the stock index vs the bond each month? Any help is appreciated.
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tom0153
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Location: Little Neck, NY

Post by tom0153 »

Take a look at the Target Retirement series.

If you are going to retire at 65, say, then what does the Target Retirement 2040 or so use as its funds for its allocations?

What if you looked at that fund each year, and then balanced your holdings to match it?

That is one way to start the ball rolling. Send them the money and ask them to put it in one of the money market funds that makes you comfortable. Then, you can move it when you are ready, but you won't risk missing your current year contribution, and get it in so that you have some earnings already underway (versus waiting until next April).

As you learn more, you can fine tune thing along the way.

Best,
Best, Tom
Topic Author
Lman924
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Joined: Sun Oct 05, 2008 11:36 pm

Post by Lman924 »

i was looking at a target retirement but not many people i see go that way. Why? what are the advantages and disadvantages of a fund of funds?
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tom0153
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Location: Little Neck, NY

Post by tom0153 »

You pay more for a fund of funds.

But, if you mimic a fund of funds to try to mirror the fund allocation it suggests ... for instance, what allocations are suggested for the man on the street and his desire to retire in 2040, then you can copy that.

As I suggested, it gets you in the game.

I had initially started with Vanguard by putting a chunk of change into the Star Fund. Over time, I unwound that to establish the allocation in lower cost funds that I am currently happy with, or, unhappy, as the case may be (smile).

Best,
Best, Tom
muddlehead
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Joined: Mon Sep 22, 2008 2:03 pm

Post by muddlehead »

at age 33, 100% vtsmx every year until approximately age 53. could not be any simpler.
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ruralavalon
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Re: Need Help starting out investing

Post by ruralavalon »

Lman924 wrote:Im going to open a Vanguard account, Roth ira. Im 33 years old and im looking for long term investment strategy thats simple to start. I just want to get my feet wet, ive been reading books but i would like to hear some ideas from experienced investors. I want an index portfolio of stocks/bonds. 2 funds to start with, but what 2 funds? what fund should i put in a roth or should i put both in a roth? Im going to fund it each month, so how much do i put in the stock index vs the bond each month? Any help is appreciated.
Welcome to the forum. Opening a Roth is definitely the way to go.

Give a lot of thought to asset allocation, and look for that subject in your reading. Look at the "Books of Interest" section on this forum. Books you could look at on this include The Bogleheads' Guide to Investing or R. Ferri's All About Asset Allocation. What about a 80/20 stock/bond split? Asset allocation is the most important decision you will be making, and also a very personal decision, so decide that first.
Topic Author
Lman924
Posts: 11
Joined: Sun Oct 05, 2008 11:36 pm

Post by Lman924 »

thanks for the responses. im reading those books now. 80/20 sounds about rite. im goign to start with vtsm and vtbm.
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