Help Please: Bogleheads to my Rescue ~ High Ho Bogleheads!

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Janet Black
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Joined: Wed Oct 15, 2008 11:05 am

Help Please: Bogleheads to my Rescue ~ High Ho Bogleheads!

Post by Janet Black » Thu Oct 16, 2008 9:34 am

My husband and I are novice investors. To gather wisdom, I just finished reading The Little Book of Common Sense Investing and have just begin The Bogle Heads' Guide investing. I'm very confused about a good choice for our retirement accounts ~ 500 Index funds or Extended Market Index Funds or Target Date Funds or ???? Please help with your wondrous wisdom I read about each of you...The Bogleheads are people of honesty and integrity who truly want to make a difference by helping those of us less gifted in financial knowledge. My husband and I both serve in healthcare. Let me 1st thank Mr. Larimore and Mr. Lindauer for your sacrifice in serving this country while you journeyed in the U.S. military.
A little about us ~ :D I am 57; my husband is 47
My husband retirements monies are primarily with TIAA-CREf, 50% in the Traditional and a little in each of the other categories. In that acccount, we have $70,000 in a money market, which we feel is ripe for indexing, but we don't know what to choose. The University of Washington, where my husband teaches does offer Vanguard as an alternative to TIAA-CREF. Question: HOW BEST TO REALLOCATE THIS $70,000 or even the other monies if you'd like to help us with guidance on that.
My money is basically in the Amerivest program with TD Ameritrade. I transferred my monies to TD Ameritrade after reading Suze Orman's book, Women and Money. TD Ameritrade offered $100 if you saved $50.00 each month for 1 year. I got a call from an investment advisor, who counseled me that I could do better with the Amerivest program than with Charles Schwab. I trusted him and moved my money from Charles Schwab to that program. There is a 0.75% annual advisory fee with that program...it's ETFs. I did this as a lump sum investment, which seems consistent with your recommendation for ETFs. However, after reading Mr. Bogle's book, I'm concerned about that management fee.
Now, my husband and I are fearful and would be most appreciative of any help you can give us. Suze Orman loves Vanguard and recommends 90% in an index fund that follows a broad benchmark and 10% in an international index fund. That's sounds good, but which index funds?
To reach out to you with good energy, I will go on a hike to the mountains....I do a special prayer atop the mountain for each of you, for all the Bogleheads, and for "rich" prosperity for all God's creatures...

chaz
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Joined: Tue Feb 27, 2007 2:44 pm

Post by chaz » Thu Oct 16, 2008 11:15 am

Suze Orman is talking about Vanguard Total Stock Market fund.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

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PiperWarrior
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Joined: Fri Dec 21, 2007 4:55 am
Location: right on course

Post by PiperWarrior » Thu Oct 16, 2008 11:41 am

Welcome to the forum!

I suggest you take a step back, finish reading The Bogleheads' Guide to Investing, and then take a 30,000-feet view at your finance.
  • How much have you saved so far?
  • How much do you need in retirement?
  • How much loss can you tolerate?
  • Do you need to take risk?
  • Do you have a long way to go toward your goal?
  • Can you take risk?
  • Is your job secure?
  • How are your jobs correlated?
  • Is it likely that you lose your jobs at the same time (possibly because you are in the same industry)?
  • Are you healthy enough to work for a few extra years if needed?
Then and only then, I would think about a stock/bond allocation and then work on suballocations like domestic/international stocks, types of fixed income instruments, etc. In other words, I am suggesting to pick funds at the end of all this process, not at the beginning.

You might want to read Investment Planning and then post your situation in the format provided in Asking Portfolio Questions for comprehensive advice.
Last edited by PiperWarrior on Thu Oct 16, 2008 11:42 am, edited 1 time in total.

retiredjg
Posts: 38463
Joined: Thu Jan 10, 2008 12:56 pm

Post by retiredjg » Thu Oct 16, 2008 11:42 am

Hi Janet. Welcome to the forum!

Unfortunately, there is not enough information in your post to advise how to invest your money. Check out the 2 links below and post your information in the format in the second link and someone will help. Good luck! jg

http://www.bogleheads.org/forum/viewtopic.php?t=6211
http://www.bogleheads.org/forum/viewtopic.php?t=6212

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