Buying Total Stock Market now? 403(b)

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Socrates
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Buying Total Stock Market now? 403(b)

Post by Socrates »

I dollar cost average in my 403(b).....I have a portfolio of:


60% stocks

30% Vanguard TSM
10% Vanguard Healthcare
10% REIT
10% Vanguard Small Cap Value

40% Bonds

30% Fidelity Total Bond
10% Vanguard Corporate

I am totally rebalanced as I have been buying other areas listed, but I am 53 and my question is: Do I buy TSM now even though it is very expensive or contribute into bonds or something else. I contribute $1200 a month and wont access 403(b) until 65. Thank you
“Don't waste your time looking back. You're not going that way.” ― Ragnar Lothbrok.
lexor
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Joined: Thu Feb 27, 2014 9:32 am

Re: Buying Total Stock Market now? 403(b)

Post by lexor »

Socrates wrote: Sun Jan 05, 2020 7:45 pm I dollar cost average in my 403(b).....I have a portfolio of:


60% stocks

30% Vanguard TSM
10% Vanguard Healthcare
10% REIT
10% Vanguard Small Cap Value

40% Bonds

30% Fidelity Total Bond
10% Vanguard Corporate

I am totally rebalanced as I have been buying other areas listed, but I am 53 and my question is: Do I buy TSM now even though it is very expensive or contribute into bonds or something else. I contribute $1200 a month and wont access 403(b) until 65. Thank you
I'd suggest buying both according to your target asset allocation. I think doing otherwise is market timing.
“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” -Mr. John C. Bogle
Compound
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Re: Buying Total Stock Market now? 403(b)

Post by Compound »

Yes. Keep pouring money in to follow your target asset allocation. Your target seems reasonably conservative. However, the “cold feet” you’re currently experiencing suggests you may want to consider revisiting if you are at the correct asset allocation for you.
snailderby
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Joined: Thu Jul 26, 2018 11:30 am

Re: Buying Total Stock Market now? 403(b)

Post by snailderby »

Compound wrote: Sun Jan 05, 2020 8:24 pm Yes. Keep pouring money in to follow your target asset allocation. Your target seems reasonably conservative. However, the “cold feet” you’re currently experiencing suggests you may want to consider revisiting if you are at the correct asset allocation for you.
+1. This.
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Clever_Username
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Location: Southern California

Re: Buying Total Stock Market now? 403(b)

Post by Clever_Username »

Socrates wrote: Sun Jan 05, 2020 7:45 pm I am totally rebalanced as I have been buying other areas listed, but I am 53 and my question is: Do I buy TSM now even though it is very expensive or contribute into bonds or something else. I contribute $1200 a month and wont access 403(b) until 65. Thank you
Yes. If you look at it over time, TSM is almost always expensive -- with good reason. Since the market tends to go up over time (vastly oversimplifying here), it will spend a lot of its time at or near an all-time high. And there are very few points in stock market history where buying TSM as part of a balanced portfolio was a bad idea twelve (or more) years later. Besides, you're probably not going to cash out your 403(b) entirely in twelve years: some of that money is even longer term!

In short, your plan to buy TSM is fine.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.
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