Should I Add Another Fund to My Roth IRA?

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Topic Author
TMO86
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Joined: Fri Apr 03, 2020 2:40 pm

Should I Add Another Fund to My Roth IRA?

Post by TMO86 »

Hello everyone,

I am 29 years old and I have my Roth IRA with Vanguard. The only fund I have in it is the Target 2060 Fund (VTTSX).

Should I keep my portfolio like this or should I add another fund?.
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ruralavalon
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Location: Illinois

Re: Should I Add Another Fund to My Roth IRA?

Post by ruralavalon »

TMO86 wrote: Tue Sep 22, 2020 10:34 am Hello everyone,

I am 29 years old and I have my Roth IRA with Vanguard. The only fund I have in it is the Target 2060 Fund (VTTSX).

Should I keep my portfolio like this or should I add another fund?.
Keep that as it is. Vanguard Target Retirement 2060 Fund (VTTSX) ER 0.15% is very diversified and is fine by itself. It is intended to be used by itself as a simple, all-in-one, single fund portfolio.

Are you making the maximum annual contribution of $6k to your Roth IRA?

Is there a plan offered at work like a 401k, 403b, 457b, SEP IRA, SIMPLE IRA, TSP? If so are you making contributions to that plan? How much?

When young and just starting the most important investing decision you can make is to establish a high rate of contributions.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
zimmer0
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Re: Should I Add Another Fund to My Roth IRA?

Post by zimmer0 »

similar stats as OP. Recently exchanged TD 2055 for VTSAX as i wanted 100% stock in rIRA as i have bonds in 401k.
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David Jay
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Re: Should I Add Another Fund to My Roth IRA?

Post by David Jay »

This thread discusses the so-called "one fund portfolio" - like your TargetRetirement 2060: viewtopic.php?t=287967
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
bloom2708
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Re: Should I Add Another Fund to My Roth IRA?

Post by bloom2708 »

+ 1 to put bonds in your TSP/401k. Target 2060 is fine for now, but the bonds will increase over the years.

Our Roths have Total US index + Mid-Cap index (70/30).

Ask me in 20+ years if it "worked".
Last edited by bloom2708 on Wed Sep 23, 2020 10:58 am, edited 1 time in total.
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead
retiredjg
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Re: Should I Add Another Fund to My Roth IRA?

Post by retiredjg »

TMO86 wrote: Tue Sep 22, 2020 10:34 am I am 29 years old and I have my Roth IRA with Vanguard. The only fund I have in it is the Target 2060 Fund (VTTSX).

Should I keep my portfolio like this or should I add another fund?.
The Target funds are stand alone, all in one funds. They don't "need" anything added.

You should look at your Roth IRA as part of your portfolio. What you have in Roth IRA needs to be planed with the whole of your portfolio in mind. Do you have any other accounts? Do you have a spouse with other accounts?
Topic Author
TMO86
Posts: 15
Joined: Fri Apr 03, 2020 2:40 pm

Re: Should I Add Another Fund to My Roth IRA?

Post by TMO86 »

ruralavalon wrote: Tue Sep 22, 2020 10:44 am
TMO86 wrote: Tue Sep 22, 2020 10:34 am Hello everyone,

I am 29 years old and I have my Roth IRA with Vanguard. The only fund I have in it is the Target 2060 Fund (VTTSX).

Should I keep my portfolio like this or should I add another fund?.
Keep that as it is. Vanguard Target Retirement 2060 Fund (VTTSX) ER 0.15% is very diversified and is fine by itself. It is intended to be used by itself as a simple, all-in-one, single fund portfolio.

Are you making the maximum annual contribution of $6k to your Roth IRA?

Is there a plan offered at work like a 401k, 403b, 457b, SEP IRA, SIMPLE IRA, TSP? If so are you making contributions to that plan? How much?

When young and just starting the most important investing decision you can make is to establish a high rate of contributions.
I'm a Fed so I have the TSP. I am currently contributing 9%
Topic Author
TMO86
Posts: 15
Joined: Fri Apr 03, 2020 2:40 pm

Re: Should I Add Another Fund to My Roth IRA?

Post by TMO86 »

retiredjg wrote: Tue Sep 22, 2020 11:37 am
TMO86 wrote: Tue Sep 22, 2020 10:34 am I am 29 years old and I have my Roth IRA with Vanguard. The only fund I have in it is the Target 2060 Fund (VTTSX).

Should I keep my portfolio like this or should I add another fund?.
The Target funds are stand alone, all in one funds. They don't "need" anything added.

You should look at your Roth IRA as part of your portfolio. What you have in Roth IRA needs to be planed with the whole of your portfolio in mind. Do you have any other accounts? Do you have a spouse with other accounts?
I invest in the TSP and I have my taxable in VTI. I don't have a spouse.
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ruralavalon
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Re: Should I Add Another Fund to My Roth IRA?

Post by ruralavalon »

TMO86 wrote: Tue Sep 22, 2020 12:15 pm
ruralavalon wrote: Tue Sep 22, 2020 10:44 am
TMO86 wrote: Tue Sep 22, 2020 10:34 am Hello everyone,

I am 29 years old and I have my Roth IRA with Vanguard. The only fund I have in it is the Target 2060 Fund (VTTSX).

Should I keep my portfolio like this or should I add another fund?.
Keep that as it is. Vanguard Target Retirement 2060 Fund (VTTSX) ER 0.15% is very diversified and is fine by itself. It is intended to be used by itself as a simple, all-in-one, single fund portfolio.

Are you making the maximum annual contribution of $6k to your Roth IRA?

Is there a plan offered at work like a 401k, 403b, 457b, SEP IRA, SIMPLE IRA, TSP? If so are you making contributions to that plan? How much?

When young and just starting the most important investing decision you can make is to establish a high rate of contributions.
I'm a Fed so I have the TSP. I am currently contributing 9%
To keep it simple you could also use a target date fund (L Fund) in the TSP account.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
retiredjg
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Joined: Thu Jan 10, 2008 12:56 pm

Re: Should I Add Another Fund to My Roth IRA?

Post by retiredjg »

If you want a good answer to your question, you should post your portfolio (holdings and what percentage each holding is of the total portfolio). What you have in the TSP and what you have in taxable and what you have in Roth IRA should all be part of 1 plan, not 3 plans...unless they are for 3 different purposes.

See the link at the bottom of this message for how to ask this kind of question.
Topic Author
TMO86
Posts: 15
Joined: Fri Apr 03, 2020 2:40 pm

Re: Should I Add Another Fund to My Roth IRA?

Post by TMO86 »

ruralavalon wrote: Tue Sep 22, 2020 2:12 pm
TMO86 wrote: Tue Sep 22, 2020 12:15 pm
ruralavalon wrote: Tue Sep 22, 2020 10:44 am
TMO86 wrote: Tue Sep 22, 2020 10:34 am Hello everyone,

I am 29 years old and I have my Roth IRA with Vanguard. The only fund I have in it is the Target 2060 Fund (VTTSX).

Should I keep my portfolio like this or should I add another fund?.
Keep that as it is. Vanguard Target Retirement 2060 Fund (VTTSX) ER 0.15% is very diversified and is fine by itself. It is intended to be used by itself as a simple, all-in-one, single fund portfolio.

Are you making the maximum annual contribution of $6k to your Roth IRA?

Is there a plan offered at work like a 401k, 403b, 457b, SEP IRA, SIMPLE IRA, TSP? If so are you making contributions to that plan? How much?

When young and just starting the most important investing decision you can make is to establish a high rate of contributions.
I'm a Fed so I have the TSP. I am currently contributing 9%
To keep it simple you could also use a target date fund (L Fund) in the TSP account.
I’m 100% invested in the L2050 fund.
stimulacra
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Location: Houston

Re: Should I Add Another Fund to My Roth IRA?

Post by stimulacra »

If I was going to add another fund in addition to a Target Date Fund, I would just go ahead and do a Two-Fund or Three-Fund portfolio so that I would have a clear sense of asset allocation and ratio between equities and bonds and make rebalancing a bit more simple.
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ruralavalon
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Location: Illinois

Re: Should I Add Another Fund to My Roth IRA?

Post by ruralavalon »

TMO86 wrote: Tue Sep 22, 2020 5:01 pm
ruralavalon wrote: Tue Sep 22, 2020 2:12 pm
TMO86 wrote: Tue Sep 22, 2020 12:15 pm
ruralavalon wrote: Tue Sep 22, 2020 10:44 am
TMO86 wrote: Tue Sep 22, 2020 10:34 am Hello everyone,

I am 29 years old and I have my Roth IRA with Vanguard. The only fund I have in it is the Target 2060 Fund (VTTSX).

Should I keep my portfolio like this or should I add another fund?.
Keep that as it is. Vanguard Target Retirement 2060 Fund (VTTSX) ER 0.15% is very diversified and is fine by itself. It is intended to be used by itself as a simple, all-in-one, single fund portfolio.

Are you making the maximum annual contribution of $6k to your Roth IRA?

Is there a plan offered at work like a 401k, 403b, 457b, SEP IRA, SIMPLE IRA, TSP? If so are you making contributions to that plan? How much?

When young and just starting the most important investing decision you can make is to establish a high rate of contributions.
I'm a Fed so I have the TSP. I am currently contributing 9%
To keep it simple you could also use a target date fund (L Fund) in the TSP account.
I’m 100% invested in the L2050 fund.
Excellent :) , keep it simple. Now all you need to do is contribute as much as practical.

When young the most important investing decision you can make is to establish a high rate of contributions. "Savings rate is the most important retirement savings decision, not only because of the math but because of the way it drives your financial mindset and habits. The basic raw stock/bond risk decision comes second. And the finer details--index or active, factors or total market, alts or no alts--are a distant third." Forum discussion on Jonathan Clements’ article "Show me the Money".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
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