Three funds portfolio

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Mario2222
Posts: 64
Joined: Mon Dec 24, 2018 12:16 am

Three funds portfolio

Post by Mario2222 »

I planned to buy a 3 funds portfolio in my Roth IRA account. VTSAX = 70%
VTIAX =20%
VTBLX = 10%
I didn't have enough money to buy 10% of VTBLX . I added the rest of money to VTSAX. Now I have VTSAX = 80% & VTIAX = 20%. I ended up with 2 funds. I'm 40 years old.
I'm thinking to build a fund in my settlement account and sell 10% from VTSAX to buy VTBLX .Any suggestions?h
Last edited by Mario2222 on Fri Sep 04, 2020 2:11 pm, edited 2 times in total.
000
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Joined: Thu Jul 23, 2020 12:04 am

Re: Three funds portfolio

Post by 000 »

Use ETFs or an all-in-one LifeStrategy or Target Date fund.
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22twain
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Re: Three funds portfolio

Post by 22twain »

I assume you will contribute monthly from now on. If you simply put the new money into the settlement fund, how long will it take to reach the minimum purchase amount for VBTLX?

Think of the settlement fund as a bond fund that pays practically zero interest/dividends. It's still "stable", which is the main purpose of the bond portion of your allocation (for me, at least).
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earflop
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Joined: Fri Sep 20, 2019 5:34 pm

Re: Three funds portfolio

Post by earflop »

Mario2222 wrote: Fri Sep 04, 2020 2:01 pm I planned to buy a 3 funds portfolio in my Roth IRA account.
Do you have any other retirement accounts, such as a 401(k)? You don't have to have the three fund portfolio in every account - rather you should look at all of your investments as one big account. You could put your bonds elsewhere and minimums won't be an issue.
Ferdinand2014
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Re: Three funds portfolio

Post by Ferdinand2014 »

Fidelity requires no minimum investment in any of their index funds. Or just buy the ETF version.
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absolute zero
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Re: Three funds portfolio

Post by absolute zero »

Duplicate
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