Help with Rollover IRA investment mix

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
walker74
Posts: 2
Joined: Sat Sep 09, 2017 9:07 am

Help with Rollover IRA investment mix

Post by walker74 » Mon Sep 11, 2017 2:29 pm

Hello All :

I am new to this forum and would like to get some feedback from the folks here.
I have a rollover IRA waiting to be invested.

Amount : about 200K
Age : 45

I am thinking about the below allocations.

Bonds Vanguard Long Term Bond (BLV ETF) : 10%
International – (VEMAX (Emerging Market) and VWIGX (Intl Growth) : 30%
Sector – Industrial ETF (VIS) – 10%
US Stocks comprising of below – 50%
Small Cap (VB),
VOO (500 Index),
VMRGX/VUG (Morgan Growth/ Vanguard Large Cap Growth )

Any suggestions would be greatly welcome.
Thanks in advance

venkman
Posts: 297
Joined: Tue Mar 14, 2017 10:33 pm

Re: Help with Rollover IRA investment mix

Post by venkman » Tue Sep 12, 2017 1:34 am

I would recommend starting with the 3-fund portfolio (Total US Stock Market, Total Intl. Stock Market, Total Bond Market, in whatever proportions you decide are appropriate for you). I would deviate from that ONLY if you have a solid reason to.

Or, for simplicity, you could just put it all in one of Vanguard's Target Retirement funds.

walker74
Posts: 2
Joined: Sat Sep 09, 2017 9:07 am

Re: Help with Rollover IRA investment mix

Post by walker74 » Tue Sep 12, 2017 11:02 am

Thank you. Is there an advantage to using the mutual fund equivalents over ETFs ?

mhalley
Posts: 5136
Joined: Tue Nov 20, 2007 6:02 am

Re: Help with Rollover IRA investment mix

Post by mhalley » Tue Sep 12, 2017 9:27 pm

ETFs are just generally more complicated. They can have lower fees than investor shares if you do not qualify for admiral shares, plus no minimum. Also, long term bonds will have a big drop in nav when interest rates rise, so we generally recommend going with an int term bond fund.

https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds

Post Reply