How should I craft my portfolio?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Abigailm
Posts: 1
Joined: Tue Jun 11, 2019 3:23 pm

How should I craft my portfolio?

Post by Abigailm » Tue Jun 11, 2019 4:25 pm

Hello all! I’m brand new to investing and have some questions about how I should build my portfolio. I’m 17, and have put in 1000 in a Roth IRA to start with. I was thinking of a 3 fund portfolio, maybe starting out with 90% stocks with 10% bonds. I’m ok with some risk since I have a while until I need to actually be cautious. Is 60 US and 40 international reasonable enough? Would love some input, thank you thank you! :D :moneybag

barnaclebob
Posts: 3611
Joined: Thu Aug 09, 2012 10:54 am

Re: How should I craft my portfolio?

Post by barnaclebob » Tue Jun 11, 2019 4:45 pm

Nothing wrong with your plan IMO but you might have problems with minimum balances if you use mutual funds instead of ETF's.

retiredjg
Posts: 36265
Joined: Thu Jan 10, 2008 12:56 pm

Re: How should I craft my portfolio?

Post by retiredjg » Tue Jun 11, 2019 4:47 pm

All of that is fine. You'll need to use a target fund in order to buy it with only $1k. A great start!

MotoTrojan
Posts: 4497
Joined: Wed Feb 01, 2017 8:39 pm

Re: How should I craft my portfolio?

Post by MotoTrojan » Tue Jun 11, 2019 4:49 pm

Did you make $1000 in taxable income? If so congrats on putting it to good use.

If you like that AA I’d suggest using a 2065 (or highest available) Target Retirement fund. Should be about 90/10 and 60/40 equity as you noted in OP, will rebalance for you, and most have a $1K minimum to start.

Once you grow your holdings and income and need to invest in taxable too you can split this into a separately managed 3-fund but no need with only a Roth and funds available that provide your desired AA.

User avatar
Wiggums
Posts: 920
Joined: Thu Jan 31, 2019 8:02 am

Re: How should I craft my portfolio?

Post by Wiggums » Tue Jun 11, 2019 4:54 pm

Your plan looks good to me.

sergio
Posts: 334
Joined: Sat Jun 20, 2015 6:52 pm

Re: How should I craft my portfolio?

Post by sergio » Tue Jun 11, 2019 5:58 pm

barnaclebob wrote:
Tue Jun 11, 2019 4:45 pm
Nothing wrong with your plan IMO but you might have problems with minimum balances if you use mutual funds instead of ETF's.
Not with Fidelity. No minimums on all (?) mutual funds

User avatar
GMCZ71
Posts: 68
Joined: Sat Oct 13, 2018 8:05 am
Location: McMinnville, Or

Re: How should I craft my portfolio?

Post by GMCZ71 » Tue Jun 11, 2019 7:33 pm

I would stay with 100% till your 30s, then throtle down.
John

User avatar
abuss368
Posts: 13747
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!

Re: How should I craft my portfolio?

Post by abuss368 » Tue Jun 11, 2019 8:03 pm

Abigailm wrote:
Tue Jun 11, 2019 4:25 pm
Hello all! I’m brand new to investing and have some questions about how I should build my portfolio. I’m 17, and have put in 1000 in a Roth IRA to start with. I was thinking of a 3 fund portfolio, maybe starting out with 90% stocks with 10% bonds. I’m ok with some risk since I have a while until I need to actually be cautious. Is 60 US and 40 international reasonable enough? Would love some input, thank you thank you! :D :moneybag
Welcome to the forum!

You are to be commended as you are off to a great start on your journey. I would continue to save but first recommend you read some really great books. You will be thankful that you did and will increase your investment knowledge.

John Bogle "The Little Book of Common Sense Investing"
John Brennan "Straight Talk on Investing"
Bogleheads Guide to Investing
Bogleheads Guide to Retirement
Bogleheads Guide to the Three Fund Portfolio
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

User avatar
ruralavalon
Posts: 15677
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: How should I craft my portfolio?

Post by ruralavalon » Wed Jun 12, 2019 7:57 am

Welcome to the forum :) .

It is always great to see someone starting young, using a tax-advantaged account, and wanting diversified investing. You are off to a good start.

Abigailm wrote:
Tue Jun 11, 2019 4:25 pm
Hello all! I’m brand new to investing and have some questions about how I should build my portfolio. I’m 17, and have put in 1000 in a Roth IRA to start with. I was thinking of a 3 fund portfolio, maybe starting out with 90% stocks with 10% bonds. I’m ok with some risk since I have a while until I need to actually be cautious. Is 60 US and 40 international reasonable enough? Would love some input, thank you thank you! :D :moneybag
.
That is a good idea for asset allocation. I suggest to start simply using a target date fund like Vanguard Target Retirement 2065 (VLXVX) ER 0.15%.

I also suggest that you read one or two good books on investing. Wiki article, "Books: recommendations and reviews".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Post Reply