ROTH Roll over to Vanguard

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chrismeek32
Posts: 20
Joined: Sat Apr 26, 2014 1:36 pm

ROTH Roll over to Vanguard

Post by chrismeek32 » Tue Jun 30, 2020 6:24 am

I am rolling my ROTH ($37K) from Betterment to Vanguard. I max out my ROTH each year and I am leaning to invest in the following mutual funds and was looking to get some others input on these selections.

10% Balanced Index Fund (VBIAX)...I know it's not total bonds but does give me some bonds in the portfolio
10% International Growth (VWIGX)
30% U.S. Growth (VMUSX)
50% Total Stock Index (VTSAX)

Thanks in advance for your input

whereskyle
Posts: 837
Joined: Wed Jan 29, 2020 10:29 am

Re: ROTH Roll over to Vanguard

Post by whereskyle » Tue Jun 30, 2020 6:56 am

chrismeek32 wrote:
Tue Jun 30, 2020 6:24 am
I am rolling my ROTH ($37K) from Betterment to Vanguard. I max out my ROTH each year and I am leaning to invest in the following mutual funds and was looking to get some others input on these selections.

10% Balanced Index Fund (VBIAX)...I know it's not total bonds but does give me some bonds in the portfolio
10% International Growth (VWIGX)
30% U.S. Growth (VMUSX)
50% Total Stock Index (VTSAX)

Thanks in advance for your input
First, you should read the telltale chart: http://johncbogle.com/speeches/JCB_Morningstar_6-02.pdf

In that speech, Jack Bogle makes a compelling case for Reversion to the Mean, and I think you will enjoy reading it. Given growth's sustained outperformance for the past decade, I think now is exactly the time NOT to bet on growth. Chances are you are late to the party unfortunately.

With that in mind, I think your portfolio can be simpler and this simpler formulation can save you from the pain of betting on styles and corners of the market. Here is my recommendation based on your proposed allocations:

80% VTSAX
10% VTIAX
10% VBMFX

This is one stock-heavy, US-centric version of the three-fund portfolio championed by the original Bogleheads. You should follow their example. You're on their site looking for advice after all!

Good luck!
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle

rkhusky
Posts: 9443
Joined: Thu Aug 18, 2011 8:09 pm

Re: ROTH Roll over to Vanguard

Post by rkhusky » Tue Jun 30, 2020 7:17 am

An alternative to the 3-fund portfolio is a Target Retirement Fund. Perhaps TR 2060. Once you have a couple hundred thousand in the account, consider the 3-fund portfolio. Or perhaps you will realize the simplicity and ease-of-use of the TR fund and just stick with it through retirement.

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KingRiggs
Posts: 507
Joined: Wed Dec 12, 2018 12:19 pm
Location: Indiana

Re: ROTH Roll over to Vanguard

Post by KingRiggs » Tue Jun 30, 2020 7:56 am

Senator Roth rolls over in his grave every time someone types "ROTH"... :confused
Advice = noun | Advise = verb | | Roth, not ROTH

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