32, no debt, currently maxing out my Roth annually, but I'd like to have more of my money "working for me"
1. When investing in a Mutual Fund (Vanguard target retirement for example) can you contribute as much/as often as you like or is it truly a "Set and forget" type investment?
2. Is it better to wait until this "trump bump" declines or is investing in mutual funds less dependent on day to day market conditions? Basically, my portfolio will be aggressive if/when I invest, so is it better to wait for the market to cool or get my money in ASAP?
Any further advice / tips / strategies would be greatly appreciated. I've got $10,000 - $20000 to comfortably invest right now, just wondering the best way to go about it - as a compliment to my Roth.
* considering rolling my Roth over to Vanguard as well, anyone have experience with them? I've heard/read mostly great things and thinking my Roth in addition to a target retirement fund (2045) should have me in great shape.
Thank you in advance for any help. It's much appreciated. Go Giants.
choose an age appropriate mix of stocks and bonds. in your case heavy in growth stock funds.
dollar cost average.
rebalance funds annually to maintain your target mix of stocks and bonds.
thinking a more conservative MF paired with my aggressive Roth makes sense
This^ You are young. Don't wait. Plenty of funds to choose from if you're afraid of being too agressive
and by 90% ETFs (SPY , QQQ , IWM )
10% government bonds (https://www.treasurydirect.gov)
Mutual funds only get brokers rich ..
That sounds a lot like trying to time a market to me. I've got 40 years before I will retire, I always plan to have some bonds.
Quote:
My belief is that very long term investors dont need to be in bonds much until yields improve.
That sounds a lot like trying to time a market to me. I've got 40 years before I will retire, I always plan to have some bonds.
Bonds are different from stocks. Invest in the stock of good, sound companies with growth potential and the stock will ultimately go up in the long run, regardless of market swings. The same cannot be said of bonds. Interest rates are at rock bottom. There's no where for rates to go but up. And when they do, the value of your bonds go down, irrespective of the strength of the company backing them.
The only thing you can do not lose your shirt when rates go up is to hold the bonds to maturity. And earn a really piss poor return the whole way.
so, don't bother with a mutual fund (even one comprised of index funds?). I'm ready to invest another $20,000 ... ETF the way to go?
I'm "young" (feel old, bday just past), no debt, with a nice enough savings account and on track for a significant salary increase next year, so looking to be as "aggressive" as possible. I understand the basics, and will not be panicking when the markets inevitably rise / fall - I know to rebalance my portfolio as I age to reduce risk
will definitely look more into ETF vs mutual funds ... any tips on companies/firms to join would also be greatly appreciated.
thank you all again. it is greatly appreciated.
thought vanguard retirement target date would be a decent "set and forget" type strategy, but obviously open to other ideas.
And there are downsides to ETFs. The biggest is you have to pay commission fees every time you buy or sell ETF shares, while mutual fund transactions are free. Also, dividends automatically reinvest on a mutual fund, but with an ETF you'll have to do it yourself (and incur another commission). I encourage you to look ito it yourself and make an informed decision.
say I were to invest $10,000 in a 2045 vanguard target fund, could I continue to add funds to it (say $1000 every 2 months or so)?
looking for a "Set and forget" method of investing that would still allow me to bump up contributions when I can. Would a find like vanguard's be the wrong route?
say I were to invest $10,000 in a 2045 vanguard target fund, could I continue to add funds to it (say $1000 every 2 months or so)?
looking for a "Set and forget" method of investing that would still allow me to bump up contributions when I can. Would a find like vanguard's be the wrong route?
You can keep investing up to the annual limit as often as you like. Even if the market goes down, keep investing. That is how you get good returns buy when the marhet is down.
60/40 is where a 55 yr old would place his/her money so at 32 you should be more aggressive. Vanguard has tools to help you decide your allocation. Their fees are extremely low (lowest on the market IIRC).
There's so many funds and so many different fees it's pretty overwhelming to a novice investor. Some of the funds in my 401k have a .45 e/r and some others seem to have a .06.
What's the "benchmark?"
There's so many funds and so many different fees it's pretty overwhelming to a novice investor. Some of the funds in my 401k have a .45 e/r and some others seem to have a .06.
What's the "benchmark?"
Fees are lower on index funds, since it requires no research/analysis staff. Managed funds that choose what stocks/bonds/etc to buy and sell have higher fees.
As far as benchmarks, for an index fund it should be under 0.2. Managed funds generally should be less than 1.0, but it varies by type.
Again, thank you all. Lots of good info here.
I assume since I contributed to my Roth for this year that I can't roll that over into it as well.
I assume since I contributed to my Roth for this year that I can't roll that over into it as well.
If you're happy with the investment options in your Simple-IRA, you can leave it there. If you'd like more options and better control, then do a rollover.
If you want to roll into a Roth IRA, you'll have to pay taxes on the money to do so. You can roll it into a traditional IRA tax free.
Your contribution to your Roth this year is irrelevant to whatever you decide.
As is every situation. I'm at the point where I'm starting to take IRA distributions. In my case, I chose Vanguard because it has very low management fees 0.03% of funds managed), offers ROBO/Personal Investor help. ($50,000 min)
For young person, I'd probably recommend Betterment (no personal advisor available; ROBO recommended mix, but you can change it). It's worth doing the research on them and giving them a call
Here's a side-by-side of the leading ones .....
https://www.nerdwallet.com/blog/investing/best-robo-advisors/
I love the idea of Vanguard's target retirement fund (I know to play with the date to adjust risk/reward) and was wondering if it'd be a good idea to buy that in 2018 as part of my Roth and fund that annually while it essentially manages itself and adjusts accordingly as I age?
thinking that, plus investments outside of my Roth should have me in good shape. I'm hesitant to drop a lump sum in the market now during this "trump bump", so would something like 8,000 initially and then 2000 every 2 months be better than 20,000 upfront (basically, dollar cost average over 2 month periods)?
as always, any tips are greatly appreciated.