Quote:
Originally Posted by adaway
Thanks for the replies!
Here is what I am thinking now:
After changing my contributions to 8%, I will have it go to the Vanguard 2045 target fund. At some point this year, I will make changes to have at least two different funds (one other in addition to Vanguard Target) even though the target fund is diversified allocation-wise it seems like I would feel more comfortable to have more than one fund as an additional 12% employer match will be going into that same fund.
Regarding the opening 3,000 min, I guess I will have to wait to make the above changes until I can transfer my TIAACref which would fulfill the minimum. This will be several months from now.
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Even though you may feel more comfortable having more than one fund (and that's quite understandable), make sure there isn't much overlap in the other fund(s) you wish to hold. The number of funds you hold doesn't necessarily add to diversification if they're investing in the same thing. Retirement funds are meant to be a "one-stop shopping" type fund where you just have that fund and that's basically it. If you'd like to add more to a particular sector or class (ie. int'l, bonds, etc...) then you should do that with additional funds.
And I would check to see if there are minimums with the Vanguard funds if you're purchasing them through an employer's retirement program because most of the time they'll be waived in that instance.