Fundamental Pillars of an Investment Portfolio?

[J.Apple902]

Hey guys,

I've recently launch my ROTH and am very excited about this. My portfolio has hit the $10k point (in about a year!) and this makes me very happy, and even more hungry for financial knowledge and investment strategies. Everyone's situation, attitude, and background is a little different, so everyone has a different set of needs and so on, however I'm looking for some "fundamental elements" of a portfolio which would be good for my needs.

At age 26 I'm interested in an aggressive long-term approach. Currently:

Fidelity 401k - 2055 Target date fund ($6k)
ROTH - Vanguard 2055 Target date ($1k)
- Vanguard 500 Index fund ($3k)

This mostly stock portfolio is now something like 5% bonds, and around 10% international. I have limited exposure to small/mid cap companies. I do not think I have any dividend shares.

My question is what type of funds or assets are considered critical foundations for a portfolio of someone my age and with my goals? People have talked about bond index funds, and all sorts of other quite popular things. Wondering what everyone started with when they were my age. Thanks!

[jIM_Ohio]

Hey guys,

I've recently launch my ROTH and am very excited about this. My portfolio has hit the $10k point (in about a year!) and this makes me very happy, and even more hungry for financial knowledge and investment strategies. Everyone's situation, attitude, and background is a little different, so everyone has a different set of needs and so on, however I'm looking for some "fundamental elements" of a portfolio which would be good for my needs.

At age 26 I'm interested in an aggressive long-term approach. Currently:

Fidelity 401k - 2055 Target date fund ($6k)
ROTH - Vanguard 2055 Target date ($1k)
- Vanguard 500 Index fund ($3k)

This mostly stock portfolio is now something like 5% bonds, and around 10% international. I have limited exposure to small/mid cap companies. I do not think I have any dividend shares.

My question is what type of funds or assets are considered critical foundations for a portfolio of someone my age and with my goals? People have talked about bond index funds, and all sorts of other quite popular things. Wondering what everyone started with when they were my age. Thanks!

Fundamental #1, if you choose a target date fund, change where you educate yourself. Let the fund pick the investments for you. For example, focus on what habits you need, not what investments you need.

Fundamental #2, if you want to pick your investments, I would focus on many educational things. The types of investments available, the costs of these investments, the habits you need to succeed, how to research financial questions and similar.

[feh]

Hey guys,

I've recently launch my ROTH and am very excited about this. My portfolio has hit the $10k point (in about a year!) and this makes me very happy, and even more hungry for financial knowledge and investment strategies. Everyone's situation, attitude, and background is a little different, so everyone has a different set of needs and so on, however I'm looking for some "fundamental elements" of a portfolio which would be good for my needs.

At age 26 I'm interested in an aggressive long-term approach. Currently:

Fidelity 401k - 2055 Target date fund ($6k)
ROTH - Vanguard 2055 Target date ($1k)
- Vanguard 500 Index fund ($3k)

This mostly stock portfolio is now something like 5% bonds, and around 10% international. I have limited exposure to small/mid cap companies. I do not think I have any dividend shares.

My question is what type of funds or assets are considered critical foundations for a portfolio of someone my age and with my goals? People have talked about bond index funds, and all sorts of other quite popular things. Wondering what everyone started with when they were my age. Thanks!

The most important thing at your age is how much you contribute, and not fund selection. That's what I would focus on. I think your current selections are fine.

When/if you want to take greater control over asset choices, I suggest you start w/ the 3 fund portfolio: http://www.bogleheads.org/wiki/Three-fund_portfolio

[Chris Leese]

Kudos to you for starting early!! The power of compounding is on your side.

That being said, there are other investment classes out there that you should investigate. Diversification outside of stocks/bonds may be something you should look into. Even if you cannot afford it right at this moment, start the education process so that when you are ready/capable, you will be an informed investor understanding the risk/rewards.

[J.Apple902]

yuuupppp k so this 3 or 4 (probably just 3) fund layout will probably be my next moves, or at least something close. Since I recently added the 500 index, I'll try and gain more exposure / diversification with a small/mid cap US fund and then an international stock fund. I'm a little weary of bonds right now, and since I should hardly worry about them anyway (due to age), I'll wait on the purchasing of a bond index fund. Thanks!