ROTH IRA - I need to invest, don't know where to put it.

[mrpaseo]

So I have the money to fully fund my ROTH IRA this year, but I do not know where to put it. I know I should systematically invest over time to dollar cost average but still do not know which funds to put the money in.

Ideas?

[disneysteve]

What do you already have? What does your portfolio look like? Do you have a desired asset allocation in mind?

[mrpaseo]

What do you already have? What does your portfolio look like? Do you have a desired asset allocation in mind?

Domestic: Curently 54.15% of portfolio (Goal 55%)
(w)VFIAX - Vanguard 500 Index Fund Adm. 33% of Domestic
(h)JANVX - Janus Venture Fund 67% of Domestic

Foreign: Currently 31.01% of portfolio (Goal 35%)
(h)FIGRX - Fidelity International Discovery 21% of Foreign
(h)VGTSX - Vanguard Total Intl Stock Index Inv 20% of Foreign
(w)ARTIX - Artisian International Inv (401k) 59% of Foreign (Actively investing every 2 weeks - 4% match)

Bonds: Currently 10.46% of portfolio (Goal 8%)
(w)VBIIX - Vanguard Intermediate Term Bond Index Fund Inv Shares 100% of Bonds

Allocation Funds: Breakdown is included above.
(h)JNSGX - Janus Growth Allocation Fund 19% of Allocation Funds
(w)TRRCX - T. Row Price Retirement 2030 Fund (401k)81% of Allocation funds (Actively investing every 2 weeks - 4% match)

Stock: Currently 4.38% of portfolio (Goal 2%)
(w)LTD - Limited Brands, Inc. Common Stock Fund (401k)100% of Stocks (Actively investing every 2 weeks - 4% match)


NOTES:
Only active investing is the 401k.
The JANVX - Janus Venture Fund 67% of Domestic is actually two funds (One converted from Traditional so it is locked).
All investments are ROTH IRA save for the noted 401k.

Added (w) for Wife and (h) for Husband.

[mrpaseo]

I am thinking about adding VTSMX - Vanguard Total Stock Mkt Inx Inv.
Convertible to Admiral Shares at $10,000

NAV: $53.51
Expense Ratio: .17%
Asset class: Domestic Stock - General
Category: Large Blend
Minimum: $3,000
Purchase fee: None
Redemption Fee: None
12b-1 Fee: None
Account service fee: None
Distributions: Dividends quarterly

Launched in 1992.

[disneysteve]

I am thinking about adding VTSMX - Vanguard Total Stock Mkt Inx Inv.

That's certainly a good fund, and one of the most popular. The one thing you might want to look at, though, is how it compares to VFIAX. The two are very similar. I just looked at the returns (though for the Admiral shares since that's what I have) and they are nearly identical over every time period. You may not really be getting much additional diversification by adding that fund. It might make more sense, if you want to go that route, to close the S&P holding and move that and the new money into the Total Stock fund. Either that or just keep what you've got and put the new money in the S&P fund.

[mrpaseo]

That's certainly a good fund, and one of the most popular. The one thing you might want to look at, though, is how it compares to VFIAX. The two are very similar. I just looked at the returns (though for the Admiral shares since that's what I have) and they are nearly identical over every time period. You may not really be getting much additional diversification by adding that fund. It might make more sense, if you want to go that route, to close the S&P holding and move that and the new money into the Total Stock fund. Either that or just keep what you've got and put the new money in the S&P fund.

Ya, they are very similar in their breakdown. The VFIAX is actually my wife's ROTH IRA (I should have stated that this is a joint breakdown). I'm thinking about opening the VTSMX in my name.

I have the full $5,500 for both of our ROTH IRAs sitting in a checking account. I'm probably going to open the VTSMX in my name. Then contribute hers to the VFIAX.

Any other MF's that you can suggest that I can look up?

[disneysteve]

I'm probably going to open the VTSMX in my name. Then contribute hers to the VFIAX.

That makes sense.

Any other MF's that you can suggest that I can look up?

Not really. I think you've already got a good allocation. Adding more funds doesn't really get you anything except more funds to keep track of.

The one thing you might consider is something like VGSIX. That would give you exposure to a whole different asset class - real estate.

[mrpaseo]

That makes sense.


Not really. I think you've already got a good allocation. Adding more funds doesn't really get you anything except more funds to keep track of.

The one thing you might consider is something like VGSIX. That would give you exposure to a whole different asset class - real estate.

Thanks DS, I will look into the VGSIX. I need to build a portfolio that is non-retirement. I have only VGSTX currently. Yes, only one non-retirement account...lol. I'm a little behind the ball curve here.