Index fund portfolio question

[abs9986]

I am a relatively new, young investor who has decided to start investing in index funds. I am already set for retirement through work - so the focus of this post is for medium - long term investments that are not for retirement.

I am considering Vanguard index funds - specifically their life strategy growth fund which is 80% stocks 20% bonds. The fund itself is made up of their total stock market index, international index and bond index.

Do you all recommend investing in this index fund (VASGX)? There is a lot of information I don't understand - is this good for non-retirement funds for tax reasons or does vanguard have other funds that are better suited for non-retirement purposes?

Is this enough diversification or would I better off buying vanguard sandp500 fund and other indexes individually.

Thank you for your all of your help

[disneysteve]

Welcome.

When you say that you are "already set for retirement through work" what exactly does that mean? Is there a 401k, a 403b, a pension? How is that money invested?

Do you have an asset allocation that you follow? In other words, how much of your overall portfolio, both retirement and non-retirement money combined, do you want to have invested in stocks, how much in bonds, how much in cash, how much in real estate, etc?

The Vanguard fund you refer to is a perfectly good fund, but only if it fits your desired asset allocation.

[snafu]

Good on you for making a plan to create an investment program. The Vanguard fund mentioned sounds like a good place to start a regular DCA [dollar cost averaging] non retirement investment program. Once opened a specific, designated sum automatically buys more or less units depending on market conditions. It's shocking how effective this passive system can be over many years. It's recommended that you plan to continue to contribute for a minimum of 5 years not cash out at a loss when the economy weakens.

As you understand more about how the economy and emotion impact the value of stocks and bonds you can always make changes in your plan by selling some units and buying some other Mutual Fund or switch new monies to other investment vehicles.