is now a good time to buy index fund for ira account?

Hi i was wondering if now is a good time to buy index fund. i started
my sep-ira account last year and put in 3k(1k for vanguard 500 Index
Fund Inv, and 2k in Windsor II Fund Inv) i was thinking about adding
6k into the sep-ira account. the index fund seems to be lagging but
will the concept of buying low apply in this case? my other fund is
windsor II and it seems to be doing better and it makes me want to add
more funds to it.....any suggestion on fund allocation is greatly
appreciated. im 28 and i have about 30 years to let the fund grow.
i've paid off my undergrad and grad school debt as well as my condo
mortagage therefore i don't have much expenses at this point. is it a
good idea to fund my ira account as much as i can until i start a
family?...... TIA


david

Re: is now a good time to buy index fund for ira account?

Generally speaking, it is usually wiser for investors to feed their weakest
funds, especially if you are a long term investor.


"dave" <> wrote in message
news:
> Hi i was wondering if now is a good time to buy index fund. i started
> my sep-ira account last year and put in 3k(1k for vanguard 500 Index
> Fund Inv, and 2k in Windsor II Fund Inv) i was thinking about adding
> 6k into the sep-ira account. the index fund seems to be lagging but
> will the concept of buying low apply in this case? my other fund is
> windsor II and it seems to be doing better and it makes me want to add
> more funds to it.....any suggestion on fund allocation is greatly
> appreciated. im 28 and i have about 30 years to let the fund grow.
> i've paid off my undergrad and grad school debt as well as my condo
> mortagage therefore i don't have much expenses at this point. is it a
> good idea to fund my ira account as much as i can until i start a
> family?...... TIA
>
>
> david

Re: is now a good time to buy index fund for ira account?

dave wrote:

> Hi i was wondering if now is a good time to buy index fund. i started
> my sep-ira account last year and put in 3k(1k for vanguard 500 Index
> Fund Inv, and 2k in Windsor II Fund Inv) i was thinking about adding
> 6k into the sep-ira account. the index fund seems to be lagging but
> will the concept of buying low apply in this case?

Buying low applies when you believe that the fund has a good long-term
future. And index funds have as good a future as the stock market
itself. So I say, go for it.

Invest as much as you can in IRA and any other tax-sheltered vehicle you
qualify for. For example, if/when you have children, look into "529" plans.



--
Steven D. Litvintchouk
Email:

Remove the NOSPAM before replying to me.

Re: is now a good time to buy index fund for ira account?

Vanguard has maintenance fees for the index accounts below set dollar
limits. You should try to get the balance above those limits as soon
as possible. I believe it's $10,000.

Re: is now a good time to buy index fund for ira account?

I believe index fund is always a good idea for any type of account. In
order to "beat" the fees charged by Vanguard for index funds with
accounts with less than $10k, I would invest in a 'Target Retirement'
fund. In your case, 2045 or 2035 should be a good idea. 2045 fund
invests in 72/12/5/10, Wilshire 5000/Euro/Pacific/Bond Index
allocation. This should diversify your money in index funds without the
fees.

Re: is now a good time to buy index fund for ira account?

"dave" <> wrote
> Hi i was wondering if now is a good time to buy index fund. i started
> my sep-ira account last year and put in 3k(1k for vanguard 500 Index
> Fund Inv, and 2k in Windsor II Fund Inv) i was thinking about adding
> 6k into the sep-ira account. the index fund seems to be lagging but
> will the concept of buying low apply in this case? my other fund is
> windsor II and it seems to be doing better and it makes me want to add
> more funds to it.....any suggestion on fund allocation is greatly
> appreciated. im 28 and i have about 30 years to let the fund grow.

Given your time horizon, I would not try to time the market. Just try to
invest regularly, preferably in index funds. The following are quick, free,
online tools for determining "appropriate" allocations:

(Take the 49-question survey. At the end, it
will spew back at you recommended allocations, using the index funds it
sells. Just ignore the particular funds, and use the general
recommendations.)

(Faster than the above, but more
general, too.)

(This appears to be
identical to many others sites' tools. Fast but general.)

www.vanguard.com (Click on: "Go to Personal Investors... " ; "Planning &
Education" near top; "Retirement Planning"; "I'm already saving... "; "How
should I allocate my assets" on the right, middle; "I accept" at the
bottom.)

Googling for {portfolio allocator} turns up more, but I doubt they vary
much from the above.

If you have an account with Fidelity, I know one can log in and it has a
more detailed allocation tool. If you have an account elsewhere, it may
have an online allocation tool, too.

> i've paid off my undergrad and grad school debt as well as my condo
> mortagage therefore i don't have much expenses at this point. is it a
> good idea to fund my ira account as much as i can until i start a
> family?...... TIA

Yes, especially a Roth IRA. Have you maxed out your 401(k)?

Maybe repeat this question at misc.invest.financial-plan , for still more
input.