Need suggestion on allocating funds in my ira account

Hi i have about $9k in my ira account and would like some opinions on
what funds to buy. i have ira account under vanguard so please suggest
vanguard funds only. so far i have
Vanguard 500 Index Fund $3k
Vanguard Windsor II Fund $4k
Vanguard REIT Index Fund $2K

i'm 29 so i have about 30 to 35 years to invest. is this a bad
allocation for my situation? if so, please explain



i've done some reading but i'm still not sure what funds to add and
what percentage to allocate each fund.

since i have at least 30 years to invest therefore i'm not too
concerned with playing it safe. average of at least 10 % return is my
goal.

please include reasons for your recommandation on the portfolio
allocation. TIA


jade

Re: Need suggestion on allocating funds in my ira account

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Re: Need suggestion on allocating funds in my ira account

"jade" <> wrote
> Hi i have about $9k in my ira account and would like some opinions on
> what funds to buy. i have ira account under vanguard so please suggest
> vanguard funds only. so far i have
> Vanguard 500 Index Fund $3k
> Vanguard Windsor II Fund $4k
> Vanguard REIT Index Fund $2K
>
> i'm 29 so i have about 30 to 35 years to invest. is this a bad
> allocation for my situation? if so, please explain

As you may be aware, the minimum requirements of Vanguard may limit your
choices here.


> i've done some reading but i'm still not sure what funds to add and
> what percentage to allocate each fund.
>
> since i have at least 30 years to invest therefore i'm not too
> concerned with playing it safe. average of at least 10 % return is my
> goal.
>
> please include reasons for your recommandation on the portfolio
> allocation. TIA

I would replace the Windsor fund with an international stock fund. Google
for the advantages of owning international stocks vs. only domestic stocks.

Spend an afternoon experimenting with some of the free online allocation
tools I list at . (The
question comes up so often here that I threw this together several weeks
ago.)

Re: Need suggestion on allocating funds in my ira account

On Fri, 26 Aug 2005, jade wrote:

>i've done some reading but i'm still not sure what funds to add and
>what percentage to allocate each fund.
>
>since i have at least 30 years to invest therefore i'm not too
>concerned with playing it safe. average of at least 10 % return is my
>goal.
>
>please include reasons for your recommandation on the portfolio
>allocation. TIA
>
>
The most important factor that determines investment success is not
so much "what funds" you choose. As long as you stay diversified
then you don't have anything to worry about. The really important
thing is something that you almost never hear about; and that is,
having the correct mental attitude and discipline.

I can assure you, sometime fairly soon you will be tempted to
stop contributing to your retirement fund "for just a little while".
Perhaps you will want to buy a house and you want to save up the
down payment quicker. Perhaps you will want to go on some vacation
but you don't have the money right now. It could be any number of
things.

The bottom line is, don't do it, ever. Once you stop putting in
your regular contributions, it is very difficult to start up
again. Prepare yourself for this right now. You didn't mention
what percentage of your salary you are saving, so let's assume some
number like 10%. Now tell yourself that the 90% of your salary that
you are currently living on is *all there is*, *there is nothing more*,
and tell that to yourself until you live by it always and will not
be tempted to stop your 10% contributions.

You should even consider increasing the 10% as you get pay raises.
If you get a 3.5% raise, keep 2.5% for yourself and raise the 10% to 11%.
Do this every year and you'll be saving 20% in 10 years.

Read Clayson's excellent little book "The Richest Man in Babylon" for
more on this. Also read Stanley's "The Millionaire Next Door".

Re: Need suggestion on allocating funds in my ira account

"jade" <> wrote in message
news:
> Hi i have about $9k in my ira account and would like some opinions on
> what funds to buy. i have ira account under vanguard so please suggest
> vanguard funds only. so far i have
> Vanguard 500 Index Fund $3k
> Vanguard Windsor II Fund $4k
> Vanguard REIT Index Fund $2K
>
> i'm 29 so i have about 30 to 35 years to invest. is this a bad
> allocation for my situation? if so, please explain
>
>
>
> i've done some reading but i'm still not sure what funds to add and
> what percentage to allocate each fund.
>
> since i have at least 30 years to invest therefore i'm not too
> concerned with playing it safe. average of at least 10 % return is my
> goal.
>
> please include reasons for your recommandation on the portfolio
> allocation. TIA
>
>
> jade
>

Re: Need suggestion on allocating funds in my ira account

jade wrote:

> Hi i have about $9k in my ira account and would like some opinions on
> what funds to buy. i have ira account under vanguard so please suggest
> vanguard funds only. so far i have
> Vanguard 500 Index Fund $3k
> Vanguard Windsor II Fund $4k
> Vanguard REIT Index Fund $2K

Not bad, but you could do a little better. See below.


> since i have at least 30 years to invest therefore i'm not too
> concerned with playing it safe. average of at least 10 % return is my
> goal.

Then, if you have good risk tolerance, consider being a bit more
aggressive. Windsor II is a bit too conservative for a young person
with 30 years to retirement.

Also, I think that putting 22% into REIT is a little bit too much.

If Vanguard has a small-cap fund, I would try something like:

Vanguard 500 Index 65%
Vanguard Small-cap 20%
REIT 15%


--
Steven D. Litvintchouk
Email:

Remove the NOSPAM before replying to me.

Re: Need suggestion on allocating funds in my ira account

10% goal the way this year has been going isn't bad for where you're
going. Other than REIT, there's a lot of name domestics sitting at 2%
that turned tidy profits last year. Depends on how bad you want it -
Easy St., last I looked, is closed. May just have to hoof it and not
without foreign exposure. Happen across Third Avenue, though, emerging
and value smallcaps hasn't been doing too shaby a good part of this
year.

jade wrote:
> Hi i have about $9k in my ira account and would like some opinions on
> what funds to buy. i have ira account under vanguard so please suggest
> vanguard funds only. so far i have
> Vanguard 500 Index Fund $3k
> Vanguard Windsor II Fund $4k
> Vanguard REIT Index Fund $2K
>
> i'm 29 so i have about 30 to 35 years to invest. is this a bad
> allocation for my situation? if so, please explain
>
>
>
> i've done some reading but i'm still not sure what funds to add and
> what percentage to allocate each fund.
>
> since i have at least 30 years to invest therefore i'm not too
> concerned with playing it safe. average of at least 10 % return is my
> goal.
>
> please include reasons for your recommandation on the portfolio
> allocation. TIA
>
>
> jade