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#1
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Hey guys, I would love to search, but I have to say the UBB forum search function is FAR inferior than the vbulletin forum's. Anyways..
So I'm 20 years old in college studying to be a dentist. I'll be working in the fall, and making around 500 dollars a month, and getting 500 a month for rent from parents ( i know i'm lucky), well I'm moving in with my gf so i don't have to pay rent, so I was wondering if this would be a good plan ... I put as much as I can with what I make into a Roth IRA, and the 500 I get from rent I put into an index fund. I want to just put it in and forget about it until like years later, with minimal fees and risk. Which fund is for me? And is it worth it? Thanks.. |
#2
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probably...Target Retirement Fund
It's definitely worth it to start an ira. Pretty responsible of you to do. |
#3
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Vanguard STAR Fund (VGSTX)
It is a good fund and it has a $1,000 minimum. Everything else has a $3,000 minimum. Once you have $3,000 you might want to put your money into a pure equities fund like Vanguard Total Stock Market. |
#4
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These suggestions are good. If you have <$1000, then you could either save up, or use T.Rowe Price's funds. If you have >$1000 and <$3000, then Vanguard's STAR fund would be a great way to start. If you have >$3000, then a Vanguard Target Retirement fund (or a Vanguard Total Stock Market and/or Vanguard Total International Stock Market) would be great too.
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#5
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what's this i've been reading about Vanguard handling ur money for you? how's that work?
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#6
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Um, I think Vanguard does have a financial advisory service, but I would advise against using it. You can get better advice for free.
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#7
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Jeff, interestingly, I've been doing an experiment in my own IRA for the past few years, buying equal amounts of VGSTX and the Target Retirement 2035 (VTTHX). Star has underperformend at every turn.
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#8
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[ QUOTE ]
Jeff, interestingly, I've been doing an experiment in my own IRA for the past few years, buying equal amounts of VGSTX and the Target Retirement 2035 (VTTHX). Star has underperformend at every turn. [/ QUOTE ] That's comparing apples to oranges... Star Fund has 1/3 bonds compared to 10% for Target Retirement 2035. |
#9
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Oh this is interesting, Jeff, when I bought the fund I think it was very comparable like 75/25. They must have changed the allocation when I wasn't looking. I've been longer equities than I had wanted to be!
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#10
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FWIW, I don't like the TR funds because they use the Total Bond Market Fund. I don't think indexing the entire bond market makes sense and I prefer not to take duration and credit risk because they're correlated with equities. I like Short Term Treasuries and/or Treasury Inflation Protected Securities (TIPS) for bond allocations.
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