looking to diversify my money

[fluorescenthippo]

currently this is where my money is:

18% roth ira (in S and P 500 index fund thru vanguard)

40% ing money market (90% of this is in CDs)

20% offline money market

22% poker accounts



I want to move some of my poker money into my vanguard portfolio. should I just stick it in the SP500 index or should I look into forgein markets (or elsewhere)? I'm pretty clueless here. I am 22 years old and graduating in the winter. I am looking for low to medium risk. I wont need it for awhile, like 15+ years. Thanks.

[Emsterdad]

Ballpark how much are we talking about, and what risk are you willing to take?

[fluorescenthippo]

i will have about 20k within the next month to play around with. i can take some risk because i wont need it for another decade at least and i will still have about 30k in a money market

[gull]

Vanguards Target Retirement 2050 fund would be a good choice. It has a low expense ratio, all in one fund that gradually becomes more conservative with time. It should have slightly better risk-adjusted returns than the S&P 500 fund. I would recommend it because it's very simple. You don't have to worry about asset allocation, or complications that come with buying/selling ETFs. Also, even though it has "retirement" in its name, it has nothing to do with retirement accounts. You can always withdraw money penalty-free.

[Nomad84]

[ QUOTE ]
Also, even though it has "retirement" in its name, it has nothing to do with retirement accounts. You can always withdraw money penalty-free.

[/ QUOTE ]

Just to clarify, the target retirement funds can be held in an ordinary taxable account just like any normal index fund. The withdrawal restrictions/penalties/tax treatment all have to do with the type of account in which they are held.

[ilikeaces86_]

10k Total stock market fund 10k total international fund FTW .

[Copernicus]

for money you arent going to need for a decade or longer this is way to heavy on fixed income. move 70% of that money into an exchange traded index fund (no fees, a few bucks a trade) and 30% into high quality corporate bonds with shortish maturities (7-10 years) so that if interest rates increase you can hold them to maturity and not suffer an loss of principal.

[Jeff W]

I recommend that you read a book on asset allocation. Rick Ferri's book is good. If you don't understand what you're investing in, your compliance with your asset plan will probably be low.

[fluorescenthippo]

thanks for the replies so far, you guys are great.