#1
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IRA portfolio
Hello,
I am 19 years old. I capped out both my 06 and 07 contributions to my SEP IRA and my finacial advisor recomended the following portfolio. Is it a good one? One thing to remember is that fees are fixxed. Equity - 85% US Large Value Equity - 22% US Large Growth Equity - 33% US small value equity - 2% US small growth equity - 3% Developed international equity - 20% Emerging Markets Equity - 5% Fixed Income - 15% Core Fixed Income 11% Internaitonal Bonds 2% Cash and Equivalents 2% |
#2
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Re: IRA portfolio
scrap the fixed income portion. I can't believe at 19 they allocated any to fixed income.
Dump it into the riskier portion of your portfolio. (small/emerging markets) Krishan |
#3
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Re: IRA portfolio
yah i dont like this at all... get rid of fixed income...
also how much are you investing.... putting 2% and 3% into small cap is way too small. last thing u want is the commission being huge compared to the 2-3% being invested. ryan |
#4
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Re: IRA portfolio
Go 100% equity as stated. What family of funds are you using?
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#5
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Re: IRA portfolio
I would ditch the advisor if this is what he/she suggested. You could easily make a portfolio similar to this using low cost index funds. The only real work you would need to do once you determine your asset allocation is rebalance the portfolio once a year and make new contributions. It wouldn't be to complicated.
Also, if you are paying loads or other high fees for these funds your advisor suggested you could do better on your own. |
#6
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Re: IRA portfolio
This allocation seems almost perfect to me. I can understand the argument that 19 is too young to have fixed income but it is only 15% and helps protect against a prolonged bear market. I'm not sure what people think is so wrong here.
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#7
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Re: IRA portfolio
[ QUOTE ]
This allocation seems almost perfect to me. I can understand the argument that 19 is too young to have fixed income but it is only 15% and helps protect against a prolonged bear market. I'm not sure what people think is so wrong here. [/ QUOTE ] The fact that he is only 19 helps protect against a prolonged bear market. He doesn't need to be in bonds or fixed cash right now if he has 45 years. |
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