Vanguard Funds -again i know sorry

PokerSpaz · #1 07-12-2007, 08:14 PM

So i read this post

http://forumserver.twoplustwo.com/showfl...ue#Post10977699

and this post
http://forumserver.twoplustwo.com/showfl...ue#Post10119153

But the problem is i will be invest in roth IRAs.

What should I do with my 4k in the Roth IRA. Alot of funds have a 2k min and 3k Minimum. So i am confused on whether or not i should use vanguard mutual funds when the 4k allows me to invest in other stuff. Should i INvest in ETFs or what?

since its only 4k, i can't really diversify since alot of places have 1-3k min imum investment.

THanks alot

I am 21 years old and i want a moderately aggressive. What should i look at and study.

I also get in my 4k before the year ends.

jedi · #2 07-12-2007, 08:26 PM

[ QUOTE ]

since its only 4k, i can't really diversify since alot of places have 1-3k min imum investment.

[/ QUOTE ]

You don't really need to diversity that much with mutual funds. They're already doing the diversifying for you. Find an aggressive fund and go with it. Reevaluate in a year when you can put 4k more into the account. Good luck.

wdcbooks · #3 07-12-2007, 08:30 PM

ETFs would be a fine choice if you want to slice and dice and have your asset allocation split into several funds. If you just want simplicity you can use their targetted retirement date funds, the STAR fund, or even just Total Stock Market Index and it should serve you well.

PokerSpaz · #4 07-12-2007, 08:46 PM

I am putting 1k in star, and 3k in stock market fund. but what stock market funds are pretty moderately aggressive, not super aggressive. Give me a list of 10 vanguard funds So i can read up on them

PokerSpaz · #5 07-12-2007, 08:53 PM

i went to yahoo...and i was looking at all the 5 year returns, vanguard 500 is weak. ~6% growth and like 1% yeild.

http://finance.yahoo.com/q?s=vfinx&d=t

Thats pretty weak. But i been looking alot of the emerging market stuff is growing. I dont want to invest in that. But do you think the vanguard 500 is good place to put my 3k in?
1k in STAR and 3k in vanguard 500?

gull · #6 07-12-2007, 10:50 PM

I see no reason to concentrate your asset allocation in the Vanguard 500 fund. If you want broad exposure to the market, I would recommend a total market fund.

PokerSpaz · #7 07-12-2007, 11:56 PM

i was talking to a guy and he says your young and you can just put the whole 4k into a total stock market index.

he says its pretty aggressive but since i am young he says its good long run.

He also talked up Small cap, and mid cap, and global equity and international markets, but most those funds are 3k minimum, so i dunno how to invest in all those with only 4k in my ROTH. I am gonna put in my money for 2007. I haven't done it yet.

but 4k in TOtal stock market index doesn't seem to bad.

gull · #8 07-13-2007, 02:26 AM

Another way to get even broader diversification is to invest in one of Vanguard's Target Retirement 20XX funds. They're probably better than straight total market because they have some exposure to foreign, emerging markets, and bonds.

Don't worry about slicing and dicing with only 4k. The potential gains are minute. Just keep it simple and stick it all in one fund.

meditate89 · #9 07-13-2007, 02:35 AM

honestly i would throw it all in vanguard's emerging markets stock index fund. if you're planning to hold for 20+++ years, this will probably give you the best return...

Just buy it and forget about it. Next year when you have another 4k, buy Total Stock Market. 4k is too little to worry about diversifying with, and represents a very small amount of the future income you are likely to earn.

Yes, some people may consider emerging markets to be more volatile/ risky than other funds but as long as you're not gonna sell it after a big price drop, it is your best option. Just want to reiterate: buy it and FORGET ABOUT IT. If your holding period is a long time, there's no reason to check it every day. Check it every year- don't be tempted to sell it