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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: musicinv on May 22, 2015, 05:44:47 AM

Title: Sell to buy VTSMX or buy VTI with new money
Post by: musicinv on May 22, 2015, 05:44:47 AM
Hello network,

I am interested in owning VTSMX in my Roth IRA. Below lists my current mutual funds that I have had for the last 10 years in my IRA, with the corresponding expense ratios. Except for VFICX and the REIT I have roughly equal amounts of money invested in each. In these two the value is considerably less. My question is should I sell a portion of the funds listed below to acquire the $10,000 minimum required for VTSMX. If so, should I sell more of the fund with the highest operating cost or shave about $2k from each? OR should I just add any new money to VTI and keep my current holdings? Thank you.

VEIPX Vanguard Equity Income Fund Investor Shares  0.29%
VEXPX Vanguard Explorer Fund Investor Shares  0.53%
VHGEX Vanguard Global Equity Fund  0.61%
VFICX Vanguard Intermediate-Term Investment-Grade Fund Investor Shares  0.20%
VMRGX Vanguard Morgan Growth Fund Investor Shares  0.40%
VGSIX Vanguard REIT Index Fund Investor Shares  0.24%
VSEQX Vanguard Strategic Equity Fund    0.27%                                                                                                                                                                               
Title: Re: Sell to buy VTSMX or buy VTI with new money
Post by: forummm on May 22, 2015, 06:51:22 AM
For such a small amount of money, you have way too many funds. Just put it all in VTSAX. If you want to have bonds, put at least $10k in VTSAX, and whatever bond portion can stay in VFICX.

A lot of people with a million dollars invested just have 3 or 4 funds (VTSAX, VTIAX, and a bond fund like Total Bond).