The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: HydroJim on July 31, 2015, 10:52:39 AM

Title: Where to invest
Post by: HydroJim on July 31, 2015, 10:52:39 AM

Currently, I have about $3200 in my Roth IRA from my 2014 contribution of $3000. By the end of 2015, I'm hoping to contribute the yearly max of $5500.

My current assets are invested in Vanguard's VTSMX which is a 100% domestic stock index fund. I'm assuming that I should now diversify my portfolio with some international stocks and some bonds. Where should I put the $5500? I'm open to all suggestions.

Background info that is probably pertinent: I'm currently a 19 year old college sophomore so I won't be retiring for a long time. I'm making about $10k a year and have college fully covered by scholarships. So that's why I'm able to invest a good amount for my age.

Title: Re: Where to invest
Post by: forummm on July 31, 2015, 10:56:17 AM

For the small amount of money you have, VTSMX is just fine. You won't need that money for a long time. Maybe once you get around $50k you can start diversifying. Just keep putting the money away!

Title: Re: Where to invest
Post by: MDM on July 31, 2015, 11:36:57 AM

VTSMX is indeed fine.  If you do want to diversify, consider VTTSX (2060 target date retirement fund).

Title: Re: Where to invest
Post by: Rosy on July 31, 2015, 12:16:43 PM

Oh wow, you are only 19 and rocking it! Congrats on staying student debt free and saving 1k a month.

Can't help you much on the investing side since I know nothing, but I am having fun looking into the
http://www.bogleheads.org/wiki/Lazy_portfolios.

Title: Re: Where to invest
Post by: HydroJim on August 01, 2015, 09:21:54 AM

Thanks for your advice everyone.

I've decided to just stick with VTSMX for now.

Title: Re: Where to invest
Post by: fb132 on August 01, 2015, 09:32:15 AM

Good for you, I wish I were 19 and doing the stuff you are doing...instead at your age I was spending my money on stupid stuff.