The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: HydroJim on July 31, 2015, 10:52:39 AM
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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.
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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!
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VTSMX is indeed fine. If you do want to diversify, consider VTTSX (2060 target date retirement fund).
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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.
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Thanks for your advice everyone.
I've decided to just stick with VTSMX for now.
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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.