Given the 40% -pop- that VEXMX (ext. market index) had in 2013, do you think that the fund is over-valued right now? Would it be a good time to jump in and get my feet wet? Or is the price sky high and should I wait for it to go on sale?
Right now I'm pumping as much money as I can into investment accounts. I've got my entire 401k contribution spilling into an S&P500 fund (lowest cost, best option), I've got my Roth IRA funds in the Vanguard REIT index (and some in individual mREITs... waiting for those to come back before selling and putting that money into the Vanguard fund as well) and now that my retirement accounts are maxing out, I want to balance the S&P 500 fund with the Extended Market index fund to complete it and make a pseudo-total market fund out of it all, but because my tax-advantaged accounts are maxed out (and done as efficiently as possible... I think), this last fund will be in a taxable account. Given the $3,000 minimum investment, I'm waiting for a good time to jump in. I could do it now by emptying my investment money market account at my bank (the one I made for investments) as well as my vacation account, which is a bit full anyway... or I can wait a little longer and see if the price drops.
What do you think? Also, what do you think about my asset allocation?
Maximum 15% of income 401k - Approx. $8,200/yr. to S&P500 index (41%) (Principal - PLFPX)
Maximum Roth - $5,500/yr. (and up when the max rises) to REIT index (27.5%) (Vanguard - VGSIX)
Everything else taxable account - Approx. $6,300/yr. to Ext. Market index (31.5%) (Vanguard - VEXMX)