Ok so I understand that at a high level to make some money in the market long-term I can allocate my 401Ks and IRAs across some low cost Vanguard funds following the Bogleheads approach. I read some last week concerning this approach and rebalanced funds in my husbands' 401k and one of my IRAs. I didn't really think about the current political climate (heading into an election) and the associated volatility that may produce. With the Sandy superstorm coming into play I am concerned that this was poor timing on my part.
So am a moron if I pull out and reallocate the funds back to bonds/money market account??? I know it is really hard to time the market but this is making me kind of sick to my stomach - Mint.com can be a problem if you look at it everyday.
This the current allocation today in husband's 401k (also note, I know I am not following Bogleheads to a T - this is a work in progress and partially due to limitations in what funds I can invest in - I am looking to rolling over all of my old IRAs to Vanguard - I only changed two accounts listed below recently)
I am 32, husband is almost 35 - I would like to retire in 8 years or so - although obviously won't be able to touch this money until some time thereafter.
Husband's 401K - approx 100K (Husbands expense ratio stinks - I am going to have him talk to the person that manages the 401k program - they are a small company so may have few options)
25.01% - Allocation Amount - 1.49 - Expense Ratio
Small Cap Growth Index Fund41
Investing solely in Vanguard Small Cap Growth Index Fund (Investor Class) Managed by Vanguard Group, Inc.
Ticker Symbol+: VISGX
24.88% - Allocation Amount - 1.35 - Expense Ratio
Growth Index Fund98
Investing solely in Vanguard Growth Index Fund (Signal Class) Managed by Vanguard Group, Inc.
Ticker Symbol+: VIGSX
24.86% - Allocation Amount - 1.35 - Expense Ratio
Value Index Fund98
Investing solely in Vanguard Value Index Fund (Signal Class) Managed by Vanguard Group, Inc.
Ticker Symbol+: VVISX
25.25% - Allocation Amount - 1.45 - Expense Ratio
Short-Term Federal Fund15,83
Investing solely in Vanguard Short-Term Federal Fund (Investor Class) Managed by Vanguard Group, Inc.
My IRA - Approx 50,000
15.20% - Allocation Amount - .11 - Expense Ratio
Fixed Income
Vanguard Intermediate-Term Bond Index Signal Fund
32.83% - Allocation Amount - .05 - Expense Ratio
Large US Equity
Vanguard 500 Index Signal Fund (as of 10/26/2012)
14.95% - Allocation Amount - .10 - Expense Ratio
Small/Mid US Equity
Vanguard Mid Cap Index Signal Fund
15.01% - Allocation Amount - .16 - Expense Ratio
Small/Mid US Equity
Vanguard SmallCap Index Signal Fund
21.98% - Allocation Amount - 1.00 - Expense Ratio
International Equity
Oppenheimer Developing Markets Y Fund
Any feedback will be greatly appreciated. If I do move the funds would fixed income Vanguard be the best bet? I can list out the options to move to if folks think I should.
Thanks!!