Author Topic: New Investor question  (Read 1833 times)

alf2015

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New Investor question
« on: November 19, 2015, 07:21:58 AM »
Hello!

Although I've been contributing to my retirement account at work for a 3 years since I started working, I'm new to mutual funds and understanding investing.  I'd love some help with selecting Vanguard mutual funds for an IRA.

Currently I have:
403B: invested in Vanguard Target Retirement Fund 2050 with about $19,000 in it

I'm opening a Roth IRA at Vanguard with funds from a rollover 401k with about $5500 in it currently.  I'm trying to decide what to put my IRA funds in.  I'm considering:

Vanguard Life Strategy Growth Fund (VASGX):
Vanguard total stock market index fund investor shares: (48.3%)
Vanguard total international stock index fund investor shares: (31.8%)
Vanguard Total Bond Market II Index Fund Investor Shares: (14%)
Vanguard Total International Bond Index Fund Investor Shares: (5.9%)

 Any suggestions? Is this a good pick? New to all this.

Thanks!

MDM

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Re: New Investor question
« Reply #1 on: November 19, 2015, 09:47:02 AM »
...I'm new to mutual funds and understanding investing. 
Currently I have:
403B: invested in Vanguard Target Retirement Fund 2050 with about $19,000 in it

I'm opening a Roth IRA at Vanguard with funds from a rollover 401k with about $5500 in it currently.  I'm trying to decide what to put my IRA funds in.
 Any suggestions? ... New to all this.
alf2015, welcome to the forum.

Question: are you converting pre-tax 401k money to the Roth IRA and thus paying taxes on it?   If so, why?

Given that you are new to all this, I'd suggest congratulating yourself on the 403B choice and doing exactly the same (i.e., use the 2050 target date fund) for all your other long term investments.

As you get more experience, you may want to change - but then again you may not, because that fund is a pretty good choice.

alf2015

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Re: New Investor question
« Reply #2 on: November 20, 2015, 05:30:51 PM »
Thank you!

I am moving money from a Roth IRA at fidelity over to Roth IRA at Vanguard.  Initially, about 5 years ago, I had rolled a 401k into a Roth IRA when I left a company.  When I looked at my Roth IRA at fidelity a few days ago, I realized the fund I had it in was pretty expensive compared to options at Vanguard.

I will stick to the Target 2050 funds, thanks for your help!