Author Topic: Roth IRA - All In On VTSAX?  (Read 1578 times)

RookieStache

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Roth IRA - All In On VTSAX?
« on: September 17, 2018, 10:41:08 AM »
Hey Guys,

I opened up a Roth IRA last year and just started it out as the VFIFX 2050 Target Retirement Fund with Vanguard. After a year, I looked into this a bit and am curious if I am making a mistake here…

VFIFX
Expense ratio of .15%
1 year: 11.17%  3 year: 11.75%  5 year: 10.28%  10 year: 8.19% 

VTSAX
Expense ratio of .04%
1 year: 20.32%  3 year: 15.85%  5 year: 14.22%  10 year: 10.98% 

How bad of an idea would it be to allocate all of my Roth IRA funds into VTSAX?

Thanks for the input!

TheHardenedInvestor

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Re: Roth IRA - All In On VTSAX?
« Reply #1 on: September 17, 2018, 10:43:59 AM »
How bad would it be? It’s the best performing asset class in history...so not bad.

As for your investment goals, only you can answer that. I assume your putting this money here to sit for decades. If so, best decision you ever made.

RookieStache

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Re: Roth IRA - All In On VTSAX?
« Reply #2 on: September 17, 2018, 10:53:44 AM »
Appreciate the response! Yes, maxing out Roth IRA on top contributing to 401K, HSA etc. all to sit there for a minimum of 30 years.

Just didn't how big of a risk it was to put my entire Roth IRA into one fund (even though it's a mutual fund, which should be pretty safe being that it will sit there for 30 years).

Still a little new to investing, so always nice to double check with this smart group!

TheHardenedInvestor

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Re: Roth IRA - All In On VTSAX?
« Reply #3 on: September 17, 2018, 11:19:36 AM »
Sure. The best proven asset allocation for a 30 year investment timeline is 100% VTSAX. I’m 100% in VTSAX. My 401k, my HSA, my Roth, my IRA, my brokerage account. All of it. You can consider adding a total bond fund 30 years from now when you want to smooth out volatility.