The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: ltt on November 26, 2014, 06:20:44 PM
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I recently cashed in a portion of a CD (earning 1.8%) to invest somewhere else--I know, kick me. We already had some investments in Vanguard and I took some of the CD money I cashed in and put some more into Vanguard. We also have some invested in T. Rowe Price; Berkshire; 401k with holdings in an index fund, a bond index fund, and a large-cap growth fund; Franklin Templeton; American Funds.
I feel like we are fairly diversified. We have no debt. I would like to invest this over 10-15 years, and am looking for growth and dividend income over the years which would be reinvested. Any suggestions?
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What risk are you trying to diversify against? When you list Vanguard, American, T Rowe Price...etc, it sounds like you're considering yourself diversified based on that alone. You're not investing "in Vanguard", you're investing in the underlying securities.
You can have 100% of your money "in Vanguard", and be completely diversified across tens of thousands of stocks/bond markets all over the world. On the other hand, you can split up your holdings amongst 10 different companies, but if they are all held in "USA Tech Stock Funds", I wouldn't consider that very diverse at all.
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What risk are you trying to diversify against? When you list Vanguard, American, T Rowe Price...etc, it sounds like you're considering yourself diversified based on that alone. You're not investing "in Vanguard", you're investing in the underlying securities.
You can have 100% of your money "in Vanguard", and be completely diversified across tens of thousands of stocks/bond markets all over the world. On the other hand, you can split up your holdings amongst 10 different companies, but if they are all held in "USA Tech Stock Funds", I wouldn't consider that very diverse at all.
Yes, I understand what you are saying. The funds we are invested in at Vanguard are large, domestic stock; health care; international stock; and a balanced fund of stocks and bonds.
I like Vanguard. I just feel like maybe we need to invest some money elsewhere, also. I guess I'm trying to determine options.
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I like Vanguard. I just feel like maybe we need to invest some money elsewhere, also. I guess I'm trying to determine options.
No reason to feel that way because it doesnt matter :)
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What risk are you trying to diversify against? When you list Vanguard, American, T Rowe Price...etc, it sounds like you're considering yourself diversified based on that alone. You're not investing "in Vanguard", you're investing in the underlying securities.
You can have 100% of your money "in Vanguard", and be completely diversified across tens of thousands of stocks/bond markets all over the world. On the other hand, you can split up your holdings amongst 10 different companies, but if they are all held in "USA Tech Stock Funds", I wouldn't consider that very diverse at all.
Yes, I understand what you are saying. The funds we are invested in at Vanguard are large, domestic stock; health care; international stock; and a balanced fund of stocks and bonds.
I like Vanguard. I just feel like maybe we need to invest some money elsewhere, also. I guess I'm trying to determine options.
Maybe this will help:
What if Vanguard gets Nuked? (http://jlcollinsnh.com/2012/09/07/stocks-part-x-what-if-vanguard-gets-nuked/)
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Thank you...yes, that was a good article. Also, after reading your first comment, I realized that we didn't really have many tech stocks, so made the decision to invest in a tech fund. :)
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Right now I have a Schwab account through my employer, but soon I plan to add Vanguard and probably even a third fund company at some point. Schwab has several commission-free ETF's with expense ratios below 0.10%, and others like Fidelity also do. Vanguard seems like the best place but it is a big strange world, no harm in keeping part of your money somewhere else.