Author Topic: ROTH IRA, Which Vanguard Fund Would You Invest In?  (Read 615 times)

RookieStache

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ROTH IRA, Which Vanguard Fund Would You Invest In?
« on: May 18, 2018, 09:35:08 AM »
Hey guys, I just opened up a Roth IRA last year and am maxing it out. As I am fairly new to investing, I just set it up under Vanguard's Target Retirement 2050 Fund (VFIFX).

Looking at the 1,5,10 year averages, it has had solid returns but my VTSMX taxable account, for example, is beating it out by a few percentage points per year.

Would you make the switch to another fund? If so, which Vanguard fund would you invest in with your Roth if you were in my position?

Thanks!

saijoe

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Re: ROTH IRA, Which Vanguard Fund Would You Invest In?
« Reply #1 on: May 18, 2018, 09:41:48 AM »
It really depends on your age and status/net worth.  But the old standby VTSAX is a great option if you have a longish runway. 

RookieStache

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Re: ROTH IRA, Which Vanguard Fund Would You Invest In?
« Reply #2 on: May 18, 2018, 10:07:06 AM »
It really depends on your age and status/net worth.  But the old standby VTSAX is a great option if you have a longish runway.

29, Net worth circa $56,000 (Not including $100,000 equity in house).

I was thinking VTSAX as well, just didn't know how risky putting entire ROTH IRA retirement in that one fund would be.

DarrellEW

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Re: ROTH IRA, Which Vanguard Fund Would You Invest In?
« Reply #3 on: May 18, 2018, 10:16:43 AM »
Here's the composition of VFIFX:

Vanguard Total Stock Market Index Fund Investor Shares   53.8%
Vanguard Total International Stock Index Fund Investor Shares   36.1%
Vanguard Total Bond Market II Index Fund Investor Shares*   7.1%
Vanguard Total International Bond Index Fund Investor Shares   3.0%


So the question then becomes, do you want International and/or Bond exposure, and how much do you want?

If VFIFX more or less lines up with your target asset allocation, then I would just leave it in there. If you want more or less of any of those asset classes, then you should look into building your own three-fund portfolio. Or just stick it all in VTSAX if you are comfortable putting it all in US stocks.

aceyou

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Re: ROTH IRA, Which Vanguard Fund Would You Invest In?
« Reply #4 on: May 19, 2018, 09:36:14 PM »
Search jlcollins stock series and read for 90 minutes. 

If you find a better use of 90 minutes, please let me know.