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Re: Choices for Roth gaiuslives  07-06-2008, 8:36 AM | Post #2535966
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PreII, considering you want a "one-decision" (to buy and hold for 20 years) in a qualified account, I would shy away from any individual stock.  The "deferred" nature of a Roth means that should any vehicle which populates your Roth experience a significant drawdown in NAV, you would "eat" the full loss as losses in qualified accts are not deductible.  Whatever the merits of your individual stock picks, I feel they would best be positioned in a taxable account, NOT a Roth.

As for D&C, IMO the fact that they absolutely botched it on the mortgage meltdown, suggests that, at a minimum, until they demonstrate they are back on track, to avoid adding any new AUM to their funds.

In qualified vehicles, especially for those who want to buy and hold, I would favor hybid OEFs.  These will provide reasonable, consistent growth, with a very reduced prospect for major drawdowns in NAV. Some vehicles I like in this category:

OAKBX, VWELX, GLRBX, FGBLX, WASCX, LAALX, FPACX, PRPFX

I would pick 2-5 of these.  Treat them as a 'team of horses' -- even if one falters for a time, the other should pick up the slack.

If you insist on an 'all-equity' approach.  Certainly 'global' is the way to go.  (though, again, my preference would be to take that approach in a taxable account).  My faves at the present are as follows:

1.VYM/PID: (as a combo) these are a global divd ETF.

2. Vanguard Global Equity.

3. VT: New Vanguard global stock ETF.

Good luck.

 

 

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