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Help me start my Roth

Greenlocus 09-02-2008, 9:44 PM | Post #2557069 | 4 Replies

I am 28 and ready to start the annual Roth IRA investment. I have 5k but not sure where to put it... I understand the concept/rules with the Roth but not really sure or where to invest in regards to fund family or type of fund. I was thinking perhaps put this first 5k in an index fund (vanguard, fidelity, or t.rowe) and the next 5k next year in an emerging markets fund. I would greatly appreciate any comments and particular funds that you recommend.

Thx.

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Re: Help me start my Roth

Exactduke 09-03-2008, 3:43 AM | Post #2557108

Either of those 3 companies you mentioned, would be good choices. For a small portfolio, I would probably start with one of those target retirement funds. They are very diversified. Otherwise a total market index - Vanguard, Fidelity and TRPrice also have these.

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Re: Help me start my Roth

racsofp 09-03-2008, 4:43 AM | Post #2557112

Vanguard has a new "Total World" index fund that started in June. 1700+ stocks in 47 countries. A reasonable .45% expense ratio.

For a the initial single holding in a new portfolio, I think it's a pretty decent choice.

Vanguard Total World Stock Index. VTWSX.

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Re: Help me start my Roth

Limoman

09-03-2008, 10:26 AM | Post #2557196

And Now From " The Dark Side" of Investing..

From "Investing Library":

For Newbies on Investing?
After some 30 yrs of personal experience with me , family members ,friends: and Limo Clients:
Read this :
11 reasons passive investors let Wall Street steal their money - MarketWatch

then Read all the subjects in here> M* Retirement Planning - Tools and Calculators -

> In the Beginning, ( When God made Man and then Woman & Kids to Spend Man's $ )

just put 100% of your Savings for Retirement into Active Managed Balanced Funds.. ( AMBF's ) and only "Play" with only extra $ you may have left over..( and saving a Min. of 7% of your Income goes into your Retirement Account is your First Priority or You're going to have to be working at Wal Mart, handing out Shopping Carts when your 66...!

> What kind of Balanced Funds? Be they Indexed like VWELX, VWINX or others like them ( ave 7% apy) or Alittle more Aggressive one's like FBALX, FPACX,LAALX,OAKBX,PRPFX,PRWCX or any that have a Top 10% or better ranking for the past 10 yrs..( ave 10% apy )

> Your Max. Home mortgage is 15 yrs , not longer!

This will at least, Keep you Out of Trouble while "Trying to Learn" the Investing game..& trying to Be Pro's that Control the Game..ie: In the End ? The House Always Wins...and prey's on Amatures.
and like Charlie Munger ( Berkshire) was quoted in recent Interview...
: "Get 3 books and just Skim over them and use your common sense and admit your Incompetency on Investing.."
And per a J. Boggle ( Vanguard /indexing Fame) at a personal Seminar yrs ago: " 93% of savers Loose $ trying to invest & Beat the Stock market, which is nothing more than trying to beat Professionals that control it & Your only chance is to Own Active Managed Balanced Funds, until you prove to yourself you can beat them for at least a 10 yr period."
Of course, I've only made 15.5% past 8 yrs and 13.5% past 10 yrs following this advice and owning Balanced Funds ..Hope you can do better..but I sincerely doubt it.

Seeing as? "The Force and the Odds R Against You"

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Re: Help me start my Roth

Moderate.Bob

10-12-2008, 10:02 AM | Post #2576170

I just noticed your questions and wondered if you've held on to your money rather than investing it right now. If so, I think over the next two weeks would be a great time to buy funds -- I don't think they are going to go much lower. I am "moderate bob" in the portfolio discussion list.

If I were to invest in a single fund with your first $5,000 right now, I would buy Vanguard Wellington. It has a fantatic track record, and is as low as I think it will go right now.