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Subject:  Allocating Retirement accounts Date:  12/1/1999  3:19 PM
Author:  Meowiz Number:  15795 of 88543

I am copying a part of a post I made on the Index Fund board here, since it relates to retirement accts:

As a beginning investor, one of the first things I did after studying TMF and elsewhere was to transfer my Keogh from high front-load mutual funds to the VFINX during the past year or so. I also opened a Roth IRA, which is also in that same fund. I also rolled an old 401a plan into the VFINX. I am self-employed , 43 years old and a 'late start investor'.

I have been reading more on investing now, and am wondering about several things.

1)First, if anyone cares to comment on this, is it undesirable to have all those retirement accts in the same fund? The accountant who did our taxes this year said he thought it was a bad idea. I only did it as a first move.

2)Vanguard can do free transactions between their own funds. I don't know if this all I wish to do.

I have read about the Foolish Four beating the S&P for the past 25 years, but to invest in stocks, I would have to become the trustee of my own Keogh, which sounds confusing to me at this point....or I could roll the Keogh into a traditional IRA...and open a SEP to make new contributions from now on from my self-employment income. Or I could just decide how to allocate the Keogh within Vanguard only and then freeze it, and start a SEP. I don't know if 'freeze' means stops accruing, or only that all future contributions are stopped. The SEP permits a smaller contribution than the Keogh, that's why I originally opened a Keogh a few years ago through a broker. I never knew I would become interested and capable of investing on my own.

Thanks in advance for any comments. Meowiz

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